No official summary available for this bill.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 3659 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
2d Session
S. 3659
To establish a Strategic Resilience Reserve of the United States, and
for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
January 15, 2026
Mrs. Shaheen (for herself, Mr. Young, Mr. Rounds, and Ms. Cortez Masto)
introduced the following bill; which was read twice and referred to the
Committee on Energy and Natural Resources
_______________________________________________________________________
A BILL
To establish a Strategic Resilience 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; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Securing Essential
and Critical U.S. Resources and Elements Minerals Act of 2026'' or the
``SECURE Minerals Act of 2026''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Definitions.
TITLE I--ESTABLISHMENT AND BOARD OF GOVERNORS
Sec. 101. Establishment.
Sec. 102. Board of governors.
TITLE II--DUTIES AND AUTHORITIES OF THE RESERVE
Sec. 201. General authorities.
Sec. 202. Identification of eligible critical minerals and materials.
Sec. 203. Data collection.
Sec. 204. Critical mineral and material market risk and vulnerability
assessment.
Sec. 205. Production standards.
Sec. 206. Financing and acquisition of critical minerals or materials.
Sec. 207. Sale of critical minerals or materials.
TITLE III--ADMINISTRATIVE PROVISIONS
Sec. 301. Corporate powers.
Sec. 302. Records and accounts.
TITLE IV--OVERSIGHT AND ACCOUNTABILITY
Sec. 401. Risk and audit committees.
Sec. 402. Annual audit and comptroller review.
Sec. 403. Reporting and transparency.
SEC. 2. FINDINGS.
Congress finds that--
(1) critical minerals and materials are essential to the
ongoing economic and national security of the United States,
playing a vital role in the manufacturing, transportation,
medical, technology, defense, and energy sectors;
(2) the global demand for critical minerals and materials
has been rapidly increasing due to advancements in technology,
whether defense, dual-use, or commercial, and the increasing
adoption of renewable energy sources and next-generation
automotive systems, all of which rely heavily on critical
minerals and materials for the production of batteries, solar
panels, wind turbines, high-speed computing, advanced magnetic
systems, and other high-tech applications;
(3) the People's Republic of China--
(A) currently controls a significant portion of the
global supply chain for critical minerals and materials
through extensive mining, integrated midstream
operations, significant domestic subsidies and
incentives, and strategic investments in resource-rich
countries, dominating the global market infrastructure
for critical minerals and materials and enhancing the
ability of the People's Republic of China to manipulate
pricing to the detriment of competitors;
(B) centrally controls its dominant market share
across multiple critical mineral vertical markets,
preventing fair competition and hindering the ability
of United States firms and firms in partner countries
to innovate and scale production;
(C) predatorily leverages its position as sponsor
or consumer, as applicable, over mining projects
globally, resulting in a dearth of feedstocks to the
great detriment of downstream industries, regions, and
countries, including the United States;
(D) the integrated operations of which are
subservient to the Chinese state, is 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 critical minerals and materials; and
(E) acts to undercut efforts in the United States
and partner countries to develop alternative sources of
supply;
(4) producers of critical minerals and materials in the
United States often face artificially low prices set by supply
chains controlled by the People's Republic of China,
discouraging private investment in domestic extraction and
processing;
(5) the lack of transparent, competitive, and market-driven
pricing mechanisms for critical minerals and materials outside
of the People's Republic of China compounds market problems,
creating systemic risk and limiting the viability of an
independent supply chain for critical minerals and materials in
the United States;
(6) the United States is heavily reliant on imports for
many of the most critical minerals and materials, including
rare earth elements, making the United States vulnerable to
supply disruptions, geopolitical tensions, and economic
manipulation by countries that dominate the market,
specifically the People's Republic of China;
(7) the vulnerabilities to the United States defense
industrial base posed by reliance on imports of critical
minerals and materials are significant, and given the long lead
times for investments in both mining and processing of critical
minerals, domestic critical minerals production projects are
particularly susceptible to price shocks induced by the
People's Republic of China, which can depress critical mineral
prices for an extended period;
(8) increasing domestic primary feedstock production,
processing, conversion, recycling, reuse, and repurposing to
advanced materials and products, as well as increasing
alternative market supply in partner countries, are imperative
to reduce the impact of market manipulation by foreign state
actors, such as the People's Republic of China;
(9) the United States must ensure that a stable and secure
supply chain of essential resources is available to our
domestic innovation and manufacturing ecosystems;
(10) sustainable and responsible corporate behavior in the
direct operations of companies and across their global value
chains is important to ensuring a resilient domestic critical
minerals supply;
(11) investments in domestic extraction and processing
infrastructure, as well as reuse, repurposing, and recycling,
are necessary to build a resilient and diversified supply chain
for critical minerals and materials, supporting the economic
growth and national security interests of the United States;
and
(12) government support to develop and ensure the integrity
of Western and partner country markets for critical minerals
and materials as a countermeasure against the anti-competitive
tactics of the People's Republic of China and the supply chain
co-collaborators of the People's Republic of China will fill
the most acute strategic gap, which cannot be otherwise
achieved by private industry participants acting alone.
SEC. 3. DEFINITIONS.
In this Act:
(1) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(A) the Committee on Agriculture, Nutrition, and
Forestry of the Senate;
(B) the Committee on Agriculture of the House of
Representatives;
(C) the Committee on Armed Services of the Senate;
(D) the Committee on Armed Services of the House of
Representatives;
(E) the Committee on Banking, Housing, and Urban
Affairs of the Senate;
(F) the Committee on Financial Services of the
House of Representatives;
(G) the Committee on Commerce, Science, and
Transportation of the Senate;
(H) the Committee on Energy and Commerce of the
House of Representatives;
(I) the Committee on Energy and Natural Resources
of the Senate;
(J) the Committee on Natural Resources of the House
of Representatives;
(K) the Committee on Foreign Relations of the
Senate; and
(L) the Committee on Foreign Affairs of the House
of Representatives.
(2) Authorized intermediary.--The term ``authorized
intermediary'' means an entity that--
(A) is a private entity;
(B) has expertise in more than 1 critical mineral
or material;
(C) has expertise in commodities trading, market
making, capital management, or finance;
(D) does not have any management influenced by a
foreign entity of concern or a citizen of a covered
country, including any entities affiliated with the
private entity or the ownership of the private entity;
(E) is not owned, controlled, directed, financed,
or otherwise influenced, directly or indirectly, in
whole or in any part greater than 25 percent, by a
foreign entity of concern, a citizen of a covered
country, or the government of a covered country; and
(F) has been approved to be an authorized
intermediary by the Board.
(3) Board.--The term ``Board'' means the board of governors
of the Reserve established by section 102(a).
(4) Chairperson.--The term ``Chairperson'' means the
Chairperson of the Board.
(5) Covered country.--The term ``covered country'' means a
country that--
(A) is a covered nation (as defined in section
4872(f) of title 10, United States Code); or
(B) the Secretary of Energy, in consultation with
the Secretary of Defense, the Secretary of State, and
the Director of National Intelligence, determines to be
engaged in conduct that is detrimental to the national
security or foreign policy of the United States.
(6) Critical mineral or material.--The term ``critical
mineral or material'' means mineral or material included in the
list of eligible critical minerals and materials established by
the Reserve under section 202(a).
(7) Dependence rate.--The term ``dependence rate'' means
the percentage of domestic end-use consumption of a critical
mineral or material that is supplied by production by a foreign
entity of concern or in a covered country, in aggregate.
(8) Foreign entity of concern.--The term ``foreign entity
of concern'' means a foreign entity that--
(A) meets the requirements described in
subparagraphs (A), (B), (D), or (E) of section 10638(3)
of the Research and Development, Competition, and
Innovation Act (42 U.S.C. 19237(3)); or
(B)(i) is owned, controlled, directed, financed, or
otherwise influenced, directly or indirectly, in whole
or in any part greater than 25 percent, by the
government of a foreign country that is a covered
country; or
(ii) is otherwise subject to the jurisdiction or
direction of a government of a covered country;
(9) Partner country.--The term ``partner country'' means--
(A) a member country of the North Atlantic Treaty
Organization;
(B) a country that has been designated as a major
non-NATO ally under section 517 of the Foreign
Assistance Act of 1961 (22 U.S.C. 2321k); or
(C) a foreign country, including any market or any
producer in a foreign country--
(i) with which the United States has
entered into a mutual defense treaty or other
mutual defense agreement, but not including
Venezuela;
(ii) that is recognized by the Secretary of
State and the Secretary of Defense as a
strategic partner due to an established
bilateral agreement that emphasizes mutual
interests in security, defense, and critical
mineral supply chains, including countries
designated under United States strategic
frameworks and agreements;
(iii) with which the United States has
entered into a comprehensive economic and trade
agreement that includes provisions for the
collaboration on critical mineral resources and
to safeguard supply chains critical to national
security and economic stability;
(iv) with which the United States
Geological Survey has in effect a memorandum of
understanding concerning scientific and
technical cooperation in earth sciences, unless
that country is a covered country; or
(v) with which the Department of State, the
United States International Development Finance
Corporation, the Export-Import Bank of the
United States, or the United States Trade and
Development Agency is working to advance an
active critical mineral project.
(10) Production rate.--The term ``production rate'' means
the percentage of domestic end-use consumption of a critical
mineral or material that is supplied by domestic and partner
country production in aggregate.
(11) Purposes of the reserve.--The term ``purposes of the
Reserve'' means the purposes of the Reserve described in
section 101(b).
(12) Recycle.--The term ``recycle'' means an action or
process to convert a critical mineral or material contained
within a finished or semi-finished product into a form suitable
for repurposing or reuse of the critical mineral or material.
(13) Repurpose.--The term ``repurpose'' means any operation
that results, in whole or in part, in a critical mineral or
material being used for a different purpose or application than
the purpose or application for which the critical mineral or
material, or the product into which the critical mineral or
material is manufactured into, was originally intended.
(14) Reserve.--The term ``Reserve'' means the Strategic
Resilience Reserve Corporation of the United States established
by section 101(a)(1).
(15) Reuse.--The term ``reuse'' means the complete or
partial direct use of a critical mineral or material after use
for the original purposes for which the critical mineral or
material was intended.
(16) Vice-chairperson.--The term ``Vice-chairperson'' means
the Vice-chairperson of the Board.
TITLE I--ESTABLISHMENT AND BOARD OF GOVERNORS
SEC. 101. ESTABLISHMENT.
(a) Entity Formation.--
(1) In general.--There is established a wholly owned
government corporation, to be known as the ``Strategic
Resilience Reserve Corporation of the United States''.
(2) Conforming amendment.--Section 9101(3) of title 31,
United States Code, is amended by adding at the end the
following:
``(Q) the Strategic Resilience Reserve Corporation
of the United States.''.
(b) Purposes.--The purposes of the Reserve are--
(1) to support a free, fair, and competitive market for
critical minerals and materials in which domestic and partner
country producers and processors can compete and innovate;
(2) to support domestic and partner country production,
extraction, processing, refining, reuse, repurposing, and
recycling of, and capabilities and infrastructure with respect
to, critical minerals and materials;
(3) to support and protect stable and economically
sustainable prices of critical minerals and materials,
including price levels consistent with competitive market
economies and reliable supply;
(4) to support responsible production of critical minerals
and materials with respect to standards for transparency,
environmental, and labor practices, and to ensure a competitive
market for producers meeting those standards;
(5) to assist in maintaining balanced and adequate supplies
of critical minerals and materials to the United States, as
determined by the Board;
(6) to the maximum extent practicable, to ensure that, at
each stage of the supply chain--
(A) the production rate of each critical mineral or
material is equal to or greater than a percentage
determined to be reasonable by the Board, in
coordination with appropriate Federal agencies, but not
less than 25 percent; and
(B) the dependence rate for each critical mineral
or material is equal to or less than a percentage
determined to be reasonable by the Board, in
coordination with appropriate Federal agencies, but not
less than 75 percent;
(7) to prioritize--
(A) domestic projects and supply chains, including
processing capacity, for critical minerals and
materials;
(B) projects that--
(i) recycle, reuse, or repurpose critical
minerals or materials; or
(ii) extract or produce critical minerals
or materials from mine or industrial waste,
including mining tailings, industrial waste, or
non-conventional waste streams; and
(C) projects for critical minerals or materials the
dependence rate of which is 100 percent; and
(8) to ensure the efficient use of government funds to
support critical mineral and material projects and, to the
maximum extent practicable, ensure fair returns to taxpayers
and investments made by the Reserve.
(c) Authorization of Appropriations.--There is authorized to be
appropriated to the Reserve to carry out the requirements of this Act
$2,500,000,000, to remain available until expended.
SEC. 102. BOARD OF GOVERNORS.
(a) Membership.--
(1) Appointment.--
(A) In general.--The Reserve shall have a board of
governors consisting of 7 voting members appointed by
the President, by and with the advice and consent of
the Senate.
(B) Chairperson and vice-chairperson.--The
President shall designate, by and with the advice and
consent of the Senate--
(i) 1 member of the Board to serve as
Chairperson, for a term of 4 years; and
(ii) 1 member of the Board to serve as
Vice-chairperson, for a term of 4 years, and
who shall serve as Chairperson in the absence
or vacancy of the Chairperson.
(C) Initial appointment.--Not later than 180 days
after the date of enactment of this Act, the President
shall appoint each of the 7 members of the Board.
(D) Representation.--The President shall carry out
this paragraph with due regard for a fair
representation of Tribal, labor, environmental,
industrial, and commercial interests.
(2) Qualifications.--To be eligible to be appointed as a
member of the Board under paragraph (1), an individual--
(A) shall have significant demonstrated expertise
in--
(i) the business of commodities production,
storage, or trade, or the financial sector as
it relates to critical minerals or materials;
(ii) the financing, development, or
operation of projects related to the
manufacturing and commercialization of critical
minerals or materials;
(iii) the demand for, and usage of,
critical minerals or materials, including
future demand or usage of critical minerals or
materials for national security and economic
purposes;
(iv) the recycling, repurposing, or reuse
of critical minerals; or
(v) other experience related to the
production and usage of critical minerals and
materials, including expertise in sustainable
and responsible production practices, in the
fields of engineering, logistics, law,
academia, research, or policy; and
(B) may not--
(i) have a direct, or closely indirect,
financial interest in an entity directly
involved in the commodities industry or
financial sector as it relates to critical
minerals or materials; or
(ii) have immediate family with a direct
financial interest in an entity directly
described in clause (i).
(3) Terms.--
(A) In general.--Except as otherwise provided in
this section, each member of the Board shall be
appointed for a term of 14 years.
(B) Initial staggered terms.--Of the members first
appointed to the Board--
(i) 1 member each shall be appointed to a
term expiring in calendar year 2028, 2030,
2032, 2034, 2036, 2038, and 2040, respectively;
and
(ii) each term shall expire on January 31
of the applicable calendar year.
(C) Vacancies.--Not later than 180 days after the
date on which a vacancy occurs on the Board before the
expiration of the term for that member, the President,
by and with the advice and consent of the Senate, shall
appoint a new member of the Board to fill the vacancy
and serve the remainder of that term.
(D) Completion of term.--
(i) In general.--On expiration of a term
for a Board member, the applicable Board member
may continue to serve for 1 year or until a
successor is appointed pursuant to this
subsection, whichever is less.
(ii) Chairperson and vice-chairperson.--An
individual who is appointed to serve a term as
the Chairperson or Vice-chairperson under
paragraph (1)(B) shall, after such term ends--
(I) serve as the Chairperson or
Vice-chairperson, respectively, until a
successor is appointed pursuant to this
subsection; and
(II) serve as a member of the Board
for the remainder of the term of such
individual in accordance with this
paragraph.
(4) Compensation.--Each member of the Board shall be
compensated at a rate equal to the annual rate of basic pay
prescribed for level III of the Executive Schedule under
section 5314 of title 5, United States Code.
(5) Conflicts of interest.--
(A) In general.--During the period beginning on the
date on which the term of a member of the Board begins
and ending on the date that is 2 years after the date
on which the term of that member ends, the member may
not hold any direct, or closely indirect, financial
interest in, or hold any office, position, including in
an advisory or consultant position, or other employment
in or with, any entity receiving or pursuing financial
support from the Reserve.
(B) Opportunity to cure violation.--
(i) In general.--If the Comptroller General
of the United States finds that an individual
described in subparagraph (A) is in violation
of that subparagraph, that individual shall
cure the applicable violation by not later than
30 days after the date on which the violation
is found.
(ii) Requirements to cure.--To cure a
violation of subparagraph (A), as required by
clause (i), the applicable individual shall, at
a minimum--
(I) renounce any pecuniary gain
associated with the violation; and
(II) terminate each relationship
that is the subject of the violation.
(C) Penalty for uncured violation.--
(i) Removal.--If the Comptroller General of
the United States finds that an individual
described in subparagraph (A) is in violation
of that subparagraph and does not cure the
violation in accordance with subparagraph (B)
by the date described in clause (i) of that
subparagraph or, as applicable, by the date
established by the Board under subparagraph
(D), that individual shall be removed from the
Board.
(ii) Applicability of criminal liability.--
(I) In general.--A member of the
Board shall be considered to be an
officer or employee of the Executive
Branch for purposes of section 207(a)
of title 18, United States Code, and
shall be subject to paragraph (2) of
that section.
(II) Referral.--If the Comptroller
General of the United States makes a
finding described in clause (i) with
respect to an individual described in
that clause, the Comptroller General of
the United States may refer the matter
to the Attorney General.
(D) Extension of cure period.--The Board--
(i) may extend the time period provided
under subparagraph (B)(i) for an individual
described in subparagraph (A) to cure a
violation of that subparagraph by not more than
90 days; and
(ii) shall document the rationale behind
any extension granted under clause (i).
(6) Removal.--Except as provided in paragraph 5(C)(i), a
member of the Board, Chairperson, and Vice-chairperson may not
be removed from office except by--
(A) impeachment by Congress; or
(B) the action of the President for inefficiency,
neglect of duty, malfeasance in office, or incapacity
to perform the applicable duties described in this
section.
(b) Meetings.--
(1) Open to the public; notice.--Except as provided in
paragraph (3), all meetings of the Board shall be--
(A) open to the public; and
(B) preceded by reasonable public notice.
(2) Frequency.--The Board shall meet--
(A) not later than 60 days after the date on which
all members of the Board are first appointed;
(B) not less frequently than quarterly after the
date described in subparagraph (A); and
(C) at the call of--
(i) the Chairperson; or
(ii) 4 or more members of the Board.
(3) Closed meetings.--The Board, by majority vote of the
members, may close a meeting to the public if, during the
meeting, there is likely to be disclosed proprietary or
sensitive information regarding a project under consideration
for assistance under this Act.
(4) Minutes.--
(A) In general.--Except as provided in subparagraph
(B), the minutes of each meeting of the Board shall be
made publicly available as soon as practicable.
(B) Closed meeting minutes.--The minutes for a
closed meeting shall be made available--
(i) to the appropriate congressional
committees not later than 60 days after the
date of the closed meeting; and
(ii) to the public not later than 3 years
after the date of the closed meeting, with any
necessary redactions to protect information
that remains proprietary or sensitive at the
time of publication.
(C) Exemptions from public transparency
requirements.--The closed meetings and minutes under
this subsection shall--
(i) be exempt from disclosure under--
(I) section 552 of title 5, United
States Code (commonly known as the
``Freedom of Information Act''),
pursuant to subsection (b)(3) of that
section; and
(II) any provision of State,
Tribal, or local freedom of information
law, open government law, open meetings
law, open records law, sunshine law, or
similar law requiring disclosure of
information or records; and
(ii) not be subject to section 552b of
title 5, United States Code (commonly referred
to as the ``Government in the Sunshine Act'').
(5) Quorum.--5 members of the Board shall constitute a
quorum.
(6) Voting.--
(A) In general.--Each member of the Board shall
have an equal vote in all decisions of the Board.
(B) Decisions.--Unless otherwise specified,
decisions of the Board shall be made by majority vote
of the members constituting a quorum.
(c) Powers and Duties of the Board.--The Board shall--
(1) not later than 180 days after the date on which all
members of the Board are appointed--
(A) develop and approve the bylaws of the Reserve,
including bylaws for the regulation of the affairs and
conduct of the business of the Reserve, consistent with
the purpose, goals, objectives, and policies of this
Act;
(B) establish dollar-value thresholds, not to
exceed $2,500,000, above which transactions and loans
made by the Reserve will require approval of the Board;
(C) establish committees required by this Act
composed solely of members of the Board, as the Board
determines to be appropriate;
(D) develop and approve a conflict-of-interest
policy for the Board and employees of the Reserve,
including--
(i) establishing compensation levels for
employees of the Reserve, not to exceed
$150,000 initially (but which may be adjusted
for inflation), above which employees of the
Reserve shall be limited with regard to future
employment at and compensation from entities
receiving financial support from the Reserve,
for a period not to exceed the date that is 2
years after the date on which employment with
the Reserve ends; and
(ii) establishing penalties for violations,
including monetary penalties, that, for
violations of the limitations described in
clause (i), may be based on the higher of--
(I) the current compensation of the
employee; and
(II) the total compensation from
entities receiving financial support
from the Reserve;
(E) approve or disapprove internal policies that
the Chairperson shall submit to the Board, including--
(i) policies and procedures regarding the
approval of authorized intermediaries;
(ii) policies and procedures regarding the
project application and approval process;
(iii) policies and procedures regarding the
acquisition and sale of critical minerals and
materials sufficient to ensure fair access to
transactions with the Reserve and effective use
of capital of the Reserve;
(iv) policies and procedures regarding
financing, acquisition, and sale to raise
global production standards for critical
minerals and materials that minimize
environmental damage, prevent forced labor use,
and ensure a more competitive market for
producers in countries with stronger standards;
and
(v) operational guidelines; and
(F) approve or disapprove a 1-year business plan
and budget for the Reserve;
(2) ensure that the Reserve is operated in a manner that is
consistent with this Act by--
(A) monitoring and assessing the effectiveness of
the Reserve in achieving the purposes of the Reserve;
(B) reviewing and approving internal policies,
annual business plans, annual budgets, and long-term
strategies submitted by the Chairperson;
(C) reviewing and approving annual reports
submitted by the Chairperson;
(D) engaging 1 or more external auditors; and
(E) reviewing and approving all changes to the
organization of the Reserve;
(3) appoint and fix, by a vote of not fewer than 5 of the 7
members of the Board, and without regard to the provisions of
chapter 51 and subchapter III of chapter 53 of title 5, United
States Code, the compensation and adjustments to compensation
of all personnel of the Reserve, subject to the condition that
in appointing and fixing any compensation or adjustments to
compensation under this paragraph, the Board shall--
(A) consult with, and seek to maintain
comparability with, other comparable Federal personnel,
as the Board may determine to be appropriate;
(B) consult with the Office of Personnel
Management; and
(C) carry out those duties consistent with merit
principles, where applicable, as well as the education,
experience, level of responsibility, geographic
differences, comparability to private sector positions,
and retention and recruitment needs of the Reserve in
determining compensation of personnel;
(4) approve by a vote of not fewer than 5 of the 7 members
of the Board--
(A) any changes to the bylaws or internal policies
of the Reserve; and
(B) any equity investments and accompanying
documentation made under section 206(b)(4);
(5) have the authority and responsibility--
(A) to oversee entering into and carrying out
contracts, leases, cooperative agreements, or other
transactions as are necessary to carry out this Act;
(B) to approve of the acquisition, lease, pledge,
exchange, and disposal of real and personal property by
the Reserve and otherwise approve the exercise by the
Reserve of all of the usual incidents of ownership of
property, to the extent that the exercise of those
powers is appropriate to and consistent with the
purposes of the Reserve;
(C) to determine the character of, and the
necessity for, the obligations and expenditures of the
Reserve, and the manner in which the obligations and
expenditures will be incurred, allowed, and paid,
subject to this Act and Federal law specifically
applicable to wholly owned government corporations;
(D) to execute or approve, in accordance with
applicable bylaws and regulations, appropriate
financial instruments;
(E) to approve other forms of credit enhancement
that the Reserve may provide to projects, subject to
the condition that the forms of credit enhancements
shall be consistent with the purposes of this Act;
(F) to exercise all other lawful powers that are
necessary or appropriate to carry out, and are
consistent with, the purposes of the Reserve;
(G) to sue or be sued in the corporate capacity of
the Reserve in any court of competent jurisdiction;
(H) to indemnify and hold harmless the members of
the Board for any liabilities arising out of the
actions of the members acting in that capacity, in
accordance with, and subject to the limitations under,
this Act;
(I) to enter into binding commitments, as specified
in approved financial assistance packages; and
(J) to determine whether--
(i) to obtain a lien on the assets of an
entity that receives assistance under this Act;
and
(ii) to subordinate a lien under clause (i)
to any other lien securing project obligations;
and
(6) establish the risk and audit committees described in
section 401.
TITLE II--DUTIES AND AUTHORITIES OF THE RESERVE
SEC. 201. GENERAL AUTHORITIES.
To the extent necessary to develop, operate, or maintain the
Reserve, the Reserve may--
(1) issue rules, regulations, or orders;
(2) acquire by purchase land or interests in land for the
location of storage and related facilities;
(3) construct, purchase, lease, or otherwise acquire
storage and related facilities;
(4) use, lease, maintain, sell, or otherwise dispose of
land or interests in land, or of storage and related facilities
acquired under this Act, under such terms and conditions as the
Board considers necessary or appropriate;
(5) acquire, subject to the requirements of this Act, by
purchase, exchange, or otherwise, critical minerals or
materials for storage;
(6) store critical minerals or materials in storage
facilities owned and controlled by the United States or in
storage facilities owned by authorized intermediaries if the
Reserve has sufficient contractual certainty of access to the
critical minerals and materials and those facilities are
subject to audit by the United States;
(7) execute contracts with private entities for the storage
of critical minerals and materials at storage facilities owned
by private entities if the Reserve has sufficient contractual
certainty of access to those critical minerals and materials
and those facilities are subject to audit by the United States;
(8) partner with private sector, academia, and Federal
agencies to further the purposes of the Reserve, including to
advance the development and commercialization of responsible
reuse and recycling processes for critical minerals and
materials; and
(9) execute any contracts necessary to develop, operate, or
maintain the Reserve.
SEC. 202. IDENTIFICATION OF ELIGIBLE CRITICAL MINERALS AND MATERIALS.
(a) Eligible Critical Minerals and Materials List.--Subject to
subsections (b), (c), and (d), the Reserve, in consultation with the
heads of Federal departments and agencies described in section 203(6),
shall establish, and thereafter maintain, a list of critical minerals
and materials eligible for financing or acquisition support described
in section 206.
(b) Requirements.--
(1) Establishment.--A mineral or material may only be
included on the list of eligible critical minerals and
materials established under subsection (a) if--
(A) the mineral or material is--
(i) included on the list of critical
minerals published by the United States
Geological Survey pursuant to section 7002(c)
of the Energy Act of 2020 (30 U.S.C. 1606(c));
(ii) included on the list of critical
materials published by the Department of Energy
pursuant to section 7002(a) of the Energy Act
of 2020 (30 U.S.C. 1606(a)); or
(iii) a material of interest designated by
the Director of the Defense Logistics Agency;
and
(B) the Reserve determines that the mineral or
material--
(i) is a non-fuel mineral or material;
(ii) has a vulnerable or highly
concentrated supply chain; and
(iii) is necessary--
(I) for the national defense and
national security requirements of the
United States;
(II) for the energy infrastructure
of the United States, including--
(aa) pipelines;
(bb) refining capacity;
(cc) electrical power
generation, storage,
transmission, and distribution;
(dd) renewable energy
production; and
(ee) energy storage;
(III) to support domestic
manufacturing, agriculture, housing,
telecommunications, health care, or
transportation and transportation
infrastructure; or
(IV) for the economic security of
the United States.
(2) Modifications.--
(A) Additions.--After the list of eligible critical
minerals and materials is established under paragraph
(1), the Reserve may add a mineral or material to the
list of eligible critical minerals and materials
maintained under subsection (a) if, after the date that
the most recent list is published under subsection
(e)(1)--
(i) the mineral or material--
(I) is included on the most
recently published list of critical
minerals published by the United States
Geological Survey pursuant to section
7002(c) of the Energy Act of 2020 (30
U.S.C. 1606(c));
(II) is included on the most
recently published list of critical
materials published by the Department
of Energy pursuant to section 7002(a)
of the Energy Act of 2020 (30 U.S.C.
1606(a)); or
(III) a material of interest
designated by the Director of the
Defense Logistics Agency; and
(ii) the Reserve determines that the
mineral or material meets the requirements
described in paragraph (1)(B).
(B) Removals.--After the list of eligible critical
minerals and materials is established under paragraph
(1), the Reserve shall remove a mineral or material
from the list of eligible critical minerals and
materials maintained under subsection (a) if--
(i) the mineral or material, as of the date
on which the list is published under subsection
(e)(1)--
(I) has not been included on a list
of critical minerals published by the
United States Geological Survey
pursuant to section 7002(c) of the
Energy Act of 2020 (30 U.S.C. 1606(c))
for a period of at least 3 years;
(II) has not been included on a
list of critical materials published by
the Department of Energy pursuant to
section 7002(a) of the Energy Act of
2020 (30 U.S.C. 1606(a)) for a period
of at least 3 years; or
(III) has not been designated as a
material of interest by the Director of
the Defense Logistics Agency for a
period of at least 3 years; or
(ii) the Reserve determines that the
mineral or material no longer meets the
requirements described in paragraph (1)(B).
(c) Considerations.--In establishing and maintaining the list of
eligible critical minerals and materials under subsection (a), the
Reserve shall consider--
(1) the results of any assessments conducted under sections
204 and 205;
(2) the existing market infrastructure and financial
environment for a given critical mineral or material,
especially domestically or in partner countries;
(3) the substitutability of, and projected demand for, a
given critical mineral or material; and
(4) other information the Reserve determines necessary to
achieve the purposes of the Reserve.
(d) Exclusions.--A mineral or material may not be included on the
list of eligible critical minerals and materials established and
maintained under subsection (a) if the mineral or material is--
(1) oil, oil shale, natural gas, coal, or uranium;
(2) water, ice, or snow; or
(3) a common variety, as determined by the Board, of sand,
gravel, stone, pumice, cinders, or clay.
(e) Update.--
(1) In general.--The Reserve shall publish and update not
less frequently than annually the list of eligible critical
minerals and materials established and maintained under
subsection (a).
(2) Requirement.--In carrying out paragraph (1), the
Reserve shall separately publish a list of minerals and
materials--
(A) previously included on a list published under
paragraph (1) but were removed within the previous 3
years; and
(B) not included in the list published under
paragraph (1) but with respect to which the Reserve has
an active position, contract, or transaction.
SEC. 203. DATA COLLECTION.
There is established within the Reserve a division, to be known as
the ``Division of Data Collection'', which, to the extent practicable,
shall--
(1) be led by a Director selected by the Board;
(2) develop and maintain a proprietary dataset sufficient
to ensure the thorough analysis of global critical minerals and
materials markets;
(3) collect and maintain sufficient datasets, including
data comprising global, domestic, and partner country markets
and, to the extent possible, data derived from individual
critical mineral and material projects, to inform and
estimate--
(A) production, extraction, infrastructure,
repurposing, and recycling costs for critical minerals
and materials supply chains;
(B) collection and recycling rates for critical
minerals and materials in domestic and partner country
markets; and
(C) the forecast of supply and demand of critical
minerals and materials within domestic and partner
country markets;
(4) collect and maintain--
(A) actual transaction price data for critical
minerals and materials in the global market, including
geographic data; and
(B) any other datasets necessary to effectuate such
purpose, including modeled transaction data and
datasets produced by or derivative of datasets produced
by the People's Republic of China;
(5) using the most current data collected under paragraphs
(3) and (4), support the activities described in sections 204
and 206;
(6) consult with relevant heads of Federal departments and
agencies, including--
(A) the Secretary of Agriculture;
(B) the Secretary of Commerce;
(C) the Secretary of Defense;
(D) the Secretary of Energy;
(E) the Secretary of the Interior;
(F) the Secretary of State;
(G) the Secretary of the Treasury;
(H) the Chief Executive Officer of the United
States International Development Finance Corporation;
(I) the Director of the Central Intelligence
Agency;
(J) the Director of the United States Geological
Survey;
(K) the President of the Export-Import Bank of the
United States; and
(L) any other Federal department or agency head the
Director determines necessary;
(7) establish mechanisms when establishing loan terms,
contracts, and agreements as described in this Act to collect
the necessary data required by this section; and
(8) to the extent practicable, carry out the
responsibilities of this section using existing government data
and information.
SEC. 204. CRITICAL MINERAL AND MATERIAL MARKET RISK AND VULNERABILITY
ASSESSMENT.
(a) Establishment.--There is established within the Reserve a
division, to be known as the ``Division of Risk and Vulnerability
Evaluation'', which shall--
(1) be led by a Director selected by the Board;
(2) develop or, to the extent practicable, use existing
sophisticated models to evaluate threats and risks in critical
mineral and material markets across United States industrial
sectors, including defense, energy, agriculture,
transportation, health, and emerging technology;
(3) maintain a comprehensive database of critical mineral
and material price movements, supply chain vulnerabilities,
production and processing capacities, and consumption patterns;
(4) identify critical dependencies in critical mineral and
material markets that could threaten national security or
economic stability;
(5) assess the potential for geopolitical events, natural
disasters, technological disruptions, or market failures to
impact commodity markets;
(6) develop and implement methodologies for modeling the
impact of various critical mineral or material shocks on the
United States economy;
(7) assess vulnerabilities, including price spikes, supply
disruptions, transportation failures, export controls, and
financial market disturbances;
(8) model the cross-sectoral impacts of critical mineral or
material price or supply shocks, including effects on
inflation, employment, government finances, and consumer
welfare;
(9) assess the specific impact of critical mineral or
material disruptions on infrastructure, national security
assets, and essential services; and
(10) to the extent practicable, carry out the
responsibilities of this section using existing government data
and information.
(b) Mandatory Risk Assessment.--
(1) In general.--The Reserve shall conduct and submit to
the appropriate congressional committees, the President, and
the heads of Federal departments and agencies listed in section
203(6) a biennial comprehensive risk and vulnerability
assessment for critical minerals and materials, which shall
include--
(A) identification of specific threats to stable
supply and prices;
(B) an analysis of current market conditions,
including geographic and ownership concentration of
suppliers, transportation bottlenecks, and financial
vulnerabilities;
(C) an evaluation of substitution possibilities and
technological alternatives; and
(D) recommendations for risk mitigation strategies.
(2) Form of assessment.--
(A) In general.--Each assessment required by
paragraph (1)--
(i) shall be submitted in unclassified
form; but
(ii) may include a classified annex.
(B) Requirement.--Any assessments required by
paragraph (1) that include a classified annex shall
include an unclassified summary.
SEC. 205. PRODUCTION STANDARDS.
There is established within the Reserve a division, to be known as
the ``Division of Production Standards'', which shall--
(1) be led by a Director selected by the Board;
(2) develop methodologies for evaluating relative risk in
global environmental and labor standards and practices for the
production, extraction, processing, reuse, repurposing, and
recycling of critical minerals and materials, including
transparency, traceability, and forced labor risk, which may
include incorporating existing research;
(3) conduct periodic risk-based assessments of
environmental and labor standards and practices for the
production, extraction, processing, reuse, repurposing, and
recycling of critical minerals and materials in foreign
countries producing critical minerals and materials, and, to
the extent practicable, significant production projects; and
(4) publish an annual report summarizing the methodologies
used and describing the results of the most recent assessments
conducted under paragraph (3) for each foreign country and
significant production project, and, to the extent practicable,
mitigation measures used in transactions and loans made by the
Reserve, without identifying proprietary or sensitive
commercial information.
SEC. 206. FINANCING AND ACQUISITION OF CRITICAL MINERALS OR MATERIALS.
(a) Authority.--
(1) In general.--The Reserve may deploy financing and
acquisition tools as described in subsection (b) to achieve the
purposes of the Reserve, subject to the condition that the
Reserve may not deploy such tools to benefit a foreign entity
of concern.
(2) Considerations.--In carrying out this section, the
Reserve shall consider--
(A) the results of the assessments described in
section 205(3);
(B) the ability of the Reserve to efficiently
achieve the purposes of the Reserve with limited
resources;
(C) diversification across critical minerals and
materials;
(D) non-Reserve investments and market developments
regarding a specific critical mineral or material;
(E) with respect to deploying financing and
acquisition tools with a specific producer or
processor, the management, financial condition, and
ability of the producer or processor to fulfill any
contractual obligations; and
(F) other factors the Reserve determines valuable
to achieving the purposes of the Reserve over an
extended period of time.
(3) Federal government investments.--The Reserve shall, to
the maximum extent practicable in carrying out this section,
consult, coordinate, and leverage existing Federal Government
investments, including by--
(A) the Export-Import Bank of the United States;
(B) the United States International Development
Finance Corporation;
(C) the Department of Energy, pursuant to title
XVII of the Energy Policy Act of 2005 (42 U.S.C. 16511
et seq.);
(D) the Office of Strategic Capital of the
Department of Defense; and
(E) applicable execution offices of the Department
of Defense for contract actions carried out under title
III of the Defense Production Act of 1950 (50 U.S.C.
4531 et seq.).
(b) Means of Support.--The financing and acquisition tools referred
to in subsection (a) include the following:
(1) Loans to authorized intermediaries.--
(A) Loan program authorized.--The Reserve may make
loans to authorized intermediaries who may use those
funds to enter into financing and purchasing agreements
with producers and processors of critical minerals or
materials.
(B) Loan conditions.--
(i) In general.--In making loans under
subparagraph (A), the Reserve shall establish
such terms and conditions as the Reserve
determines appropriate to achieve the purposes
of the Reserve.
(ii) Adjustment of loan terms.--The Reserve
and an authorized intermediary may adjust loan
terms under a loan issued under subparagraph
(A) if the Reserve and that authorized
intermediary agree to the adjustment.
(iii) Preferential terms for certain
loans.--In making loans under subparagraph (A),
the Reserve--
(I) may provide preferential loan
terms--
(aa) which may include an
interest rate equal to the
Federal funds rate, to an
authorized intermediary that
will use the loan to enter into
financing and purchasing
agreements with producers or
processors of critical minerals
or materials; and
(bb) to authorized
intermediaries that will use
the loan to enter into
financing and purchasing
agreements with producers or
processors of critical minerals
or materials in partner
countries, in such manner as
the Reserve determines
appropriate; and
(II) shall--
(aa) consult with the heads
of Federal departments and
agencies described in section
203(5) with respect to the loan
terms described in subclause
(I)(aa); and
(bb) ensure that, under the
terms of such loans, authorized
intermediaries shall, to the
maximum extent practicable,
give priority to United States
suppliers of critical minerals
and materials and preference to
the United States supply chain.
(C) Proposal solicitation.--To be eligible to
receive a loan under subparagraph (A), an authorized
intermediary shall submit to the Reserve an application
at such time, in such manner, and containing such
information as the Reserve may require, including the
proposed financing or purchasing agreements described
in that subparagraph.
(D) Uncured default.--
(i) In general.--If an authorized
intermediary fails to make a required repayment
on a loan under subparagraph (A) for a 90-day
period, the Reserve may--
(I) recoup the amount of that loan
by taking possession of the critical
mineral and material inventories of the
authorized intermediary and any other
contractual rights of the authorized
intermediary to receive critical
minerals or materials from suppliers;
(II) revoke the participation with
the Reserve of the authorized
intermediary;
(III) subject to clause (ii),
appoint itself as conservator or
receiver of the authorized
intermediary;
(IV) obtain a lien on the assets of
the intermediary pursuant to section
102(c)(5)(J); and
(V) adjust the loan terms pursuant
to subparagraph (B)(ii).
(ii) Authorities under conservator or
receivership.--If the Reserve appoints itself a
conservator or receiver of an authorized
intermediary under clause (i)(II), the Reserve
shall have the same authorities with respect to
the authorized intermediary that the Federal
Deposit Insurance Corporation has with respect
to an institution for which the Federal Deposit
Insurance Corporation has appointed itself as
conservator or receiver under the Federal
Deposit Insurance Act (12 U.S.C. 1811 et seq.).
(iii) Treatment of bankruptcy.--An
authorized intermediary for which the Reserve
has appointed itself a conservator or a
receiver under clause (i)(II) may not be placed
into bankruptcy under title 11, United States
Code, during that conservatorship or
receivership, and any bankruptcy process under
title 11, United States Code, that is in effect
when the appointment occurs shall be
terminated.
(2) Acquisitions.--
(A) Acquisition through solicitation and direct
contracting with private counterparties.
(B) Acquisition through physically cleared
financial instruments, such as futures contracts
through intermediaries, including financial exchanges.
(C) Acquisition through options contracts directly
or through intermediaries, including financial
exchanges.
(3) Non-recourse lending.--Non-recourse lending to projects
secured by a portion of the expected production of the project.
(4) Other transactions.--Other financing and acquisition
transactions, including contract for differences, advance or
milestone payments, advanced market commitments, and minority,
non-controlling equity investment, as determined by the Board
as necessary to fulfill the purposes of the Reserve, except
that equity investment shall only be used with--
(A) a written justification describing how other
financing and acquisition tools in this section are not
sufficient; and
(B) a written explanation of the intended exit
strategy for the equity investment.
(c) Partner Co-Investment.--
(1) In general.--A partner country may, if approved by the
Reserve, make capital contributions of at least $100,000,000 to
the Reserve for purposes of financing or acquisition under
subsection (b).
(2) Minimum amount.--The Reserve shall annually adjust the
amount in paragraph (1) by the percentage increase in the
Personal Consumption Expenditures Price Index of the Bureau of
Economic Analysis of the Department of Commerce, rounded to the
nearest $1,000,000.
(3) Treatment of capital contributions.--The Reserve--
(A) shall maintain separate accounts for the
capital contributions of each partner country that
provides such contributions under paragraph (1);
(B) shall not commingle the capital contributions
of any partner country with any other partner country
or the funds of the Reserve;
(C) may return such capital contributions to the
partner country at any time, without obligation or
penalty, or under such other terms and conditions as
agreed to by the Reserve and that partner country; and
(D) may not guarantee the repayment of such capital
contributions to a partner country.
(4) Loans made with partner co-investment funds.--Financing
and acquisitions made under subsection (b) with capital
contributions under paragraph (1) shall be made in the same
manner as financing and acquisitions made under subsection (b)
with funds of the Reserve.
(5) Restriction.--The Reserve may not approve a partner
country under paragraph (1) unless the partner country
certifies that the capital contributions being made are coming
from funds of the partner country and not from funds of a
foreign entity of concern or a covered country.
(d) International Advisory Council of Partners.--
(1) In general.--The Reserve may establish an International
Advisory Council of Partners comprising--
(A) the Vice-chairperson, who shall be the head of
the council; and
(B) 1 representative from each partner country that
makes a capital contribution under subsection (c)(1).
(2) Consultation.--The International Advisory Council of
Partners shall, at the request of the Reserve, advise the
Reserve on financing and acquisitions made with capital
contributions under subsection (c)(1).
(3) Applicability of faca.--Chapter 10 of title 5, United
States Code (commonly known as the ``Federal Advisory Committee
Act''), shall not apply to the International Advisory Council
of Partners.
SEC. 207. SALE OF CRITICAL MINERALS OR MATERIALS.
(a) Sale.--The Reserve may sell critical minerals or materials
stored in the Reserve in accordance with the purposes of the Reserve
and this section.
(b) Sale of Critical Minerals or Materials.--The Reserve may sell a
critical mineral or material stored in the Reserve if the Board
determines that--
(1) a supply shortage or potential supply shortage of that
critical mineral or material threatens--
(A) the national or economic security of the United
States; or
(B) price stability in the value chain of that
critical mineral or material; or
(2) the sale is otherwise necessary to support the purposes
of the Reserve.
(c) Sale of Non-Critical Minerals or Materials.--
(1) In general.--The Reserve may sell a mineral or material
stored in the Reserve that, as of the date of sale, is no
longer included on the list of critical minerals and materials
established by the Reserve under section 202(a) if the Board
determines that--
(A) the mineral or material is unlikely to be
imminently re-added to the list of critical minerals
and materials established by the Reserve under section
202(a);
(B) the mineral or material is available in
sufficient supply or is no longer necessary in large
quantities for economic or national security purposes;
(C) a supply shortage or potential supply shortage
of that mineral or material threatens--
(i) the national or economic security of
the United States; or
(ii) price stability in the value chain of
that mineral or material; or
(D) the sale is otherwise necessary to support the
purposes of the Reserve.
(2) Use for research purposes.--If the Board determines
that a mineral or material stored in the Reserve that is no
longer included on the list of critical minerals and materials
established by the Reserve under section 202(a) does not have a
substantial market value, the Board may enter into a contract
for the transfer and use for research purposes of that mineral
or material with--
(A) Federal departments and agencies;
(B) State governments;
(C) National Laboratories (as defined in section 2
of the Energy Policy Act of 2005 (42 U.S.C. 15801));
and
(D) institutions of higher education (as defined in
section 101(a) of the Higher Education Act of 1965 (20
U.S.C. 1001(a))).
(d) Means of Sale.--The Reserve may carry out a sale described in
subsections (b) and (c) through--
(1) solicitation and direct contracting with private
parties;
(2) physically cleared financial instruments, such as
futures contracts through authorized intermediaries;
(3) options contracts directly or through authorized
intermediaries; and
(4) other transactions, including public auctions, as
determined necessary by the Board to support the purposes of
the Reserve.
(e) Foreign Entities of Concern.--The Reserve may not carry out a
sale described in subsections (b) and (c) to a foreign entity of
concern.
TITLE III--ADMINISTRATIVE PROVISIONS
SEC. 301. CORPORATE POWERS.
(a) In General.--The Reserve--
(1) may adopt, alter, and use a seal, which may include an
identifiable symbol of the United States;
(2) notwithstanding division C of subtitle I of title 41,
United States Code, may make and perform with any person
contracts, including no-cost contracts (as defined by the
Reserve), grants, and other agreements, that are necessary for
carrying out the functions of the Reserve;
(3) may lease, purchase, or otherwise acquire, improve, and
use real property that is necessary to carry out the functions
of the Reserve;
(4) may use the United States mails in the same manner and
on the same conditions as the Executive departments (as defined
in section 101 of title 5, United States Code);
(5) may contract with individuals for personal services,
who shall not be considered Federal employees for any provision
of law administered by the Director of the Office of Personnel
Management;
(6) may hire or obtain passenger motor vehicles;
(7) may acquire, hold, or dispose of, on such terms and
conditions as the Reserve may determine, any property (real,
personal, or mixed), tangible or intangible, or any interest in
such property;
(8) may lease office space for the use of the Reserve;
(9) may indemnify directors, officers, employees, and
agents of the Reserve for liabilities and expenses incurred in
connection with their activities on behalf of the Reserve;
(10) notwithstanding any other provision of law, may
represent itself or contract for representation in any legal or
arbitral proceeding;
(11) may exercise any priority of the Federal Government in
collecting debts from bankrupt, insolvent, or decedents'
estates;
(12) may collect, notwithstanding section 3711(g)(1) of
title 31, United States Code, or compromise any obligations
assigned to or held by the Reserve, including any legal or
equitable rights accruing to the Reserve;
(13) may sell direct investments of the Reserve to private
investors on such terms and conditions as the Reserve may
determine; and
(14) shall have such other powers as may be necessary and
incident to carrying out the functions of the Reserve.
(b) Treatment of Property.--Notwithstanding any other provision of
law relating to the acquisition, handling, or disposal of property by
the United States, the Reserve shall have the right in its discretion
to complete, recondition, reconstruct, renovate, repair, maintain,
operate, or sell any property acquired by the Reserve pursuant to this
Act.
SEC. 302. RECORDS AND ACCOUNTS.
(a) Preparation and Maintenance.--The Board may require any person
to prepare and maintain such records or accounts as the Board, by rule,
determines necessary to carry out this Act.
(b) Audit of Operations of Storage Facilities.--The Board may audit
the operations of any storage facility in which any critical mineral or
material acquired is stored or required to be stored pursuant to this
Act.
(c) Access to and Inspection of Records or Accounts and Storage
Facilities.--The Board may require access to, and has the right to
inspect and examine, at reasonable times--
(1) any records or accounts required to be prepared or
maintained pursuant to subsection (a); and
(2) any storage facilities subject to audit by the United
States pursuant to this Act.
TITLE IV--OVERSIGHT AND ACCOUNTABILITY
SEC. 401. RISK AND AUDIT COMMITTEES.
(a) Establishment.--Not later than 1 year after the date of
enactment of this Act, the Reserve shall establish--
(1) a risk committee; and
(2) an audit committee.
(b) Duties and Responsibilities.--
(1) Risk committee.--Subject to the direction of the Board,
the risk committee established under subsection (a)(1) shall be
responsible for--
(A) formulating risk management policies of the
operations of the Reserve;
(B) reviewing and providing guidance on the
operation of the global risk management framework of
the Reserve;
(C) developing policies for enterprise risk
management, risk monitoring, and the management of
strategic, reputational, regulatory, operational,
developmental, responsible production, and financial
risks;
(D) developing the risk profile of the Reserve,
including a risk management and compliance framework
and governance structure to support such a framework;
(E) monitoring Reserve participants to ensure
existing participants do not become foreign entities of
concern; and
(F) developing and using a mechanism to remove
participants if more than 25 percent of that
participant is owned, controlled, directed, financed,
or otherwise influenced, directly or indirectly, in
whole or in part by the government of a foreign entity
of concern.
(2) Audit committee.--Subject to the direction of the
Board, the audit committee established under subsection (a)(2)
shall be responsible for--
(A) the integrity of--
(i) the financial reporting of the Reserve;
(ii) systems of internal controls relating
to finance and accounting of the Reserve; and
(iii) the financial statements of the
Reserve;
(B) the performance of the internal audit function
of the Reserve; and
(C) the compliance of the Reserve with legal and
regulatory requirements relating to the finances of the
Reserve.
SEC. 402. ANNUAL AUDIT AND COMPTROLLER REVIEW.
(a) Annual Independent Audit.--
(1) In general.--Not later than 1 year after the date of
enactment of this Act, and annually thereafter, an independent
qualified public accountant selected by the Board shall audit
the financial statements of the Reserve, the results of which
shall be made publicly available.
(2) Requirements.--An independent qualified public
accountant selected under paragraph (1) shall be--
(A) certified and licensed by a State board of
accountancy;
(B) independent of the Reserve and each authorized
intermediary within the meaning of section 210.2-01 of
title 17, Code of Federal Regulations (or a successor
regulation); and
(C) registered with the Public Company Accounting
and Oversight Board.
(b) Review.--The Comptroller General of the United States shall
conduct a biennial review of the Reserve, to include--
(1) reviewing the most recent annual report submitted
pursuant to section 403(a);
(2) the operations and functions of the Reserve as managed
by the Board; and
(3) the performance of the Board in fulfilling the purposes
of the Reserve.
SEC. 403. REPORTING AND TRANSPARENCY.
(a) Annual Report.--
(1) In general.--The Board shall submit to the President,
the Comptroller General of the United States, the Director of
the Office of Management and Budget, and the appropriate
congressional committees, an annual report describing the
operations of the Reserve during the preceding calendar year.
(2) Contents.--Each report required under paragraph (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 and
the purposes of the Reserve have been achieved;
(C) a summary of transactions and loans made by the
Reserve during the preceding calendar year, to include
how well those transactions and loans have helped
achieve the purposes of the Reserve; and
(D) information regarding vulnerabilities, risks,
and audits.
(b) Testimony.--The Chairperson shall appear before the Committee
on Energy and Natural Resources of the Senate and the Committee on
Natural Resources of the House of Representatives not later than 30
calendar days after the date that a report required under subsection
(a) is submitted.
(c) Database.--
(1) In general.--The Reserve shall maintain a database with
detailed information on all transactions undertaken pursuant to
section 206.
(2) Requirements.--The database maintained under paragraph
(1) shall--
(A) be user-friendly;
(B) subject to paragraph (3), be publicly
available; and
(C) to the extent practicable, include a
description of the support provided for each project,
including the information contained in the report
required under subsection (a).
(3) Limit on public availability.--
(A) In general.--An identified subset of the
database maintained under paragraph (1) shall not be
made publicly available if the Board determines doing
so would be harmful to the national security of the
United States.
(B) Accessibility.--If the Board makes a
determination under subparagraph (A) that public
availability of the identified subset of the database
maintained under paragraph (1) would be harmful to the
national security of the United States, the Reserve
shall--
(i) make the identified subset of the
database accessible to the appropriate
congressional committees; and
(ii) not later than 3 years after a
transaction undertaken pursuant to section 206
occurs, make the information about that
transaction publicly available.
<all>
Introduced in Senate
Read twice and referred to the Committee on Energy and Natural Resources.
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