[Congressional Record Volume 172, Number 106 (Wednesday, June 24, 2026)]
[Senate]
[Pages S3358-S3365]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 6170. Mrs. SHAHEEN (for herself, Mr. Young, Ms. Cortez Masto, Mr.
Rounds, Ms. Slotkin, Mr. Justice, and Mr. King) submitted an amendment
intended to be proposed by her to the bill S. 4784, to authorize
appropriations for fiscal year 2027 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:
At the end of division A, add the following:
TITLE XVII--SECURE MINERALS
SEC. 1701. SHORT TITLE.
This title may be cited as the ``Securing Essential and
Critical U.S. Resources and Elements Minerals Act of 2026''
or the ``SECURE Minerals Act of 2026''.
SEC. 1702. FINDINGS.
Congress finds that--
(1) critical minerals and materials are essential to the
ongoing economic and national security of the United States,
playing a vital role in the manufacturing, transportation,
medical, technology, defense, and energy sectors;
(2) the global demand for critical minerals and materials
has been rapidly increasing due to advancements in
technology, whether defense, dual-use, or commercial, and the
increasing adoption of renewable energy sources and next-
generation automotive systems, all of which rely heavily on
critical minerals and materials for the production of
batteries, solar panels, wind turbines, high-speed computing,
advanced magnetic systems, and other high-tech applications;
(3) the People's Republic of China--
(A) currently controls a significant portion of the global
supply chain for critical minerals and materials through
extensive mining, integrated midstream operations,
significant domestic subsidies and incentives, and strategic
investments in resource-rich countries, dominating the global
market infrastructure for critical minerals and materials and
enhancing the ability of the People's Republic of China to
manipulate pricing to the detriment of competitors;
(B) centrally controls its dominant market share across
multiple critical mineral vertical markets, preventing fair
competition and hindering the ability of United States firms
and firms in partner countries to innovate and scale
production;
(C) predatorily leverages its position as sponsor or
consumer, as applicable, over mining projects globally,
resulting in a dearth of feedstocks to the great detriment of
downstream industries, regions, and countries, including the
United States;
(D) operates integrated supply chains that are subservient
to the Chinese state and are calibrated to weaponize
influence over prices and volumes in the contest for access
to critical minerals and materials, as well as the end-use
components and applications produced from critical minerals
and materials; and
(E) acts to undercut efforts in the United States and
partner countries to develop alternative sources of supply;
(4) producers of critical minerals and materials in the
United States often face artificially low prices set by
supply chains controlled by the People's Republic of China,
discouraging private investment in domestic extraction and
processing;
(5) the lack of transparent, competitive, and market-driven
pricing mechanisms for critical minerals and materials
outside of the People's Republic of China compounds market
problems, creating systemic risk and limiting the viability
of an independent supply chain for critical minerals and
materials in the United States;
(6) the United States is heavily reliant on imports for
many of the most critical minerals and materials, including
rare earth elements, making the United States vulnerable to
supply disruptions, geopolitical tensions, and economic
manipulation by countries that dominate the market,
specifically the People's Republic of China;
(7) the vulnerabilities to the United States defense
industrial base posed by reliance on imports of critical
minerals and materials are significant, and given the long
lead times for investments in both mining and processing of
critical minerals, domestic critical
[[Page S3359]]
minerals production projects are particularly susceptible to
price shocks induced by the People's Republic of China, which
can depress critical mineral prices for an extended period;
(8) increasing domestic primary feedstock production,
processing, conversion, recycling, reuse, and repurposing to
advanced materials and products, as well as increasing
alternative market supply in partner countries, are
imperative to reduce the impact of market manipulation by
foreign state actors, such as the People's Republic of China;
(9) the United States must ensure that a stable and secure
supply chain of essential resources is available to our
domestic innovation and manufacturing ecosystems;
(10) sustainable and responsible corporate behavior in the
direct operations of companies and across their global value
chains is important to ensuring a resilient domestic critical
minerals supply;
(11) investments in domestic extraction and processing
infrastructure, as well as reuse, repurposing, and recycling,
are necessary to build a resilient and diversified supply
chain for critical minerals and materials, supporting the
economic growth and national security interests of the United
States; and
(12) government support to develop and ensure the integrity
of Western and partner country markets for critical minerals
and materials as a countermeasure against the anti-
competitive tactics of the People's Republic of China and the
supply chain co-collaborators of the People's Republic of
China will fill the most acute strategic gap, which cannot be
otherwise achieved by private industry participants acting
alone.
SEC. 1703. DEFINITIONS.
In this title:
(1) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(A) the Committee on Agriculture, Nutrition, and Forestry
of the Senate;
(B) the Committee on Agriculture of the House of
Representatives;
(C) the Committee on Armed Services of the Senate;
(D) the Committee on Armed Services of the House of
Representatives;
(E) the Committee on Banking, Housing, and Urban Affairs of
the Senate;
(F) the Committee on Financial Services of the House of
Representatives;
(G) the Committee on Commerce, Science, and Transportation
of the Senate;
(H) the Committee on Energy and Commerce of the House of
Representatives;
(I) the Committee on Energy and Natural Resources of the
Senate;
(J) the Committee on Natural Resources of the House of
Representatives;
(K) the Committee on Foreign Relations of the Senate; and
(L) the Committee on Foreign Affairs of the House of
Representatives.
(2) Authorized intermediary.--The term ``authorized
intermediary'' means an entity that--
(A) is a private entity;
(B) has expertise in more than 1 critical mineral or
material;
(C) has expertise in commodities trading, market making,
capital management, or finance;
(D) does not have any management influenced by a foreign
entity of concern or a citizen of a covered country,
including any entities affiliated with the private entity or
the ownership of the private entity;
(E) is not owned, controlled, directed, financed, or
otherwise influenced, directly or indirectly, in whole or in
any part greater than 25 percent, by a foreign entity of
concern, a citizen of a covered country, or the government of
a covered country; and
(F) has been approved to be an authorized intermediary by
the Board.
(3) Board.--The term ``Board'' means the board of governors
of the Reserve established by section 1705(a).
(4) Chairperson.--The term ``Chairperson'' means the
Chairperson of the Board.
(5) Covered country.--The term ``covered country'' means a
country that--
(A) is a covered nation (as defined in section 4872(f) of
title 10, United States Code); or
(B) the Secretary of Energy, in consultation with the
Secretary of Defense, the Secretary of State, and the
Director of National Intelligence, determines to be engaged
in conduct that is detrimental to the national security or
foreign policy of the United States.
(6) Critical mineral or material.--The term ``critical
mineral or material'' means mineral or material included in
the list of eligible critical minerals and materials
established by the Reserve under section 1708(a).
(7) Dependence rate.--The term ``dependence rate'' means
the percentage of domestic end-use consumption of a critical
mineral or material that is supplied by production by a
foreign entity of concern or in a covered country, in
aggregate.
(8) Foreign entity of concern.--The term ``foreign entity
of concern'' means a foreign entity that--
(A) meets the requirements described in subparagraphs (A),
(B), (D), or (E) of section 10638(3) of the Research and
Development, Competition, and Innovation Act (42 U.S.C.
19237(3)); or
(B)(i) is owned, controlled, directed, financed, or
otherwise influenced, directly or indirectly, in whole or in
any part greater than 25 percent, by the government of a
foreign country that is a covered country; or
(ii) is otherwise subject to the jurisdiction or direction
of a government of a covered country;
(9) Indirect financial interest.--
(A) In general.--The term ``indirect financial interest'',
with respect to a person, means a financial interest--
(i) that is not directly held by that person; and
(ii) from which that person benefits.
(B) Benefits.--For the purposes of subparagraph (A)(ii), in
addition to any other benefit, a person shall be considered
to benefit from a financial interest if the financial
interest is held by--
(i) a spouse, child, or dependent of that person; or
(ii) a close family member or other individual having a
close relationship with, and residing in the home of, that
person.
(10) Inspector general.--The term ``Inspector General''
means the Inspector General of the Reserve.
(11) Partner country.--The term ``partner country'' means--
(A) a member country of the North Atlantic Treaty
Organization;
(B) a country that has been designated as a major non-NATO
ally under section 517 of the Foreign Assistance Act of 1961
(22 U.S.C. 2321k); or
(C) a foreign country, including any market or any producer
in a foreign country--
(i) with which the United States has entered into a mutual
defense treaty or other mutual defense agreement, but not
including Venezuela;
(ii) that is recognized by the Secretary of State and the
Secretary of Defense as a strategic partner due to an
established bilateral agreement that emphasizes mutual
interests in security, defense, and critical mineral supply
chains, including countries designated under United States
strategic frameworks and agreements;
(iii) with which the United States has entered into a
comprehensive economic and trade agreement that includes
provisions for the collaboration on critical mineral
resources and to safeguard supply chains critical to national
security and economic stability;
(iv) with which the United States Geological Survey has in
effect a memorandum of understanding concerning scientific
and technical cooperation in earth sciences, unless that
country is a covered country; or
(v) with which the Department of State, the United States
International Development Finance Corporation, the Export-
Import Bank of the United States, or the United States Trade
and Development Agency is working to advance an active
critical mineral project.
(12) Production rate.--The term ``production rate'' means
the percentage of domestic end-use consumption of a critical
mineral or material that is supplied by domestic and partner
country production in aggregate.
(13) Purposes of the reserve.--The term ``purposes of the
Reserve'' means the purposes of the Reserve described in
section 1704(b).
(14) Recycle.--The term ``recycle'' means an action or
process to convert a critical mineral or material contained
within a finished or semi-finished product into a form
suitable for repurposing or reuse of the critical mineral or
material.
(15) Repurpose.--The term ``repurpose'' means any operation
that results, in whole or in part, in a critical mineral or
material being used for a different purpose or application
than the purpose or application for which the critical
mineral or material, or the product into which the critical
mineral or material is manufactured into, was originally
intended.
(16) Reserve.--The term ``Reserve'' means the Strategic
Resilience Reserve Corporation of the United States
established by section 1704(a)(1).
(17) Reuse.--The term ``reuse'' means the complete or
partial direct use of a critical mineral or material after
use for the original purposes for which the critical mineral
or material was intended.
(18) Vice-chairperson.--The term ``Vice-chairperson'' means
the Vice-chairperson of the Board.
SEC. 1704. ESTABLISHMENT.
(a) Entity Formation.--
(1) In general.--There is established a wholly owned
government corporation, to be known as the ``Strategic
Resilience Reserve Corporation of the United States''.
(2) Conforming amendment.--Section 9101(3) of title 31,
United States Code, is amended by adding at the end the
following:
``(Q) the Strategic Resilience Reserve Corporation of the
United States.''.
(b) Purposes.--The purposes of the Reserve are--
(1) to support a free, fair, and competitive market for
critical minerals and materials in which domestic and partner
country producers and processors can compete and innovate;
(2) to support domestic and partner country production,
extraction, processing, refining, reuse, repurposing, and
recycling of, and capabilities and infrastructure with
respect to, critical minerals and materials;
(3) to support and protect stable and economically
sustainable prices of critical minerals and materials,
including price levels consistent with competitive market
economies and reliable supply;
(4) to support responsible production of critical minerals
and materials with respect
[[Page S3360]]
to standards for transparency, environmental, and labor
practices, and to ensure a competitive market for producers
meeting those standards;
(5) to assist in maintaining balanced and adequate supplies
of critical minerals and materials to the United States, as
determined by the Board;
(6) to the maximum extent practicable, to ensure that, at
each stage of the supply chain--
(A) the production rate of each critical mineral or
material is equal to or greater than a percentage determined
to be reasonable by the Board, in coordination with
appropriate Federal agencies, but not less than 25 percent;
and
(B) the dependence rate for each critical mineral or
material is equal to or less than a percentage determined to
be reasonable by the Board, in coordination with appropriate
Federal agencies, but not more than 75 percent;
(7) to prioritize--
(A) domestic projects and supply chains, including
processing capacity, for critical minerals and materials;
(B) projects that--
(i) recycle, reuse, or repurpose critical minerals or
materials; or
(ii) extract or produce critical minerals or materials from
mine or industrial waste, including mining tailings,
industrial waste, or non-conventional waste streams; and
(C) projects for critical minerals or materials the
dependence rate of which is 100 percent; and
(8) to ensure the efficient use of government funds to
support critical mineral and material projects and, to the
maximum extent practicable, ensure fair returns to taxpayers
and investments made by the Reserve.
SEC. 1705. BOARD OF GOVERNORS.
(a) Membership.--
(1) Appointment.--
(A) In general.--The Reserve shall have a board of
governors consisting of 7 voting members appointed by the
President, by and with the advice and consent of the Senate.
(B) Chairperson and vice-chairperson.--The President shall
designate, by and with the advice and consent of the Senate--
(i) 1 member of the Board to serve as Chairperson, for a
term of 4 years; and
(ii) 1 member of the Board to serve as Vice-chairperson,
for a term of 4 years, and who shall serve as Chairperson in
the absence or vacancy of the Chairperson.
(C) Initial appointment.--Not later than 180 days after the
date of enactment of this Act, the President shall appoint
each of the 7 members of the Board.
(D) Representation.--The President shall carry out this
paragraph with due regard for a fair representation of
Tribal, labor, environmental, industrial, and commercial
interests.
(2) Qualifications.--To be eligible to be appointed as a
member of the Board under paragraph (1), an individual--
(A) shall have significant demonstrated expertise in--
(i) the business of commodities production, storage, or
trade, or the financial sector as it relates to critical
minerals or materials;
(ii) the financing, development, or operation of projects
related to the manufacturing and commercialization of
critical minerals or materials;
(iii) the demand for, and usage of, critical minerals or
materials, including future demand or usage of critical
minerals or materials for national security and economic
purposes;
(iv) the recycling, repurposing, or reuse of critical
minerals; or
(v) other experience related to the production and usage of
critical minerals and materials, including expertise in
sustainable and responsible production practices, in the
fields of engineering, logistics, law, academia, research, or
policy; and
(B) may not--
(i) have a direct or indirect financial interest in an
entity directly involved in the commodities industry or
financial sector as it relates to critical minerals or
materials; or
(ii) have immediate family with a direct financial interest
in an entity directly described in clause (i).
(3) Terms.--
(A) In general.--Except as otherwise provided in this
section, each member of the Board shall be appointed for a
term of 14 years.
(B) Initial staggered terms.--Of the members first
appointed to the Board--
(i) 1 member each shall be appointed to a term expiring in
calendar year 2028, 2030, 2032, 2034, 2036, 2038, and 2040,
respectively; and
(ii) each term shall expire on January 31 of the applicable
calendar year.
(C) Vacancies.--Not later than 180 days after the date on
which a vacancy occurs on the Board before the expiration of
the term for that member, the President, by and with the
advice and consent of the Senate, shall appoint a new member
of the Board to fill the vacancy and serve the remainder of
that term.
(D) Completion of term.--
(i) In general.--On expiration of a term for a Board
member, the applicable Board member may continue to serve for
1 year or until a successor is appointed pursuant to this
subsection, whichever is less.
(ii) Chairperson and vice-chairperson.--An individual who
is appointed to serve a term as the Chairperson or Vice-
chairperson under paragraph (1)(B) shall, after such term
ends--
(I) serve as the Chairperson or Vice-chairperson,
respectively, until a successor is appointed pursuant to this
subsection; and
(II) serve as a member of the Board for the remainder of
the term of such individual in accordance with this
paragraph.
(4) Compensation.--Each member of the Board shall be
compensated at a rate equal to the annual rate of basic pay
prescribed for level III of the Executive Schedule under
section 5314 of title 5, United States Code.
(5) Conflicts of interest.--
(A) In general.--During the period beginning on the date on
which the term of a member of the Board begins and ending on
the date that is 2 years after the date on which the term of
that member ends, the member may not hold any direct or
indirect financial interest in, or hold any office, position,
including in an advisory or consultant position, or other
employment in or with, any entity receiving or pursuing
financial support from the Reserve.
(B) Opportunity to cure violation.--
(i) In general.--If the Inspector General finds that an
individual described in subparagraph (A) is in violation of
that subparagraph, that individual shall cure the applicable
violation by not later than 30 days after the date on which
the violation is found.
(ii) Requirements to cure.--To cure a violation of
subparagraph (A), as required by clause (i), the applicable
individual shall, at a minimum--
(I) renounce any pecuniary gain associated with the
violation; and
(II) terminate each relationship that is the subject of the
violation.
(C) Penalty for uncured violation.--
(i) Removal.--If the Inspector General finds that an
individual described in subparagraph (A) is in violation of
that subparagraph and does not cure the violation in
accordance with subparagraph (B) by the date described in
clause (i) of that subparagraph or, as applicable, by the
date established by the Inspector General under subparagraph
(D), that individual shall be removed from the Board.
(ii) Applicability of criminal liability.--
(I) In general.--A member of the Board shall be considered
to be an officer or employee of the Executive Branch for
purposes of section 207(a) of title 18, United States Code,
and shall be subject to paragraph (2) of that section.
(II) Referral.--If the Inspector General makes a finding
described in clause (i) with respect to an individual
described in that clause, the Inspector General may refer the
matter to the Attorney General.
(D) Extension of cure period.--The Inspector General--
(i) may extend the time period provided under subparagraph
(B)(i) for an individual described in subparagraph (A) to
cure a violation of that subparagraph by not more than 90
days; and
(ii) shall document the rationale behind any extension
granted under clause (i).
(6) Removal.--Except as provided in paragraph 5(C)(i), no
member of the Board, Chairperson, and Vice-chairperson may be
removed from office except by--
(A) impeachment by Congress;
(B) removal from office because of a Federal criminal
conviction for a felony, in which case the member,
Chairperson, or Vice-chairperson shall be considered to have
been removed from the Board; or
(C) the action of the President for inefficiency, neglect
of duty, malfeasance in office, or incapacity to perform the
applicable duties described in this section.
(b) Meetings.--
(1) Open to the public; notice.--Except as provided in
paragraph (3), all meetings of the Board shall be--
(A) open to the public; and
(B) preceded by reasonable public notice.
(2) Frequency.--The Board shall meet--
(A) not later than 60 days after the date on which all
members of the Board are first appointed;
(B) not less frequently than quarterly after the date
described in subparagraph (A); and
(C) at the call of--
(i) the Chairperson; or
(ii) 4 or more members of the Board.
(3) Closed meetings.--The Board, by majority vote of the
members, may close a meeting to the public if, during the
meeting, there is likely to be disclosed--
(A) sensitive information regarding national security; or
(B) proprietary or sensitive information regarding a
project under consideration for assistance under this title.
(4) Minutes.--
(A) In general.--Except as provided in subparagraph (B),
the minutes of each meeting of the Board shall be made
publicly available as soon as practicable.
(B) Closed meeting minutes.--The minutes for a closed
meeting shall be made available--
(i) to the appropriate congressional committees not later
than 60 days after the date of the closed meeting; and
(ii) to the public not later than 3 years after the date of
the closed meeting, with any necessary redactions to protect
information that remains proprietary or sensitive at the time
of publication.
(5) Quorum.--5 members of the Board shall constitute a
quorum.
(6) Voting.--
(A) In general.--Each member of the Board shall have an
equal vote in all decisions of the Board.
[[Page S3361]]
(B) Decisions.--Unless otherwise specified, decisions of
the Board shall be made by majority vote of the members
constituting a quorum.
(c) Powers and Duties of the Board.--The Board shall--
(1) not later than 180 days after the date on which all
members of the Board are appointed--
(A) develop and approve the bylaws of the Reserve,
including bylaws for the regulation of the affairs and
conduct of the business of the Reserve, consistent with the
purpose, goals, objectives, and policies of this title;
(B) establish dollar-value thresholds, not to exceed
$2,500,000, above which transactions and loans made by the
Reserve will require approval of the Board;
(C) establish committees required by this title composed
solely of members of the Board, as the Board determines to be
appropriate;
(D) develop and approve a conflict-of-interest policy for
the Board and employees of the Reserve, including--
(i) establishing compensation levels for employees of the
Reserve, not to exceed $150,000 initially (but which may be
adjusted for inflation), above which employees of the Reserve
shall be limited with regard to future employment at and
compensation from entities receiving financial support from
the Reserve, for a period not to exceed the date that is 2
years after the date on which employment with the Reserve
ends; and
(ii) establishing penalties for violations, including
monetary penalties, that, for violations of the limitations
described in clause (i), may be based on the higher of--
(I) the current compensation of the employee; and
(II) the total compensation from entities receiving
financial support from the Reserve;
(E) approve or disapprove internal policies that the
Chairperson shall submit to the Board, including--
(i) policies and procedures regarding the approval of
authorized intermediaries;
(ii) policies and procedures regarding the project
application and approval process;
(iii) policies and procedures regarding the acquisition and
sale of critical minerals and materials sufficient to ensure
fair access to transactions with the Reserve and effective
use of capital of the Reserve;
(iv) policies and procedures regarding financing,
acquisition, and sale to raise global production standards
for critical minerals and materials that minimize
environmental damage, prevent forced labor use, and ensure a
more competitive market for producers in countries with
stronger standards; and
(v) operational guidelines; and
(F) approve or disapprove a 1-year business plan and budget
for the Reserve;
(2) ensure that the Reserve is operated in a manner that is
consistent with this title by--
(A) monitoring and assessing the effectiveness of the
Reserve in achieving the purposes of the Reserve;
(B) reviewing and approving internal policies, annual
business plans, annual budgets, and long-term strategies
submitted by the Chairperson;
(C) reviewing and approving annual reports submitted by the
Chairperson;
(D) engaging 1 or more external auditors; and
(E) reviewing and approving all changes to the organization
of the Reserve;
(3) appoint and fix, by a vote of not fewer than 5 of the 7
members of the Board, and without regard to the provisions of
chapter 51 and subchapter III of chapter 53 of title 5,
United States Code, the compensation and adjustments to
compensation of all personnel of the Reserve, subject to the
condition that in appointing and fixing any compensation or
adjustments to compensation under this paragraph, the Board
shall--
(A) consult with, and seek to maintain comparability with,
other comparable Federal personnel, as the Board may
determine to be appropriate;
(B) consult with the Office of Personnel Management; and
(C) carry out those duties consistent with merit
principles, where applicable, as well as the education,
experience, level of responsibility, geographic differences,
comparability to private sector positions, and retention and
recruitment needs of the Reserve in determining compensation
of personnel;
(4) approve by a vote of not fewer than 5 of the 7 members
of the Board--
(A) any changes to the bylaws or internal policies of the
Reserve; and
(B) any equity investments and accompanying documentation
made under section 1712(b)(4);
(5) have the authority and responsibility--
(A) to oversee entering into and carrying out contracts,
leases, cooperative agreements, or other transactions as are
necessary to carry out this title;
(B) to approve of the acquisition, lease, pledge, exchange,
and disposal of real and personal property by the Reserve and
otherwise approve the exercise by the Reserve of all of the
usual incidents of ownership of property, to the extent that
the exercise of those powers is appropriate to and consistent
with the purposes of the Reserve;
(C) to determine the character of, and the necessity for,
the obligations and expenditures of the Reserve, and the
manner in which the obligations and expenditures will be
incurred, allowed, and paid, subject to this title and
Federal law specifically applicable to wholly owned
government corporations;
(D) to execute or approve, in accordance with applicable
bylaws and regulations, appropriate financial instruments and
investments, with the understanding that the investments
carry financial risk and may result in financial losses;
(E) to approve other forms of credit enhancement that the
Reserve may provide to projects, subject to the condition
that the forms of credit enhancements shall be consistent
with the purposes of this title;
(F) to exercise all other lawful powers that are necessary
or appropriate to carry out, and are consistent with, the
purposes of the Reserve;
(G) to sue or be sued in the corporate capacity of the
Reserve in any court of competent jurisdiction;
(H) to indemnify and hold harmless the members of the Board
for any liabilities arising out of the actions of the members
acting in that capacity, in accordance with, and subject to
the limitations under, this title;
(I) to enter into binding commitments, as specified in
approved financial assistance packages; and
(J) to determine whether--
(i) to obtain a lien on the assets of an entity that
receives assistance under this title; and
(ii) to subordinate a lien under clause (i) to any other
lien securing project obligations; and
(6) establish the risk and audit committees described in
section 1716.
SEC. 1706. AUTHORIZATION OF APPROPRIATIONS.
(a) Authorization.--There is authorized to be appropriated
to the Reserve to carry out the requirements of this title,
subject to subsection (b), $2,500,000,000, to remain
available until expended.
(b) Limitation Relating to the President and Vice
President.--None of the funds authorized to be appropriated
or otherwise made available by this title may be obligated or
expended to provide any grant, contract, loan, or other
financial assistance to an entity in which the President,
Vice President, or an immediate family member (as defined in
section 1128(j) of the Social Security Act (42 U.S.C. 1320a-
7(j))) of the President or Vice President holds, directly or
indirectly, any ownership interest or serves in any
managerial, officer, director, or board capacity.
SEC. 1707. GENERAL AUTHORITIES.
To the extent necessary to develop, operate, or maintain
the Reserve, the Reserve may--
(1) issue rules, regulations, or orders;
(2) acquire by purchase land or interests in land for the
location of storage and related facilities;
(3) construct, purchase, lease, or otherwise acquire
storage and related facilities;
(4) use, lease, maintain, sell, or otherwise dispose of
land or interests in land, or of storage and related
facilities acquired under this title, under such terms and
conditions as the Board considers necessary or appropriate;
(5) acquire, subject to the requirements of this title, by
purchase, exchange, or otherwise, critical minerals or
materials for storage;
(6) sell, or otherwise dispose of, subject to the
requirements of this title, critical minerals, materials, or
other assets;
(7) store critical minerals or materials in storage
facilities owned and controlled by the United States or in
storage facilities owned by authorized intermediaries if the
Reserve has sufficient contractual certainty of access to the
critical minerals and materials and those facilities are
subject to audit by the United States;
(8) execute contracts with private entities for the storage
of critical minerals and materials at storage facilities
owned by private entities if the Reserve has sufficient
contractual certainty of access to those critical minerals
and materials and those facilities are subject to audit by
the United States;
(9) partner with private sector, academia, and Federal
agencies to further the purposes of the Reserve, including to
advance the development and commercialization of responsible
reuse and recycling processes for critical minerals and
materials; and
(10) execute any contracts necessary to develop, operate,
or maintain the Reserve.
SEC. 1708. IDENTIFICATION OF ELIGIBLE CRITICAL MINERALS AND
MATERIALS.
(a) Eligible Critical Minerals and Materials List.--Subject
to subsections (b), (c), and (d), the Reserve, in
consultation with the heads of Federal departments and
agencies described in section 1709(6), shall establish, and
thereafter maintain, a list of critical minerals and
materials eligible for financing or acquisition support
described in section 1712.
(b) Requirements.--
(1) Establishment.--A mineral or material may only be
included on the list of eligible critical minerals and
materials established under subsection (a) if--
(A) the mineral or material is--
(i) included on the list of critical minerals published by
the United States Geological Survey pursuant to section
7002(c) of the Energy Act of 2020 (30 U.S.C. 1606(c));
(ii) included on the list of critical materials published
by the Department of Energy pursuant to section 7002(a) of
the Energy Act of 2020 (30 U.S.C. 1606(a)); or
(iii) a material of interest designated by the Director of
the Defense Logistics Agency; and
(B) the Reserve determines that the mineral or material--
[[Page S3362]]
(i) is a non-fuel mineral or material;
(ii) has a vulnerable or highly concentrated supply chain;
and
(iii) is necessary--
(I) for the national defense and national security
requirements of the United States;
(II) for the energy infrastructure of the United States,
including--
(aa) pipelines;
(bb) refining capacity;
(cc) electrical power generation, storage, transmission,
and distribution;
(dd) renewable energy production; and
(ee) energy storage
(III) to support domestic manufacturing, agriculture,
housing, telecommunications, health care, or transportation
and transportation infrastructure; or
(IV) for the economic security or balance of trade of the
United States.
(2) Modifications.--
(A) Additions.--After the list of eligible critical
minerals and materials is established under paragraph (1),
the Reserve may add a mineral or material to the list of
eligible critical minerals and materials maintained under
subsection (a) if, after the date that the most recent list
is published under subsection (e)(1)--
(i) the mineral or material--
(I) is included on the most recently published list of
critical minerals published by the United States Geological
Survey pursuant to section 7002(c) of the Energy Act of 2020
(30 U.S.C. 1606(c));
(II) is included on the most recently published list of
critical materials published by the Department of Energy
pursuant to section 7002(a) of the Energy Act of 2020 (30
U.S.C. 1606(a)); or
(III) a material of interest designated by the Director of
the Defense Logistics Agency; and
(ii) the Reserve determines that the mineral or material
meets the requirements described in paragraph (1)(B).
(B) Removals.--After the list of eligible critical minerals
and materials is established under paragraph (1), the Reserve
shall remove a mineral or material from the list of eligible
critical minerals and materials maintained under subsection
(a) if--
(i) the mineral or material, as of the date on which the
list is published under subsection (e)(1)--
(I) has not been included on a list of critical minerals
published by the United States Geological Survey pursuant to
section 7002(c) of the Energy Act of 2020 (30 U.S.C. 1606(c))
for a period of at least 3 years;
(II) has not been included on a list of critical materials
published by the Department of Energy pursuant to section
7002(a) of the Energy Act of 2020 (30 U.S.C. 1606(a)) for a
period of at least 3 years; or
(III) has not been designated as a material of interest by
the Director of the Defense Logistics Agency for a period of
at least 3 years; or
(ii) the Reserve determines that the mineral or material no
longer meets the requirements described in paragraph (1)(B).
(c) Considerations.--In establishing and maintaining the
list of eligible critical minerals and materials under
subsection (a), the Reserve shall consider--
(1) the results of any assessments conducted under sections
1710 and 1711;
(2) the existing market infrastructure and financial
environment for a given critical mineral or material,
especially domestically or in partner countries;
(3) the substitutability of, and projected demand for, a
given critical mineral or material; and
(4) other information the Reserve determines necessary to
achieve the purposes of the Reserve.
(d) Exclusions.--A mineral or material may not be included
on the list of eligible critical minerals and materials
established and maintained under subsection (a) if the
mineral or material is--
(1) oil, oil shale, natural gas, coal, or uranium;
(2) water, ice, or snow; or
(3) a common variety, as determined by the Board, of sand,
gravel, stone, pumice, cinders, or clay.
(e) Update.--
(1) In general.--The Reserve shall publish and update not
less frequently than annually the list of eligible critical
minerals and materials established and maintained under
subsection (a).
(2) Requirement.--In carrying out paragraph (1), the
Reserve shall separately publish a list of minerals and
materials--
(A) previously included on a list published under paragraph
(1) but were removed within the previous 3 years; and
(B) not included in the list published under paragraph (1)
but with respect to which the Reserve has an active position,
contract, or transaction.
SEC. 1709. DATA COLLECTION.
There is established within the Reserve a division, to be
known as the ``Division of Data Collection'', which, to the
extent practicable, shall--
(1) be led by a Director selected by the Board;
(2) develop and maintain a proprietary dataset sufficient
to ensure the thorough analysis of global critical minerals
and materials markets;
(3) collect and maintain sufficient datasets, including
data comprising global, domestic, and partner country markets
and, to the extent possible, data derived from individual
critical mineral and material projects, to inform and
estimate--
(A) production, extraction, infrastructure, repurposing,
and recycling costs for critical minerals and materials
supply chains;
(B) collection and recycling rates for critical minerals
and materials in domestic and partner country markets; and
(C) the forecast of supply and demand of critical minerals
and materials within domestic and partner country markets;
(4) collect and maintain--
(A) actual transaction price data for critical minerals and
materials in the global market, including geographic data;
and
(B) any other datasets necessary to effectuate such
purpose, including modeled transaction data and datasets
produced by or derivative of datasets produced by the
People's Republic of China;
(5) using the most current data collected under paragraphs
(3) and (4), support the activities described in sections
1710 and 1712;
(6) consult with relevant heads of Federal departments and
agencies, including--
(A) the Secretary of Agriculture;
(B) the Secretary of Commerce;
(C) the Secretary of Defense;
(D) the Secretary of Energy;
(E) the Secretary of the Interior;
(F) the Secretary of State;
(G) the Secretary of the Treasury;
(H) the Chief Executive Officer of the United States
International Development Finance Corporation;
(I) the Director of the Central Intelligence Agency;
(J) the Director of the United States Geological Survey;
(K) the President of the Export-Import Bank of the United
States; and
(L) any other Federal department or agency head the
Director determines necessary;
(7) establish mechanisms when establishing loan terms,
contracts, and agreements as described in this title to
collect the necessary data required by this section; and
(8) to the extent practicable, carry out the
responsibilities of this section using existing government
data and information.
SEC. 1710. CRITICAL MINERAL AND MATERIAL MARKET RISK AND
VULNERABILITY ASSESSMENT.
(a) Establishment.--There is established within the Reserve
a division, to be known as the ``Division of Risk and
Vulnerability Evaluation'', which shall--
(1) be led by a Director selected by the Board;
(2) develop or, to the extent practicable, use existing
sophisticated models to evaluate threats and risks in
critical mineral and material markets across United States
industrial sectors, including defense, energy, agriculture,
transportation, health, and emerging technology;
(3) maintain a comprehensive database of critical mineral
and material price movements, supply chain vulnerabilities,
production and processing capacities, and consumption
patterns;
(4) identify critical dependencies in critical mineral and
material markets that could threaten national security or
economic stability;
(5) assess the potential for geopolitical events, natural
disasters, technological disruptions, or market failures to
impact commodity markets;
(6) develop and implement methodologies for modeling the
impact of various critical mineral or material shocks on the
United States economy;
(7) assess vulnerabilities, including price spikes, supply
disruptions, transportation failures, export controls, and
financial market disturbances;
(8) model the cross-sectoral impacts of critical mineral or
material price or supply shocks, including effects on
inflation, employment, government finances, and consumer
welfare;
(9) assess the specific impact of critical mineral or
material disruptions on infrastructure, national security
assets, and essential services; and
(10) to the extent practicable, carry out the
responsibilities of this section using existing government
data and information.
(b) Mandatory Risk Assessment.--
(1) In general.--The Reserve shall conduct and submit to
the appropriate congressional committees, the President, and
the heads of Federal departments and agencies listed in
section 1709(6) a biennial comprehensive risk and
vulnerability assessment for critical minerals and materials,
which shall include--
(A) identification of specific threats to stable supply and
prices;
(B) an analysis of current market conditions, including
geographic and ownership concentration of suppliers,
transportation bottlenecks, and financial vulnerabilities;
(C) an evaluation of substitution possibilities and
technological alternatives; and
(D) recommendations for risk mitigation strategies.
(2) Form of assessment.--
(A) In general.--Each assessment required by paragraph
(1)--
(i) shall be submitted in unclassified form; but
(ii) may include a classified annex.
(B) Requirement.--Any assessments required by paragraph (1)
that include a classified annex shall include an unclassified
summary.
SEC. 1711. PRODUCTION STANDARDS.
There is established within the Reserve a division, to be
known as the ``Division of Production Standards'', which
shall--
[[Page S3363]]
(1) be led by a Director selected by the Board;
(2) develop methodologies for evaluating relative risk in
global environmental and labor standards and practices for
the production, extraction, processing, reuse, repurposing,
and recycling of critical minerals and materials, including
transparency, traceability, and forced labor risk, which may
include incorporating existing research;
(3) conduct periodic risk-based assessments of
environmental and labor standards and practices for the
production, extraction, processing, reuse, repurposing, and
recycling of critical minerals and materials in foreign
countries producing critical minerals and materials, and, to
the extent practicable, significant production projects; and
(4) publish an annual report summarizing the methodologies
used and describing the results of the most recent
assessments conducted under paragraph (3) for each foreign
country and significant production project, and, to the
extent practicable, mitigation measures used in transactions
and loans made by the Reserve, without identifying
proprietary or sensitive commercial information.
SEC. 1712. FINANCING AND ACQUISITION OF CRITICAL MINERALS OR
MATERIALS.
(a) Authority.--
(1) In general.--The Reserve may deploy financing and
acquisition tools as described in subsection (b) to achieve
the purposes of the Reserve, subject to the condition that
the Reserve may not deploy such tools to benefit a foreign
entity of concern.
(2) Considerations.--In carrying out this section, the
Reserve shall consider--
(A) the results of the assessments described in section
1711(3);
(B) the ability of the Reserve to efficiently achieve the
purposes of the Reserve with limited resources;
(C) diversification across critical minerals and materials;
(D) non-Reserve investments and market developments
regarding a specific critical mineral or material;
(E) with respect to deploying financing and acquisition
tools with a specific producer or processor, the management,
financial condition, and ability of the producer or processor
to fulfill any contractual obligations, and the reasonable
likelihood of repayment, performance, or recovery, as
applicable; and
(F) other factors the Reserve determines valuable to
achieving the purposes of the Reserve over an extended period
of time.
(3) Federal government investments.--The Reserve shall, to
the maximum extent practicable in carrying out this section,
consult and coordinate with, and leverage existing
investments made by, other Federal departments and agencies,
including--
(A) the Export-Import Bank of the United States;
(B) the United States International Development Finance
Corporation;
(C) the Department of Energy, pursuant to title XVII of the
Energy Policy Act of 2005 (42 U.S.C. 16511 et seq.);
(D) the Office of Strategic Capital of the Department of
Defense; and
(E) applicable execution offices of the Department of
Defense for contract actions carried out under title III of
the Defense Production Act of 1950 (50 U.S.C. 4531 et seq.).
(b) Means of Support.--The financing and acquisition tools
referred to in subsection (a) include the following:
(1) Loans to authorized intermediaries.--
(A) Loan program authorized.--The Reserve may make loans to
authorized intermediaries who may use those funds to enter
into financing and purchasing agreements with producers and
processors of critical minerals or materials.
(B) Loan conditions.--
(i) In general.--In making loans under subparagraph (A),
the Reserve shall establish such terms and conditions as the
Reserve determines appropriate to achieve the purposes of the
Reserve.
(ii) Adjustment of loan terms.--The Reserve and an
authorized intermediary may adjust loan terms under a loan
issued under subparagraph (A) if the Reserve and that
authorized intermediary agree to the adjustment.
(iii) Preferential terms for certain loans.--In making
loans under subparagraph (A), the Reserve--
(I) may provide preferential loan terms--
(aa) which may include an interest rate based on the
Federal funds rate to an authorized intermediary that will
use the loan to enter into financing and purchasing
agreements with domestic producers or processors of critical
minerals or materials, subject to the condition that the
interest rate shall include an additional risk-based margin,
fees, premiums, collateral, mineral delivery rights, or other
compensation, as the Reserve determines appropriate, to
reflect risk, administrative costs, and fair returns to
taxpayers; and
(bb) to authorized intermediaries that will use the loan to
enter into financing and purchasing agreements with producers
or processors of critical minerals or materials in partner
countries, in such manner and on such terms as the Reserve
determines appropriate, subject to the requirements of item
(aa) and the condition that those terms shall not be more
favorable than the terms provided to a similarly situated
intermediary entering into financing and purchasing
agreements with domestic producers or processors of critical
minerals or materials; and
(II) shall--
(aa) consult with the heads of Federal departments and
agencies described in subsection (a)(3) with respect to the
loan terms described in subclause (I)(aa); and
(bb) ensure that, under the terms of such loans, authorized
intermediaries shall, to the maximum extent practicable, give
priority to United States suppliers of critical minerals and
materials and preference to the United States supply chain.
(iv) Security.--A loan made under subparagraph (A) may be
secured by collateral, mineral inventory, contractual rights
to receive critical minerals or materials, offtake
agreements, accounts, proceeds, liens on assets, or other
security determined by the Reserve to be appropriate.
(C) Proposal solicitation.--To be eligible to receive a
loan under subparagraph (A), an authorized intermediary shall
submit to the Reserve an application at such time, in such
manner, and containing such information as the Reserve may
require, including the proposed financing or purchasing
agreements described in that subparagraph.
(D) Uncured default.--
(i) In general.--If an authorized intermediary fails to
make a required repayment on a loan under subparagraph (A)
for a 90-day period, the Reserve may--
(I) recoup the amount of that loan by taking possession of
the critical mineral and material inventories of the
authorized intermediary and any other contractual rights of
the authorized intermediary to receive critical minerals or
materials from suppliers;
(II) revoke the participation with the Reserve of the
authorized intermediary;
(III) subject to clause (ii), appoint itself as conservator
or receiver of the authorized intermediary;
(IV) enforce, perfect, or otherwise exercise rights with
respect to any lien, collateral, contractual right, mineral
inventory, proceeds, or other security securing the loan; and
(V) adjust the loan terms pursuant to subparagraph (B)(ii).
(ii) Authorities under conservator or receivership.--If the
Reserve appoints itself a conservator or receiver of an
authorized intermediary under clause (i)(II), the Reserve
shall have the same authorities with respect to the
authorized intermediary that the Federal Deposit Insurance
Corporation has with respect to an institution for which the
Federal Deposit Insurance Corporation has appointed itself as
conservator or receiver under the Federal Deposit Insurance
Act (12 U.S.C. 1811 et seq.).
(iii) Treatment of bankruptcy.--An authorized intermediary
for which the Reserve has appointed itself a conservator or a
receiver under clause (i)(II) may not be placed into
bankruptcy under title 11, United States Code, during that
conservatorship or receivership, and any bankruptcy process
under title 11, United States Code, that is in effect when
the appointment occurs shall be terminated.
(2) Loans to producers and processors.--
(A) Loan program authorized.--The Reserve may make loans on
terms similar to terms described in paragraph (1) directly to
producers or processors of critical minerals or materials for
projects that support the purposes of the Reserve.
(B) Loan conditions.--In making loans under subparagraph
(A), the Reserve shall establish such terms and conditions as
the Reserve determines are appropriate, subject to subsection
(a)(2), subsection (e), and the purposes of the Reserve.
(C) Priority.--In making loans under subparagraph (A), the
Reserve shall--
(i) give priority to domestic producers and processors; and
(ii) give preference to projects that strengthen the United
States supply chain.
(D) Foreign entities of concern.--The Reserve may not make
a loan under this paragraph to a foreign entity of concern.
(3) Acquisitions.--The Reserve may make acquisitions
including the following:
(A) Acquisition through solicitation and direct contracting
with private counterparties, including through an entity
receiving funding from the Export-Import Bank of the United
States for the purpose of stockpiling critical minerals or
materials.
(B) Acquisition through physically cleared financial
instruments, such as futures contracts through
intermediaries, including financial exchanges.
(C) Acquisition through options contracts directly or
through intermediaries, including financial exchanges.
(4) Non-recourse lending.--The Reserve may conduct non-
recourse lending to projects secured by a portion of the
expected production of the project.
(5) Other transactions.--The Reserve may make other
financing and acquisition transactions, including contract
for differences, advance or milestone payments, and advanced
market commitments, as determined by the Board as necessary
to fulfill the purposes of the Reserve, except that the
Reserve may not own common stock.
(6) Warrants.--The Reserve may, in conjunction with other
financing and acquisition tools described in this section,
enter into contracts under which the Reserve receives
warrants or other similar contractual benefits resulting in
the Reserve participating in the gains or equity appreciation
of a business receiving support from the Reserve, which--
(A) may contain anti-dilution provisions or other
protections necessary to ensure participation in the success
of the business; and
[[Page S3364]]
(B) are held by the Reserve as passive investment and sold
or otherwise monetized in alignment with the purposes of the
Reserve, including ensuring a fair return to taxpayers.
(c) Partner Co-investment.--
(1) In general.--A partner country may, if approved by the
Reserve, make capital contributions of at least $100,000,000
to the Reserve for purposes of financing or acquisition under
subsection (b).
(2) Minimum amount.--The Reserve shall annually adjust the
amount in paragraph (1) by the percentage increase in the
Personal Consumption Expenditures Price Index of the Bureau
of Economic Analysis of the Department of Commerce, rounded
to the nearest $1,000,000.
(3) Treatment of capital contributions.--The Reserve--
(A) shall maintain separate accounts for the capital
contributions of each partner country that provides such
contributions under paragraph (1);
(B) shall not commingle the capital contributions of any
partner country with any other partner country or the funds
of the Reserve;
(C) may return such capital contributions to the partner
country at any time, without obligation or penalty, or under
such other terms and conditions as agreed to by the Reserve
and that partner country; and
(D) may not guarantee the repayment of such capital
contributions to a partner country.
(4) Loans made with partner co-investment funds.--Financing
and acquisitions made under subsection (b) with capital
contributions under paragraph (1) shall be made in the same
manner as financing and acquisitions made under subsection
(b) with funds of the Reserve.
(5) Restriction.--The Reserve may not approve a partner
country under paragraph (1) unless the partner country
certifies that the capital contributions being made are
coming from funds of the partner country and not from funds
of a foreign entity of concern or a covered country.
(6) Coordination with existing arrangements.--
(A) In general.--In approving capital contributions from a
partner country under paragraph (1), the Reserve shall, to
the maximum extent practicable, consult with the Department
of State, the Department of Commerce, and the Federal
agencies and entities described in subsection (a)(3)
regarding any existing co-financing arrangement, memorandum
of understanding, or similar arrangement between such agency
or entity and the partner country relating to critical
minerals or materials.
(B) Rule of construction.--Nothing in subparagraph (A)
requires the Reserve to obtain approval from any Federal
agency or entity before the Reserve approves a capital
contribution under this subsection.
(d) International Advisory Council of Partners.--
(1) In general.--The Reserve may establish an International
Advisory Council of Partners comprising--
(A) the Vice-chairperson, who shall be the head of the
council; and
(B) 1 representative from each partner country that makes a
capital contribution under subsection (c)(1).
(2) Consultation.--The International Advisory Council of
Partners shall, at the request of the Reserve, advise the
Reserve on financing and acquisitions made with capital
contributions under subsection (c)(1).
(3) Applicability of faca.--Chapter 10 of title 5, United
States Code (commonly known as the ``Federal Advisory
Committee Act''), shall not apply to the International
Advisory Council of Partners.
(e) Coordination With Existing Federal Programs.--
(1) In general.--The Reserve shall, to the maximum extent
practicable, coordinate financing and acquisition support
under this section with existing Federal programs and
initiatives, including programs and initiatives administered,
supported, or approved by--
(A) the Export-Import Bank of the United States;
(B) the United States International Development Finance
Corporation;
(C) the Department of Energy;
(D) the Department of Defense; and
(E) any other Federal agency or entity, as the Board
determines appropriate.
(2) Terms.--If the Reserve provides support to cover a
financing gap in relation to support available under an
existing Federal program or initiative, the Reserve shall, to
the maximum extent practicable, consider whether that support
may be structured on terms and conditions that complement,
leverage, supplement, or reduce the risk of the existing
Federal support.
(3) Reserve authority.--Nothing in this subsection limits
the authority of the Reserve to provide support on such terms
and conditions as the Board determines appropriate to fulfill
the purposes of the Reserve.
SEC. 1713. SALE OF CRITICAL MINERALS OR MATERIALS.
(a) Sale.--The Reserve may sell critical minerals or
materials stored in the Reserve in accordance with the
purposes of the Reserve and this section.
(b) Sale of Critical Minerals or Materials.--The Reserve
may sell a critical mineral or material stored in the Reserve
if the Board determines that--
(1) a supply shortage or potential supply shortage of that
critical mineral or material threatens--
(A) the national or economic security of the United States;
or
(B) price stability in the value chain of that critical
mineral or material;
(2)(A) the sale is being made pursuant to an agreement
between the Reserve and the Export-Import Bank of the United
States; and
(B) the critical minerals are being sold to an entity
that--
(i) is receiving funding from the Export-Import Bank of the
United States; and
(ii) was created for the purpose of stockpiling critical
minerals or materials; or
(3) the sale is otherwise necessary to support the purposes
of the Reserve.
(c) Sale of Non-critical Minerals or Materials.--
(1) In general.--The Reserve may sell a mineral or material
stored in the Reserve that, as of the date of sale, is no
longer included on the list of critical minerals and
materials established by the Reserve under section 1708(a) if
the Board determines that--
(A) the mineral or material is unlikely to be imminently
re-added to the list of critical minerals and materials
established by the Reserve under section 1708(a);
(B) the mineral or material is available in sufficient
supply or is no longer necessary in large quantities for
economic or national security purposes;
(C) a supply shortage or potential supply shortage of that
mineral or material threatens--
(i) the national or economic security of the United States;
or
(ii) price stability in the value chain of that mineral or
material;
(D)(i) the sale is being made pursuant to an agreement
between the Reserve and the Export-Import Bank of the United
States; and
(ii) the mineral or material is being sold to an entity
that--
(I) is receiving funding from the Export-Import Bank of the
United States; and
(II) was created for the purpose of stockpiling critical
minerals or materials; or
(E) the sale is otherwise necessary to support the purposes
of the Reserve.
(2) Use for research purposes.--If the Board determines
that a mineral or material stored in the Reserve that is no
longer included on the list of critical minerals and
materials established by the Reserve under section 1708(a)
does not have a substantial market value, the Board may enter
into a contract for the transfer and use for research
purposes of that mineral or material with--
(A) Federal departments and agencies;
(B) State governments;
(C) National Laboratories (as defined in section 2 of the
Energy Policy Act of 2005 (42 U.S.C. 15801)); and
(D) institutions of higher education (as defined in section
101(a) of the Higher Education Act of 1965 (20 U.S.C.
1001(a))).
(d) Means of Sale.--The Reserve may carry out a sale
described in subsections (b) and (c) through--
(1) solicitation and direct contracting with private
parties;
(2) physically-cleared financial instruments, such as
futures contracts through authorized intermediaries;
(3) options contracts directly or through authorized
intermediaries; and
(4) other transactions, including public auctions, as
determined necessary by the Board to support the purposes of
the Reserve.
(e) Foreign Entities of Concern.--The Reserve may not carry
out a sale described in subsections (b) and (c) to a foreign
entity of concern.
SEC. 1714. CORPORATE POWERS.
(a) In General.--The Reserve--
(1) may adopt, alter, and use a seal, which may include an
identifiable symbol of the United States;
(2) notwithstanding division C of subtitle I of title 41,
United States Code, may make and perform with any person
contracts, including no-cost contracts (as defined by the
Reserve), grants, and other agreements, that are necessary
for carrying out the functions of the Reserve;
(3) may lease, purchase, or otherwise acquire, improve, and
use real property that is necessary to carry out the
functions of the Reserve;
(4) may use the United States mails in the same manner and
on the same conditions as the Executive departments (as
defined in section 101 of title 5, United States Code);
(5) may contract with individuals for personal services,
who shall not be considered Federal employees for any
provision of law administered by the Director of the Office
of Personnel Management;
(6) may hire or obtain passenger motor vehicles;
(7) may acquire, hold, or dispose of, on such terms and
conditions as the Reserve may determine, any property (real,
personal, or mixed), tangible or intangible, or any interest
in such property;
(8) may lease office space for the use of the Reserve;
(9) may indemnify directors, officers, employees, and
agents of the Reserve for liabilities and expenses incurred
in connection with their activities on behalf of the Reserve;
(10) notwithstanding any other provision of law, may
represent itself or contract for representation in any legal
or arbitral proceeding;
[[Page S3365]]
(11) may exercise any priority of the Federal Government in
collecting debts from bankrupt, insolvent, or decedents'
estates;
(12) may collect, notwithstanding section 3711(g)(1) of
title 31, United States Code, or compromise any obligations
assigned to or held by the Reserve, including any legal or
equitable rights accruing to the Reserve;
(13) may sell direct investments of the Reserve to private
investors on such terms and conditions as the Reserve may
determine; and
(14) shall have such other powers as may be necessary and
incident to carrying out the functions of the Reserve.
(b) Treatment of Property.--Notwithstanding any other
provision of law relating to the acquisition, handling, or
disposal of property by the United States, the Reserve shall
have the right in its discretion to complete, recondition,
reconstruct, renovate, repair, maintain, operate, or sell any
property acquired by the Reserve pursuant to this title.
SEC. 1715. RECORDS AND ACCOUNTS.
(a) Preparation and Maintenance.--The Board may require any
person to prepare and maintain such records or accounts as
the Board, by rule, determines necessary to carry out this
title.
(b) Audit of Operations of Storage Facilities.--The Board
may audit the operations of any storage facility in which any
critical mineral or material acquired is stored or required
to be stored pursuant to this title.
(c) Access to and Inspection of Records or Accounts and
Storage Facilities.--The Board may require access to, and has
the right to inspect and examine, at reasonable times--
(1) any records or accounts required to be prepared or
maintained pursuant to subsection (a); and
(2) any storage facilities subject to audit by the United
States pursuant to this title.
SEC. 1716. RISK AND AUDIT COMMITTEES.
(a) Establishment.--Not later than 1 year after the date of
enactment of this Act, the Reserve shall establish--
(1) a risk committee; and
(2) an audit committee.
(b) Duties and Responsibilities.--
(1) Risk committee.--Subject to the direction of the Board,
the risk committee established under subsection (a)(1) shall
be responsible for--
(A) formulating risk management policies of the operations
of the Reserve;
(B) reviewing and providing guidance on the operation of
the global risk management framework of the Reserve;
(C) developing policies for enterprise risk management,
risk monitoring, and the management of strategic,
reputational, regulatory, operational, developmental,
responsible production, and financial risks;
(D) developing the risk profile of the Reserve, including a
risk management and compliance framework and governance
structure to support such a framework;
(E) monitoring Reserve participants to ensure existing
participants do not become foreign entities of concern; and
(F) developing and using a mechanism to remove participants
if more than 25 percent of that participant is owned,
controlled, directed, financed, or otherwise influenced,
directly or indirectly, in whole or in part by the government
of a foreign entity of concern.
(2) Audit committee.--Subject to the direction of the
Board, the audit committee established under subsection
(a)(2) shall be responsible for--
(A) the integrity of--
(i) the financial reporting of the Reserve;
(ii) systems of internal controls relating to finance and
accounting of the Reserve; and
(iii) the financial statements of the Reserve;
(B) the performance of the internal audit function of the
Reserve; and
(C) the compliance of the Reserve with legal and regulatory
requirements relating to the finances of the Reserve.
SEC. 1717. ANNUAL AUDIT AND COMPTROLLER REVIEW.
(a) Annual Independent Audit.--
(1) In general.--Not later than 1 year after the date of
enactment of this Act, and annually thereafter, an
independent qualified public accountant selected by the
Inspector General shall audit the financial statements of the
Reserve, the results of which shall be made publicly
available.
(2) Requirements.--An independent qualified public
accountant selected under paragraph (1) shall be--
(A) certified and licensed by a State board of accountancy;
(B) independent of the Reserve and each authorized
intermediary within the meaning of section 210.2-01 of title
17, Code of Federal Regulations (or a successor regulation);
and
(C) registered with the Public Company Accounting and
Oversight Board.
(b) Review.--The Comptroller General of the United States
shall conduct a biennial review of the Reserve, to include--
(1) reviewing the most recent annual report submitted
pursuant to section 1718(a);
(2) the operations and functions of the Reserve as managed
by the Board; and
(3) the performance of the Board in fulfilling the purposes
of the Reserve.
SEC. 1718. REPORTING AND TRANSPARENCY.
(a) Annual Report.--
(1) In general.--The Board shall submit to the President,
the Comptroller General of the United States, the Director of
the Office of Management and Budget, and the appropriate
congressional committees, an annual report describing the
operations of the Reserve during the preceding calendar year.
(2) Contents.--
(A) In general.--Each report required under paragraph (1)
shall include--
(i) information regarding the administration of the
functions of the Board, including recommendations the Board
determines appropriate;
(ii) the assessment of the Board of the extent to which
compliance with the requirements of this title and the
purposes of the Reserve have been achieved;
(iii) a summary of transactions and loans made by the
Reserve during the preceding calendar year, to include how
well those transactions and loans have helped achieve the
purposes of the Reserve; and
(iv) information regarding vulnerabilities, risks, and
audits.
(B) Foward-looking assessment.--Every third annual report
submitted pursuant to paragraph (1) shall include--
(i) an assessment of the projected financial needs of the
Reserve;
(ii) any additional appropriations requested in order to
achieve the purposes of the Reserve; and
(iii) any legislative and policy recommendations to
facilitate achieving the purposes of the Reserve.
(b) Testimony.--The Chairperson shall appear before the
Committee on Energy and Natural Resources of the Senate and
the Committee on Natural Resources of the House of
Representatives not later than 30 calendar days after the
date that a report required under subsection (a) is
submitted.
(c) Database.--
(1) In general.--The Reserve shall maintain a database with
detailed information on all transactions undertaken pursuant
to section 1712.
(2) Requirements.--The database maintained under paragraph
(1) shall--
(A) be user-friendly;
(B) subject to paragraph (3), be publicly available; and
(C) to the extent practicable, include a description of the
support provided for each project, including the information
contained in the report required under subsection (a).
(3) Limit on public availability.--
(A) In general.--An identified subset of the database
maintained under paragraph (1) shall not be made publicly
available if the Board determines doing so would be harmful
to the national security of the United States.
(B) Accessibility.--If the Board makes a determination
under subparagraph (A) that public availability of the
identified subset of the database maintained under paragraph
(1) would be harmful to the national security of the United
States, the Reserve shall--
(i) make the identified subset of the database accessible
to the appropriate congressional committees; and
(ii) not later than 3 years after a transaction undertaken
pursuant to section 1712 occurs, make the information about
that transaction publicly available.
SEC. 1719. INSPECTOR GENERAL OF THE RESERVE.
(a) Inspector General.--
(1) In general.--Section 401(1) of title 5, United States
Code, is amended by inserting ``the Strategic Resilience
Reserve Corporation of the United States,'' after ``Export-
Import Bank of the United States,''.
(2) Special provisions.--Section 415(g)(3) of title 5,
United States Code, is amended by inserting ``the Inspector
General of the Strategic Resilience Reserve Corporation of
the United States and'' after ``shall apply to''.
(b) Activities.--
(1) In general.--The principal responsibilities of the
Inspector General shall be to conduct investigations and
reviews of the Reserve and its activities with respect to
fraud, conflicts of interest, and violations of applicable
law.
(2) Noncompliance.--The Inspector General shall not treat
noncompliance with non binding guidance, best practices,
recommendations, or advisory standards issued by any other
Federal entity as a basis for a finding of waste,
inefficiency, ineffectiveness, or a lack of economy, unless
the noncompliance independently constitutes a violation of
applicable law or the policies and procedures established by
the Board and the committees of the Board pursuant to this
title.
(3) Presumption.--Investment, transaction, and other
commercial decisions made in accordance with the policies and
risk management framework of the Reserve and as an exercise
of good faith and reasonably informed business judgment shall
be presumed by the Inspector General to be consistent with
the purposes of the Reserve.
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