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Code · BILL · 119th Congress · S. 4251 (Introduced in Senate) — To direct the Secretary of Commerce to establish a voluntary Mined in America Certification Program, to use Federal p... · Sec. 4

Sec. 4. Mined in America Certification Program

1,252 words·~6 min read·/bill/119/s/4251/is/section-4·

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The Secretary shall establish a voluntary certification program, to be known as the Mined in America Certification Program , to certify mining facilities and mining pools that meet the requirements established under this section. A certification under the certification program— shall not confer any regulatory license or waiver of legal requirements under any other provision of law (including regulations); may serve as a basis for eligibility for, priority for, or participation in a Federal loan, grant, reimbursement, or procurement program, in accordance with applicable law or regulations; and shall not be required for any mining facility or mining pool except as a condition of eligibility for, priority for, or participation in a program described in subparagraph (B), in accordance with applicable law or regulations.
Not later than 180 days after the date of enactment of this Act, the Secretary shall promulgate regulations governing the certification of mining facilities and mining pools under the certification program. To be eligible for certification under the certification program— the proof-of-work mining operations of the mining facility or mining pool shall be physically located within the United States or a friendly nation; in the case of the certification of a mining pool, the mining pool— shall be headquartered and operated in the United States or a friendly nation; and shall not be owned, controlled, or subject to undue influence by an entity related to a foreign adversary; in the case of the certification of a mining facility, the mining facility— shall not be owned, controlled, or subject to undue influence by an entity related to a foreign adversary; and shall participate in a mining pool described in subparagraph (B); the mining facility or mining pool shall document and attest to compliance with the applicable hardware sourcing standards described in paragraph (3); the mining facility or mining pool shall maintain cybersecurity protocols consistent with minimum standards established by the Secretary, including protection of network systems, private keys, remote access tools, and physical facilities; and the mining facility or mining pool shall satisfy any additional criteria that the Secretary determines to be necessary to uphold the integrity of the certification.
To be eligible for certification under the certification program, a mining facility or mining pool shall be in compliance with the following hardware sourcing standards: Beginning on January 1, 2027, the mining facility or mining pool may not purchase any proof-of-work mining equipment manufactured by any entity related to any foreign adversary. Beginning on January 1, 2028, not more than 75 percent of the active proof-of-work mining hardware of the mining facility or mining pool may be manufactured by an entity related to a foreign adversary.
Beginning on January 1, 2029, not more than 50 percent of the active proof-of-work mining hardware of the mining facility or mining pool may be manufactured by an entity related to a foreign adversary. Beginning on January 1, 2030, 0 percent of the active proof-of-work mining hardware of the mining facility or mining pool may be manufactured by an entity related to a foreign adversary. The Secretary may issue a certification under the certification program before January 1, 2027, if— the applicable mining facility or mining pool has not purchased any proof-of-work mining equipment manufactured by any entity related to any foreign adversary since the date of enactment of this Act; and the operator of the applicable mining facility or mining pool submits to the Secretary a plan for achieving compliance with the hardware sourcing standards described in subparagraph (A).
During the period beginning on January 1, 2027, and ending on December 31, 2029, the Secretary may designate a certification of a mining facility or mining pool under the certification program as a preferred certification for Federal program eligibility if not more than 25 percent of the active proof-of-work mining hardware of the mining facility or mining pool is manufactured by an entity related to a foreign adversary. For the purposes of determining compliance with subparagraph
(B)or (C), the Secretary shall consider proof-of-work mining hardware related to foreign adversaries to be removed from active deployment if the operator of the mining facility or mining pool demonstrates that the hardware has been replaced, repurposed, or retired in favor of proof-of-work mining hardware manufactured in the United States or a friendly nation, including infrastructure deployed for artificial intelligence training, inference, or grid-responsive computational operations. A certification under the certification program— shall be valid for a period of not more than 2 years; and may be renewed only on a demonstration of continued compliance with all applicable requirements under this section. In carrying out the certification program, the Secretary may share information with, or request information from, the Secretary of Energy or the Secretary of Agriculture. In administering the certification program, the Secretary shall establish an application and review process for certification. To apply for certification under the certification program, an operator of a proof-of-work mining facility or mining pool shall submit to the Secretary an application, which shall contain information necessary for the Secretary to determine eligibility under subsection (b). An application submitted under subparagraph (A)— shall disclose ownership and control information sufficient to identify any person exercising control over the proof-of-work mining operations of the applicant; and shall not use any shell companies, passthrough entities, or nominee arrangements to obscure ownership or influence by a foreign adversary. The Secretary shall maintain a publicly accessible registry of mining facilities and mining pools certified under the certification program, including— the effective dates of certification and renewal, if applicable; and the applicable hardware sourcing standards under subsection (b)(3) with which the mining facility or mining pool is compliant, including whether the certification is a preferred certification under subsection (b)(3)(C). The head of a Federal agency that administers a loan, grant, reimbursement, or procurement program for which eligibility, priority, or participation is based on certification under the certification program may rely on the registry maintained under subsection
(d)to determine the eligibility, priority, or participation of an entity in that program, in accordance with applicable law (including regulations). An entity shall not be granted eligibility for, priority for, or participation in a loan, grant, reimbursement, or procurement program for which that eligibility, priority, or participation is based on certification under the certification program unless the entity holds a valid certification under the certification program. In carrying out the certification program, the Secretary shall safeguard the confidentiality of all proprietary operational data, financial records, trade secrets, and personally identifiable information submitted in connection with a certification. Information in the registry maintained under subsection
(d)shall be exempt from disclosure under section 552 of title 5, United States Code. The Secretary shall promulgate regulations to ensure transparency of, compliance with, and enforcement under the certification program, including— requirements for certified mining facilities and mining pools to submit periodic reports verifying continuing compliance with the requirements under subsection (b); procedures for the suspension or revocation of a certification in the case of a material misrepresentation, noncompliance, or fraud; and regulations relating to audits and inspections under paragraph (2). The Secretary shall conduct audits or inspections of mining facilities and mining pools certified under the certification program as necessary to ensure compliance with this section. The Secretary shall publish aggregate, nonconfidential data relating to certifications of mining facilities and mining pools and compliance with this section sufficient to inform Federal agencies and the public of trends in certifications and compliance. Nothing in this section may be construed to confer upon the Secretary any regulatory authority over digital asset markets or transactions.
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