[Congressional Record (Bound Edition), Volume 155 (2009), Part 17]
[House]
[Pages 22401-22407]
[From the U.S. Government Publishing Office, www.gpo.gov]




             DEFENSE PRODUCTION ACT REAUTHORIZATION OF 2009

  Mr. WATT. Mr. Speaker, I move to suspend the rules and pass the bill 
(S. 1677) to reauthorize the Defense Production Act of 1950, and for 
other purposes.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                                S. 1677

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Defense 
     Production Act Reauthorization of 2009''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Reauthorization of Defense Production Act of 1950.
Sec. 3. Declaration of policy.
Sec. 4. Priority in contracts and orders.
Sec. 5. Designation of energy as a strategic and critical material.
Sec. 6. Strengthening domestic capability.
Sec. 7. Expansion of productive capacity and supply.
Sec. 8. Definitions.
Sec. 9. Voluntary agreements and plans of action for national defense.
Sec. 10. Employment of personnel; appointment policies; nucleus 
              executive reserve; use of confidential information by 
              employees; printing and distribution of reports.
Sec. 11. Defense Production Act Committee.
Sec. 12. Annual report on impact of offsets.

     SEC. 2. REAUTHORIZATION OF DEFENSE PRODUCTION ACT OF 1950.

       (a) Termination of Act.--
       (1) Termination.--Section 717 of the Defense Production Act 
     of 1950 (50 U.S.C. App. 2166) is amended--
       (A) by striking subsections (a) and (b) and inserting the 
     following:
       ``(a) Title I (except section 104), title III, and title 
     VII (except sections 707, 708, and 721) shall terminate on 
     September 30, 2014, except that all authority extended under 
     title III on or after the date of enactment of the Defense 
     Production Act Reauthorization of 2009 shall be effective for 
     any fiscal year only to such extent or in such amounts as are 
     provided in advance in appropriations Acts.
       ``(b) Notwithstanding subsection (a), any agency created 
     under a provision of law that is terminated under subsection 
     (a) may continue in existence, for purposes of liquidation, 
     for a period not to exceed 6 months, beginning on the date of 
     termination of the provision authorizing the creation of such 
     agency under subsection (a).''; and
       (B) in subsection (c), by striking the second undesignated 
     paragraph.
       (2) Repeals.--Titles II, IV, V, and VI of the Defense 
     Production Act of 1950 (50 U.S.C. App. 2151 et seq., 2101 et 
     seq., 2121 et seq., and 2131 et seq.) are repealed.
       (b) Authorization of Appropriations.--Section 711 of the 
     Defense Production Act of 1950 (50 U.S.C. App. 2161) is 
     amended--
       (1) in subsection (a)--
       (A) in the first sentence, by striking ``(including'' and 
     all that follows through ``) by'' and inserting ``by''; and
       (B) by striking ``(a) Authorization.--Except as provided in 
     subsection (b), there'' and inserting ``There''; and
       (2) by striking subsection (b).

     SEC. 3. DECLARATION OF POLICY.

       (a) Findings.--Section 2 of the Defense Production Act of 
     1950 (50 U.S.C. App. 2062) is amended to read as follows:

     ``SEC. 2. DECLARATION OF POLICY.

       ``(a) Findings.--Congress finds that--
       ``(1) the security of the United States is dependent on the 
     ability of the domestic industrial base to supply materials 
     and services for the national defense and to prepare for and 
     respond to military conflicts, natural or man-caused 
     disasters, or acts of terrorism within the United States;
       ``(2) to ensure the vitality of the domestic industrial 
     base, actions are needed--
       ``(A) to promote industrial resources preparedness in the 
     event of domestic or foreign threats to the security of the 
     United States;
       ``(B) to support continuing improvements in industrial 
     efficiency and responsiveness;
       ``(C) to provide for the protection and restoration of 
     domestic critical infrastructure operations under emergency 
     conditions; and
       ``(D) to respond to actions taken outside of the United 
     States that could result in reduced supplies of strategic and 
     critical materials, including energy, necessary for national 
     defense and the general economic well-being of the United 
     States;
       ``(3) in order to provide for the national security, the 
     national defense preparedness effort of the United States 
     Government requires--
       ``(A) preparedness programs to respond to both domestic 
     emergencies and international threats to national defense;
       ``(B) measures to improve the domestic industrial base for 
     national defense;
       ``(C) the development of domestic productive capacity to 
     meet--
       ``(i) essential national defense needs that can result from 
     emergency conditions; and
       ``(ii) unique technological requirements; and
       ``(D) the diversion of certain materials and facilities 
     from ordinary use to national defense purposes, when national 
     defense needs cannot otherwise be satisfied in a timely 
     fashion;
       ``(4) to meet the requirements referred to in this 
     subsection, this Act provides the President with an array of 
     authorities to shape national defense preparedness programs 
     and to take appropriate steps to maintain and enhance the 
     domestic industrial base;
       ``(5) in order to ensure national defense preparedness, it 
     is necessary and appropriate to assure the availability of 
     domestic energy supplies for national defense needs;
       ``(6) to further assure the adequate maintenance of the 
     domestic industrial base, to the maximum extent possible, 
     domestic energy supplies should be augmented through reliance 
     on renewable energy sources (including solar, geothermal, 
     wind, and biomass sources), more efficient energy storage and 
     distribution technologies, and energy conservation measures;
       ``(7) much of the industrial capacity that is relied upon 
     by the United States Government for military production and 
     other national defense purposes is deeply and directly 
     influenced by--
       ``(A) the overall competitiveness of the industrial economy 
     of the United States; and
       ``(B) the ability of industries in the United States, in 
     general, to produce internationally competitive products and 
     operate profitably while maintaining adequate research and 
     development to preserve competitiveness with respect to 
     military and civilian production; and
       ``(8) the inability of industries in the United States, 
     especially smaller subcontractors and suppliers, to provide 
     vital parts and components and other materials would impair 
     the ability to sustain the Armed Forces of the United States 
     in combat for longer than a short period.
       ``(b) Statement of Policy.--It is the policy of the United 
     States that--
       ``(1) to ensure the adequacy of productive capacity and 
     supply, Federal departments and agencies that are responsible 
     for national defense acquisition should continuously assess 
     the capability of the domestic industrial base to satisfy 
     production requirements under both peacetime and emergency 
     conditions, specifically evaluating the availability of 
     adequate production sources, including subcontractors and 
     suppliers, materials, skilled labor, and professional and 
     technical personnel;
       ``(2) every effort should be made to foster cooperation 
     between the defense and commercial sectors for research and 
     development and for acquisition of materials, components, and 
     equipment;
       ``(3) plans and programs to carry out the purposes of this 
     Act should be undertaken with due consideration for promoting 
     efficiency and competition;
       ``(4) in providing United States Government financial 
     assistance under this Act to correct a domestic industrial 
     base shortfall, the President should give consideration to 
     the creation or maintenance of production sources that will 
     remain economically viable after such assistance has ended;
       ``(5) authorities under this Act should be used to reduce 
     the vulnerability of the United States to terrorist attacks, 
     and to minimize the damage and assist in the recovery from 
     terrorist attacks that occur in the United States;
       ``(6) in order to ensure productive capacity in the event 
     of an attack on the United States, the United States 
     Government should encourage the geographic dispersal of 
     industrial facilities in the United States to discourage the 
     concentration of such productive facilities within limited 
     geographic areas that are vulnerable to attack by an enemy of 
     the United States;
       ``(7) to ensure that essential national defense 
     requirements are met, consideration should be given to 
     stockpiling strategic materials, to the extent that such 
     stockpiling is economical and feasible; and
       ``(8) in the construction of any industrial facility owned 
     by the United States Government, in the rendition of any 
     financial assistance by the United States Government for the 
     construction, expansion, or improvement of any industrial 
     facility, and in the production of goods and services, under 
     this Act or any other provision of law, each department and 
     agency of the United States

[[Page 22402]]

     Government should apply, under the coordination of the 
     Federal Emergency Management Agency, when practicable and 
     consistent with existing law and the desirability for 
     maintaining a sound economy, the principle of geographic 
     dispersal of such facilities in the interest of national 
     defense.''.

     SEC. 4. PRIORITY IN CONTRACTS AND ORDERS.

       Section 101 of the Defense Production Act of 1950 (50 
     U.S.C. App. 2071) is amended by adding at the end the 
     following:
       ``(d) The head of each Federal agency to which the 
     President delegates authority under this section shall--
       ``(1) not later than 270 days after the date of enactment 
     of the Defense Production Act Reauthorization of 2009, issue 
     final rules, in accordance with section 553 of title 5, 
     United States Code, that establish standards and procedures 
     by which the priorities and allocations authority under this 
     section is used to promote the national defense, under both 
     emergency and nonemergency conditions; and
       ``(2) as appropriate and to the extent practicable, consult 
     with the heads of other Federal agencies to develop a 
     consistent and unified Federal priorities and allocations 
     system.''.

     SEC. 5. DESIGNATION OF ENERGY AS A STRATEGIC AND CRITICAL 
                   MATERIAL.

       Section 106 of the Defense Production Act of 1950 (50 
     U.S.C. App. 2076) is amended--
       (1) by striking ``such designation'' and all that follows 
     through ``(1)'' and inserting ``such designation'';
       (2) by striking ``; or'' and inserting a period; and
       (3) by striking paragraph (2).

     SEC. 6. STRENGTHENING DOMESTIC CAPABILITY.

       Section 107 of the Defense Production Act of 1950 (50 
     U.S.C. App. 2077) is amended--
       (1) in subsection (a)--
       (A) by inserting ``restore,'' after ``modernize,''; and
       (B) by inserting ``materials,'' after ``items,''; and
       (2) in subsection (b)--
       (A) by striking paragraph (1);
       (B) by redesignating paragraphs (2) and (3) as paragraphs 
     (1) and (2), respectively; and
       (C) in paragraph (1), as so redesignated, by striking ``or 
     critical technology items'' and inserting ``, critical 
     technology items, essential materials, and industrial 
     resources''.

     SEC. 7. EXPANSION OF PRODUCTIVE CAPACITY AND SUPPLY.

       Title III of the Defense Production Act of 1950 (50 U.S.C. 
     App. 2091 et seq.) is amended to read as follows:

        ``TITLE III--EXPANSION OF PRODUCTIVE CAPACITY AND SUPPLY

     ``SEC. 301. PRESIDENTIAL AUTHORIZATION FOR THE NATIONAL 
                   DEFENSE.

       ``(a) Expediting Production and Deliveries or Services.--
       ``(1) Authorized activities.--To reduce current or 
     projected shortfalls of industrial resources, critical 
     technology items, or essential materials needed for national 
     defense purposes, subject to such regulations as the 
     President may prescribe, the President may authorize a 
     guaranteeing agency to provide guarantees of loans by private 
     institutions for the purpose of financing any contractor, 
     subcontractor, provider of critical infrastructure, or other 
     person in support of production capabilities or supplies that 
     are deemed by the guaranteeing agency to be necessary to 
     create, maintain, expedite, expand, protect, or restore 
     production and deliveries or services essential to the 
     national defense.
       ``(2) Presidential determinations required.--Except during 
     a period of national emergency declared by Congress or the 
     President, a loan guarantee may be entered into under this 
     section only if the President determines that--
       ``(A) the loan guarantee is for an activity that supports 
     the production or supply of an industrial resource, critical 
     technology item, or material that is essential for national 
     defense purposes;
       ``(B) without a loan guarantee, credit is not available to 
     the loan applicant under reasonable terms or conditions 
     sufficient to finance the activity;
       ``(C) the loan guarantee is the most cost effective, 
     expedient, and practical alternative for meeting the needs of 
     the Federal Government;
       ``(D) the prospective earning power of the loan applicant 
     and the character and value of the security pledged provide a 
     reasonable assurance of repayment of the loan to be 
     guaranteed;
       ``(E) the loan to be guaranteed bears interest at a rate 
     determined by the Secretary of the Treasury to be reasonable, 
     taking into account the then-current average yield on 
     outstanding obligations of the United States with remaining 
     periods of maturity comparable to the maturity of the loan;
       ``(F) the loan agreement for the loan to be guaranteed 
     provides that no provision of the loan agreement may be 
     amended or waived without the consent of the fiscal agent of 
     the United States for the guarantee; and
       ``(G) the loan applicant has provided or will provide--
       ``(i) an assurance of repayment, as determined by the 
     President; and
       ``(ii) security--

       ``(I) in the form of a performance bond, insurance, 
     collateral, or other means acceptable to the fiscal agent of 
     the United States; and
       ``(II) in an amount equal to not less than 20 percent of 
     the amount of the loan.

       ``(3) Limitations on loans.--Loans under this section may 
     be--
       ``(A) made or guaranteed under the authority of this 
     section only to the extent that an appropriations Act--
       ``(i) provides, in advance, budget authority for the cost 
     of such guarantees, as defined in section 502 of the Federal 
     Credit Reform Act of 1990 (2 U.S.C. 661a); and
       ``(ii) establishes a limitation on the total loan principal 
     that may be guaranteed; and
       ``(B) made without regard to the limitations of existing 
     law, other than section 1341 of title 31, United States Code.
       ``(b) Fiscal Agents of the United States.--
       ``(1) In general.--Any Federal agency or any Federal 
     reserve bank, when designated by the President, is hereby 
     authorized to act, on behalf of any guaranteeing agency, as 
     fiscal agent of the United States in the making of such 
     contracts of guarantee and in otherwise carrying out the 
     purposes of this section.
       ``(2) Funds.--All such funds as may be necessary to enable 
     any fiscal agent described in paragraph (1) to carry out any 
     guarantee made by it on behalf of any guaranteeing agency 
     shall be supplied and disbursed by or under authority from 
     such guaranteeing agency.
       ``(3) Limit on liability.--No fiscal agent described in 
     paragraph (1) shall have any responsibility or 
     accountability, except as agent in taking any action pursuant 
     to or under authority of this section.
       ``(4) Reimbursements.--Each fiscal agent described in 
     paragraph (1) shall be reimbursed by each guaranteeing agency 
     for all expenses and losses incurred by such fiscal agent in 
     acting as agent on behalf of such guaranteeing agency, 
     including, notwithstanding any other provision of law, 
     attorneys' fees and expenses of litigation.
       ``(c) Oversight.--
       ``(1) In general.--All actions and operations of fiscal 
     agents under authority of or pursuant to this section shall 
     be subject to the supervision of the President, and to such 
     regulations as the President may prescribe.
       ``(2) Other authority.--The President is authorized to 
     prescribe--
       ``(A) either specifically or by maximum limits or 
     otherwise, rates of interest, guarantee and commitment fees, 
     and other charges which may be made in connection with loans, 
     discounts, advances, or commitments guaranteed by the 
     guaranteeing agencies through fiscal agents under this 
     section; and
       ``(B) regulations governing the forms and procedures (which 
     shall be uniform to the extent practicable) to be utilized in 
     connection with such guarantees.
       ``(d) Aggregate Guarantee Amounts.--
       ``(1) Industrial resource and critical technology 
     shortfalls.--
       ``(A) In general.--If the making of any guarantee or 
     obligation of the Federal Government under this title 
     relating to a domestic industrial base shortfall would cause 
     the aggregate outstanding amount of all guarantees for such 
     shortfall to exceed $50,000,000, any such guarantee may be 
     made only--
       ``(i) if the President has notified the Committee on 
     Banking, Housing, and Urban Affairs of the Senate and the 
     Committee on Financial Services of the House of 
     Representatives in writing of the proposed guarantee; and
       ``(ii) after the 30-day period following the date on which 
     notice under clause (i) is provided.
       ``(B) Waivers authorized.--The requirements of subparagraph 
     (A) may be waived--
       ``(i) during a period of national emergency declared by 
     Congress or the President; or
       ``(ii) upon a determination by the President, on a 
     nondelegable basis, that a specific guarantee is necessary to 
     avert an industrial resource or critical technology item 
     shortfall that would severely impair national defense 
     capability.
       ``(2) Other limitations.--The authority conferred by this 
     section shall not be used primarily to prevent the financial 
     insolvency or bankruptcy of any person, unless--
       ``(A) the President certifies that the insolvency or 
     bankruptcy would have a direct and substantially adverse 
     effect upon national defense production; and
       ``(B) a copy of the certification under subparagraph (A), 
     together with a detailed justification thereof, is 
     transmitted to the Committee on Banking, Housing, and Urban 
     Affairs of the Senate and the Committee on Financial Services 
     of the House of Representatives not later than 10 days prior 
     to the exercise of that authority for such use.

     ``SEC. 302. LOANS TO PRIVATE BUSINESS ENTERPRISES.

       ``(a) Loan Authority.--To reduce current or projected 
     shortfalls of industrial resources, critical technology 
     items, or materials essential for the national defense, the 
     President may make provision for loans to private business 
     enterprises (including nonprofit research corporations and 
     providers of critical infrastructure) for the creation, 
     maintenance, expansion, protection, or restoration of 
     capacity, the development of technological processes, or the 
     production of

[[Page 22403]]

     essential materials, including the exploration, development, 
     and mining of strategic and critical metals and minerals.
       ``(b) Conditions of Loans.--Loans may be made under this 
     section on such terms and conditions as the President deems 
     necessary, except that--
       ``(1) financial assistance may be extended only to the 
     extent that it is not otherwise available from private 
     sources on reasonable terms; and
       ``(2) during periods of national emergency declared by the 
     Congress or the President, no such loan may be made unless 
     the President determines that--
       ``(A) the loan is for an activity that supports the 
     production or supply of an industrial resource, critical 
     technology item, or material that is essential to the 
     national defense;
       ``(B) without the loan, United States industry cannot 
     reasonably be expected to provide the needed capacity, 
     technological processes, or materials in a timely manner;
       ``(C) the loan is the most cost-effective, expedient, and 
     practical alternative method for meeting the need;
       ``(D) the prospective earning power of the loan applicant 
     and the character and value of the security pledged provide a 
     reasonable assurance of repayment of the loan in accordance 
     with the terms of the loan, as determined by the President; 
     and
       ``(E) the loan bears interest at a rate determined by the 
     Secretary of the Treasury to be reasonable, taking into 
     account the then-current average yield on outstanding 
     obligations of the United States with remaining periods of 
     maturity comparable to the maturity of the loan.
       ``(c) Limitations on Loans.--Loans under this section may 
     be--
       ``(1) made or guaranteed under the authority of this 
     section only to the extent that an appropriations Act--
       ``(A) provides, in advance, budget authority for the cost 
     of such guarantees, as defined in section 502 of the Federal 
     Credit Reform Act of 1990 (2 U.S.C. 661a); and
       ``(B) establishes a limitation on the total loan principal 
     that may be guaranteed; and
       ``(2) made without regard to the limitations of existing 
     law, other than section 1341 of title 31, United States Code.
       ``(d) Aggregate Loan Amounts.--
       ``(1) In general.--If the making of any loan under this 
     section to correct a shortfall would cause the aggregate 
     outstanding amount of all obligations of the Federal 
     Government under this title relating to such shortfall to 
     exceed $50,000,000, such loan may be made only--
       ``(A) if the President has notified the Committee on 
     Banking, Housing, and Urban Affairs of the Senate and the 
     Committee on Financial Services of the House of 
     Representatives, in writing, of the proposed loan; and
       ``(B) after the 30-day period following the date on which 
     notice under subparagraph (A) is provided.
       ``(2) Waivers authorized.--The requirements of paragraph 
     (1) may be waived--
       ``(A) during a period of national emergency declared by the 
     Congress or the President; and
       ``(B) upon a determination by the President, on a 
     nondelegable basis, that a specific loan is necessary to 
     avert an industrial resource or critical technology shortfall 
     that would severely impair national defense capability.

     ``SEC. 303. OTHER PRESIDENTIAL ACTION AUTHORIZED.

       ``(a) In General.--
       ``(1) In general.--To create, maintain, protect, expand, or 
     restore domestic industrial base capabilities essential for 
     the national defense, the President may make provision--
       ``(A) for purchases of or commitments to purchase an 
     industrial resource or a critical technology item, for 
     Government use or resale;
       ``(B) for the encouragement of exploration, development, 
     and mining of critical and strategic materials, and other 
     materials;
       ``(C) for the development of production capabilities; and
       ``(D) for the increased use of emerging technologies in 
     security program applications and the rapid transition of 
     emerging technologies--
       ``(i) from Government-sponsored research and development to 
     commercial applications; and
       ``(ii) from commercial research and development to national 
     defense applications.
       ``(2) Treatment of certain agricultural commodities.--A 
     purchase for resale under this subsection shall not include 
     that part of the supply of an agricultural commodity which is 
     domestically produced, except to the extent that such 
     domestically produced supply may be purchased for resale for 
     industrial use or stockpiling.
       ``(3) Terms of sales.--No commodity purchased under this 
     subsection shall be sold at less than--
       ``(A) the established ceiling price for such commodity, 
     except that minerals, metals, and materials shall not be sold 
     at less than the established ceiling price, or the current 
     domestic market price, whichever is lower; or
       ``(B) if no ceiling price has been established, the higher 
     of--
       ``(i) the current domestic market price for such commodity; 
     or
       ``(ii) the minimum sale price established for agricultural 
     commodities owned or controlled by the Commodity Credit 
     Corporation, as provided in section 407 of the Agricultural 
     Act of 1949 (7 U.S.C. 1427).
       ``(4) Delivery dates.--No purchase or commitment to 
     purchase any imported agricultural commodity shall specify a 
     delivery date which is more than 1 year after the date of 
     termination of this section.
       ``(5) Presidential determinations.--Except as provided in 
     paragraph (7), the President may not execute a contract under 
     this subsection unless the President determines that--
       ``(A) the industrial resource, material, or critical 
     technology item is essential to the national defense; and
       ``(B) without Presidential action under this section, 
     United States industry cannot reasonably be expected to 
     provide the capability for the needed industrial resource, 
     material, or critical technology item in a timely manner.
       ``(6) Notification to congress of shortfall.--
       ``(A) In general.--Except as provided in paragraph (7), the 
     President shall provide written notice to the Committee on 
     Banking, Housing, and Urban Affairs of the Senate and the 
     Committee on Financial Services of the House of 
     Representatives of a domestic industrial base shortfall prior 
     to taking action under this subsection to remedy the 
     shortfall. The notice shall include the determinations made 
     by the President under paragraph (5).
       ``(B) Aggregate amounts.--If the taking of any action under 
     this subsection to correct a domestic industrial base 
     shortfall would cause the aggregate outstanding amount of all 
     such actions for such shortfall to exceed $50,000,000, the 
     action or actions may be taken only after the 30-day period 
     following the date on which the Committee on Banking, 
     Housing, and Urban Affairs of the Senate and the Committee on 
     Financial Services of the House of Representatives have been 
     notified in writing of the proposed action.
       ``(7) Waivers authorized.--The requirements of paragraphs 
     (1) through (6) may be waived--
       ``(A) during a period of national emergency declared by the 
     Congress or the President; or
       ``(B) upon a determination by the President, on a 
     nondelegable basis, that action is necessary to avert an 
     industrial resource or critical technology item shortfall 
     that would severely impair national defense capability.
       ``(b) Exemption for Certain Limitations.--Subject to the 
     limitations in subsection (a), purchases and commitments to 
     purchase and sales under subsection (a) may be made without 
     regard to the limitations of existing law (other than section 
     1341 of title 31, United States Code), for such quantities, 
     and on such terms and conditions, including advance payments, 
     and for such periods, but not extending beyond a date that is 
     not more than 10 years from the date on which such purchase, 
     purchase commitment, or sale was initially made, as the 
     President deems necessary, except that purchases or 
     commitments to purchase involving higher than established 
     ceiling prices (or if no such established ceiling prices 
     exist, currently prevailing market prices) or anticipated 
     loss on resale shall not be made, unless it is determined 
     that supply of the materials could not be effectively 
     increased at lower prices or on terms more favorable to the 
     Government, or that such purchases are necessary to assure 
     the availability to the United States of overseas supplies.
       ``(c) Presidential Findings.--
       ``(1) In general.--The President may take the actions 
     described in paragraph (2), if the President finds that--
       ``(A) under generally fair and equitable ceiling prices, 
     for any raw or nonprocessed material, there will result a 
     decrease in supplies from high-cost sources of such material, 
     and that the continuation of such supplies is necessary to 
     carry out the objectives of this title; or
       ``(B) an increase in cost of transportation is temporary in 
     character and threatens to impair maximum production or 
     supply in any area at stable prices of any materials.
       ``(2) Subsidy payments authorized.--Upon a finding under 
     paragraph (1), the President may make provision for subsidy 
     payments on any such domestically produced material, other 
     than an agricultural commodity, in such amounts and in such 
     manner (including purchases of such material and its resale 
     at a loss), and on such terms and conditions, as the 
     President determines to be necessary to ensure that supplies 
     from such high-cost sources are continued, or that maximum 
     production or supply in such area at stable prices of such 
     materials is maintained, as the case may be.
       ``(d) Incidental Authority.--The procurement power granted 
     to the President by this section shall include the power to 
     transport and store and have processed and refined any 
     materials procured under this section.
       ``(e) Installation of Equipment in Industrial Facilities.--
       ``(1) Installation authorized.--If the President determines 
     that such action will aid the national defense, the President 
     is authorized--

[[Page 22404]]

       ``(A) to procure and install additional equipment, 
     facilities, processes or improvements to plants, factories, 
     and other industrial facilities owned by the Federal 
     Government;
       ``(B) to procure and install equipment owned by the Federal 
     Government in plants, factories, and other industrial 
     facilities owned by private persons;
       ``(C) to provide for the modification or expansion of 
     privately owned facilities, including the modification or 
     improvement of production processes, when taking actions 
     under section 301, 302, or this section; and
       ``(D) to sell or otherwise transfer equipment owned by the 
     Federal Government and installed under this subsection to the 
     owners of such plants, factories, or other industrial 
     facilities.
       ``(2) Indemnification.--The owner of any plant, factory, or 
     other industrial facility that receives equipment owned by 
     the Federal Government under this section shall agree--
       ``(A) to waive any claim against the United States under 
     section 107 or 113 of the Comprehensive Environmental 
     Response, Compensation, and Liability Act of 1980 (42 U.S.C. 
     9607 and 9613); and
       ``(B) to indemnify the United States against any claim 
     described in paragraph (1) made by a third party that arises 
     out of the presence or use of equipment owned by the Federal 
     Government.
       ``(f) Excess Metals, Minerals, and Materials.--
       ``(1) In general.--Notwithstanding any other provision of 
     law to the contrary, metals, minerals, and materials acquired 
     pursuant to this section which, in the judgment of the 
     President, are excess to the needs of programs under this 
     Act, shall be transferred to the National Defense Stockpile 
     established by the Strategic and Critical Materials Stock 
     Piling Act (50 U.S.C. 98 et seq.), when the President deems 
     such action to be in the public interest.
       ``(2) Transfers at no charge.--Transfers made pursuant to 
     this subsection shall be made without charge against or 
     reimbursement from funds appropriated for the purposes of the 
     Strategic and Critical Materials Stock Piling Act (50 U.S.C. 
     98 et seq.), except that costs incident to such transfer, 
     other than acquisition costs, shall be paid or reimbursed 
     from such funds.
       ``(g) Substitutes.--When, in the judgement of the 
     President, it will aid the national defense, the President 
     may make provision for the development of substitutes for 
     strategic and critical materials, critical components, 
     critical technology items, and other industrial resources.

     ``SEC. 304. DEFENSE PRODUCTION ACT FUND.

       ``(a) Establishment of Fund.--There is established in the 
     Treasury of the United States a separate fund to be known as 
     the `Defense Production Act Fund' (in this section referred 
     to as the `Fund').
       ``(b) Moneys in Fund.--There shall be credited to the 
     Fund--
       ``(1) all moneys appropriated for the Fund, as authorized 
     by section 711; and
       ``(2) all moneys received by the Fund on transactions 
     entered into pursuant to section 303.
       ``(c) Use of Fund.--The Fund shall be available to carry 
     out the provisions and purposes of this title, subject to the 
     limitations set forth in this Act and in appropriations Acts.
       ``(d) Duration of Fund.--Moneys in the Fund shall remain 
     available until expended.
       ``(e) Fund Balance.--The Fund balance at the close of each 
     fiscal year shall not exceed $750,000,000, excluding any 
     moneys appropriated to the Fund during that fiscal year or 
     obligated funds. If, at the close of any fiscal year, the 
     Fund balance exceeds $750,000,000, the amount in excess of 
     $750,000,000 shall be paid into the general fund of the 
     Treasury.
       ``(f) Fund Manager.--The President shall designate a Fund 
     manager. The duties of the Fund manager shall include--
       ``(1) determining the liability of the Fund in accordance 
     with subsection (g);
       ``(2) ensuring the visibility and accountability of 
     transactions engaged in through the Fund; and
       ``(3) reporting to the Congress each year regarding 
     activities of the Fund during the previous fiscal year.
       ``(g) Liabilities Against Fund.--When any agreement entered 
     into pursuant to this title after December 31, 1991, imposes 
     any contingent liability upon the United States, such 
     liability shall be considered an obligation against the 
     Fund.''.

     SEC. 8. DEFINITIONS.

       Section 702 of the Defense Production Act of 1950 (50 
     U.S.C. App. 2152) is amended--
       (1) in paragraph (1), by striking ``military equipment 
     identified by the Secretary of Defense'' and inserting 
     ``equipment identified by the President'';
       (2) by striking paragraphs (2), (4), (9), and (18);
       (3) by redesignating paragraph (3) as paragraph (2);
       (4) by inserting after paragraph (2), as so redesignated, 
     the following:
       ``(3) Critical technology.--The term `critical technology' 
     includes any technology designated by the President to be 
     essential to the national defense.'';
       (5) by redesignating paragraphs (5) through (8) as 
     paragraphs (4) through (7), respectively;
       (6) in paragraph (6), as so redesignated--
       (A) in the paragraph heading, by striking ``defense'';
       (B) by striking ``domestic defense'' and inserting 
     ``domestic''; and
       (C) by striking ``graduated mobilization,'';
       (7) by redesignating paragraphs (10) and (11) as paragraphs 
     (8) and (9), respectively;
       (8) by inserting after paragraph (9), as so redesignated, 
     the following:
       ``(10) Guaranteeing agency.--The term `guaranteeing agency' 
     means a department or agency of the United States engaged in 
     procurement for the national defense.
       ``(11) Homeland security.--The term `homeland security' 
     includes efforts--
       ``(A) to prevent terrorist attacks within the United 
     States;
       ``(B) to reduce the vulnerability of the United States to 
     terrorism;
       ``(C) to minimize damage from a terrorist attack in the 
     United States; and
       ``(D) to recover from a terrorist attack in the United 
     States.'';
       (9) in paragraph (12), by striking ``capacity'' and 
     inserting ``base'';
       (10) in paragraph (14), by striking ``military assistance 
     to any foreign nation'' and inserting ``military or critical 
     infrastructure assistance to any foreign nation, homeland 
     security''; and
       (11) in paragraph (16)--
       (A) in subparagraph (A), by striking ``or'' at the end;
       (B) in subparagraph (B), by striking the period and 
     inserting a semicolon; and
       (C) by adding at the end the following:
       ``(C) the movement of individuals and property by all modes 
     of civil transportation; or
       ``(D) other national defense programs and activities.''.

     SEC. 9. VOLUNTARY AGREEMENTS AND PLANS OF ACTION FOR NATIONAL 
                   DEFENSE.

       Section 708 of the Defense Production Act of 1950 (50 
     U.S.C. App. 2158) is amended--
       (1) in subsection (c)--
       (A) in paragraph (1), by striking ``defense of the United 
     States'' and all that follows through the period and 
     inserting ``national defense.''; and
       (B) by adding at the end the following:
       ``(3) Upon a determination by the President, on a 
     nondelegable basis, that a specific voluntary agreement or 
     plan of action is necessary to meet national defense 
     requirements resulting from an event that degrades or 
     destroys critical infrastructure--
       ``(A) an individual that has been delegated authority under 
     paragraph (1) with respect to such agreement or plan shall 
     not be required to consult with the Attorney General or the 
     Federal Trade Commission under paragraph (2)(B); and
       ``(B) the President shall publish a rule in accordance with 
     subsection (e)(2)(B) and publish notice in accordance with 
     subsection (e)(3)(B) with respect to such agreement or plan 
     as soon as is practicable under the circumstances.'';
       (2) in subsection (f)(2)--
       (A) by striking ``two years'' each place that term appears 
     and inserting ``5 years''; and
       (B) by striking ``two-year'' and inserting ``5-year''; and
       (3) by striking subsection (n) and inserting the following:
       ``(n) Exemption From Advisory Committee Act Provisions.--
     Notwithstanding any other provision of law, the Federal 
     Advisory Committee Act (5 U.S.C. App.) and any other 
     provision of Federal law relating to advisory committees 
     shall not apply to--
       ``(1) the consultations referred to in subsection (c)(1); 
     or
       ``(2) any activity conducted under a voluntary agreement or 
     plan of action approved pursuant to this section that 
     complies with the requirements of this section.''.

     SEC. 10. EMPLOYMENT OF PERSONNEL; APPOINTMENT POLICIES; 
                   NUCLEUS EXECUTIVE RESERVE; USE OF CONFIDENTIAL 
                   INFORMATION BY EMPLOYEES; PRINTING AND 
                   DISTRIBUTION OF REPORTS.

       Section 710 of the Defense Production Act of 1950 (50 
     U.S.C. App. 2160) is amended--
       (1) in subsection (b)--
       (A) in paragraph (2), by striking clause (iii);
       (B) by striking paragraph (4);
       (C) by redesignating paragraphs (5) through (8) as 
     paragraphs (4) through (7), respectively; and
       (D) in paragraph (6), as so redesignated, by striking ``At 
     least'' and all that follows through ``survey'' and inserting 
     ``The Director of the Office of Personnel Management shall 
     carry out a biennial survey of'';
       (2) in subsection (c), by striking the third sentence;
       (3) in subsection (d), by striking ``needed;'' and all that 
     follows through the period and inserting ``needed.''; and
       (4) in subsection (e)--
       (A) in the first sentence, by striking ``emergency'' and 
     inserting ``national defense emergency, as determined by the 
     President''; and
       (B) by striking the third sentence.

     SEC. 11. DEFENSE PRODUCTION ACT COMMITTEE.

       Section 722 of the Defense Production Act of 1950 (50 
     U.S.C. App. 2171) is amended to read as follows:

[[Page 22405]]



     ``SEC. 722. DEFENSE PRODUCTION ACT COMMITTEE.

       ``(a) Committee Established.--There is established the 
     Defense Production Act Committee (in this section referred to 
     as the `Committee'), which shall advise the President on the 
     effective use of the authority under this Act by the 
     departments, agencies, and independent establishments of the 
     Federal Government to which the President has delegated 
     authority under this Act.
       ``(b) Membership.--
       ``(1) In general.--The members of the Committee shall be--
       ``(A) the head of each Federal agency to which the 
     President has delegated authority under this Act; and
       ``(B) the Chairperson of the Council of Economic Advisors.
       ``(2) Chairperson.--The President shall designate 1 member 
     of the Committee as the Chairperson of the Committee.
       ``(c) Executive Director.--
       ``(1) In general.--The President shall appoint an Executive 
     Director of the Defense Production Act Committee (in this 
     section referred to as the `Executive Director'), who shall--
       ``(A) be responsible to the Chairperson of the Committee; 
     and
       ``(B) carry out such activities relating to the Committee 
     as the Chairperson may determine.
       ``(2) Appointment.--The appointment by the President shall 
     not be subject to the advice and consent of the Senate.
       ``(3) Compensation.--For pay periods beginning on or after 
     the date on which each Chairperson is appointed, funds for 
     the pay of the Executive Director shall be paid from 
     appropriations to the salaries and expenses account of the 
     department or agency of the Chairperson of the Committee. The 
     Executive Director shall be compensated at a rate of pay 
     equivalent to that of a Deputy Assistant Secretary (or a 
     comparable position) of the Federal agency of the Chairperson 
     of the Committee.
       ``(d) Report.--Not later than the end of the first quarter 
     of each calendar year, the Committee shall submit to the 
     Committee on Banking, Housing, and Urban Affairs of the 
     Senate and the Committee on Financial Services of the House 
     of Representatives a report signed by each member of the 
     Committee that contains--
       ``(1) a review of the authority under this Act of each 
     department, agency, or independent establishment of the 
     Federal Government to which the President has delegated 
     authority under this Act;
       ``(2) recommendations for the effective use of the 
     authority described in paragraph (1) in a manner consistent 
     with the statement of policy under section 2(b);
       ``(3) recommendations for legislation, regulations, 
     executive orders, or other action by the Federal Government 
     necessary to improve the use of the authority described in 
     paragraph (1); and
       ``(4) recommendations for improving information sharing 
     between departments, agencies, and independent establishments 
     of the Federal Government relating to all aspects of the 
     authority described in paragraph (1).
       ``(e) Federal Advisory Committee Act.--The provisions of 
     the Federal Advisory Committee Act (5 U.S.C. App.) shall not 
     apply to the Committee.''.

     SEC. 12. ANNUAL REPORT ON IMPACT OF OFFSETS.

       (a) Annual Report.--Title VII of the Defense Production Act 
     of 1950 (50 U.S.C. App. 2151 et seq.) is amended by adding at 
     the end the following:

     ``SEC. 723. ANNUAL REPORT ON IMPACT OF OFFSETS.

       ``(a) Report Required.--
       ``(1) In general.--The President shall submit to the 
     Committee on Banking, Housing, and Urban Affairs of the 
     Senate and the Committee on Financial Services of the House 
     of Representatives, a detailed annual report on the impact of 
     offsets on the defense preparedness, industrial 
     competitiveness, employment, and trade of the United States.
       ``(2) Duties of the secretary of commerce.--The Secretary 
     of Commerce (hereafter in this subsection referred to as the 
     `Secretary') shall--
       ``(A) prepare the report required by paragraph (1);
       ``(B) consult with the Secretary of Defense, the Secretary 
     of the Treasury, the Secretary of State, and the United 
     States Trade Representative in connection with the 
     preparation of such report; and
       ``(C) function as the President's Executive Agent for 
     carrying out this section.
       ``(b) Interagency Studies and Related Data.--
       ``(1) Purpose of report.--Each report required under 
     subsection (a) shall identify the cumulative effects of 
     offset agreements on--
       ``(A) the full range of domestic defense productive 
     capability (with special attention paid to the firms serving 
     as lower-tier subcontractors or suppliers); and
       ``(B) the domestic defense technology base as a consequence 
     of the technology transfers associated with such offset 
     agreements.
       ``(2) Use of data.--Data developed or compiled by any 
     agency while conducting any interagency study or other 
     independent study or analysis shall be made available to the 
     Secretary to facilitate the execution of the Secretary's 
     responsibilities with respect to trade offset and 
     countertrade policy development.
       ``(c) Notice of Offset Agreements.--
       ``(1) In general.--If a United States firm enters into a 
     contract for the sale of a weapon system or defense-related 
     item to a foreign country or foreign firm and such contract 
     is subject to an offset agreement exceeding $5,000,000 in 
     value, such firm shall furnish to the official designated in 
     the regulations promulgated pursuant to paragraph (2) 
     information concerning such sale.
       ``(2) Regulations.--The information to be furnished under 
     paragraph (1) shall be prescribed in regulations promulgated 
     by the Secretary. Such regulations shall provide protection 
     from public disclosure for such information, unless public 
     disclosure is subsequently specifically authorized by the 
     firm furnishing the information.
       ``(d) Contents of Report.--
       ``(1) In general.--Each report under subsection (a) shall 
     include--
       ``(A) a net assessment of the elements of the industrial 
     base and technology base covered by the report;
       ``(B) recommendations for appropriate remedial action under 
     the authority of this Act, or other law or regulations;
       ``(C) a summary of the findings and recommendations of any 
     interagency studies conducted during the reporting period 
     under subsection (b);
       ``(D) a summary of offset arrangements concluded during the 
     reporting period for which information has been furnished 
     pursuant to subsection (c); and
       ``(E) a summary and analysis of any bilateral and 
     multilateral negotiations relating to the use of offsets 
     completed during the reporting period.
       ``(2) Alternative findings or recommendations.--Each report 
     required under this section shall include any alternative 
     findings or recommendations offered by any departmental 
     Secretary, agency head, or the United States Trade 
     Representative to the Secretary.
       ``(e) Utilization of Annual Report in Negotiations.--The 
     findings and recommendations of the reports required by 
     subsection (a), and any interagency reports and analyses 
     shall be considered by representatives of the United States 
     during bilateral and multilateral negotiations to minimize 
     the adverse effects of offsets.''.
       (b) Technical and Conforming Amendments.--
       (1) Defense production act amendments of 1992.--Section 
     123(c)(1)(C) of the Defense Production Act Amendments of 1992 
     (50 U.S.C. App. 2099 note) is amended by striking ``section 
     309(a) of the Defense Production Act of 1950 (50 U.S.C. App. 
     2099(a))'' and inserting ``section 723(a) of the Defense 
     Production Act of 1950''.
       (2) American homeownership and economic opportunity act of 
     2000.--Section 1102(2) of the American Homeownership and 
     Economic Opportunity Act of 2000 (31 U.S.C. 1113 note) is 
     amended by striking ``309 of the Defense Production Act of 
     1950 (50 U.S.C. App. 2099)'' and inserting ``723 of the 
     Defense Production Act of 1950''.
       (3) Defense production act amendments of 2003.--Section 
     7(a) of the Defense Production Act Amendments of 2003 (50 
     U.S.C. App. 2099 note) is amended by striking ``section 
     309(a) of the Defense Production Act of 1950 (50 U.S.C. App. 
     2099(a))'' and inserting ``section 723(a) of the Defense 
     Production Act of 1950''.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
North Carolina (Mr. Watt) and the gentleman from Minnesota (Mr. 
Paulsen) each will control 20 minutes.
  The Chair recognizes the gentleman from North Carolina.


                             General Leave

  Mr. WATT. Mr. Speaker, I ask unanimous consent that all Members may 
have 5 legislative days within which to revise and extend their remarks 
on this legislation and to insert extraneous material thereon.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from North Carolina?
  There was no objection.
  Mr. WATT. Mr. Speaker, I yield myself such time as I may consume.
  I rise in strong support of S. 1677, the Defense Production Act 
Reauthorization of 2009. The Defense Production Act was enacted in 1950 
during the Korean War to assure the timely availability of industrial 
resources to meet national defense needs, particularly in times of 
crisis.
  The Defense Production Act has expanded beyond its original focus on 
military requirements, as the name suggests, to expand industrial 
resources to meet other emergency preparedness and critical 
infrastructure needs, thereby allowing civilian agencies to respond 
rapidly to crises such as natural disasters or terrorist attacks.
  S. 1677 updates the Cold War-era law with 21st century tools and 
taxpayer protections. In accordance with the

[[Page 22406]]

General Accounting Office and Department of Homeland Security 
recommendations, it mandates greater coordination and implementation 
among Federal civilian agencies to use authorities to prioritize 
government contracts for our national defense and domestic emergency 
needs. It modernizes Federal loan and loan guarantee authorities in the 
act so essential government suppliers that otherwise would have trouble 
accessing credit can access credit to expand domestic industrial 
capacity in emergency situations. Such assistance is conditioned on 
government need, recipients' viability, and specific congressional 
appropriation.
  This new bill would establish a new interagency body called the 
Defense Production Act Committee that will elevate Defense Production 
Act policy discussions to Cabinet-level consideration to advise the 
President and improve coordination among all agencies delegated Defense 
Production Act authority. The panel will report to Congress annually on 
its use of Defense Production Act authorities and provide 
recommendations for any improvements.
  Over the years, Mr. Speaker, the Defense Production Act has been an 
important tool for meeting national defense and critical infrastructure 
needs such as mine-resistant vehicles for troops in Iraq and emergency 
supplies and services for Hurricane Katrina recovery on the domestic 
side.
  I hope my colleagues will join me in voting for the Defense 
Production Act Reauthorization Act of 2009, S. 1677.
  I reserve the balance of my time.
  Mr. PAULSEN. I yield myself such time as I may consume. Mr. Speaker, 
I rise today also in strong support of S. 1677, the Defense Production 
Act Reauthorization of 2009, and ask for its immediate passage.
  We deal with many important pieces of legislation in this Chamber, 
and there's one law that may seem a little bit more obscure--but 
enacting it is critically important to this country--and that's the 
Defense Production Act of 1950.
  While not specifying the purchase of a single weapon system or a 
single sandbag, it does provide the orderly framework for interventions 
into the normal functioning of the economy when they are necessary to 
aid in national defense or in mitigating the results of some disaster.
  Without this bill, Mr. Speaker, the government would not have been 
able to acquire on a timely basis special switching equipment to get 
trains running back into the gulf coast after Hurricane Katrina. We 
wouldn't have been able to quick-order new radio equipment before the 
first Gulf war to help soldiers from different countries working 
together in Desert Storm communicate with each other. And we would not 
have been able to ensure that domestic sources of production for some 
highly specialized defense equipment for which no company otherwise 
would see the economic case to produce was made available.
  This bill before us, Mr. Speaker, authorizes the DPA for 5 years. It 
removes some archaic language in a text that is nearly 70 years old and 
reinstates some of its purposes without materially changing the 
authorities themselves.
  It changes the way that the government notifies Congress in those 
specialized domestic production cases and conforms language in sections 
allowing loan guarantees to match other parts of Federal law.
  The only real change is the creation of a new Cabinet secretary-level 
committee which will advise the President on the use of the DPA and to 
facilitate interagency communications on DPA issues, correcting lines 
of communication in the executive branch that have been identified for 
decades. This same committee would report annually to Congress on the 
use of the DPA with any recommendations for reforms so that we in 
Congress can keep those important powers current.
  Mr. Speaker, as evidence of how valuable the Defense Production Act 
authorities can be, I would like to submit for the Record a story from 
yesterday's Washington Post that details the work by Army scientist 
Scott Schoenfeld, who developed some special lightweight armor to 
protect our troops in the Gulf from a new and deadly type of explosive 
device that was overcoming vehicles' existing armor plating.
  The research was done at Aberdeen Proving Ground, but the expedited 
acquisition authorities in the DPA allowed the Army to secure an 
adequate supply of the new armor quickly, saving countless lives.
  More recently, the Department of Defense has also used the DPA as an 
innovation tool to provide seed money to develop new technologies. One 
such instance is the development of radiation-hardened 
microelectronics, which are designed to withstand extremely harsh 
natural and manmade radiation environments.
  A few years ago, Honeywell opened a production line devoted to this 
high-performance technology in my district. This project can be used to 
produce components for the most sensitive national security systems, 
and employs 425 highly educated and highly skilled workers in the 
exacting science of microelectronics in my district. This technology 
protects our Nation's most critical assets from nuclear and 
radiological damage and interference.
  Mr. Speaker, I think it's important to note that the DPA does not 
itself specify the purchase of any weapon, but rather it is a framework 
to ensure that there is the least disruption possible to the economy 
when the government needs to step to the head of the production line to 
obtain material.
  It's the jurisdiction of the Financial Services Committee to referee 
and minimize interferences in the economy while leaving departments 
such as Defense or Homeland Security or Transportation the actual use 
of the powers as they are delegated by the President.
  I hope we have strong support for this important legislation.

               [From the Washington Post, Sept. 22, 2009]

                Vehicle Armor Recognized in Army Awards

                         (By Michael E. Ruane)

       In the deadly contest last year between American experts 
     trying to protect soldiers from roadside bombs and enemy 
     technicians designing the lethal devices, Army scientist 
     Scott E. Schoenfeld often pondered his adversary.
       The enemy was fielding new so-called EFPs--explosively 
     formed penetrators--that were so potent they were destroying 
     even the most-heavily armored vehicles. As Schoenfeld and his 
     colleagues at the Aberdeen Proving Ground studied captured 
     explosives, the American, who has a PhD in applied mechanics, 
     worried that his opponents might be much like himself.
       Monday, in a sense, the latest round went to Schoenfeld. He 
     and a team of Army experts were recognized for devising an 
     ``add on'' lightweight armor kit that the Army said has 
     proved resistant to the powerful EFPs.
       Schoenfeld's work and the efforts of nine other programs 
     deployed in the field last year were recognized as the Army's 
     top inventions of 2008 by its Aberdeen-based Research, 
     Development and Engineering Command. The 10 winners were 
     selected by a panel of soldiers from 30 nominees, said 
     spokesman Robert DiMichele.
       ``These are actually innovations that have been put into 
     the field that soldiers are using right now,'' he said. ``A 
     lot of these are things that are really innovations that 
     protect the soldier and save soldiers' lives.''
       One device was a special gauze bandage designed to stem 
     arterial bleeding. Another was a steel roof to protect Humvee 
     gunners from overhead fire. Another can detect sniper fire 
     and allows a gunner in a vehicle to automatically aim at the 
     source of the fire. Yet another can help detect radio 
     emissions used to detonate makeshift bombs. And another was a 
     kind of armored TV truck that can raise video and other 
     sensing equipment mounted on a 30-foot mast to spot trouble 
     nearby.
       One of the most lifesaving programs was the add-on armor 
     kit for the Army's mine and ambush resistant vehicles, which 
     had become vulnerable to the penetrating roadside bombs. At 
     Aberdeen, where thousands of captured roadside bombs have 
     been studied, scientists were able to detonate powerful bombs 
     and monitor how they worked.
       Part of the solution was plastic armor made of high-density 
     polyethylene fibers. ``It's kind of an amazing process,'' 
     Schoenfeld said Monday at the Hyatt Regency Hotel in Crystal 
     City, where the recognition ceremony was held. ``It's 
     plastic, and the plastic is processed very heavily. It's 
     drawn into fibers. The fibers are very high strength, and 
     they're consolidated into composite panels. And they give 
     very good ballistic performance.''
       Schoenfeld said the Army brought captured roadside bombs to 
     Aberdeen and set them off to see how they worked.

[[Page 22407]]

       ``We tested . . . devices ourselves,'' he said. ``We 
     actually detonated many of them.''
       Experts measured the explosions with a host of 
     sophisticated instruments, he said.
       ``We can do X-ray diagnostics, where we actually flash 
     high-energy X-rays and make shadowgraphs of things that are 
     coming off of the IEDs,'' he said, ``so we understand the 
     actual detail, of the penetrators that they form.''
       The scientists then study what they call ``terminal 
     effects,'' or what the explosive does to its target, and 
     design armor to counter it.
       Along the way, he said, the American experts think a lot 
     about the designers of these bombs.
       ``We try and think, 'What would they do next?' `` he said. 
     ``They have some expertise, and it's pretty obvious what it 
     is. And you start understanding that. And you try and 
     anticipate what else they might do.''
       ``I'm worried that I might know'' such an adversary, he 
     said. ``The scientific community is worldwide.'' He said such 
     devices ``very easily could have been'' the work of someone 
     like himself.
       For now, though, the American scientists seem to have the 
     upper hand.
       ``The rewarding part,'' Schoenfeld said, was getting back 
     photographs of vehicles blasted by IEDs in which ``people 
     were not getting killed.''

  I reserve the balance of my time.
  Mr. WATT. Mr. Speaker, I have no further requests for time on this 
important bill. I reserve the balance of my time.
  Mr. PAULSEN. Mr. Speaker, just in closing, I yield myself such time 
as I may consume. This is a good, bipartisan bill. It was crafted by 
Senators Dodd and Shelby in consultation with Mr. Watt and Mr. Bachus. 
It passed the Senate last week under unanimous consent.
  Although we're in the middle of hurricane season and in a tough 
conflict in Afghanistan, these powers will expire at midnight 1 week 
from today if we do not reauthorize them. So I hope that all Members 
will support this legislation and send it to the President quickly so 
he can sign it.
  I yield back the balance of my time.
  Mr. WATT. Mr. Speaker, I yield myself such time as I may consume. I 
want to thank my colleague for his statement and especially remind my 
colleagues of the urgency of this matter, because this important 
authorization expires, unless we renew it, at the end of this month. So 
it's critically important that we pass this bill today.
  In a democracy there's always a very delicate balance between taking 
the time to authorize things and delegating authority to an 
administration for emergency kinds of situations. I just want to assure 
my colleagues in the House that the Senate and the administration has 
scrubbed this bill vigorously to try to find the appropriate balance 
between giving the administration and folks other than those of us in 
Congress emergency authority to do things without allowing that 
authority to be abused.
  We saw recently in the responses that the Federal Reserve had to take 
to the economic downturn last year and this year--we realized that 
there was some emergency authority in a remote 1933 bill that the 
Federal Reserve had to take certain steps. It made us a lot more aware 
of that delicate balance that we are always walking between giving 
Federal Government agencies the authority to act in emergency 
circumstances and going through the deliberative process that's needed 
for Congress to authorize these kind of emergency actions.
  So our Financial Services Committee is very aware of walking that 
delicate balance and the necessity for doing so. And to the extent that 
this bill could be controversial, it would be in that area of what is 
that delicate balance. I think my colleagues need to be reassured that 
we have been very cognizant of walking that balance and trying to find 
the right levers to make sure that this authority can be used only in 
emergencies that everyone would recognize as an emergency and not be 
abused and used without appropriate checks and balances being 
exercised.
  With that, I urge my colleagues to support this extremely important 
piece of legislation.
  I yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from North Carolina (Mr. Watt) that the House suspend the 
rules and pass the bill, S. 1677.
  The question was taken; and (two-thirds being in the affirmative) the 
rules were suspended and the bill was passed.
  A motion to reconsider was laid on the table.

                          ____________________