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Code · BILL · 116th Congress · H.R. 2500 (Engrossed in House) — To authorize appropriations for fiscal year 2020 for military activities of the Department of Defense, for military c... · Sec. 807

Sec. 807. Acquisition and disposal of certain rare earth materials

728 words·~3 min read·/bill/116/hr/2500/eh/section-807·

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Not later than 180 days after the date of the enactment of this Act, the Under Secretary of Defense for Acquisition and Sustainment, in consultation with the Under Secretary of Defense (Comptroller), the Vice Chairman of the Joint Chiefs of Staff, the Secretary of Energy, and the appropriate Under Secretary of State designated by the Secretary of State shall establish guidance to— enable the acquisition of items containing rare earth materials, with a focus on items that contain high concentrations of rare earth materials; establish a secure supply chain for rare earth materials from sources within the United States and covered foreign sources; and ensure that the United States will eliminate dependency on rare earth materials from China by fiscal year 2035.
The guidance required by paragraph
(1)shall encourage the use of rare earth materials mined, refined, processed, melted, or sintered in the United States and include— a determination of when best value contracting methods, including use of a sole source contract with a institution of higher education (as defined in section 101 of the Higher Education Act of 1965 Act ( 20 U.S.C. 1001 )) or other entity, should be used to ensure the viability of a rare earth material supplier; a guide to the applicability of relevant statutes, including sections 2533b and 2533c of title 10, United States Code, and other statutory or regulatory restrictions to defense contracts and subcontracts; information on current sources within the United States and covered foreign sources of rare earth materials along with commonly used commercial documentation and review processes; directives on budgeting and expending funds for the qualification and certification of suppliers of rare earth materials within the United States to meet national security needs; and any exceptions to the Joint Capabilities Integration and Development System Manual and Department of Defense Directive 5000.01. Not later than 180 days after the date of the enactment of this Act, the Under Secretary of Defense for Acquisition and Sustainment, in consultation with the appropriate Under Secretary of State designated by the Secretary of State, shall submit to the congressional defense committees, the Committee on Foreign Affairs of the House of Representatives, and the Committee on Foreign Relations of the Senate a report on— the guidance required by paragraph (1); and the efforts of the Secretary of Defense to create and maintain secure supply chain for rare earth materials from sources within the United States and covered foreign sources. In this subsection: The term covered foreign source means a source located in a foreign country that is not an adversary of the United States, as determined by the Secretary of Defense. The term rare earth material means a concentrate, oxide, carbonate, fluoride, metal, alloy, magnet, or finished product whose chemical, magnetic, or nuclear properties are largely defined by the presence of— yttrium; scandium; or any lanthanide series element. Pursuant to section 5(b) of the Strategic and Critical Materials Stock Piling Act ( 50 U.S.C. 98d(b) ), the National Defense Stockpile Manager shall dispose of 3,000,000 pounds of tungsten ores and concentrates contained in the National Defense Stockpile (in addition to any amount previously authorized for disposal). Using funds available in the National Defense Stockpile Transaction Fund, the National Defense Stockpile Manager may acquire the following materials determined to be strategic and critical materials required to meet the defense, industrial, and essential civilian needs of the United States: Aerospace-grade rayon. Electrolytic manganese metal. Pitch-based carbon fiber. Rare earth cerium compounds. Rare earth lanthanum compounds. The National Defense Stockpile Manager may use up to $14,420,000 in the National Defense Stockpile Transaction Fund for acquisition of the materials specified in subsection (b). The authority under subsection
(b)is available for purchases during fiscal year 2020 through fiscal year 2024. It is the sense of Congress that tantalum should be designated as a strategic and critical material under the Strategic and Critical Materials Stock Piling Act ( 50 U.S.C. 98 et seq.), required to meet the defense, industrial, and essential civilian needs of the United States. Section 2533c(d)(1) of title 10, United States code, is amended— in subparagraph (C), by striking and at the end; in subparagraph (D), by striking the period at the end and inserting ; and ; and adding at the end the following new subparagraph: tantalum. . Section 2533c(a)(2) of title 10, United States Code, is amended by striking covered before material .
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Sec. 807
Acquisition and disposal of certain rare earth materials
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