Sec. 20204. Manufacturing security and resilience program
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The Assistant Secretary shall support the resilience, diversity, security, and strength of supply chains by providing grants, loans, and loan guarantees for eligible activities to eligible entities. The Assistant Secretary may not provide a grant, loan, or loan guarantee under this section to an eligible entity unless the eligible entity submits to the Assistant Secretary an application at such time, in such form, and containing such information as the Assistant Secretary may require, including— a description of the eligible activity to be carried out with the grant, loan, or loan guarantee; a description of the supply chain supported by the eligible activity; an estimate of the total costs of the eligible activity; and in the case of an application submitted for an eligible activity described in subparagraph
(B)or
(C)of subsection (c)(2), a description of domestic manufacturing operations for the production of the critical good. The following activities may be carried out with a grant, loan, or loan guarantee under this section: The development, diversification, preservation, improvement, support, restoration, or expansion of supply chains and the domestic manufacturing of critical goods, industrial equipment, and manufacturing technology, including activities that support any of the following: The manufacturing of a critical good or industrial equipment in the United States. The commercialization, adoption, deployment, or use of manufacturing technology by domestic manufacturers in the United States. The design, engineering, construction, expansion, improvement, repair, or maintenance of critical infrastructure or a manufacturing facility in the United States. The purchase, lease, acquisition, enhancement, or retooling of industrial equipment for use in the United States. The purchase, lease, or other acquisition of critical goods, industrial equipment, or manufacturing technology from reliable sources. The relocation of manufacturing facilities or operations related to the production of a critical good out of a country of concern and into the United States. The modification of manufacturing facilities, industrial equipment, or operations related to the manufacture of critical goods to— create new capabilities for an eligible entity to manufacture critical goods in the United States; expand existing operations to increase the manufacture of critical goods in the United States; or accommodate any manufacturing operations related to critical goods that are being relocated to the United States. The development of tools or processes that relate to procuring, transporting, or storing critical goods. The manufacture or acquisition of a substitute for a critical good, industrial equipment, or manufacturing technology. The establishment, improvement, development, expansion, or preservation of surge capacity or stockpiling of a critical good or industrial equipment, as appropriate and necessary. The establishment, improvement, or preservation of diverse, secure, reliable, and strong sources and locations of a critical good in the United States. The following activities may be carried out with a loan or loan guarantee under this section: The design, engineering, construction, expansion, improvement, repair, or maintenance of critical infrastructure or a manufacturing facility in an ally or key international partner. The relocation of manufacturing facilities or operations related to the production of a critical good out of a country of concern and into an ally or key international partner, with a priority for countries— in the covered Western Hemisphere countries; that are member states of the North Atlantic Treaty Organization (NATO); that are designated as a major non-NATO ally pursuant to section 517(a) of the Foreign Assistance Act of 1961 ( 22 U.S.C. 2321k(a) ); and identified under section 20203(e)(2)(A)(v). The modification of manufacturing facilities, industrial equipment, or operations related to the manufacture of critical goods to— create new capabilities for an eligible entity to manufacture critical goods in an ally or key international partner; expand existing operations to increase the manufacture of critical goods in an ally or key international partner; or accommodate any manufacturing operations related to critical goods that are being relocated to an ally or key international partner. The following entities are eligible to receive grants, loans, and loan guarantees under this section: A domestic manufacturer. A domestic enterprise. A State or a county, city, or other political subdivision of a State. A Tribal government. A manufacturing extension center established as part of the Hollings Manufacturing Extension Partnership. A Manufacturing USA institute as described in section 34(d) of the National Institute of Standards and Technology Act ( 15 U.S.C. 278s(d) ). An institution of higher education acting as part of a consortium, partnership, or joint venture with another eligible entity described in paragraphs
(1)through (6). A public or private nonprofit organization or association acting as part of a consortium, partnership, or joint venture with another eligible entity described in paragraphs
(1)through (6). A consortium, partnership, or joint venture of two or more eligible entities described under paragraphs
(1)through (8). The Assistant Secretary may only provide a grant, loan, or loan guarantee to an eligible entity if the Assistant Secretary makes a determination of the following: The grant, loan, or loan guarantee is for an eligible activity. Without the grant, loan, or loan guarantee, the eligible entity would not be able to fund or finance the eligible activity under reasonable terms and conditions. The grant, loan, or loan guarantee is a cost effective, expedient, and practical form of financial assistance for the eligible activity. There is a reasonable assurance that— the eligible entity will implement the eligible activity in accordance with the application submitted under subsection (b); and the eligible activity will support— the resilience, diversity, security, or strength of a supply chain; and the national security or economic security of the United States. The eligible entity agrees to provide the information required under subsection (m)(3). For an eligible activity described in subparagraph
(B)or
(C)of subsection (c)(2), relocation of a manufacturing facility or operations into the United States is uneconomical. The eligible activity does not support the production of a critical good subject to an anti-dumping or countervailing duty order imposed by the United States. The Assistant Secretary shall establish criteria for the awarding of grants, loans, and loan guarantees that meet the requirements of subsection (e), including the following: The extent to which the eligible activity supports the resilience, diversity, security, and strength of a supply chain. The extent to which the eligible activity is funded or financed by non-Federal sources. The extent to which the grant, loan, or loan guarantee will assist small and medium-sized domestic manufacturers. The amount of appropriations that are required to fund or finance the grant, loan, or loan guarantee. In making a determination to provide a loan or loan guarantee to an eligible entity for an eligible activity described in subparagraph
(B)or
(C)of subsection (c)(2), the Assistant Secretary— shall— consult with the Secretary of State and the heads of other relevant Federal agencies, as appropriate; and to the extent practicable, ensure no single ally or key international partner benefits from an outsized amount of Federal funding provided under this section; and may take into considerations labor and environmental standards of the ally or key international partner when considering the siting locations for the eligible activity. As a condition of receiving a loan or loan guarantee for an eligible activity described under subparagraph
(B)or
(C)of subsection (c)(2), the Assistant Secretary shall prohibit an eligible entity from making capital or labor investments in the manufacturing facility or operation in the country of concern for the duration of the grant, loan, or loan guarantee. The amount of a grant under this section may not exceed 80 percent of the reasonably anticipated costs of the eligible activity for which the grant is made. Upon providing written justification for a determination made pursuant to this paragraph, which may be submitted with a classified annex to the Committee on Energy and Commerce of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate, the Assistant Secretary may waive the cost share requirement of paragraph (1)— during a period of national emergency declared by an Act of Congress or the President; and upon making a determination that a grant is necessary to avert the disruption, strain, compromise, or elimination of a supply chain that would severely affect the national security or economic security of the United States. Federal assistance other than a grant under this section may be used to satisfy the non-Federal share of the cost of the eligible activity. The Assistant Secretary may enter into an agreement with an eligible entity to make a loan, the proceeds of which shall be used to finance an eligible activity. The amount of a loan under this section may not exceed 80 percent of the reasonably anticipated costs of the eligible activity for which the loan is made. Upon providing written justification for a determination made pursuant to this paragraph, which may be submitted with a classified annex to the Committee on Energy and Commerce of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate, the Assistant Secretary may waive the requirement of paragraph (2)— during a period of national emergency declared by an Act of Congress or the President; or upon making a determination that a loan is necessary to avert the disruption, strain, compromise, or elimination of a supply chain that would severely affect the national security or economic security of the United States. The Assistant Secretary may provide a loan guarantee to a lender in lieu of making a loan under this section. The terms of a loan guarantee provided under this section shall be consistent with the terms established in this subsection for a loan. The Assistant Secretary may provide a loan or loan guarantee to a manufacturing investment company. A manufacturing investment company shall use the proceeds of a loan or loan guarantee provided under this subsection to provide a source of equity capital for eligible entities to carry out eligible activities. The Assistant Secretary may not provide a loan or loan guarantee to a manufacturing investment company unless the manufacturing investment company submits to the Assistant Secretary an application at such time, in such form, and containing such information as the Assistant Secretary may require, which shall include the following: A plan describing how the manufacturing investment company intends to provide equity capital to eligible entities to support the resilience, diversity, security, and strength of supply chains. Information regarding the relevant qualifications and general reputation of the management of the manufacturing investment company. A description of how the manufacturing investment company intends to address the unmet capital needs of eligible entities. A description of whether and to what extent the manufacturing investment company meets the criteria established under paragraph (4). For a manufacturing investment company seeking to provide equity capital for an eligible activity described in subparagraph
(B)or
(C)of subsection (c)(2), a description of domestic manufacturing operations for the production of the critical good. The Secretary shall establish criteria for the awarding of a loan or loan guarantee under this subsection to a manufacturing investment company, including the following: The extent to which the equity capital to be provided under paragraph
(2)will support the resilience, diversity, security, and strength of supply chains. The extent to which the plan submitted under paragraph (3)(A) will be funded or financed by non-Federal sources. The extent to which the manufacturing investment company will assist small and medium-sized domestic manufacturers. The amount of appropriations that are required to fund or finance the loan or loan guarantee. As a condition for providing a loan or loan guarantee under this subsection, the Assistant Secretary shall require a manufacturing investment company to certify the following: The equity capital is for an eligible activity. Without the equity capital, the eligible entity would not be able to fund or finance the eligible activity under reasonable terms and conditions. The equity capital is a cost effective, expedient, and practical form of financial assistance for the eligible activity. There is a reasonable assurance that— the eligible entity will implement the eligible activity; and the eligible activity will support— the resilience, diversity, security, or strength of a supply chain; and the national security or economic security of the United States. The manufacturing investment company will provide the information required under paragraph (6)(C). In the case of an eligible activity described in subsection (c)(2)
(B)or (C), relocation of a manufacturing facility or operations into the United States is uneconomical. The eligible activity does not support the production of a critical good subject to an anti-dumping or countervailing duty order imposed by the United States. For loans and loan guarantees provided under this subsection, the Assistant Secretary shall— develop metrics to assess the extent to which manufacturing investment companies meet the criteria established under paragraph (4); assess the extent to which each manufacturing investment company awarded a loan or loan guarantee is meeting the criteria established under paragraph (4); and require the manufacturing investment company to provide to the Assistant Secretary any information relating to the loan or loan guarantee that the Assistant Secretary determines to be necessary to conduct the assessment under subparagraph (B). The Assistant Secretary may, as a condition of providing a loan or loan guarantee under this subsection, establish limits on— the maximum amount of equity or quasi-equity securities, shares, or financial interests a manufacturing investment company may purchase, make and fund commitments to purchase, invest in, make pledges in respect of, or otherwise acquire from an eligible entity; and the maximum amount of assets a manufacturing investment company may hold to be eligible for a loan or loan guarantee under this subsection. The Assistant Secretary may prescribe either specifically or by maximum limits or otherwise, rates of interest, guarantee and commitment fees, and other charges which may be made in connection with equity capital made under this subsection. In making a determination to provide a loan or loan guarantee to a manufacturing investment company for an eligible activity described under subparagraph
(B)or
(C)of subsection (c)(2), the Assistant Secretary may take into consideration labor and environmental standards of the ally or key international partner when considering the siting locations for the eligible activity. As a condition of receiving a loan or loan guarantee from a manufacturing investment company for an eligible activity described under subparagraph
(B)or
(C)of subsection (c)(2), the manufacturing investment company shall prohibit an eligible entity from making capital or labor investments in the manufacturing facility or operation in the country of concern for the duration of the equity capital. For a loan or loan guarantee provided under this section, the manufacturing investment company or eligible entity and eligible activity receiving such loan or loan guarantee shall be creditworthy, which shall be determined by the Assistant Secretary. In determining the creditworthiness of a manufacturing investment company or an eligible entity and eligible activity under paragraph (1), the Assistant Secretary shall take into consideration relevant factors, including the following: The terms, conditions, financial structure, and security features of the loan or loan guarantee. The revenue sources that will secure or fund any note, bond, debenture, or other debt obligation issued in connection with the loan or loan guarantee. The financial assumptions upon which the loan or loan guarantee is based. The ability of— the manufacturing investment company to provide a source of equity capital for eligible entities; or the eligible entity to successfully achieve the goal of the eligible activity. The financial soundness and credit history of the manufacturing investment company or eligible entity. The Assistant Secretary may prescribe— either specifically or by maximum limits or otherwise, rates of interest, guarantee and commitment fees, and other charges which may be made in connection with a loan or loan guarantee made under this section; and regulations governing the forms and procedures (which shall be uniform to the extent practicable) to be used in connection with such loans and loan guarantees. To the extent practicable, in awarding grants, loans, and loan guarantees under this section, the Assistant Secretary shall— select— manufacturing investment companies that best meet the criteria established under subsection (k)(4); and eligible entities and eligible activities that best meet the criteria established under subsection (f); and serve the greatest needs for a diverse array of critical industries. In awarding grants, loans, and loan guarantees under this section, the Assistant Secretary shall prioritize— eligible activities that— are within the United States and employ citizens of the United States; and will result in the production of critical goods that relate to the strategic needs of the Federal Government in preparing for and responding to supply chain shocks; eligible entities that agree to coordinate with the Assistant Secretary to assist the United States in preparing for and responding to supply chain shocks, including through the manufacture of critical goods, as necessary; and small and medium sized manufacturers. For grants, loans, and loan guarantees provided under this section to eligible entities, the Assistant Secretary shall— develop metrics to assess the extent to which the criteria established under subsection
(f)are met; assess the extent to which the criteria established under subsection
(f)are met; and require the eligible entity to provide to the Assistant Secretary any information that the Assistant Secretary determines to be necessary to conduct the assessment under paragraph (2). The requirements of section 602 of the Public Works and Economic Development Act of 1965 ( 42 U.S.C. 3212 ) shall apply to a construction project that receives financial assistance from the Assistant Secretary under this section in the same manner as such requirements apply to a project assisted by the Secretary under such Act. Any eligible entity and manufacturing investment company applying for a grant, loan, or loan guarantee under this section, in any case in which the eligible entity has 100 or more employees, shall make a good-faith certification to the Assistant Secretary that— the eligible entity will not abrogate existing collective bargaining agreements, as applicable, for— the term of the grant; or the term of the loan or loan guarantee and 2 years after completing repayment of the loan; and the eligible entity will remain neutral in any union organizing effort for the term of the grant, loan, or loan guarantee. This section shall be applied in a manner consistent with United States obligations under international agreements. To the extent practicable, none of the funds made available to carry out this section may be used to support manufacturing in a country of concern. The Assistant Secretary may promulgate such regulations as the Assistant Secretary determines to be appropriate to carry out this section. There is established in the Treasury of the United States a fund to be known as the Supply Chains for Critical Manufacturing Industries Fund (in this section referred to as the Fund ), which shall solely be used by the Assistant Secretary to carry out this section. The proceeds of any conditions prescribed under subsection (k)(1) shall be deposited into the Fund. Nothing in this section may be construed to permit the proceeds of a grant, loan, loan guarantee, or equity investment to support activities that offshore manufacturing capacity from the United States. There is authorized to be appropriated to the Fund $45,000,000,000 for fiscal years 2022 through 2027. Such amount is authorized to remain available until expended. Of the amount authorized to be appropriated under paragraph (1), not more than— $31,000,000,000 is authorized to be appropriated for loans and loan guarantees to eligible entities; $10,000,000,000 is authorized to be appropriated for grants to eligible entities; and $4,000,000,000 is authorized to be appropriated for loans and loan guarantees to manufacturing investment companies. Of the amounts authorized to be appropriated under paragraph (2), up to 2 percent per fiscal year is authorized to be appropriated for administrative costs associated with carrying out this section.
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