Sec. 3. Expansion of productive capacity and supply
3,115 words·~14 min read·
/bill/119/hr/7688/ih/section-3·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
The Defense Production Act of 1950 ( 50 U.S.C. 4501 et seq. ) is amended— by redesignating title III as title II; by redesignating sections 301, 302, 303, 304, and 305 as sections 201, 202, 203, 205, and 206, respectively; in section 201, as so redesignated— in the heading, by striking and inserting PRESIDENTIAL AUTHORIZATION FOR THE NATIONAL DEFENSE ; Loan guarantees in subsection (a)— in paragraph (1), by inserting , with the concurrence of the Fund manager of the Defense Production Act Fund, before to provide ; and in paragraph (2)— in the heading, by striking and inserting Presidential determinations ;
Determinations by striking during a period of and inserting with respect to a ; by striking if the President and inserting if the guaranteeing agency, in coordination with the Fund manager of the Defense Production Act Fund and relevant members of the Defense Production Act Committee, ; and in subparagraph (G)(i), by striking the President and inserting Fund manager of the Defense Production Act Fund ; in subsection (b)(1), by striking President and inserting Fund manager of the Defense Production Act Fund ; in subsection (c), by striking President each place such term appears and inserting Fund manager of the Defense Production Act Fund ; and in subsection (d)— in paragraph (1)— by striking and all that follows through shortfalls .— If the making and inserting ; shortfalls .—If the making by striking $50,000,000 and inserting $100,000,000 ; by striking only— and all that follows through if the President and inserting only if the Fund manager of the Defense Production Act Fund ; by striking guarantee; and and inserting guarantee. ; in subparagraph (A), by striking clause (ii); and by striking subparagraph (B); and in paragraph (2)(B), by striking not later than 10 days ; and in section 202, as so redesignated— in subsection (a), by inserting authorize a lending agency, with the concurrence of the Fund manager of the Defense Production Act Fund and relevant members of the Defense Production Act Committee, to after President may ; in subsection (b)— in paragraph (1), by striking and at the end; in paragraph (2)— by inserting except before during ; by striking no such loan may be made unless the President and inserting no such loan may be made with respect to the national emergency unless the lending agency, in consultation with the Fund manager of the Defense Production Act Fund and relevant members of the Defense Production Act Committee, ; and by striking the period at the end and inserting a semicolon; and by adding at the end the following: any such loan shall be secured by a first-priority lien on such collateral as the Fund manager of the Defense Production Act Fund may require, and such lien shall— attach upon disbursement of funds; be senior to all other liens and claims; and be deemed perfected upon attachment; and in the event that the loan recipient defaults on the repayment of the loan, any portion of such repayment that is not satisfied from the collateral described in paragraph
(3)shall have priority in payment over all other unsecured claims. ; and in subsection (d)— in paragraph (1)— by striking $50,000,000 and inserting $100,000,000 ; by striking only— and all that follows through if the President and inserting only if the Fund manager of the Defense Production Act Fund ; in subparagraph (A), by striking ; and at the end and inserting a period; and by striking subparagraph (B); and by striking paragraph (2); in section 203, as so redesignated— in the heading, by striking and inserting OTHER PRESIDENTIAL ACTION AUTHORIZED ; Purchases, commitments to purchase, and subsidy payments in subsection (a)— in paragraph
(1)by striking the President and inserting a member of the Defense Production Act Committee described under section 317(b)(1)(A), in consultation with the Executive Director of the Defense Production Act Committee, ; in paragraph (5)— in the heading, by striking Presidential and inserting Federal agency ; by striking Except as provided in paragraph (7), the President and inserting The member described under paragraph
(1); by striking the President, on a non-delegable basis, and inserting member, on a non-delegable basis, and in consultation with the Executive Director of the Defense Production Act Committee, ; and in subparagraph (B), by striking Presidential ; in paragraph (6)— in subparagraph (A)— by striking Except as provided in paragraph (7), the President and inserting The member described under paragraph
(1); and by striking by the President and inserting by the member ; in subparagraph (B)— by striking $50,000,000 and inserting $100,000,000 ; by striking the 30-day period following ; and by inserting by the Fund manager of the Defense Production Act Fund after in writing ; and by striking subparagraph (C); and by striking paragraph
(7)and inserting the following: The equity shares of an entity may not be acquired under this section if such acquisition would result in the Government holding, in the aggregate, 15 percent or more of the equity shares of the entity. A member of the Defense Production Act Committee described under section 317(b)(1)(A)— may make an equity investment in an entity under this section only after the Fund manager of the Defense Production Act Fund finds that the entity is unable to obtain additional equity investment from private sources on commercially reasonable terms; and shall seek to sell and liquidate any equity support for an entity provided under this section as soon as commercially feasible, commensurate with other similar investors in the entity, taking into consideration the national security interests of the United States. ; by redesignating subsections
(b)through
(g)as subsections
(c)through (h), respectively; by inserting after subsection
(a)the following: There is established the Critical Minerals Resilience Initiative, under which a member of the Defense Production Act Committee described under section 317(b)(1)(A), in consultation with the Executive Director of the Defense Production Act Committee and the Fund manager of the Defense Production Act Fund, may make grants, purchases, and commitments to purchase involving an entity in the United States, a member country of the North Atlantic Treasury Organization, or a major non-NATO ally, to— ensure that the mining or processing of critical and strategic materials is not dominated by a foreign adversary; and provide for offtake agreements, price floors, or incentives in order to ensure the viability of mines or processing facilities for critical and strategic materials outside the control of a foreign adversary. To the extent practicable, the Defense Production Act Committee shall develop a process to encourage cooperation among, and manage potential conflicts between— entities that are domestic sources, and the countries where they are located; and for the purpose of carrying out the Critical Minerals Resilience Initiative, countries involved in the Initiative. ; in subsection (c), as so redesignated, by striking not more than 10 years and inserting more than 10 years in subsection (d), as so redesignated— in paragraph (1)(A), by striking necessary to carry out the objectives of this title and inserting essential for national defense requirements ; in paragraph (2)— by striking President may make provision for subsidy payments and inserting President, in consultation with the Executive Director of the Defense Production Act Committee and the Fund manager of the Defense Production Act Fund, may make provision for subsidy payments, for a period not to exceed 1 year, ; and by striking President determines and inserting Fund manager determines ; and by adding at the end the following: The President may renew subsidy payments authorized under paragraph
(2)for up to 180 days after submitting a report to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate that— certifies that the subsidy payment is the most efficient means to ensure objectives described under paragraph (2); and explains why market conditions do not allow for the achievement of the objectives. ; in paragraph (1)(C) of subsection (f), as so redesignated, by striking section 301, 302 and inserting section 201, 202 ; in subsection (h), as so redesignated, by striking make provision and inserting exercise the authorities under title I and this title ; and by adding at the end the following: In exercising the authorities under section 201, section 202, or this section, the President may waive or revise relevant regulations for the purpose of expediting— the procurement of critical technologies (as defined under section 316(a)) or critical minerals; or the permitting of critical infrastructure required to produce or refine the critical technologies or critical minerals described in paragraph (1). Software procured using funds appropriated pursuant to this Act shall be commercially available off-the-shelf software, unless no commercially available off-the-shelf software that meets the applicable requirements is available, more cost-effective, or is practicable to procure. Each Federal agency to which the President has delegated authority under this Act shall identify any workforce gaps or skills gaps that affect the ability of the domestic industrial base to supply the materials and services necessary to satisfy the objectives set forth in section 2(b). With respect to an entity receiving financial assistance under title I or this title, the agency making such financial assistance may direct that a portion of the financial assistance be used to recruit, train, place, or retain workers in defense-critical occupations directly related to the activities funded by the assistance, if such entity keeps records of performance standards for workers recruited, trained, placed, or retained using such assistance. Each Federal agency to which the President has delegated authority under this Act shall include in the annual report of the Defense Production Act Committee— a discussion of the identification required under subparagraph
(A)and the authority provided under subparagraph (B); short-term and long-term recommendations for administrative or legislative action to reduce any workforce gaps or skills gaps identified by the agency, especially through the simulation required under section 206(c), including recommendations on workforce training programs to recruit, train, place, and retain workers in occupations critical to the national defense, including any apprenticeships. Each agency represented on the Defense Production Act Committee may appoint, without regard to the provisions of sections 3309 through 3318 of title 5, subject matter experts directly to positions in the competitive service (as defined in section 2102 of that title) in the agency for the sole purpose of identifying, soliciting, evaluating, or approving activities that may receive financial assistance under this title. ; in section 204, as redesignated and moved by section 3(4)— in subsection (a)— by striking title III of this Act or any other provision of law, the President may and inserting this title, a member of the Defense Production Act Committee may, in consultation with the Executive Director of the Defense Production Act Committee, ; and by inserting essential before materials ; in subsection (b)(1), by striking assure and inserting ensure ; and by adding at the end the following: The President may waive or revise relevant regulations for the purpose of expediting— the procurement of critical technologies (as defined under section 316(a)) or critical minerals subject to the incentives described in subsection (a); or the permitting of critical infrastructure required to produce or refine the critical technologies or critical minerals described in paragraph (1). . in section 205, as so redesignated— in subsection (a), insert before the period at the end the following: , to be administered by the Secretary of the Treasury ; in subsection (b)— in paragraph (1)— by striking section 711 and inserting section 311 ; and by striking and at the end; by redesignating paragraph
(2)as paragraph (3); by inserting after paragraph
(1)the following: all moneys appropriated for activities pursuant to this title; and ; and in paragraph (3), as so redesignated, by striking section 303 and inserting this title ; in subsection (e), by striking $750,000,000 each place such term appears and inserting $2,000,000,000 ; by redesignating subsections
(f)and
(g)as subsections
(g)and (h), respectively; by inserting after subsection
(e)the following: The Executive Director of the Defense Production Act Committee may waive the requirement described under subsection
(e)for up to 1 year at a time upon notifying the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate in writing that the waiver is in the national security interests of the United States. ; in subsection (g), as so redesignated— by striking President shall designate a and inserting Secretary of the Treasury shall serve as ; in paragraph (1), by striking subsection
(g)and inserting subsection
(h); in paragraph (2), by striking and at the end; in paragraph (3)— by inserting and the Defense Production Act Committee after Congress ; and by striking the period at the end and inserting , including an analysis of the effectiveness of investments made during the previous fiscal year; ; and by adding at the end the following: designating financial institutions as financial agents of the Federal Government, as appropriate, for the purposes of this title; delegating authorities, as the Fund manager finds appropriate, to members of the Defense Production Act Committee; and issuing rules and guidance regarding financing activities authorized by this title. ; and by adding at the end the following: The Executive Director of the Defense Production Act Committee shall defer budget authority involving the Fund for an agency that has repeatedly failed to submit complete reports described under section 101(e) and 206(a). ; section 206, as so redesignated— in the heading, by striking and inserting REPORTS ON EXERCISE OF AUTHORITIES ; DPA strategy by striking subsections
(a)and
(b)and inserting the following: Not later than 180 days after the effective date of this subsection, and annually thereafter, the head of each agency to which the President has delegated authorities under title I or this title shall submit the report described under subsection
(b)to the Executive Director of the Defense Production Act Committee and the Fund manager of the Defense Production Act Fund. A report described under this subsection is a report that includes— an assessment, in consultation with the Defense Production Act Committee and the private sector, of industrial base needs required by the head of the agency to meet the highest priorities arising from national defense requirements, as determined by the President; a detailed strategy, timeline, and spending plan, in consultation with the Defense Production Act Committee, to deploy the authorities under title I and this title to address the needs identified under paragraph (1); the results of the most recent simulation described in subsection (c); a comprehensive list of actions (including all priority ratings, the exercise or non-exercise of such ratings and any allocations or financing) taken by the agency pursuant to the authorities since the previous report, and an explanation of how the actions support the strategy described under paragraph (2); any use of authorities under section 308 or section 310 in support of the strategy described under paragraph (2); a description of any waivers exercised pursuant to section 101(d)(2), section 107(c), or section 203(h); and in the case of an action taken pursuant to title I or this title involving a business concern in Canada, the United Kingdom, or Australia, a justification of the necessity of the use of authorities under the applicable title. At least once every 5 years, the Defense Production Act Committee shall conduct a discussion-based simulation (commonly known as a table-top exercise ) to determine the resources needed and the best use of the authorities under title I and this title to implement the strategy described in subsection (b)(2) contained in the most recent report required under subsection (a). ; in subsection (c)(2), by striking section 702(7)(B)(ii)(II)(bb) and inserting section 302(7)(B)(ii)(II)(bb) ; and by adding at the end the following: The head of any relevant agency, as determined by the President, shall, in the first report submitted under subsection
(a)after the date of enactment of this subsection, include in such report the following: A detailed plan to ensure the supply of the following, to the extent necessary for national defense: Medical materials (including drugs, devices, and biological products (as that term is defined in section 351 of the Public Health Service Act ( 42 U.S.C. 262 )) to diagnose, cure, mitigate, treat, or prevent disease). Critical minerals. Naval shipbuilding capacity, materials, and components. An analysis of vulnerabilities to existing supply chains for the materials, minerals, and capacity described in paragraph (1). Any authorities provided by this Act to be used by the agency to ensure that essential components of such supply chains are not under the control of a foreign adversary. . in section 207, as redesignated and moved by section 3(5)— in subsection (a), by inserting , to the extent required for national defense purposes, after President shall ; and in subsection (b)— in paragraph (1)— by striking title III and inserting this title ; and by striking advance and inserting advanced ; and in paragraph (2)— by striking title III and inserting this title ; and in subparagraph (C), by striking section 301, 302, or 303 and inserting section 201, 202, or 203 ; and by adding at the end the following: In using the authorities under this title, the President may not deny financial support pursuant to sections 201, 202, 203, or 204, other than for the production of energy, based on the energy source involved in the exploration, development, production, utilization, transportation, or sale of energy. A covered entity is not eligible for assistance authorized under this title. In this section: The term covered entity means an entity in which a covered individual directly or indirectly holds a significant interest. For the purpose of determining whether an entity is a covered entity, if securities of the entity are owned, controlled, or held by 2 or more individuals who are related as described in paragraph (2), such securities shall be aggregated. The term covered individual means— the President, the Vice President, or a member of the Defense Production Act Committee; and the spouse, child, son-in-law, or daughter-in-law of an individual described in subparagraph (A). The term equity interest means— a share in an entity, without regard to whether the share is— transferable; or classified as stock or anything similar; a capital or profit interest in a limited liability company or partnership; and a warrant or right (other than a right to convert) to purchase, sell, or subscribe to a share or interest described in subparagraph
(A)or (B), respectively. The term significant interest means owning, controlling, or holding not less than 20 percent, by vote or value, of the outstanding amount of any class of equity interest in an entity. .
Connectionstraces to 2
Traces to 2 documents
Citation graph
cites case law
Cites 2Cited by 0 across 0 sources