No official summary available for this bill.
[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 10378 Introduced in House (IH)]
<DOC>
118th CONGRESS
2d Session
H. R. 10378
To establish the Critical Mineral Reserve of the United States, and for
other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
December 11, 2024
Mr. Wittman (for himself, Mr. Gimenez, and Mr. Moolenaar) introduced
the following bill; which was referred to the Committee on Natural
Resources, and in addition to the Committee on Foreign Affairs, for a
period to be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the
committee concerned
_______________________________________________________________________
A BILL
To establish the Critical Mineral Reserve of the United States, and for
other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Securing Essential and Critical U.S.
Resources and Elements Minerals Act of 2024'' or ``SECURE Minerals Act
of 2024''.
SEC. 2. FINDINGS.
Congress finds the following:
(1) Critical minerals and materials are essential to the
ongoing economic and national security of the United States,
playing a vital role in manufacturing, transportation, medical,
technology, defense, and energy sectors. 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 automative systems, all of which
rely heavily on these minerals and materials for the production
of batteries, solar panels, wind turbines, high-speed
computing, advanced magnetic systems, and other high-tech
applications.
(2) The People's Republic of China currently controls a
significant portion of the global supply chain for critical
minerals and materials, including rare earth elements, through
extensive mining, integrated midstream operations, significant
domestic subsidies and incentives, and strategic investments in
resource-rich countries. The PRC centrally controls its
dominant market share across multiple critical mineral
verticals. The PRC 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. The PRC's integrated operations,
subservient to the Chinese state, are calibrated to weaponize
its 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 these minerals and
materials. The PRC also acts to undercut efforts in the United
States and allied nations to develop alternative sources of
supply.
(3) The United States is heavily reliant on imports for
many of the most critical minerals and materials, including
rare earth elements, making the nation vulnerable to supply
disruptions, geopolitical tensions, and economic manipulation
by countries that dominate the market, specifically the PRC.
The vulnerabilities to the nation's defense industrial base
posed by this reliance cannot be overstated. Given the long
lead times in the mining sector as well as the adjacent
processing of critical minerals, domestic critical minerals
extraction projects are particularly susceptible to China-
induced price shocks which can depress critical mineral prices
for an extended period.
(4) Increasing domestic primary feedstock production,
processing, conversion, recycling, reuse, and repurposing to
advanced materials and products, as well as increasing
alternative allied supply, is imperative to reduce the impact
of market manipulation by foreign state actors, such as the
PRC. The United States must ensure that a stable and secure
supply chain of these essential resources is available to our
domestic innovation and manufacturing ecosystems.
(5) Sustainable and responsible corporate behavior in
companies' operations and across their global value chains is
important to ensuring a resilient domestic minerals supply.
(6) Investments in domestic extraction 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.
(7) Government support to develop and ensure the integrity
of Western and allied markets for these critical minerals and
materials as a countermeasure against the anti-competitive
tactics of the PRC and their supply chain co-collaborators will
fill the most acute strategic gap which cannot be otherwise
achieved by private industry participants acting alone. To this
end, we recommend establishing the ``Critical Mineral Reserve
of the United States'', also referred to herein as the Reserve.
SEC. 3. ESTABLISHMENT OF RESERVE.
(a) Establishment.--
(1) In general.--There is established a trust with the name
``Critical Mineral Reserve of the United States'', which
shall--
(A) not be an agency or establishment of the United
States Government;
(B) manage its assets in the manner set forth in
this Act; and
(C) be a trust domiciled in the District of
Columbia and, to the extent not inconsistent with this
Act, be subject to the laws of the District of Columbia
applicable to such trusts.
(2) Purpose.--The purposes of the Reserve are--
(A) to support domestic and allied extraction,
production, reuse, repurposing, and recycling of and
capabilities and infrastructure with respect to
critical minerals and materials;
(B) to stabilize, support, and protect sustainable
prices of critical minerals and materials;
(C) to assist in maintaining balanced and adequate
supplies of critical minerals and materials to the
United States, as determined by the Board;
(D) to sustain access to and the supply of critical
minerals and materials for the United States and any
allied country; and
(E) to facilitate the orderly distribution of
critical minerals and materials.
(3) Annual independent audit.--
(A) In general.--Not later than 1 year after the
date of the enactment of this Act and annually
thereafter, an independent qualified public accountant
selected by the Board shall audit the financial
statements of the Reserve, the results of which shall
be made publicly available.
(B) Requirements.--Each independent qualified
public accountant selected by the Board to perform an
audit under subparagraph (A) shall be--
(i) certified and licensed by a State board
of accountancy;
(ii) independent of the Reserve and each
authorized market maker in accordance with
section 210.2-01 of title 17, Code of Federal
Regulations; and
(iii) registered with the Public Company
Accounting and Oversight Board.
(4) Civil action.--
(A) In general.--The Reserve may bring a civil
action in any court of competent jurisdiction against
any person that--
(i) fails to comply with any contractual
obligation or agreement made with the Reserve;
(ii) violates any provision of this Act; or
(iii) engages in any practice or activity
that unlawfully impairs or interferes with the
operations of the Reserve, including fraud,
misrepresentation, or breach of contract.
(B) Award.--In a civil action under this paragraph,
the Reserve may seek--
(i) economic relief, including compensatory
damages, restitution, interest, costs, and
reasonable attorney's fees;
(ii) temporary or permanent injunctive
relief, including specific performance; and
(iii) such other equitable relief as a
court determines appropriate.
(C) Statute of limitations.--A civil action under
this paragraph may not be brought later than 5 years
after the date on which the cause of action accrues.
(5) Initial capitalization.--There is appropriated, out of
any amounts in the Treasury not otherwise appropriated,
$2,500,000,000 to the Reserve for fiscal year 2025.
(b) Mandate of Reserve.--
(1) In general.--The Reserve shall, with respect to each
critical mineral and material--
(A) support domestic and allied production,
including sourcing from domestic and allied reuse,
repurposing, and recycling; and
(B) to the maximum extent practicable, ensure
that--
(i) at each stage of the supply chain, the
production rate is equal to or greater than 40
percent; and
(ii) at each stage of the supply chain, the
dependence rate is equal to or less than 60
percent; and
(C) prioritize--
(i) domestic projects and supply chains;
and
(ii) projects where the dependence is 100
percent.
(2) Determination of production rates and dependence
rates.--
(A) In general.--The Board shall determine the
production rate and dependence rate with respect to
each critical mineral and material.
(B) Use of data.--In determining the production
rate and dependence rate with respect to each critical
mineral and material under subparagraph (A), the
Board--
(i) shall use the proprietary dataset
developed under section 5(a)(1);
(ii) may use--
(I) the Mineral Commodity Summaries
published by the United States
Geological Service; and
(II) data from any other source the
Board determines to be of value under
similar circumstances, including
commercial data, whether such data is
public or proprietary in nature; and
(iii) may solicit private industry for data
and market information.
(3) Adjustment of production rate and dependence rate.--The
Board may annually adjust the production rate and the
dependence rate with respect to each critical mineral and
material, as initially established under paragraph (2)(A), by
not more than 5 percent.
(c) Review.--The Comptroller General of the United States shall
carry out a biennial review the Reserve, including a review of--
(1) the most recent annual report submitted to the Speaker
of the House of Representatives and the President of the Senate
by the Reserve under section 7;
(2) the operations and functions of the Reserve as managed
by the Board; and
(3) the performance of the Board in fulfilling the purposes
and mandate of the Reserve.
(d) Identification of Critical Minerals and Materials.--
(1) In general.--The Reserve, in collaboration with the
heads of Federal agencies in accordance with section 5(a)(7),
shall establish a list of critical minerals and materials
informed by the following:
(A) 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)).
(B) 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)).
(C) The materials of interest designated as such by
the Defense Logistics Agency.
(D) Each material with respect to which the
President has made a determination under section
303(a)(5) of the Defense Production Act of 1950 (50
U.S.C. 4533(a)(5)).
(E) Each material that is, or in the preceding 5
years was, a strategic or critical material for the
purposes of the Strategic and Critical Materials Stock
Piling Act (50 U.S.C. 98 et seq.) pursuant to a
determination by the President under section 3(a) of
such Act (50 U.S.C. 98b(a)).
(2) Requirements.--A mineral or material may only be
included in the list of critical minerals and materials
established by the Reserve under paragraph (1) if the mineral
or material--
(A) is a non-fuel mineral or material;
(B) is essential to the economic and national
security of the United States;
(C) has a high-risk supply chain; and
(D) is necessary--
(i) for the national defense and national
security requirements;
(ii) for the energy infrastructure of the
United States, including--
(I) pipelines;
(II) refining capacity;
(III) electrical power generation
and transmission; and
(IV) renewable energy production;
(iii) to support domestic manufacturing,
agriculture, housing, telecommunications,
healthcare, or transportation infrastructure;
or
(iv) for the economic security of, and
balance of trade in, the United States.
(3) Exclusions.--A mineral or material may not be included
in the list of critical minerals and materials established by
the Reserve under paragraph (1) if the mineral or material is--
(A) oil, oil shale, natural gas, coal, or uranium;
(B) water, ice, or snow; or
(C) a common variety of sand, gravel, stone,
pumice, cinders, or clay.
(4) Annual update.--The Reserve shall publish and annually
update the list of critical minerals and materials established
under paragraph (1).
(e) Sunset.--The Reserve shall terminate on the date that is 10
years after the date of the enactment of this Act.
SEC. 4. BOARD OF GOVERNORS OF RESERVE.
(a) Membership.--
(1) Appointment.--
(A) In general.--Except as provided in paragraph
(3)(D), the Board of Governors of the Reserve shall be
composed of 7 members appointed by the President, by
and with the advice and consent of the Senate.
(B) Initial appointments.--Not later than 180 days
after the date of the enactment of this Act, the
President shall appoint each of the 7 members of the
Board, including the Chairman, and the Board shall
elect a Vice-Chairman from the members of the Board.
(2) Qualifications.--To be eligible to be appointed as a
member of the Board under paragraph (1), an individual--
(A) shall have substantial experience, training,
and expertise in--
(i) the business and industry of a mineral
or material described in section 3(d)(1); and
(ii) the oversight, management, or
administration of financial instruments; and
(B) may not--
(i) have a direct or indirect financial
interest in an authorized market maker or at-
risk CMM; or
(ii) be closely related to someone with a
direct financial interest in an authorized
market maker or at-risk CMM.
(3) Terms.--
(A) Chairman.--
(i) In general.--An individual who is
appointed as the Chairman under paragraph (1)
shall serve for a single 5-year term.
(ii) Restriction.--An individual who is
appointed to serve a term as the Chairman of
the Board under paragraph (1) may not serve any
additional term on the Board after such term
ends.
(B) Vice-chairman.--
(i) In general.--The Board shall elect a
Vice-Chairman from the members of the Board who
are not the Chairman for a single 2-year term.
(ii) Completion of term.--An individual who
is appointed to serve a term as the Vice-
Chairman under clause (i) shall, after such
term ends, serve as a member of the Board for
the remainder of the term of such individual in
accordance with subparagraph (C).
(iii) Substitute.--The Vice-Chairman,
subject to the supervision of the Board, shall
serve as Interim Chairman in the absence of the
Chairman.
(C) Other board members.--
(i) In general.--Each member of the Board
who is not the Chairman shall be appointed to a
staggered single 6-year term.
(ii) Restriction.--An individual who is
appointed to serve a term as a member of the
Board may only serve an additional term on the
Board if the individual is appointed to serve
as Chairman, regardless of whether the
individual completes the term to which the
individual is initially appointed.
(iii) Term length cap.--An individual may
not serve on the Board for more than 6 years
except in accordance with subparagraph (E)(i).
(D) Vacancies.--Not later than 6 months after the
date on which a vacancy occurs on the Board, the
President, by and with the advice and consent of the
Senate, shall appoint a new member of the Board to fill
such vacancy.
(E) Completion of term.--
(i) In general.--Upon the expiration of the
term of a member of the Board, such member
shall continue to serve as a member of the
Board until the successor to such member is
appointed and is confirmed.
(ii) Replacement order.--Successors to
members of the Board shall be appointed and
confirmed in the order in which the members of
the Board were appointed and confirmed.
(4) Tribal representation.--At least 1 member of the Board
shall be a member of a Tribe.
(b) Compensation.--
(1) In general.--No individual who is a member of the Board
may engage in any business, vocation, or employment other than
that of serving as a member of the Board while such individual
is a member of the Board.
(2) Rate of pay.--The rate of basic pay for--
(A) the Chairman shall be equal to the rate of
basic pay payable for level I of the Executive
Schedule; and
(B) each member of the Board other than the
Chairman may be set and adjusted by the Chairman.
(4) Benefits.--The Chairman may provide additional
compensation and benefits to employees of the Board in the same
manner as compensation and benefits are provided under section
4802 of title 5, United States Code.
(c) Duties.--The Board shall--
(1) manage the lending authority, contracts, operations,
due diligence, and duties of the Reserve;
(2) oversee all authorized market makers and at-risk CMMs
under this Act; and
(3) determine and prescribe the manner in which--
(A) the obligations of the Reserve shall be
incurred; and
(B) the disbursements and expenses of the Reserve
shall be allowed and paid.
(d) Meetings.--
(1) In general.--The Chairman of the Board, the Vice-
Chairman, acting as Interim Chairman in the absence of the
Chairman in accordance with subsection (a)(3)(B)(iii), or a
Chairman pro tempore elected by the members of the Board
present at the meeting, in the absence of the Chairman and the
Vice-Chairman, shall preside at each meeting of the Board.
(2) Quorum.--4 of the members of the Board shall constitute
a quorum.
(3) Closed meetings.--The Board may close any meeting, or
portion thereof, that concerns matters or information that
pertains to national security.
(4) Minutes.--Unless closed in accordance with paragraph
(3), the minutes of each meeting of the Board shall be made
publicly available.
(e) Restriction on Employment.--
(1) 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
such member ends, such member may not hold any ownership,
office, position, including an advisory or consultant position,
or other employment in or with an authorized market maker or
with respect to an at-risk CMM.
(2) Opportunity to cure violation.--
(A) In general.--If the Comptroller General of the
United States finds that an individual described in
paragraph (1) is in violation of that paragraph, such
individual shall cure such violation not later than 30
days after the date on which such violation is found.
(B) Requirements to cure.--To cure a violation of
paragraph (1) as required under subparagraph (A), an
individual shall, at a minimum--
(i) renounce any pecuniary gain associated
with such violation; and
(ii) terminate each relationship that is
the subject of such violation.
(3) Penalty for uncured violation.--If the Comptroller
General of the United States finds that an individual described
in paragraph (1) is in violation of that paragraph and such
individual does not cure such violation in accordance with
paragraph (2) by the date described in subparagraph (A) of that
paragraph or, as applicable, established by the Board under
paragraph (4), such individual shall be deemed to have violated
section 207(a)(2) of title 18, United States Code, and shall
immediately be removed from the Board.
(4) Extension of cure period.--The Board may extend the
time provided under paragraph (2) for an individual described
in paragraph (1) to cure a violation of that paragraph.
(f) Principal Office.--The principal office of the Board shall be
located in the District of Columbia.
SEC. 5. DUTIES AND AUTHORITIES OF RESERVE.
(a) In General.--In carrying out the purposes and mandate of the
Reserve, the Reserve shall carry out the following activities:
(1) Develop and maintain a proprietary dataset sufficient
to ensure the thorough analysis of global critical minerals and
materials markets.
(2) Collect and maintain sufficient datasets, including
data comprising global, domestic, and allied 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; and
(B) the forecast of supply and demand of critical
minerals and materials within domestic and allied
markets.
(3) 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
purposes and mandate, including datasets produced by or
derivative of datasets produced by the PRC.
(4) Using the most current data collected under paragraphs
(2) and (3)--
(A) identify market conditions that require
intervention according to such purposes and mandate;
and
(B) determine specific critical minerals and
materials that are at-risk CMMs.
(5) Provide loans to authorized market makers in accordance
with subsection (b).
(6) Maintain an operational team and organization
sufficient to fulfill such mandate.
(7) Consult with the heads of other Federal agencies,
including--
(A) the Department of Commerce;
(B) the Department of Defense;
(C) the Department of Energy;
(D) the Department of the Interior;
(E) the Department of State;
(F) the Department of the Treasury;
(G) the Department of Agriculture;
(H) the United States Geological Survey; and
(I) the Export-Import Bank of the United States.
(8) To the extent possible, mitigate the risk of loss of
capital to United States taxpayers.
(9) Seek to mobilize private capital that furthers the
purposes and mandate of the Reserve.
(10) Act as a partner to authorized market makers, ensuring
they can fulfill their role of attracting private sector
resources into the critical minerals and materials market and
carrying out the purposes and mandate of the Reserve in the
marketplace on an on-going basis.
(b) Loans to Authorized Market Makers.--
(1) Loan program authorized.--The Reserve may make loans to
authorized market makers to enter into financing and purchasing
agreements with producers of at-risk CMMs under which such an
authorized market maker shall use the loan funds to--
(A) provide to a producer of at-risk CMMs an amount
equal to or greater than, with respect to the at-risk
CMMs, the difference between the all-in sustaining cost
and the prevailing market price of the at-risk CMMs, on
the condition that the authorized market maker will
receive a mutually-agreed-to percent of the profits
when such at-risk CMMs are sold; or
(B) agree to purchase the at-risk CMMs produced by
the producer at an amount equal to or greater than the
all-in sustaining cost.
(2) Loan conditions.--
(A) In general.--In making loans under the
paragraph (1), the Reserve shall--
(i) for each such loan, specify the at-risk
CMMs for which the loan funds may be used; and
(ii) in accordance with this Act, establish
such terms and conditions as the Reserve
determines appropriate.
(B) Adjustment of loan terms.--The Reserve and
authorized market maker may adjust loan terms under a
loan under paragraph (1) if the Reserve and authorized
market maker agree to the adjustment.
(C) Preferential terms for certain loans.--In
making loans under paragraph (1), the Reserve--
(i) shall provide preferential loan terms,
which may include an interest rate equal to the
Federal funds rate, to authorized market makers
that will use the loan to enter into financing
and purchasing agreements with producers of at-
risk CMMs;
(ii) may--
(I) provide preferential loan terms
to authorized market makers that will
use the loan to enter into financing
and purchasing agreements with
producers of at-risk CMMs in allied
countries described in subparagraph
(A), (B), or (C) of section 8(2), in
such manner as the Reserve determines
appropriate; and
(II) consult in with the Federal
agencies specified in subsection (a)(7)
with respect to the loan terms
described in subclause (I); and
(iii) shall ensure that, under the terms of
such loans, authorized market makers shall, to
the maximum extent practicable, give priority
to United States suppliers of critical minerals
and preference to the United States supply
chain.
(3) Proposal solicitation.--To be eligible to receive a
loan under paragraph (1), an authorized market maker 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 such paragraph for which the loan will
be used.
(4) Uncured default.--
(A) In general.--If an authorized market maker
fails to make a required repayment on a loan under
paragraph (1) for a 90-day period, the Reserve--
(i) shall--
(I) recoup the amount of such loan
by taking possession of the critical
mineral and material inventories of the
authorized market maker and any other
contractual rights of the authorized
market maker to receive critical
minerals or materials from suppliers;
and
(II) revoke the license of the
authorized market maker under section
6; and
(ii) subject to subparagraph (B), may
appoint itself as conservator or receiver of
the authorized market maker.
(B) Authorities under conservator or
receivership.--If the Reserve appoints itself a
conservator or receiver of an authorized market maker
under subparagraph (A)(ii), the Reserve shall have the
same authorities with respect to the authorized market
maker that the Federal Deposit Insurance Corporation
has with respect to an institution for which the
Corporation has appointed itself as conservator or
receiver under the Federal Deposit Insurance Act.
(C) Treatment of bankruptcy.--An authorized market
maker for which the Reserve has appointed itself a
conservator or a receiver may not be placed into
bankruptcy under title 11, United States Code, during
such conservatorship or receivership and any bankruptcy
process under title 11, United States Code, that is in
effect when such an appointment occurs shall be
terminated.
(5) Allied co-investment.--
(A) In general.--An allied country described in
subparagraph (A), (B), or (C) of section 8(2) may, if
approved by the Reserve, make capital contributions of
at least $100,000,000 to the Reserve for purposes of
making loans under paragraph (1).
(B) Minimum amount.--The Reserve shall annually
adjust the amount in subparagraph (A) by the percentage
increase in the Consumer Price Index for all urban
consumers published by the Department of Labor.
(C) Treatment of capital contributions.--The
Reserve--
(i) shall maintain separate accounts for
the capital contributions of each allied
country that provides such contributions under
subparagraph (A);
(ii) shall not commingle the capital
contributions of any allied country with any
other allied country or the funds of the
Reserve;
(iii) may return such capital contributions
to the allied country at any time, without
obligation or penalty, or under such other
terms and conditions as agreed to by the
Reserve and the allied country; and
(iv) may not guarantee the repayment of
such capital contributions to an allied
country.
(D) Loans made with allied co-investment funds.--
Loans made under paragraph (1) with capital
contributions under subparagraph (A) shall be made in
the same manner as loans made under paragraph (1) with
funds of the Reserve.
(E) International advisory council.--
(i) In general.--The Reserve may establish
an International Advisory Council of Allies
comprised of--
(I) the Vice-Chairman of the Board,
who shall be the head of the Council;
and
(II) one representative from each
allied country that makes a capital
contribution under subparagraph (A).
(ii) Consultation.--The International
Advisory Council shall, at the request of the
Reserve, advise the Reserve on loans made with
capital contributions under subparagraph (A).
(6) Applicability of federal credit reform act of 1990.--
Loans made under paragraph (1) shall be subject to the
requirements of the Federal Credit Reform Act of 1990 (2 U.S.C.
661, et seq.).
SEC. 6. AUTHORIZED MARKET MAKERS.
(a) In General.--Authorized market makers shall act on critical
minerals and materials purchase directives issued by the Reserve and
provide critical minerals and materials market data and insights back
to the Reserve.
(b) Licensing of Authorized Market Makers.--
(1) In general.--The Board shall license authorized market
makers in accordance with this section.
(2) Initial licensing.--Not later than 270 days after the
date of the enactment of this Act, the Board shall license not
fewer than 5 authorized market makers, of which at least 2
shall be small businesses.
(3) Maximum number of licensed authorized market makers.--
There may not be more than 5 authorized market makers at a
given time.
(4) Small business requirement.--Not less than 2 of the
first 4 authorized market makers licensed under this section
shall be small businesses with appropriate experience trading
and operating in critical mineral and material markets.
(5) Duration of license.--
(A) In general.--Except as provided for in
subparagraph (C), an authorized market maker licensed
under this section shall be licensed for 5 years.
(B) Renewal.--An authorized market maker may submit
to the Board an application for renewal of the license
of the authorized market maker.
(C) Rescission.--The Board shall have sole
authority to revoke the license of an authorized market
maker if the Board determines that the authorized
market maker--
(i) is not eligible to be licensed as an
authorized market maker under subsection (c);
or
(ii) is not in compliance with this Act.
(c) Eligibility; Application.--To be eligible to be licensed as an
authorized market maker under this section, an entity shall--
(1) be a private company that is a domestically domiciled
corporation;
(2) submit to the Board an application in such form, at
such time, and containing such information as the Board
determines appropriate;
(3) have demonstrated experience and expertise amongst the
ownership and active leadership of such private company
sufficient to accomplish the authorized market maker role,
including--
(A) commitment to the national security of the
United States;
(B) expertise with respect to more than 1 critical
mineral or material;
(C) expertise with respect to capital management,
commodities trading, or finance; and
(D) commitment to due diligence; and
(4) not have any ownership or management influenced by a
foreign entity of concern or a citizen of a foreign entity of
concern, including any entities affiliated with the private
company or the ownership of the private company.
(d) Clarification of Receipt of Federal Funds.--Whether an
authorized market maker receives Federal funds pursuant to another
provision of law shall not be used to determine whether the authorized
market maker is eligible to receive funds from the Reserve.
SEC. 7. REPORT.
(a) In General.--The Board shall annually submit to the President,
the Comptroller General of the United States, the Director of the
United States Office of Management and Budget, the Speaker of the House
of Representatives and the President of the Senate, and the Speaker of
the House of Representatives and the President of the Senate shall
distribute to Congress, a report regarding the operations of the
Reserve during the preceding year.
(b) Contents.--Each report required under subsection (a)--
(1) shall include--
(A) information regarding the administration of the
functions of the Board, including recommendations the
Board determines appropriate;
(B) the assessment of the Board of the extent to
which compliance with the requirements of this Act has
been achieved;
(C) any changes to the maximum number of licensed
authorized market makers under section 6(b)(3) that the
Board recommends; and
(D) a summary of the loans made by the Board to
authorized market makers during the preceding year; and
(2) may not be made publicly available.
SEC. 8. DEFINITIONS.
In this Act:
(1) All-in sustaining cost.--The term ``all-in sustaining
cost'' means the cost to keep a producer of a critical mineral
or material in business, expressed in terms of the cost per
unit of payable production that can be readily compared to the
relevant commodity price.
(2) Allied.--The term ``allied'', with respect to the
markets or producers of a country, means the market or any
producer of--
(A) a country with which the United States has
entered into a mutual defense treaty or other mutual
defense agreement;
(B) a country 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;
(C) a country 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;
(D) a country with which the United States Geologic
Survey has a memorandum of understanding concerning
scientific and technical cooperation in earth sciences;
or
(E) a country with which the United States
Department of State is working to advance a critical
mineral project under a partnership for global
infrastructure and investment.
(3) At-risk cmm.--The term ``at-risk CMM'' means a critical
mineral or material that requires, according to the purposes
and mandate of the Reserve, support within domestic and allied
markets.
(4) Authorized market maker.--The term ``authorized market
maker'' means an entity that is licensed by the Reserve under
section 6 to fulfill the purposes and mandate of the Reserve in
the marketplace.
(5) Board.--The term ``Board'' means the Board of Governors
of the Reserve.
(6) Chairman.--The term ``Chairman'' means the Chairman of
the Board.
(7) Covered nation.--The term ``covered nation'' has the
meaning given the term in section 2533c(d) of title 10, United
States Code.
(8) Critical mineral and material; critical mineral or
material.--The terms ``critical mineral and material'' and
``critical mineral or material'' mean a mineral and material or
mineral or material, as applicable, included in the list of
critical minerals and materials established by the Reserve
under section 3(d).
(9) Dependence rate.--The term ``dependence rate'' means
the portion of domestic end-use consumption of a critical
mineral or material that is supplied by production by a foreign
entity of concern, in aggregate.
(10) Due diligence.--The term ``due diligence'' means the
degree of attention, continuous directed effort, and timeliness
as may reasonably be expected from, and is ordinarily exercised
by, a person during a regulatory review period.
(11) Foreign entity of concern.--The term ``foreign entity
of concern'' has the meaning given the term in section
40207(a)(5) of the Infrastructure Investment and Jobs Act (42
U.S.C. 18741(a)(5)), except that subparagraph (C) of such
section shall be applied for purposes of this paragraph as if
it read as follows:
``(C)(i) 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
nation (as defined in section 2533c of title 10, United
States Code); or
``(ii) otherwise subject to the jurisdiction or
direction of a government of a foreign country that is
a covered nation.''.
(12) PRC.--The term ``PRC'' means the People's Republic of
China.
(13) Production rate.--The term ``production rate'' means
the portion of domestic end-use consumption of a critical
mineral or material that is supplied by domestic and allied
production, in aggregate.
(14) Purposes and mandate of the reserve.--The term
``purposes and mandate of the Reserve'' means the purposes of
the Reserve described in section 3(a)(2) and the mandate of the
Reserve described in section 3(b)(1).
(15) Recycling.--The term ``recycling'' 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 such critical mineral or material.
(16) Repurposing.--The term ``repurposing'' 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 one for which the critical mineral or
material, or the product the critical mineral or material is
manufactured into, was originally intended.
(17) Reserve.--The term ``Reserve'' means the Critical
Mineral Reserve of the United States established by section
3(a).
(18) Reuse.--The term ``reuse'' means the complete or
partial direct reuse of a critical mineral or material for the
original purpose for which it was intended.
(19) Small business.--The term ``small business'' has the
meaning given the term ``small business concern'' under section
3 of the Small Business Act (15 U.S.C. 632).
(20) Tribe.--The term ``Tribe'' has the meaning given the
term ``Indian Tribe'' in section 4(e) of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 5304(e)).
(21) Vice-chairman.--The term ``Vice-Chairman'' means the
Vice-Chairman of the Board.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Natural Resources, and in addition to the Committee on Foreign Affairs, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Natural Resources, and in addition to the Committee on Foreign Affairs, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
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