Sec. 1414. Restoring essential energy and security holdings onshore for rare earths

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Of the funds authorized to be appropriated for the National Defense Stockpile Transaction Fund by section 4501, the National Defense Stockpile Manager may use up to $253,500,000 for acquisition of the following materials determined to be strategic and critical materials required to meet the defense, industrial, and essential civilian needs of the United States: Neodymium oxide, praseodymium oxide, and neodymium iron boron (NdFeB) magnet block. Titanium. Energetic materials. Iso-molded graphite.

Grain-oriented electric steel. Tire cord steel. Cadmium zinc telluride. Scandium. Any acquisition using funds appropriated pursuant to this section shall be carried out in accordance with the provisions of the Strategic and Critical Materials Stock Piling Act ( 50 U.S.C. 98 et seq. ). Beginning on the date that is 30 months after the date of the enactment of this Act, the Secretary of Defense shall require that any contractor that provides to the Department of Defense a system with a permanent magnet that contains rare earth elements or covered critical minerals to disclose in a classified form, along with delivery of the system, the provenance of the magnet.

A disclosure under paragraph

(1)shall include an identification of the country or countries in which— any rare earth elements and covered critical minerals used in the magnet were mined; such elements and minerals were refined into oxides; such elements and minerals were made into metals and alloys; and the magnet was sintered or bonded and magnetized. If a contractor cannot make the disclosure required by paragraph

(1)with respect to a system described in that paragraph, the Secretary shall require the contractor to establish and implement a supply chain tracking system in order to make the disclosure not later than 180 days after providing the system to the Department of Defense. The Secretary may waive a requirement under paragraph

(1)or

(3)with respect to a system described in paragraph

(1)for a period of not more than 180 days if the Secretary certifies to the appropriate congressional committees that— the continued procurement of the system is necessary to meet the demands of a national emergency declared under section 201 of the National Emergencies Act ( 50 U.S.C. 1621 ); or the contractor cannot currently make the disclosure required by paragraph

(1)but is making significant efforts to comply with the requirements of that paragraph. The Secretary— may renew a waiver under subparagraph (A)(i) as many times as the Secretary considers appropriate; and may not renew a waiver under subparagraph (A)(ii) more than twice. Not later than 30 days after the submission of each report required by subsection (e)(3), the Secretary of Defense shall provide to the appropriate congressional committees a briefing that includes— a summary of the disclosures made under this subsection; an assessment of the extent of reliance by the United States on foreign countries, and especially countries that are not allies of the United States, for rare earth elements and covered critical minerals; a determination with respect to which systems described in paragraph

(1)are of the greatest concern for interruptions of supply chains with respect to rare earth elements and covered critical minerals; and any suggestions for legislation or funding that would mitigate security gaps in such supply chains. Section 1211 of the National Defense Authorization Act for Fiscal Year 2006 ( 10 U.S.C. 4651 note prec.) is amended— in the section heading, by striking and inserting Communist Chinese military companies ; Chinese military companies in subsection (a), by inserting after military company the following: , any Chinese military company, or any Non-SDN Chinese military-industrial complex company ; by amending subsection

(b)to read as follows: For purposes of subsection (a), and except as provided in paragraph (2), the goods and services described in this subsection are goods and services— on the munitions list of the International Traffic in Arms Regulations; or on the Commerce Control List that— are classified in the 600 series; or contain rare earth elements or covered critical minerals. Goods and services described in this subsection do not include goods or services procured— in connection with a visit by a vessel or an aircraft of the United States Armed Forces to the People's Republic of China; for testing purposes; or for purposes of gathering intelligence. ; in subsection (e)— by striking paragraph (3); by redesignating paragraphs

(1)and

(2)as paragraphs

(3)and (6), respectively; by inserting before paragraph (3), as redesignated by subparagraph (B), the following: The term Chinese military company has the meaning given that term by section 1260H(d)(1) of the William M.

(Mac)Thornberry National Defense Authorization Act for Fiscal Year 2021 ( Public Law 116–283 ; 10 U.S.C. 113 note). The term Commerce Control List means the list maintained by the Bureau of Industry and Security and set forth in Supplement No. 1 to part 774 of the Export Administration Regulations. ; and by inserting after paragraph (3), as so redesignated, the following: The term covered critical mineral means— antimony; beryllium; cobalt; graphite; lithium; manganese; nickel; tantalum; tungsten; or vanadium. The term Export Administration Regulations has the meaning given that term in section 1742 of the Export Control Reform Act of 2018 ( 50 U.S.C. 4801 ). ; and by adding at the end the following: The term Non-SDN Chinese military-industrial complex company means any entity on the Non-SDN Chinese Military-Industrial Complex Companies List— established pursuant to Executive Order 13959 ( 50 U.S.C. 1701 note; relating to addressing the threat from securities investments that finance Communist Chinese military companies), as amended before, on, or after the date of the enactment of the Restoring Essential Energy and Security Holdings Onshore for Rare Earths Act of 2022 ; and maintained by the Office of Foreign Assets Control of the Department of the Treasury. The term rare earth element means— cerium; dysprosium; erbium; europium; gadolinium; holmium; lanthanum; lutetium; neodymium; praseodymium; promethium; samarium; scandium; terbium; thulium; ytterbium; or yttrium. . Not later than one year after the date of the enactment of this Act, and periodically thereafter until the termination date specified in paragraph (5), the Comptroller General of the United States shall assess the extent of the efforts of the Department of Defense to comply with the requirements of— subsection (c); section 1211 of the National Defense Authorization Act for Fiscal Year 2006, as amended by subsection

(d)of this section; and section 4872 of title 10, United States Code. The Comptroller General shall periodically, until the termination date specified in paragraph (5), provide to the appropriate congressional committees a briefing on the results of the assessments conducted under paragraph

(1)that includes an assessment of— the inclusion by the Department of Defense of necessary contracting clauses in relevant contracts to meet the requirements described in subparagraphs (A), (B), and

(C)of paragraph (1); and the efforts of the Department of Defense to assess the compliance of contractors with such clauses. The Comptroller General shall, not less frequently than every 2 years until the termination date specified in paragraph (5), submit to the appropriate congressional committees a report on the results of the assessments conducted under paragraph

(C)of paragraph (1); and the efforts of the Department of Defense to assess the compliance of contractors with such clauses. If, in conducting an assessment under paragraph (1), the Comptroller General determines that a contractor has failed to comply with any of the requirements described in subparagraphs (A), (B), and

(C)of paragraph (1), the relevant Inspectors General, or other enforcement agencies, as appropriate, for further examination and possible enforcement actions. The requirements of this subsection shall terminate on the date that is 10 years after the date of the enactment of this Act. In this section, the terms covered critical minerals and rare earth element have the meanings given to such terms in section 1211 of the National Defense Authorization Act for Fiscal Year 2006 ( 10 U.S.C. 4651 note prec.).

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