Sec. 4. Funding for development of secure rare earth supply chains
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/bill/118/hr/2888/ih/section-4·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
The Secretary of the Treasury may establish a trust fund, to be known as the Minerals Security Partnership Fund (referred to in this section as the Fund ), consisting of such amounts as are appropriated to the Fund or credited to the Fund under paragraph (3). If the Fund is not established by not later than 180 days after the date of enactment of this Act, on that date, and annually thereafter until the Fund is established, the Secretary of the Treasury, in coordination with the Secretary of State, shall provide, in writing, to the appropriate committees of Congress a rationale for not establishing the Fund.
If the Fund is established, the Secretary of the Treasury may invest such portion of the Fund as is not required to meet current withdrawals in interest-bearing obligations of the United States or in obligations guaranteed as to both principal and interest by the United States. The interest on, and the proceeds from the sale or redemption of, any obligations held in the Fund shall be credited to and form a part of the Fund. Subject to subparagraph (B), amounts in the Fund shall be available, as provided in advance in an appropriations Act, to the Secretary of State— to provide funding through the Minerals Security Partnership common funding mechanism described in subsection (b)(1) to support the development and adoption of secure rare earth supply chains; and to otherwise carry out this section.
Amounts in the Fund shall be available to the Secretary of State, as provided in advance in an appropriations Act, on and after the date on which the Secretary of State enters into an arrangement or agreement with the governments of countries that are partners of the United States, as determined by the Secretary of State, to participate in the Minerals Security Partnership common funding mechanism under subsection (b)(1). Before entering into an arrangement or agreement as described in clause (i), the Secretary of State, in consultation with the Secretary of Commerce, shall ensure that any government that will participate in the arrangement or agreement maintains export control licensing policies with respect to exports of finished rare earth products substantively equivalent to the United States with respect to restrictions on such exports to the People's Republic of China.
The Secretary of State, in consultation with the Secretary of Commerce, the Secretary of Defense, the Secretary of Homeland Security, the Secretary of the Treasury, the Director of National Intelligence, and the Chief Executive Officer of the United States International Development Finance Corporation shall ensure that the Minerals Security Partnership is a mutually beneficial funding mechanism that, in coordination with the governments of countries that are partners of the United States, uses amounts from the Fund, or any other available Federal funds, to support the development and adoption of secure rare earth supply chains, including for— research and development collaborations among countries participating in the mechanism; and supplementing bids by foreign entities that are not foreign entities of concern to secure offtake agreements with entities that mine rare earth elements.
In creating and sustaining the Minerals Security Partnership common funding mechanism described in paragraph (1), the Secretary of State shall seek to leverage amounts from the Fund to secure contributions to the mechanism from the governments of countries participating in the mechanism, including with respect to cost sharing and other cooperative measures leading to the development and adoption of secure rare earth supply chains. In creating and sustaining the Minerals Security Partnership common funding mechanism described in paragraph (1), the Secretary of State shall promote efforts among countries participating in the mechanism— to establish transparency requirements for any subsidies or other financial benefits (including revenue foregone) provided to rare earth firms located in or outside such countries; to establish processes similar to the process of the Committee on Foreign Investment in the United States under section 721 of the Defense Production Act of 1950 ( 50 U.S.C. 4565 ) for intervening to preempt foreign entities of concern from investing in, purchasing, or assuming control of entities, intellectual property, and equipment that are created by or benefit from investments by the mechanism; to establish consistent policies with respect to countries that— are not participating in the mechanism; and do not meet transparency requirements established under subparagraph (A); to promote harmonized treatment of finished rare earth products and verification processes for raw materials or products being exported to a country considered a national security risk by the government of a country participating in the mechanism; to establish consistent policies among the governments of countries participating in the mechanism and common policies among countries that are not participating to address nonmarket economy countries as the behavior of such countries pertains to rare earth elements; to align policies with respect to supply chain integrity and security, including with respect to protection and enforcement of intellectual property rights; and to promote harmonized foreign direct investment screening measures and export control policies with respect to rare earth elements to align with national, multilateral, and plurilateral security priorities.
Not later than 1 year after the date on which the Fund is established, and annually thereafter for each fiscal year during which amounts in the Fund are available under subsection (a)(4), the Secretary of State shall submit to the appropriate committees of Congress a report on the status of the implementation of this section that includes a description of— any commitments made by the governments of countries that have entered into an arrangement or agreement with the United States to provide funding for the Minerals Security Partnership common funding mechanism described in subsection (b)(1) and the specific amount so committed and other cooperative measures being taken by such countries as part of the mechanism; the criteria established for expenditure of funds through the mechanism; how, and to whom, amounts have been expended from the Fund and a description of progress made in utilizing the Fund to support the objectives described in subsection (b)(1); amounts remaining in the Fund; the progress of the Secretary of State toward entering into an arrangement or agreement with the governments of countries that are partners of the United States to participate in the Minerals Security Partnership common funding mechanism and the commitments described in subsection (b)(3); and any additional authorities needed to enhance the effectiveness of the Fund in achieving the security goals of the United States.
Not later than 15 days prior to the Fund making a financial commitment associated with the provision of expenditures under subsection (a)(4)(A) in an amount in excess of $1,000,000, the Secretary of State shall submit to the appropriate committees of Congress a report in writing that includes the information described in paragraph (2). The information described in this paragraph is— the amount of each expenditure described in paragraph (1); an identification of the recipient or beneficiary of each such expenditure; and a description of the project or activity to be carried out and the purpose to be achieved by each such expenditure.
The Secretary of State shall notify the appropriate committees of Congress not later than 30 days after entering into a new bilateral or multilateral arrangement or agreement described in subsection (a)(4)(B). A foreign entity of concern may not be a participant or beneficiary of the Minerals Security Partnership common funding mechanism described in subsection (b)(1). This section shall apply to any fund in the Treasury that has been established before the date of enactment of this Act for use of the Minerals Security Partnership.
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Sec. 4
Funding for development of secure rare earth supply chains
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