S.Amdt. 2539

SA 2539. Mr. GRAHAM submitted an amendment intended to be proposed to
amendment SA 2499 proposed by Mr. McConnell to the bill S. 178, to
condemn gross human rights violations of ethnic Turkic Muslims in
Xinjiang, and calling for an end to arbitrary detention, torture, and
harassment of these communities inside and outside China; which was
ordered to lie on the table; as follows:

At the appropriate place, insert the following:

TITLE __--RESTORING CRITICAL SUPPLY CHAINS AND INTELLECTUAL PROPERTY

SEC. _01. SHORT TITLE.

This title may be cited as the ``Restoring Critical Supply
Chains and Intellectual Property Act''.

Subtitle A--U.S. MADE Act

SEC. _11. SHORT TITLE.

This subtitle may be cited as the ``United States
Manufacturing Availability of Domestic Equipment Act'' or the
``U.S. MADE Act of 2020''.

SEC. _12. DOMESTIC PURCHASING REQUIREMENT FOR PERSONAL
PROTECTIVE EQUIPMENT ACQUISITIONS FOR THE
STRATEGIC NATIONAL STOCKPILE.

Section 319F-2(a) of the Public Health Service Act (42
U.S.C. 247d-6b(a)) is amended by adding at the end the
following:
``(6) Domestic procurement requirement for personal
protective equipment.--
``(A) Requirement.--Except as provided in subparagraphs (C)
and (D), funds appropriated or otherwise available to the
Secretary for the Strategic National Stockpile may not be
used for the procurement of an item described in subparagraph
(B) unless the item was grown, reprocessed, reused, or
produced in the United States.
``(B) Covered items.--An item described in this
subparagraph is an article or item of--
``(i) personal protective equipment and clothing (and the
materials and components thereof), other than sensors,
electronics, or other items added to, and not normally
associated with, such personal protective equipment;
``(ii) sanitizing supplies and ancillary medical supplies
such as disinfecting wipes, privacy curtains, beds and
bedding, testing swabs, gauze and bandages, tents,
tarpaulins, covers, or bags; or
``(iii) any other textile medical supplies and textile
equipment described in paragraph (1).
``(C) Availability exception.--Subparagraph (A) shall not
apply to an item described in subparagraph (B)--
``(i) that is, or that includes, a material listed in
section 25.104 of the Federal Acquisition Regulation as one
for which a non-availability determination has been made;
``(ii) as to which the Secretary determines that a
sufficient quantity of a satisfactory quality of such item
that is grown, reprocessed, reused, or produced in the United
States cannot be procured as, and when, needed; or
``(iii) if, after maximizing to the extent feasible sources
consistent with subparagraph (A), the Secretary certifies
every 90 days that it is necessary to procure products under
this paragraph under expedited procedures to respond to the
immediate needs of a public health emergency pursuant to
section 319.
``(D) Exception for small procurements.--Subparagraph (A)
shall not apply to procurements for amounts that do not
exceed $150,000. A proposed procurement for an amount in
excess of $150,000 may not be divided into several
procurements or contracts for lesser amounts in order to
qualify for the exception under this subparagraph.
``(E) Consultation.--The Secretary shall consult with the
United States Trade Representative on a matter under this
subsection that concerns an obligation of the United States
under any international trade agreement.
``(F) Notification required within 7 days after procurement
contract award if certain exceptions applied.--In the case of
any procurement contracts of an item described in
subparagraph (B), if the Secretary applies the exception
described in subparagraph (C) with respect to that
procurement contract, the Secretary shall, not later than 7
days after the awarding of the procurement contract, post a
notification that the exception has been applied on the
relevant Internet website maintained by the General Services
Administration, except for any information that is exempt
from mandatory disclosure under section 552 of title 5,
United States Code.
``(G) Training during fiscal year 2021.--
``(i) In general.--The Secretary shall ensure that each
member of the acquisition workforce in the Department of
Health and Human Services who participates substantially on a
regular basis in procurements related to the maintenance of
the Strategic National Stockpile receives training during
fiscal year 2021 on the requirements of this paragraph.
``(ii) Inclusion of information in new training programs.--
The Secretary shall ensure that any training program for the
acquisition workforce, as described in clause (i), developed
or implemented after fiscal year 2021, includes comprehensive
information on the requirements described in subparagraph
(A).
``(H) Effective date.--The Secretary shall increase the
percentage of contracts by value entered into for products
described in subparagraph (B) incrementally to 100 percent as
soon as practicable, but in no event later than the end of
the 5-year period beginning on the date of enactment of this
paragraph. The Secretary shall notify the Committee on
Health, Education, Labor, and Pensions of the Senate and the
Committee on Energy and Commerce of the House of
Representatives within 60 days of such date of enactment
regarding the percentage of products described in
subparagraph (B) that meet the requirements of this
paragraph.
``(I) Report.--Not later than 90 days after the date of
enactment of this paragraph, the Secretary shall submit to
the Committee on Health, Education, Labor, and Pensions of
the Senate and the Committee on Energy and Commerce of the
House of Representatives a report assessing the
implementation of this paragraph and the feasibility of
applying the requirements of this paragraph to--
``(i) not less than 50 percent of contracts by value
entered into for products described in subparagraph (B) by
September 30, 2021;
``(ii) not less than 75 percent of contracts by value
entered into for products described in subparagraph (B) by
March 31, 2022; and
``(iii) not less than 100 percent of contracts by value
entered into for products described in subparagraph (B) by a
date that is not less than 2 years after the date of
enactment of this paragraph.''.

SEC. _13. INVESTMENT CREDIT FOR QUALIFYING MEDICAL PERSONAL
PROTECTIVE EQUIPMENT MANUFACTURING PROJECTS.

(a) In General.--Subpart E of part IV of subchapter A of
chapter 1 of the Internal Revenue Code of 1986 is amended by
inserting after section 48C the following new section:

``SEC. 48D. QUALIFYING MEDICAL PERSONAL PROTECTIVE EQUIPMENT
MANUFACTURING PROJECT CREDIT.

``(a) In General.--For purposes of section 46, the
qualifying medical personal protective equipment
manufacturing project credit for any taxable year is an
amount equal to 30 percent of the qualified investment for
such taxable year with respect to any qualifying medical
personal protective equipment manufacturing project of the
taxpayer.
``(b) Qualified Investment.--
``(1) In general.--For purposes of subsection (a), the
qualified investment for any taxable year is--
``(A) in the case of any eligible property placed in
service by the taxpayer during such taxable year, the basis
of such property, and
``(B) in the case of any property previously placed in
service by the taxpayer during any period before such taxable
year which qualifies as eligible property for such taxable
year, the adjusted basis of such property (as determined as
of the beginning of such taxable year).
``(2) Certain qualified progress expenditures rules made
applicable.--Rules similar to the rules of subsections (c)(4)
and (d) of section 46 (as in effect on the day before the
enactment of the Revenue Reconciliation Act of 1990) shall
apply for purposes of this section.
``(3) Limitation.--The amount which is treated as the
qualified investment for all taxable years with respect to
any qualifying medical personal protective equipment
manufacturing project shall not exceed the amount designated
by the Secretary as eligible for the credit under this
section.
``(c) Definitions.--
``(1) Qualifying medical personal protective equipment
manufacturing project.--
``(A) In general.--The term `qualifying medical personal
protective equipment manufacturing project' means a project--
``(i) which re-equips, expands, establishes, or continues a
manufacturing facility for the production of--

``(I) any item described in paragraph (6)(B) of section
319F-2(a) of the Public Health Service Act (42 U.S.C. 247d-
6b(a)), or
``(II) any textile products for medical applications which
are not described in subclause (I), as identified by the
Secretary, in consultation with the Secretary of Health and
Human Services, and

``(ii) any portion of the qualified investment of which is
certified by the Secretary under subsection (d) as eligible
for a credit under this section.
``(B) Exception.--Subclause (I) of subparagraph (A)(i)
shall not include sensors, electronics, or other items added
to, and not normally associated with, equipment or clothing
described in such subclause.
``(2) Eligible property.--The term `eligible property'
means any property--
``(A) which is necessary for the production of property
described in paragraph (1)(A)(i),

[[Page S4844]]

``(B) which is--
``(i) tangible personal property, or
``(ii) other tangible property (not including a building or
its structural components), but only if such property is used
as an integral part of the manufacturing facility described
in such paragraph,
``(C) with respect to which depreciation (or amortization
in lieu of depreciation) is allowable, and
``(D) which is part of a qualifying medical personal
protective equipment manufacturing project.
``(d) Qualifying Medical Personal Protective Equipment
Manufacturing Project Program.--
``(1) Establishment.--
``(A) In general.--Not later than 90 days after the date of
enactment of this section, the Secretary, in consultation
with the Secretary of Health and Human Services, shall
establish a qualifying medical personal protective equipment
manufacturing project program to consider and award
certifications for qualified investments eligible for credits
under this section to qualifying medical personal protective
equipment manufacturing project sponsors.
``(B) Limitation.--The total amount of credits that may be
allocated under the program shall not exceed $7,500,000,000.
``(2) Certification.--
``(A) Application period.--Each applicant for certification
under this paragraph shall submit an application (containing
such information as the Secretary may require) during the 1-
year period beginning on the date the Secretary establishes
the program under paragraph (1).
``(B) Time to meet criteria for certification.--Each
applicant for certification shall have 1 year from the date
of acceptance by the Secretary of the application during
which to provide to the Secretary evidence that the
requirements of the certification have been met.
``(C) Period of issuance.--An applicant which receives a
certification shall have 2 years from the date of issuance of
the certification in order to place the project in service
and if such project is not placed in service by that time
period, then the certification shall no longer be valid.
``(3) Selection criteria.--In determining which qualifying
medical personal protective equipment manufacturing projects
to certify under this section, the Secretary shall take into
consideration which projects--
``(A) will provide the greatest net increase in job
creation (both direct and indirect) within the United States
(as defined in section 4612(a)(4)) during the credit period,
``(B) will provide the largest net increase in the amount
of medical personal protective equipment for which there is
the greatest need for purposes of the Strategic National
Stockpile (as described in section 319F-2(a) of the Public
Health Service Act (42 U.S.C. 247d-6b(a))),
``(C) have the greatest potential to help achieve medical
manufacturing independence for the United States, and
``(D) have the greatest potential to meet current demand or
sudden surges in demand for personal protective equipment.
``(4) Review and redistribution.--
``(A) Review.--Not later than 3 years after the date of
enactment of this section, the Secretary shall review the
credits allocated under this section as of such date.
``(B) Redistribution.--The Secretary may reallocate credits
awarded under this section if the Secretary determines that--
``(i) there is an insufficient quantity of qualifying
applications for certification pending at the time of the
review, or
``(ii) any certification made pursuant to paragraph (2) has
been revoked pursuant to paragraph (2)(B) because the project
subject to the certification has been delayed as a result of
third party opposition or litigation to the proposed project.
``(C) Reallocation.--If the Secretary determines that
credits under this section are available for reallocation
pursuant to the requirements set forth in paragraph (2), the
Secretary is authorized to conduct an additional program for
applications for certification.
``(5) Disclosure of allocations.--The Secretary shall, upon
making a certification under this subsection, publicly
disclose the identity of the applicant and the amount of the
credit with respect to such applicant.
``(e) Denial of Double Benefit.--No credit shall be allowed
under any provision of this chapter with respect to any
amount taken in account in determining the credit allowed to
a taxpayer under this section.''.
(b) Conforming Amendments.--
(1) Section 46 of the Internal Revenue Code of 1986 is
amended--
(A) by striking ``and'' at the end of paragraph (5);
(B) by striking the period at the end of paragraph (6) and
inserting ``, and''; and
(C) by adding at the end the following:
``(7) the qualifying medical personal protective equipment
manufacturing project credit.''.
(2) Section 49(a)(1)(C) of such Code is amended--
(A) by striking ``and'' at the end of clause (iv);
(B) by striking the period at the end of clause (v) and
inserting ``, and''; and
(C) by adding at the end the following:
``(vi) the basis of any property which is part of a
qualifying medical personal protective equipment
manufacturing project under section 48D.''.
(3) Section 50(a)(2)(E) of such Code is amended by striking
``or 48C(b)(2)'' and inserting ``, 48C(b)(2), or 48D(b)(2)''.
(4) The table of sections for subpart E of part IV of
subchapter A of chapter 1 of such Code is amended by
inserting after the item relating to section 48C the
following new item:

``Sec. 48D. Qualifying medical personal protective equipment
manufacturing project credit.''.
(c) Treatment Under Base Erosion Tax.--Section
59A(b)(1)(B)(ii) of the Internal Revenue Code of 1986 is
amended by striking ``plus'' at the end of subclause (I), by
redesignating subclause (II) as subclause (III), and by
inserting after subclause (I) the following new subclause:

``(II) the credit allowed under section 38 for the taxable
year which is properly allocable to the portion of the
investment credit determined under section 46 that is
properly allocable to section 48D(a), plus''.

(d) Effective Date.--The amendments made by this section
shall apply to projects certified after the date of enactment
of this Act.

SEC._14. SPECIAL RULES FOR TRANSFERS OF INTANGIBLE PROPERTY
RELATING TO MEDICAL PERSONAL PROTECTIVE
EQUIPMENT TO UNITED STATES SHAREHOLDERS.

(a) In General.--Subpart F of part III of subchapter N of
chapter 1 of the Internal Revenue Code of 1986 is amended by
adding at the end the following new section:

``SEC. 966. TRANSFERS OF INTANGIBLE PROPERTY RELATING TO
MEDICAL PERSONAL PROTECTIVE EQUIPMENT TO UNITED
STATES SHAREHOLDERS.

``(a) In General.--Except as otherwise provided by the
Secretary, if a controlled foreign corporation holds
qualified intangible property on the date of the enactment of
this section and thereafter distributes such property to a
domestic corporation which is a United States shareholder
with respect to such controlled foreign corporation--
``(1) for purposes of part I of subchapter C and any other
provision of this title specified by the Secretary, the fair
market value of such property on the date of such
distribution shall be treated as not exceeding the adjusted
basis of such property immediately before such distribution,
and
``(2) if any portion of such distribution is not a
dividend--
``(A) no gain shall be recognized by such United States
shareholder with respect to such distribution, and
``(B) the adjusted basis of such property in the hands of
such United States shareholder immediately after such
distribution shall be the adjusted basis of such property in
the hands of such controlled foreign corporation immediately
before such distribution reduced by the amount (if any) of
gain not recognized by reason of subparagraph (A) (determined
after the application of paragraph (1)).
``(b) Qualified Intangible Property.--For purposes of this
section, the term `qualified intangible property' means any
property described in section 367(d)(4)(A)--
``(1) the principal purpose of which is use in connection
with--
``(A) any eligible property, as defined in section
48D(c)(2), or
``(B) any item or product described in subclause (I) or
(II) of section 48D(c)(1)(A)(i), or
``(2) substantially all of the income from which is derived
in connection with any eligible property (as defined in
section 48D(c)(2)) or any item or product described in
paragraph (1)(B).
``(c) Regulations and Guidance.--The Secretary shall
prescribe such regulations or other guidance as may be
necessary to carry out the purposes of this section,
including to prevent abuse by taxpayers related to
distributions of qualified intangible property.''.
(b) Conforming Amendments.--
(1) Section 197(f)(2)(B)(i) of the Internal Revenue Code of
1986 is amended by inserting ``966(a),'' after ``731,''.
(2) The table of sections for subpart F of part III of
subchapter N of chapter 1 of such Code is amended by adding
at the end the following new item:

``Sec. 966. Transfers of intangible property relating to medical
personal protective equipment to United States
shareholders.''.
(c) Effective Date.--The amendments made by this section
shall apply to distributions made on or after the date of
enactment of this Act.

Subtitle B--Safeguarding American Innovation

SEC. _21. SHORT TITLE.

This subtitle may be cited as the ``Safeguarding American
Innovation Act''.

SEC. _22. DEFINITIONS.

In this subtitle:
(1) Federal science agency.--The term ``Federal science
agency'' means any Federal department or agency to which more
than $100,000,000 in research and development funds were
appropriated for fiscal year 2020.
(2) Research and development.--
(A) In general.--The term ``research and development''
means all research activities, both basic and applied, and
all development activities.
(B) Development.--The term ``development'' means
experimental development.
(C) Experimental development.--The term ``experimental
development'' means creative and systematic work, drawing
upon knowledge gained from research and practical experience,
which--
(i) is directed toward the production of new products or
processes or improving existing products or processes; and

[[Page S4845]]

(ii) like research, will result in gaining additional
knowledge.
(D) Research.--The term ``research''--
(i) means a systematic study directed toward fuller
scientific knowledge or understanding of the subject studied;
and
(ii) includes activities involving the training of
individuals in research techniques if such activities--

(I) utilize the same facilities as other research and
development activities; and
(II) are not included in the instruction function.

SEC._23. FEDERAL RESEARCH SECURITY COUNCIL.

(a) In General.--Subtitle V of title 31, United States
Code, is amended by adding at the end the following:

``CHAPTER 79--FEDERAL RESEARCH SECURITY COUNCIL

``Sec.
``7901. Definitions.
``7902. Federal Research Security Council establishment and membership.
``7903. Functions and authorities.
``7904. Strategic plan.
``7905. Annual report.
``7906. Requirements for Executive agencies.

``Sec. 7901. Definitions

``In this chapter:
``(1) Appropriate congressional committees.--The term
`appropriate congressional committees' means--
``(A) the Committee on Homeland Security and Governmental
Affairs of the Senate;
``(B) the Committee on Commerce, Science, and
Transportation of the Senate;
``(C) the Select Committee on Intelligence of the Senate;
``(D) the Committee on Foreign Relations of the Senate;
``(E) the Committee on Armed Services of the Senate;
``(F) the Committee on Health, Education, Labor, and
Pensions of the Senate;
``(G) the Committee on Oversight and Reform of the House of
Representatives;
``(H) the Committee on Homeland Security of the House of
Representatives;
``(I) the Committee on Energy and Commerce of the House of
Representatives;
``(J) the Permanent Select Committee on Intelligence of the
House of Representatives;
``(K) the Committee on Foreign Affairs of the House of
Representatives;
``(L) the Committee on Armed Services of the House of
Representatives; and
``(M) the Committee on Education and Labor of the House of
Representatives.
``(2) Council.--The term `Council' means the Federal
Research Security Council established under section 7902(a).
``(3) Executive agency.--The term `Executive agency' has
the meaning given that term in section 105 of title 5.
``(4) Federal research security risk.--The term `Federal
research security risk' means the risk posed by malign state
actors and other persons to the security and integrity of
research and development conducted using grants awarded by
Executive agencies.
``(5) Insider.--The term `insider' means any person with
authorized access to any United States Government resource,
including personnel, facilities, information, research,
equipment, networks, or systems.
``(6) Insider threat.--The term `insider threat' means the
threat that an insider will use his or her authorized access
(wittingly or unwittingly) to harm the national and economic
security of the United States or negatively affect the
integrity of a Federal agency's normal processes, including
damaging the United States through espionage, sabotage,
unauthorized disclosure of national security information or
non-public information, or through the loss or degradation of
departmental resources, capabilities, and functions.
``(7) Research and development.--
``(A) In general.--The term `research and development'
means all research activities, both basic and applied, and
all development activities.
``(B) Development.--The term `development' means
experimental development.
``(C) Experimental development.--The term `experimental
development' means creative and systematic work, drawing upon
knowledge gained from research and practical experience,
which--
``(i) is directed toward the production of new products or
processes or improving existing products or processes; and
``(ii) like research, will result in gaining additional
knowledge.
``(D) Research.--The term `research'--
``(i) means a systematic study directed toward fuller
scientific knowledge or understanding of the subject studied;
and
``(ii) includes activities involving the training of
individuals in research techniques if such activities--

``(I) utilize the same facilities as other research and
development activities; and
``(II) are not included in the instruction function.

``(8) United states research community.--The term `United
States research community' means--
``(A) research and development centers of Executive
agencies;
``(B) private research and development centers in the
United States, including for-profit and nonprofit research
institutes;
``(C) research and development centers at institutions of
higher education (as defined in section 101(a) of the Higher
Education Act of 1965 (20 U.S.C. 1001(a)));
``(D) research and development centers of States, United
States territories, Indian tribes, and municipalities;
``(E) government-owned, contractor-operated United States
Government research and development centers; and
``(F) any person conducting federally funded research or
receiving Federal research grant funding.

``Sec. 7902. Federal Research Security Council establishment
and membership

``(a) Establishment.--There is established, in the Office
of Management and Budget, a Federal Research Security
Council, which shall develop federally funded research and
development grant making policy and management guidance to
protect the national and economic security interests of the
United States.
``(b) Membership.--
``(1) In general.--The following agencies shall be
represented on the Council:
``(A) The Office of Management and Budget.
``(B) The Office of Science and Technology Policy.
``(C) The Department of Defense.
``(D) The Department of Homeland Security.
``(E) The Office of the Director of National Intelligence,
including the National Counterintelligence and Security
Center.
``(F) The Department of Justice, including the Federal
Bureau of Investigation.
``(G) The Department of Energy.
``(H) The Department of Commerce, including the National
Institute of Standards and Technology.
``(I) The Department of Health and Human Services,
including the National Institutes of Health.
``(J) The Department of State.
``(K) The Department of Transportation.
``(L) The National Aeronautics and Space Administration.
``(M) The National Science Foundation.
``(N) The Department of Education.
``(O) The Small Business Administration.
``(P) The Council of Inspectors General on Integrity and
Efficiency.
``(Q) Other Executive agencies, as determined by the
Chairperson of the Council.
``(2) Lead representatives.--
``(A) Designation.--Not later than 45 days after the date
of the enactment of this chapter, the head of each agency
represented on the Council shall designate a representative
of that agency as the lead representative of the agency on
the Council.
``(B) Functions.--The lead representative of an agency
designated under subparagraph (A) shall ensure that
appropriate personnel, including leadership and subject
matter experts of the agency, are aware of the business of
the Council.
``(c) Chairperson.--
``(1) Designation.--Not later than 45 days after the date
of the enactment of this chapter, the Director of the Office
of Management and Budget shall designate a senior-level
official from the Office of Management and Budget to serve as
the Chairperson of the Council.
``(2) Functions.--The Chairperson shall perform functions
that include--
``(A) subject to subsection (d), developing a schedule for
meetings of the Council;
``(B) designating Executive agencies to be represented on
the Council under subsection (b)(1)(Q);
``(C) in consultation with the lead representative of each
agency represented on the Council, developing a charter for
the Council; and
``(D) not later than 7 days after completion of the
charter, submitting the charter to the appropriate
congressional committees.
``(3) Lead science advisor.--The Director of the Office of
Science and Technology Policy shall be the lead science
advisor to the Chairperson for purposes of this chapter.
``(4) Lead security advisor.--The Director of the National
Counterintelligence and Security Center shall be the lead
security advisor to the Chairperson for purposes of this
chapter.
``(d) Meetings.--The Council shall meet not later than 60
days after the date of the enactment of this chapter and not
less frequently than quarterly thereafter.

``Sec. 7903. Functions and authorities

``(a) In General.--The Chairperson of the Council shall
consider the missions and responsibilities of Council members
in determining the lead agencies for Council functions. The
Council shall perform the following functions:
``(1) Developing and implementing, across all Executive
agencies that award research and development grants, a
uniform application process for grants in accordance with
subsection (b).
``(2) Developing and implementing a uniform and regular
reporting process for identifying persons participating in
federally funded research and development or that have access
to nonpublic federally funded information, data, research
findings, and research and development grant proposals.
``(3) Identifying or developing criteria, in accordance
with subsection (c), for sharing and receiving information
with respect to Federal research security risks in order to
mitigate such risks with--
``(A) members of the United States research community; and
``(B) other persons participating in federally funded
research and development.
``(4) Identifying an appropriate Executive agency--
``(A) to accept and protect information submitted by
Executive agencies and non-

[[Page S4846]]

Federal entities based on the processes established under
paragraphs (1) and (2); and
``(B) to facilitate the sharing of information received
under subparagraph (A) to support, as necessary and
appropriate--
``(i) oversight of federally funded research and
development;
``(ii) criminal and civil investigations of misappropriated
Federal funds, resources, and information; and
``(iii) counterintelligence investigations.
``(5) Identifying, as appropriate, Executive agencies to
provide--
``(A) shared services, such as support for conducting
Federal research security risk assessments, activities to
mitigate such risks, and oversight and investigations with
respect to grants awarded by Executive agencies; and
``(B) common contract solutions to support enhanced
information collection and sharing and the verification of
the identities of persons participating in federally funded
research and development.
``(6) Identifying and issuing guidance, in accordance with
subsection (d) and in coordination with the National Insider
Threat Task Force established by Executive Order 13587 (50
U.S.C. 3161 note) for developing and implementing insider
threat programs for Executive agencies to deter, detect, and
mitigate insider threats, including the safeguarding of
sensitive information from exploitation, compromise, or other
unauthorized disclosure, taking into account risk levels and
the distinct needs, missions, and systems of each such
agency.
``(7) Identifying and issuing guidance for developing
compliance and oversight programs for Executive agencies to
ensure that research and development grant recipients
accurately report conflicts of interest and conflicts of
commitment in accordance with subsection (b)(1). Such
programs shall include an assessment of--
``(A) a grantee's support from foreign sources and
affiliations with foreign funding institutions or
laboratories; and
``(B) the impact of such support and affiliations on United
States national security and economic interests.
``(8) Assessing and making recommendations with respect to
whether openly sharing certain types of federally funded
research and development is in the economic and national
security interests of the United States.
``(9) Identifying and issuing guidance to the United States
research community, and other recipients of Federal research
and development funding, to ensure that such institutions and
recipients adopt existing best practices to reduce the risk
of misappropriation of research data.
``(10) Identifying and issuing guidance on additional steps
that may be necessary to address Federal research security
risks arising in the course of Executive agencies providing
shared services and common contract solutions under paragraph
(5)(B).
``(11) Engaging with the United States research community
in performing the functions described in paragraphs (1), (2),
and (3) and with respect to issues relating to Federal
research security risks.
``(12) Carrying out such other functions, as determined by
the Council, that are necessary to reduce Federal research
security risks.
``(b) Requirements for Uniform Grant Application Process.--
In developing the uniform application process for Federal
research and development grants required under subsection
(a)(1), the Council shall--
``(1) ensure that the process--
``(A) requires principal investigators, co-principal
investigators, and senior personnel associated with the
proposed Federal research or development grant project--
``(i) to disclose biographical information, all
affiliations, including any foreign military, foreign
government-related organizations, and foreign-funded
institutions, and all current and pending support, including
from foreign institutions, foreign governments, or foreign
laboratories, and all support received from foreign sources;
and
``(ii) to certify the accuracy of the required disclosures
under penalty of perjury; and
``(B) uses a machine-readable application form to assist in
identifying fraud and ensuring the eligibility of applicants;
``(2) design the process--
``(A) to reduce the administrative burden on persons
applying for Federal research and development funding; and
``(B) to promote information sharing across the United
States research community, while safeguarding sensitive
information; and
``(3) complete the process not later than 1 year after the
date of the enactment of the Safeguarding American Innovation
Act.
``(c) Requirements for Information Sharing Criteria.--In
identifying or developing criteria and procedures for sharing
information with respect to Federal research security risks
under subsection (a)(3), the Council shall ensure that such
criteria address, at a minimum--
``(1) the information to be shared;
``(2) the circumstances under which sharing is mandated or
voluntary;
``(3) the circumstances under which it is appropriate for
an Executive agency to rely on information made available
through such sharing in exercising the responsibilities and
authorities of the agency under applicable laws relating to
the award of grants;
``(4) the procedures for protecting intellectual capital
that may be present in such information; and
``(5) appropriate privacy protections for persons involved
in Federal research and development.
``(d) Requirements for Insider Threat Program Guidance.--In
identifying or developing guidance with respect to insider
threat programs under subsection (a)(6), the Council shall
ensure that such guidance provides for, at a minimum--
``(1) such programs--
``(A) to deter, detect, and mitigate insider threats; and
``(B) to leverage counterintelligence, security,
information assurance, and other relevant functions and
resources to identify and counter insider threats; and
``(2) the development of an integrated capability to
monitor and audit information for the detection and
mitigation of insider threats, including through--
``(A) monitoring user activity on computer networks
controlled by Executive agencies;
``(B) providing employees of Executive agencies with
awareness training with respect to insider threats and the
responsibilities of employees to report such threats;
``(C) gathering information for a centralized analysis,
reporting, and response capability; and
``(D) information sharing to aid in tracking the risk
individuals may pose while moving across programs and
affiliations;
``(3) the development and implementation of policies and
procedures under which the insider threat program of an
Executive agency accesses, shares, and integrates information
and data derived from offices within the agency;
``(4) the designation of senior officials with authority to
provide management, accountability, and oversight of the
insider threat program of an Executive agency and to make
resource recommendations to the appropriate officials; and
``(5) such additional guidance as is necessary to reflect
the distinct needs, missions, and systems of each Executive
agency.
``(e) Issuance of Warnings Relating to Risks and
Vulnerabilities in International Scientific Cooperation.--
``(1) In general.--The Council, in conjunction with the
lead security advisor under section 7902(c)(4), shall
establish a process for informing members of the United
States research community and the public, through the
issuance of warnings described in paragraph (2), of potential
risks and vulnerabilities in international scientific
cooperation that may undermine the integrity and security of
the United States research community or place at risk any
federally funded research and development.
``(2) Content.--A warning described in this paragraph shall
include, to the extent the Council considers appropriate, a
description of--
``(A) activities by the national government, local
governments, research institutions, or universities of a
foreign country--
``(i) to exploit, interfere, or undermine research and
development by the United States research community; or
``(ii) to misappropriate scientific knowledge resulting
from federally funded research and development;
``(B) efforts by strategic competitors to exploit the
research enterprise of a foreign country that may place at
risk--
``(i) the science and technology of that foreign country;
or
``(ii) federally funded research and development; and
``(C) practices within the research enterprise of a foreign
country that do not adhere to the United States scientific
values of openness, transparency, reciprocity, integrity, and
merit-based competition.
``(f) Program Office and Committees.--The interagency
working group established under section 1746 of the National
Defense Authorization Act for Fiscal Year 2020 (Public Law
116-92) shall be a working group under the Council performing
duties authorized under such section and as directed by the
Council. The Council shall use any findings or work product,
existing or forthcoming, by such working group. The Council
may also establish a program office and any committees,
working groups, or other constituent bodies the Council deems
appropriate, in its sole and unreviewable discretion, to
carry out its functions.
``(g) Exclusion Orders.--To reduce Federal research
security risk, the Interagency Suspension and Debarment
Committee shall provide quarterly reports to the Council that
detail--
``(1) the number of ongoing investigations by Council
Members related to Federal research security that may result,
or have resulted, in agency pre-notice letters, suspensions,
proposed debarments, and debarments;
``(2) Federal agencies' performance and compliance with
interagency suspensions and debarments;
``(3) efforts by the Interagency Suspension and Debarment
Committee to mitigate Federal research security risk;
``(4) proposals for developing a unified Federal policy on
suspensions and debarments; and
``(5) other current suspension and debarment related
issues.

``Sec. 7904. Strategic plan

``(a) In General.--Not later than 180 days after the date
of the enactment of this chapter, the Council shall develop a
strategic plan for addressing Federal research security risks
and for managing such risks, that includes--

[[Page S4847]]

``(1) the criteria and processes required under section
7903(a), including a threshold and requirements for sharing
relevant information about such risks with all Executive
agencies and, as appropriate, with other Federal entities,
foreign governments, and non-Federal entities;
``(2) an identification of existing authorities for
addressing such risks;
``(3) an identification and promulgation of best practices
and procedures, and an identification of available resources,
for Executive agencies to assess and mitigate such risks;
``(4) recommendations for any legislative, regulatory, or
other policy changes to improve efforts to address such
risks;
``(5) recommendations for any legislative, regulatory, or
other policy changes to incentivize the adoption of best
practices for avoiding and mitigating Federal research
security risks by the United States research community and
key United States foreign research partners;
``(6) an evaluation of the effect of implementing new
policies or procedures on existing Federal grant processes,
regulations, and disclosures of conflicts of interest and
conflicts of commitment;
``(7) a plan for engaging with Executive agencies, the
private sector, and other nongovernmental stakeholders to
address such risks and share information between Executive
agencies, the private sector, and nongovernmental
stakeholders; and
``(8) a plan for identification, assessment, mitigation,
and vetting of Federal research security risks.
``(b) Submission to Congress.--Not later than 7 calendar
days after completion of the strategic plan required by
subsection (a), the Chairperson of the Council shall submit
the plan to the appropriate congressional committees.

``Sec. 7905. Annual report

``Not later than December 15 of each year, the Chairperson
of the Council shall submit a report to the appropriate
congressional committees that describes--
``(1) the activities of the Council during the preceding
fiscal year; and
``(2) the progress made toward implementing the strategic
plan required under section 7904 after such plan has been
submitted to Congress.

``Sec. 7906. Requirements for Executive agencies

``(a) In General.--The head of each Executive agency on the
Council shall be responsible for--
``(1) assessing Federal research security risks posed by
persons participating in federally funded research and
development;
``(2) avoiding or mitigating such risks, as appropriate and
consistent with the standards, guidelines, requirements, and
practices identified by the Council under section 7903(a);
``(3) prioritizing Federal research security risk
assessments conducted under paragraph (1) based on the
applicability and relevance of the research and development
to the national security and economic competitiveness of the
United States; and
``(4) ensuring that all agency initiatives impacting
Federally funded research grant making policy and management
to protect the national and economic security interests of
the United States are integrated with the activities of the
Council.
``(b) Inclusions.--The responsibility of the head of an
Executive agency for assessing Federal research security risk
described in subsection (a) includes--
``(1) developing an overall Federal research security risk
management strategy and implementation plan and policies and
processes to guide and govern Federal research security risk
management activities by the Executive agency;
``(2) integrating Federal research security risk management
practices throughout the lifecycle of the grant programs of
the Executive agency;
``(3) sharing relevant information with other Executive
agencies, as determined appropriate by the Council in a
manner consistent with section 7903; and
``(4) reporting on the effectiveness of the Federal
research security risk management strategy of the Executive
agency consistent with guidance issued by the Office of
Management and Budget and the Council.''.
(b) Clerical Amendment.--The table of chapters at the
beginning of title 31, United States Code, is amended by
inserting after the item relating to chapter 77 the following
new item:

``79. Federal Research Security Council....................7901.''.....

SEC. _24. FEDERAL GRANT APPLICATION FRAUD.

(a) In General.--Chapter 47 of title 18, United States
Code, is amended by adding at the end the following:

``Sec. 1041. Federal grant application fraud

``(a) Definitions.--In this section:
``(1) Federal agency.--The term `Federal agency' has the
meaning given the term `agency' in section 551 of title 5,
United States Code.
``(2) Federal grant.--The term `Federal grant'--
``(A) means a grant awarded by a Federal agency;
``(B) includes a subgrant awarded by a non-Federal entity
to carry out a Federal grant program; and
``(C) does not include--
``(i) direct United States Government cash assistance to an
individual;
``(ii) a subsidy;
``(iii) a loan;
``(iv) a loan guarantee; or
``(v) insurance.
``(3) Federal grant application.--The term `Federal grant
application' means an application for a Federal grant.
``(4) Foreign compensation.--The term `foreign
compensation' means a title, monetary compensation, access to
a laboratory or other resource, or other benefit received
from--
``(A) a foreign government;
``(B) a foreign government institution; or
``(C) a foreign public enterprise.
``(5) Foreign government.--The term `foreign government'
includes a person acting or purporting to act on behalf of--
``(A) a faction, party, department, agency, bureau,
subnational administrative entity, or military of a foreign
country; or
``(B) a foreign government or a person purporting to act as
a foreign government, regardless of whether the United States
recognizes the government.
``(6) Foreign government institution.--The term `foreign
government institution' means a foreign entity owned by,
subject to the control of, or subject to regulation by a
foreign government.
``(7) Foreign public enterprise.--The term `foreign public
enterprise' means an enterprise over which a foreign
government directly or indirectly exercises a dominant
influence.
``(8) Law enforcement agency.--The term `law enforcement
agency'--
``(A) means a Federal, State, local, or Tribal law
enforcement agency; and
``(B) includes--
``(i) the Office of Inspector General of an establishment
(as defined in section 12 of the Inspector General Act of
1978 (5 U.S.C. App.)) or a designated Federal entity (as
defined in section 8G(a) of the Inspector General Act of 1978
(5 U.S.C. App.)); and
``(ii) the Office of Inspector General, or similar office,
of a State or unit of local government.
``(9) Outside compensation.--The term `outside
compensation' means any compensation, resource, or support
regardless of monetary value made available to the applicant
in support of or related to any research endeavor, including,
but not limited to, a title, research grant, cooperative
agreement, contract, institutional award, access to a
laboratory, or other resource, including, but not limited to,
materials, travel compensation, or work incentives.
``(b) Prohibition.--It shall be unlawful for any individual
to knowingly--
``(1) prepare or submit a Federal grant application that
fails to disclose the receipt of any outside compensation,
including foreign compensation, by the individual;
``(2) forge, counterfeit, or otherwise falsify a document
for the purpose of obtaining a Federal grant; or
``(3) prepare, submit, or assist in the preparation or
submission of a Federal grant application or document in
connection with a Federal grant application that--
``(A) contains a false statement;
``(B) contains a material misrepresentation;
``(C) has no basis in law or fact; or
``(D) fails to disclose a material fact.
``(c) Exception.--Subsection (b) does not apply to an
activity--
``(1) carried out in connection with a lawfully authorized
investigative, protective, or intelligence activity of--
``(A) a law enforcement agency; or
``(B) a Federal intelligence agency; or
``(2) authorized under chapter 224.
``(d) Penalty.--Any individual who violates subsection
(b)--
``(1) shall be fined in accordance with this title,
imprisoned for not more than 5 years, or both; and
``(2) shall be prohibited from receiving a Federal grant
during the 5-year period beginning on the date on which a
sentence is imposed on the individual under paragraph (1).''.
(b) Clerical Amendment.--The table of sections for chapter
47 of title 18, United States Code, is amended by adding at
the end the following:

``1041. Federal grant application fraud.''.

SEC._25. RESTRICTING THE ACQUISITION OF GOODS, TECHNOLOGIES,
AND SENSITIVE INFORMATION TO CERTAIN ALIENS.

(a) Grounds of Inadmissibility.--Section 212(a)(3)(A)(i) of
the Immigration and Nationality Act (8 U.S.C.
1182(a)(3)(A)(i)) is amended to read as follows:
``(i) any activity--

``(I) to violate any law of the United States relating to
espionage or sabotage;
``(II) to violate or evade any law prohibiting the export
from the United States of goods, technologies, or sensitive
information; or
``(III) to acquire export-controlled goods, technologies,
or sensitive information (notwithstanding any exclusions for
items not normally subject to export controls) if the
Secretary of State has determined that the acquisition of
those goods, technologies, or sensitive information by a
category of aliens that includes such alien would be contrary
to an articulable national security (including economic
security) interest of the United States;''.

(b) Determining Factors.--
(1) In general.--In establishing criteria for determining
whether an alien is included in a category of aliens that may
be inadmissible under section 212(a)(3)(A)(i)(III) of the
Immigration and Nationality Act, as amended by subsection
(a), officials of the Department of State shall--

[[Page S4848]]

(A) seek advice and assistance from officials at the Office
of the Director of National Intelligence, the Office of
Science and Technology Policy, the Department of Health and
Human Services, the Department of Defense, the Department of
Homeland Security, the Department of Energy, the Department
of Commerce, and other appropriate Federal agencies;
(B) consider factors such as the alien's past or likely
employment or cooperation with--
(i) foreign military and security related organizations
that are adversarial to the United States;
(ii) foreign institutions involved in the theft of United
States research;
(iii) entities involved in export control violations or the
theft of intellectual property; and
(iv) a government that seeks to undermine the integrity and
security of the United States research community; and
(C) weigh the proportionality of risk for the factors
listed in subparagraph (B).
(2) Machine-readable documents.--Not later than 1 year
after the date of the enactment of this Act, the Secretary of
State shall--
(A) use a machine-readable visa application form; and
(B) make available documents submitted in support of a visa
application in a machine readable format to assist in--
(i) identifying fraud;
(ii) conducting lawful law enforcement activities; and
(iii) determining the eligibility of applicants for a visa
under the Immigration and Nationality Act (8 U.S.C. 1101 et
seq.).
(c) Reporting Requirement.--Not later than 180 days after
the date of the enactment of this Act, and annually
thereafter, the Secretary of State, in coordination with the
Director of National Intelligence, the Director of the Office
of Science and Technology Policy, the Secretary of Homeland
Security, the Secretary of Defense, the Secretary of Energy,
the Secretary of Commerce, and the heads of other appropriate
Federal agencies, shall submit a report to Congress that
identifies--
(1) the criteria used to describe the category of aliens to
which such section 212(a)(3)(A)(i)(III) may apply; and
(2) the number of individuals determined to be inadmissible
under such section 212(a)(3)(A)(i)(III), including the
nationality of each such individual.
(d) Classification of Annual Report.--Each annual report
required under subsection (c) shall be submitted, to the
extent practicable, in an unclassified form, but may be
accompanied by a classified appendix detailing the criteria
used to describe the category of aliens to which such section
212(a)(3)(A)(i)(III) applies if the Secretary of State
determines that such action--
(1) is in the national security and economic security
interests of the United States; or
(2) is necessary to further the purposes of this subtitle.
(e) Report.--Not later than 45 days after date of the
enactment of this Act, the Secretary of State shall submit a
report to the Committee on Homeland Security and Governmental
Affairs of the Senate, the Committee on Commerce, Science,
and Transportation of the Senate, the Select Committee on
Intelligence of the Senate, the Committee on Foreign
Relations of the Senate; the Committee on Oversight and
Reform of the House of Representatives, the Committee on
Homeland Security of the House of Representatives, the
Committee on Energy and Commerce of the House of
Representatives, the Permanent Select Committee on
Intelligence of the House of Representatives, and the
Committee on Foreign Affairs of the House of Representatives
that--
(1) describes how supplementary documents provided by a
visa applicant in support of a visa application are stored
and shared by the Department of State with authorized Federal
agencies;
(2) identifies the sections of a visa application that are
machine-readable and the sections that are not machine-
readable;
(3) provides cost estimates, including personnel costs and
a cost-benefit analysis for adopting different technologies,
including optical character recognition, for--
(A) making every element of a visa application, and
documents submitted in support of a visa application,
machine-readable; and
(B) ensuring that such system--
(i) protects personally-identifiable information; and
(ii) permits the sharing of visa information with Federal
agencies in accordance with existing law; and
(4) includes an estimated timeline for completing the
implementation of subsection (b)(2).

SEC._26. LIMITATIONS ON EDUCATIONAL AND CULTURAL EXCHANGE
PROGRAMS.

Section 102(b)(5) of the Mutual Educational and Cultural
Exchange Act of 1961 (22 U.S.C. 2452(b)(5)) is amended by
striking the semicolon at the end and inserting the
following: ``by developing exchange programs for foreign
researchers and scientists, while protecting technologies
regulated by export control laws important to the national
security and economic interests of the United States,
including requiring sponsors--
``(A) to disclose to the Department of State whether an
exchange visitor, as a primary part of his or her exchange
program, will have released to them controlled technology or
technical data regulated by export control laws at sponsor
organizations through research activities, lectures, course
work, sponsor employees, officers, agents, third parties at
which the sponsor places the exchange visitor, volunteers, or
other individuals or entities associated with a sponsor's
administration of the exchange visitor program;
``(B) to provide a plan to the Department of State that
establishes appropriate program safeguards to prevent the
unauthorized release of controlled technology or technical
data regulated by export control laws at sponsor
organizations or through their employees, officers, agents,
third parties, volunteers, or other individuals or entities
associated with a sponsor's administration of the exchange
visitor program; and
``(C) to demonstrate, to the satisfaction of the Secretary
of State, that programs that will release controlled
technology or technical data to an exchange visitor at the
sponsor organization through exchange visitor programs have
received appropriate authorization from the Department of
State, the Department of Commerce, other cognizant Federal
agency before the sponsor releases controlled technology or
technical data;''.

SEC._27. AMENDMENTS TO DISCLOSURES OF FOREIGN GIFTS.

Section 117 of the Higher Education Act of 1965 (20 U.S.C.
1011f) is amended--
(1) by amending subsection (a) to read as follows:
``(a) Disclosure Report.--
``(1) In general.--An institution shall file a disclosure
report with the Secretary not later than March 31 occurring
after--
``(A) the calendar year in which a foreign source gains
ownership of, or control over, the institution; or
``(B) the calendar year in which the institution receives a
gift from, or enters into a contract with, a foreign source,
the value of which is $50,000 or more, considered alone or in
combination with all other gifts from or contracts with that
foreign source within a calendar year.
``(2) Revisions; updates.--The Secretary shall permit
institutions to revise and update disclosure reports
previously filed to ensure accuracy, compliance, and the
ability to cure.'';
(2) by amending subsection (b) to read as follows:
``(b) Contents of Report.--Each report to the Secretary
required by this section shall contain the following:
``(1) For gifts received from or contracts entered into
with a foreign source other than a foreign government, the
aggregate dollar amount of such gifts and contracts
attributable to a particular country and the legal or formal
name of the foreign source. The country to which a gift is
attributable is the country of citizenship, or if unknown,
the principal residence for a foreign source who is a natural
person, and the country of incorporation, or if unknown, the
principal place of business, for a foreign source which is a
legal entity.
``(2) For gifts received from or contracts entered into
with a foreign government, the aggregate amount of such gifts
and contracts received from each foreign government.
``(3) In the case of an institution which is owned or
controlled by a foreign source, the identity of the foreign
source, the date on which the foreign source assumed
ownership or control, and any changes in program or structure
resulting from the change in ownership or control.
``(4) An assurance that the institution will maintain true
copies of gift and contract agreements subject to the
disclosure requirements under this section for at least the
duration of the agreement.
``(5) An assurance that the institution will produce true
copies of gift and contract agreements subject to the
disclosure requirements under this section upon request of
the Secretary during a compliance audit or other
institutional investigation.'';
(3) by amending subsection (e) to read as follows:
``(e) Public Inspection.--Not later than 30 days after
receiving a disclosure report under this section, the
Secretary shall make such report electronically available to
the public for downloading on a searchable database under
which institutions can be individually identified and
compared.'';
(4) in subsection (f), by adding at the end the following:
``(3) Fines.--
``(A) In general.--The Secretary may impose a fine on any
institution that repeatedly fails to file a disclosure report
for a receipt of a gift from or contract with a foreign
source in accordance with subsection (a) in an amount that is
not more than 3 times the amount of the gift or contract with
the foreign source.
``(B) Definition of repeatedly fails.--In this paragraph,
the term `repeatedly fails' means that the institution failed
to file a disclosure report for a receipt of a gift from or
contract with a foreign source in 3 consecutive years.'';
(5) by amending subsection (g) to read as follows:
``(g) Rulemaking.--
``(1) In general.--Not later than 1 year after the date of
enactment of the Safeguarding American Innovation Act, the
Secretary shall issue regulations to carry out this section
using the negotiated rulemaking procedure set forth in
section 492(b).
``(2) Elements.--Regulations issued pursuant to paragraph
(1) shall--
``(A) incorporate instructions for--
``(i) reporting structured gifts and contracts; and

[[Page S4849]]

``(ii) reporting contracts that balances the need for
transparency, while protecting the proprietary information of
institutes of higher education; and
``(B) clarify the definition of `subunit', for purposes of
subsection (i)(4)(C).'';
(6) by redesignating subsection (h) as subsection (i);
(7) by inserting after subsection (g) the following:
``(h) Treatment of Tuition Payment.--A tuition and related
fees and expenses payment to an institution by, or a
scholarship from, a foreign source made on behalf of a
student enrolled at such institution shall not be considered
a gift from or contract with a foreign source under this
section.''; and
(8) in subsection (i), as redesignated--
(A) in paragraph (3), by striking ``or property'' and
inserting ``, property, human resources, or staff, including
staff salaries''; and
(B) in paragraph (5)(B), by inserting ``institutes,
instructional programs,'' after ``centers,''.

Subtitle C--CHIPS for America Act (Creating Helpful Incentives to
Produce Semiconductors for America)

SEC. _31. SEMICONDUCTOR INCENTIVE GRANTS.

(a) Definitions.--In this section--
(1) the term ``appropriate committees of Congress'' means--
(A) the Select Committee on Intelligence, the Committee on
Commerce, Science, and Transportation, the Committee on
Foreign Relations, the Committee on Armed Services, the
Committee on Appropriations, the Committee on Banking,
Housing, and Urban Affairs, and the Committee on Homeland
Security and Governmental Affairs of the Senate; and
(B) the Permanent Select Committee on Intelligence, the
Committee on Energy and Commerce, the Committee on Foreign
Affairs, the Committee on Armed Services, the Committee on
Science, Space, and Technology, the Committee on
Appropriations, the Committee on Financial Services, and the
Committee on Homeland Security of the House of
Representatives;
(2) the term ``covered entity'' means a private entity, a
consortium of private entities, or a consortium of public and
private entities with a demonstrated ability to construct,
expand, or modernize a facility relating to the fabrication,
assembly, testing, advanced packaging, or advanced research
and development of semiconductors;
(3) the term ``covered incentive''--
(A) means an incentive offered by a governmental entity to
a covered entity for the purposes of constructing within the
jurisdiction of the governmental entity, or expanding or
modernizing an existing facility within that jurisdiction, a
facility described in paragraph (2); and
(B) includes any tax incentive (such as an incentive or
reduction with respect to employment or payroll taxes or a
tax abatement with respect to personal or real property), a
workforce-related incentive (including a grant agreement
relating to workforce training or vocational education), any
concession with respect to real property, funding for
research and development with respect to semiconductors, and
any other incentive determined appropriate by the Secretary,
in consultation with the Secretary of State;
(4) the term ``foreign adversary'' means any foreign
government or foreign nongovernment person that is engaged in
a long-term pattern, or is involved in a serious instance, of
conduct that is significantly adverse to--
(A) the national security of the United States or an ally
of the United States; or
(B) the security and safety of United States persons;
(5) the term ``governmental entity'' means a State or local
government;
(6) the term ``Secretary'' means the Secretary of Commerce;
and
(7) the term ``semiconductor'' has the meaning given the
term by the Secretary.
(b) Grant Program.--
(1) In general.--The Secretary shall establish in the
Department of Commerce a program that, in accordance with the
requirements of this section, provides grants to covered
entities.
(2) Procedure.--
(A) In general.--A covered entity shall submit to the
Secretary an application that describes the project for which
the covered entity is seeking a grant under this section.
(B) Eligibility.--In order for a covered entity to qualify
for a grant under this section, the covered entity shall
demonstrate to the Secretary, in the application submitted by
the covered entity under subparagraph (A), that--
(i) the covered entity has a documented interest in
constructing, expanding, or modernizing a facility described
in subsection (a)(2); and
(ii) with respect to the project described in clause (i),
the covered entity has--

(I) been offered a covered incentive;
(II) made commitments to worker and community investment,
including through--

(aa) training and education benefits paid by the covered
entity; and
(bb) programs to expand employment opportunity for
economically disadvantaged individuals; and

(III) secured commitments from regional educational and
training entities and institutions of higher education to
provide workforce training, including programming for
training and job placement of economically disadvantaged
individuals.

(C) Considerations for review.--With respect to the review
by the Secretary of an application submitted by a covered
entity under subparagraph (A)--
(i) the Secretary may not approve the application unless
the Secretary--

(I) confirms that the covered entity has satisfied the
eligibility criteria under subparagraph (B); and
(II) determines that the project to which the application
relates is in the interest of the United States; and

(ii) the Secretary may consider whether--

(I) the covered entity has previously received a grant made
under this subsection; and
(II) the governmental entity offering the applicable
covered incentive has benefitted from a grant previously made
under this subsection.

(3) Amount.--The amount of a grant made by the Secretary to
a covered entity under this subsection shall be in an amount
that is not more than $3,000,000,000.
(4) Use of funds.--A covered entity that receives a grant
under this subsection may only use the grant amounts to--
(A) finance the construction, expansion, or modernization
of a facility described in subsection (a)(2), as documented
in the application submitted by the covered entity under
paragraph (2)(A), or for similar uses in state of practice
and legacy facilities, as determined necessary by the
Secretary for purposes relating to the national security and
economic competitiveness of the United States;
(B) support workforce development for the facility
described in subparagraph (A); or
(C) support site development for the facility described in
subparagraph (A).
(5) Clawback.--The Secretary shall recover the full amount
of a grant provided to a covered entity under this subsection
if--
(A) as of the date that is 5 years after the date on which
the Secretary makes the grant, the project to which the grant
relates has not been completed, except that the Secretary may
issue a waiver with respect to the requirement under this
subparagraph if the Secretary determines that issuing such a
waiver is appropriate and in the interests of the United
States; or
(B) during the applicable term with respect to the grant,
the covered entity engages in any joint research or
technology licensing effort--
(i) with the Government of the People's Republic of China,
the Government of the Russian Federation, the Government of
Iran, the Government of North Korea, or another foreign
adversary; and
(ii) that relates to a sensitive technology or product, as
determined by the Secretary.
(c) Consultation and Coordination Required.--In carrying
out the program established under subsection (b), the
Secretary shall consult and coordinate with the Secretary of
State and the Secretary of Defense.
(d) GAO Reviews.--The Comptroller General of the United
States shall--
(1) not later than 2 years after the date of enactment of
this Act, and biennially thereafter until the date that is 10
years after that date of enactment, conduct a review of the
program established under subsection (b), which shall
include, at a minimum--
(A) a determination of the number of instances in which
grants were provided under that subsection during the period
covered by the review in violation of a requirement of this
section;
(B) an evaluation of how--
(i) the program is being carried out, including how
recipients of grants are being selected under the program;
and
(ii) other Federal programs are leveraged for
manufacturing, research, and training to complement the
grants awarded under the program; and
(C) a description of the outcomes of projects supported by
grants made under the program, including a description of--
(i) facilities described in subsection (a)(2) that were
constructed, expanded, or modernized as a result of grants
made under the program;
(ii) research and development carried out with grants made
under the program; and
(iii) workforce training programs carried out with grants
made under the program, including efforts to hire individuals
from disadvantaged populations; and
(2) submit to the appropriate committees of Congress the
results of each review conducted under paragraph (1).

SEC. _32. DEPARTMENT OF DEFENSE.

(a) Department of Defense Efforts.--
(1) In general.--The Secretary of Defense shall, in
consultation with the Secretary of Commerce, the Secretary of
Homeland Security, and the Director of National Intelligence,
work with the private sector through a public-private
partnership, including by incentivizing the formation of a
consortium of United States companies, to ensure the
development and production of advanced, measurably secure
microelectronics for use by the Department of Defense, the
intelligence community, critical infrastructure sectors, and
other national security applications. Such work may include
providing incentives for the creation, expansion, or
modernization of one or more commercially competitive and
sustainable microelectronics manufacturing or advanced
research and development facilities.

[[Page S4850]]

(2) Risk mitigation requirements.--A participant in a
consortium formed with incentives under paragraph (1) shall--
(A) have the potential to perform fabrication, assembly,
package, or test functions for microelectronics deemed
critical to national security as defined by export control
regulatory agencies in consultation with the National
Security Adviser and the Secretary of Defense;
(B) include management processes to identify and mitigate
supply chain security risks; and
(C) be able to produce microelectronics consistent with
applicable measurably secure supply chain and operational
security standards established under section 224(b) of the
National Defense Authorization Act for Fiscal Year 2020
(Public Law 116-92).
(3) National security considerations.--The Secretary of
Defense and the Director of National Intelligence shall
select participants for the consortium formed with incentives
under paragraph (1). In selecting such participants, the
Secretary and the Director may jointly consider whether the
United States companies--
(A) have participated in previous programs and projects of
the Department of Defense, Department of Energy, or the
intelligence community, including--
(i) the Trusted Integrated Circuit program of the
Intelligence Advanced Research Projects Activity;
(ii) trusted and assured microelectronics projects, as
administered by the Department of Defense;
(iii) the Electronics Resurgence Initiative (ERI) program
of the Defense Advanced Research Projects Agency; or
(iv) relevant semiconductor research programs of Advanced
Research Projects Agency-Energy;
(B) have demonstrated an ongoing commitment to performing
contracts for the Department of Defense and the intelligence
community;
(C) are approved by the Defense Counterintelligence and
Security Agency or the Office of the Director of National
Intelligence as presenting an acceptable security risk,
taking into account supply chain assurance vulnerabilities,
counterintelligence risks, and any risks presented by
companies whose owners are located outside the United States;
and
(D) are evaluated periodically for foreign ownership,
control, or influence by foreign adversaries.
(4) Nontraditional defense contractors and commercial
entities.--Arrangements entered into to carry out paragraph
(1) shall be in such form as the Secretary of Defense
determines appropriate to encourage industry participation of
nontraditional defense contractors or commercial entities and
may include a contract, a grant, a cooperative agreement, a
commercial agreement, the use of other transaction authority
under section 2371 of title 10, United States Code, or
another such arrangement.
(5) Discharge.--The Secretary of Defense shall carry out
paragraph (1) jointly through the Office of the Under
Secretary of Defense for Research and Engineering and the
Office of the Under Secretary of Defense for Acquisition and
Sustainment, or such other component of the Department of
Defense as the Secretary considers appropriate.
(6) Other initiatives.--The Secretary of Defense shall
dedicate initiatives within the Department of Defense to
advance radio frequency, mixed signal, radiation tolerant,
and radiation hardened microelectronics that support national
security and dual-use applications.
(7) Reports.--
(A) Report by secretary of defense.--Not later than 90 days
after the date of the enactment of this Act, the Secretary of
Defense shall submit to Congress a report on the plans of the
Secretary to carry out paragraph (1).
(B) Biennial reports by comptroller general of the united
states.--Not later than 1 year after the date on which the
Secretary submits the report required by subparagraph (A) and
not less frequently than once every 2 years thereafter for a
period of 10 years, the Comptroller General of the United
States shall submit to Congress a report on the activities
carried out under this subsection.
(b) Defense Production Act of 1950 Efforts.--
(1) In general.--Not later than 120 days after the date of
the enactment of this Act, the President shall submit to
Congress a report on a plan for use by the Department of
Defense of authorities available in title III of the Defense
Production Act of 1950 (50 U.S.C. 4531 et seq.) to establish
and enhance a domestic production capability for
microelectronics technologies and related technologies,
subject to the availability of appropriations for that
purpose.
(2) Consultation.--The President shall develop the plan
required by paragraph (1) in coordination with the Secretary
of Defense, and in consultation with the Secretary of State,
the Secretary of Commerce, and appropriate stakeholders in
the private sector.
(c) Department of Defense Requirements for Sourcing From
Domestic Microelectronics Design and Foundry Services.--
(1) Requirements required.--Not later than 1 year after the
date of the enactment of this Act, the Secretary of Defense,
in coordination with the Secretary of Energy, the Secretary
of Homeland Security, and the Director of National
Intelligence, shall establish requirements, standards, and a
timeline for enforcement of such requirements, to the extent
possible, for domestic sourcing for microelectronics design
and foundry services, and for commercial microelectronics
products, by programs, contractors, subcontractors, and other
recipients of funding from the Department of Defense,
Department of Energy, Department of Homeland Security, and
the Director of National Intelligence.
(2) Processes for waivers.--The requirements established
under paragraph (1) shall include processes to permit waivers
for specific contracts or transactions for domestic sourcing
requirements based on cost, availability, severity of
technical and mission requirements, emergency requirements
and operational needs, other legal or international treaty
obligations, or other factors.
(3) Updates.--Not less frequently than once each year, the
Secretary shall--
(A) update the requirements and timelines established under
paragraph (1) and the processes under paragraph (2); and
(B) submit to Congress a report on the updates made under
subparagraph (A).

SEC._33. DEPARTMENT OF COMMERCE STUDY ON STATUS OF
MICROELECTRONICS TECHNOLOGIES IN THE UNITED
STATES INDUSTRIAL BASE.

(a) In General.--Commencing not later than 120 days after
the date of the enactment of this Act, the Secretary of
Commerce and the Secretary of Homeland Security, in
consultation with the Secretary of Defense and the heads of
other appropriate Federal departments and agencies, shall
undertake a review, which shall include a survey, using
authorities in section 705 of the Defense Production Act (50
U.S.C. 4555), to assess the capabilities of the United States
industrial base to support the national defense in light of
the global nature of the supply chain and significant
interdependencies between the United States industrial base
and the industrial base of foreign countries with respect to
the manufacture, design, and end use of microelectronics.
(b) Response to Survey.--The Secretary shall ensure
compliance with the survey from among all relevant potential
respondents, including the following:
(1) Corporations, partnerships, associations, or any other
organized groups domiciled and with substantial operations in
the United States.
(2) Corporations, partnerships, associations, or any other
organized groups domiciled in the United States with
operations outside the United States.
(3) Foreign domiciled corporations, partnerships,
associations, or any other organized groups with substantial
operations or business presence in, or substantial revenues
derived from, the United States.
(4) Foreign domiciled corporations, partnerships,
associations, or any other organized groups in defense treaty
or assistance countries where the production of the entity
concerned involves critical technologies covered by section
2.
(c) Information Requested.--The information sought from a
responding entity pursuant to the survey required by
subsection (a) shall include, at minimum, information on the
following with respect to the manufacture. design, or end use
of microelectronics by such entity:
(1) An identification of the geographic scope of
operations.
(2) Information on relevant cost structures.
(3) An identification of types of microelectronics
development, manufacture, assembly, test, and packaging
equipment in operation at such entity.
(4) An identification of all relevant intellectual
property, raw materials, and semi-finished goods and
components sourced domestically and abroad by such entity.
(5) Specifications of the microelectronics manufactured or
designed by such entity, descriptions of the end-uses of such
microelectronics, and a description of any technical support
provided to end-users of such microelectronics by such
entity.
(6) Information on domestic and export market sales by such
entity.
(7) Information on the financial performance, including
income and expenditures, of such entity.
(8) A list of all foreign and domestic subsidies, and any
other financial incentives, received by such entity in each
market in which such entity operates.
(9) A list of information requests from the People's
Republic of China to such entity, and a description of the
nature of each request and the type of information provided.
(10) Information on any joint ventures, technology
licensing agreements, and cooperative research or production
arrangements of such entity.
(11) A description of efforts by such entity to evaluate
and control supply chain risks it faces.
(12) A list and description of any sales, licensing
agreements, or partnerships between such entity and the
People's Liberation Army or People's Armed Police, including
any business relationships with entities through which such
sales, licensing agreements, or partnerships may occur.
(d) Report.--
(1) In general.--The Secretary of Commerce shall, in
consultation with the Secretary of Defense, the Secretary of
Homeland Security, and the heads of other appropriate Federal
departments and agencies, submit to

[[Page S4851]]

Congress a report on the results of the review required by
subsection (a). The report shall include the following:
(A) An assessment of the results of the survey.
(B) A list of critical technology areas impacted by
potential disruptions in production of microelectronics, and
a detailed description and assessment of the impact of such
potential disruptions on such areas.
(C) A description and assessment of gaps and
vulnerabilities in the microelectronics supply chain and the
national industrial supply base.
(2) Form.--The report required by paragraph (1) may be
submitted in classified form.

SEC._34. FUNDING FOR DEVELOPMENT AND ADOPTION OF MEASURABLY
SECURE MICROELECTRONICS AND MEASURABLY SECURE
MICROELECTRONICS SUPPLY CHAINS.

(a) Multilateral Microelectronics Security Fund.--
(1) Establishment of fund.--There is established in the
Treasury of the United States a trust fund, to be known as
the ``Multilateral Microelectronics Security Fund'' (in this
section referred to as the ``Fund''), consisting of such
amounts as may be appropriated to such Fund and any amounts
that may be credited to the Fund under paragraph (2).
(2) Investment of amounts.--
(A) Investment of amounts.--The Secretary of the Treasury
shall 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.
(B) Interest and proceeds.--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.
(3) Use of fund.--
(A) In general.--Subject to subparagraph (B), amounts in
the Fund shall be available, as provided in advance in an
appropriations Act, to the Secretary of State--
(i) to provide funding through the common funding mechanism
described in subsection (b)(1) to support the development and
adoption of measurably secure microelectronics and measurably
secure microelectronics supply chains; and
(ii) to otherwise carry out this section.
(B) Availability contingent on international agreement.--
Amounts in the Fund shall be available to the Secretary of
State on and after the date on which the Secretary enters
into an agreement with the governments of countries that are
partners of the United States to participate in the common
funding mechanism under paragraph (1) of subsection (b) and
the commitments described in paragraph (2) of that
subsection.
(4) Availability of amounts.--
(A) In general.--Amounts in the Fund shall remain available
through the end of the tenth fiscal year beginning after the
date of the enactment of this Act.
(B) Remainder to treasury.--Any amounts remaining in the
Fund after the end of the fiscal year described in
subparagraph (A) shall be deposited in the general fund of
the Treasury.
(b) Common Funding Mechanism for Development and Adoption
of Measurably Secure Microelectronics and Measurably Secure
Microelectronics Supply Chains.--
(1) In general.--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, and the Director of National Intelligence, shall
seek to establish a common funding mechanism, in coordination
with the governments of countries that are partners of the
United States, that uses amounts from the Fund, and amounts
committed by such governments, to support the development and
adoption of secure microelectronics and secure
microelectronics supply chains, including for use in research
and development collaborations among countries participating
in the common funding mechanism.
(2) Mutual commitments.--The Secretary of State, in
consultation with the United States Trade Representative, the
Secretary of the Treasury, and the Secretary of Commerce,
shall seek to negotiate a set of mutual commitments with the
governments of countries that are partners of the United
States upon which to condition any expenditure of funds
pursuant to the common funding mechanism described in
paragraph (1). Such commitments shall, at a minimum--
(A) establish transparency requirements for any subsidies
or other financial benefits (including revenue foregone)
provided to microelectronics firms located in or outside such
countries;
(B) establish consistent policies with respect to countries
that--
(i) are not participating in the common funding mechanism;
and
(ii) do not meet transparency requirements established
under subparagraph (A);
(C) promote harmonized treatment of microelectronics and
verification processes for items being exported to a country
considered a national security risk by a country
participating in the common funding mechanism;
(D) establish consistent policies and common external
policies to address nonmarket economies as the behavior of
such countries pertains to microelectronics;
(E) align policies on supply chain integrity and
microelectronics security, including with respect to
protection and enforcement of intellectual property rights;
and
(F) promote harmonized foreign direct investment screening
measures with respect to microelectronics to align with
national and multilateral security priorities.
(c) Annual Report to Congress.--Not later than one year
after the date of the enactment of this Act, 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 Congress a report on the status of the
implementation of this section that includes a description
of--
(1) any commitments made by the governments of countries
that are partners of the United States to providing funding
for the common funding mechanism described in subsection
(b)(1) and the specific amount so committed;
(2) the criteria established for expenditure of funds
through the common funding mechanism;
(3) how, and to whom, amounts have been expended from the
Fund;
(4) amounts remaining in the Fund;
(5) the progress of the Secretary of State toward entering
into an agreement with the governments of countries that are
partners of the United States to participate in the common
funding mechanism and the commitments described in subsection
(b)(2); and
(6) any additional authorities needed to enhance the
effectiveness of the Fund in achieving the security goals of
the United States.

SEC._35. ADVANCED SEMICONDUCTOR RESEARCH AND DESIGN.

(a) Appropriate Committees of Congress.--In this section,
the term ``appropriate committees of Congress'' means--
(1) the Committee on Intelligence, the Committee on
Commerce, Science, and Transportation, the Committee on
Foreign Relations, the Committee on Armed Services, the
Committee on Energy and Natural Resources, the Committee on
Appropriations, the Committee on Banking, Housing, and Urban
Affairs, and the Committee on Homeland Security and
Governmental Affairs of the Senate; and
(2) the Permanent Select Committee on Intelligence, the
Committee on Energy and Commerce, the Committee on Foreign
Affairs, the Committee on Armed Services, the Committee on
Science, Space, and Technology, the Committee on Financial
Services, and the Committee on Homeland Security of the House
of Representatives.
(b) Sense of Congress.--It is the sense of Congress that
the leadership of the United States in semiconductor
technology and innovation is critical to the economic growth
and national security of the United States.
(c) Subcommittee on Semiconductor Leadership.--
(1) Establishment required.--The President shall establish
in the National Science and Technology Council a subcommittee
on matters relating to leadership of the United States in
semiconductor technology and innovation.
(2) Duties.--The duties of the subcommittee established
under paragraph (1) are as follows:
(A) National strategy on semiconductor research.--
(i) Development.--In coordination with the Secretary of
Defense, the Secretary of Energy, the Secretary of State, the
Secretary of Commerce, the Secretary of Homeland Security,
the Director of the National Science Foundation, and the
Director of the National Institute of Standards and
Technology and in consultation with the semiconductor
industry and academia, develop a national strategy on
semiconductor research, development, manufacturing, and
supply chain security, including guidance for the funding of
research, and strengthening of the domestic microelectronics
workforce.
(ii) Reporting and updates.--Not less frequently than once
every 5 years, to update the strategy developed under clause
(i) and to submit the revised strategy to the appropriate
committees of Congress.
(iii) Implementation.--In coordination with the Secretary
of Defense, the Secretary of Energy, the Secretary of State,
the Secretary of Commerce, the Secretary of Homeland
Security, the Director of the National Science Foundation,
and the Director of the National Institute of Standards and
Technology, on an annual basis coordinate and recommend each
agency's semiconductor related research and development
programs and budgets to ensure consistency with the National
Semiconductor Strategy.
(B) Fostering coordination of research and development.--To
foster the coordination of semiconductor research and
development.
(3) Sunset.--The subcommittee established under paragraph
(1) shall terminate on the date that is 10 years after the
date of enactment of this Act.
(d) Industrial Advisory Committee.--The President shall
establish a standing subcommittee of the President's Council
of Advisors on Science and Technology to advise the United
States Government on matters relating to microelectronics
policy.
(e) National Semiconductor Technology Center.--

[[Page S4852]]

(1) Establishment.--The Secretary of Commerce shall
establish a national semiconductor technology center to
conduct research and prototyping of advanced semiconductor
technology to strengthen the economic competitiveness and
security of the domestic supply chain, which will be operated
as a public private-sector consortium with participation from
the private sector, the Department of Defense, the Department
of Energy, the Department of Homeland Security, the National
Science Foundation, and the National Institute of Standards
and Technology.
(2) Functions.--The functions of the center established
under paragraph (1) shall be as follows:
(A) To conduct advanced semiconductor manufacturing, design
research and prototyping that strengthens the entire domestic
ecosystem and is aligned with the National Strategy on
Semiconductor Research.
(B) To establish a National Advanced Packaging
Manufacturing Program led by the National Institute of
Standards and Technology, in coordination with the Center, to
strengthen semiconductor advanced test, assembly, and
packaging capability in the domestic ecosystem, and which
shall coordinate with the Manufacturing USA institute
established under paragraph (4).
(C) To establish an investment fund, in partnership with
the private sector, to support startups in the domestic
semiconductor ecosystem.
(D) To establish a Semiconductor Manufacturing Program
through the Director of the National Institute of Standards
and Technology to enable advances and breakthroughs in
measurement science, standards, material characterization,
instrumentation, testing, and manufacturing capabilities that
will accelerate the underlying research and development for
metrology of next generation semiconductors and ensure the
competitiveness and leadership of the United States within
this sector.
(E) To work with the Secretary of Labor, the private
sector, educational institutions, and workforce training
entities to develop workforce training programs and
apprenticeships in advanced microelectronic packaging
capabilities.
(3) Components.--The fund established under paragraph
(2)(C) shall cover the following:
(A) Advanced metrology and characterization for
manufacturing of microchips using 3 nanometer transistor
processes or more advanced processes.
(B) Metrology for security and supply chain verification.
(4) Creation of a manufacturing usa institute.--The fund
established under paragraph (2)(C) may also cover the
creation of a Manufacturing USA institute described in
section 34(d) of the National Institute of Standards and
Technology Act (15 U.S.C. 278s(d)) that is focused on
semiconductor manufacturing. Such institute may emphasize the
following:
(A) Research to support the virtualization and automation
of maintenance of semiconductor machinery.
(B) Development of new advanced test, assembly and
packaging capabilities.
(C) Developing and deploying educational and skills
training curricula needed to support the industry sector and
ensure the U.S. can build and maintain a trusted and
predictable talent pipeline.
(f) Domestic Production Requirements.--The head of any
executive agency receiving funding under this section shall
develop policies to require domestic production, to the
extent possible, for any intellectual property resulting from
microelectronics research and development conducted as a
result of these funds and domestic control requirements to
protect any such intellectual property from foreign
adversaries.

SEC. _36. PROHIBITION RELATING TO FOREIGN ADVERSARIES.

None of the funds appropriated pursuant to an authorization
in this subtitle may be provided to an entity--
(1) under the foreign ownership, control, or influence of
the Government of the People's Republic of China or the
Chinese Communist Party, or other foreign adversary (as
defined in section 301(a)(4)); or
(2) determined to have beneficial ownership from foreign
individuals subject to the jurisdiction, direction, or
influence of foreign adversaries (as so defined).

Subtitle D--Critical Minerals

SEC. _41. MINERAL SECURITY.

(a) Definitions.--In this section:
(1) Byproduct.--The term ``byproduct'' means a critical
mineral--
(A) the recovery of which depends on the production of a
host mineral that is not designated as a critical mineral;
and
(B) that exists in sufficient quantities to be recovered
during processing or refining.
(2) Critical mineral.--
(A) In general.--The term ``critical mineral'' means any
mineral, element, substance, or material designated as
critical by the Secretary under subsection (c).
(B) Exclusions.--The term ``critical mineral'' does not
include--
(i) fuel minerals, including oil, natural gas, or any other
fossil fuels; or
(ii) water, ice, or snow.
(3) Indian tribe.--The term ``Indian tribe'' has the
meaning given the term in section 4 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 5304).
(4) Secretary.--The term ``Secretary'' means the Secretary
of the Interior.
(5) State.--The term ``State'' means--
(A) a State;
(B) the District of Columbia;
(C) the Commonwealth of Puerto Rico;
(D) Guam;
(E) American Samoa;
(F) the Commonwealth of the Northern Mariana Islands; and
(G) the United States Virgin Islands.
(b) Policy.--
(1) In general.--Section 3 of the National Materials and
Minerals Policy, Research and Development Act of 1980 (30
U.S.C. 1602) is amended in the second sentence--
(A) by striking paragraph (3) and inserting the following:
``(3) establish an analytical and forecasting capability
for identifying critical mineral demand, supply, and other
factors to allow informed actions to be taken to avoid supply
shortages, mitigate price volatility, and prepare for demand
growth and other market shifts;'';
(B) in paragraph (6), by striking ``and'' after the
semicolon at the end; and
(C) by striking paragraph (7) and inserting the following:
``(7) facilitate the availability, development, and
environmentally responsible production of domestic resources
to meet national material or critical mineral needs;
``(8) avoid duplication of effort, prevent unnecessary
paperwork, and minimize delays in the administration of
applicable laws (including regulations) and the issuance of
permits and authorizations necessary to explore for, develop,
and produce critical minerals and to construct critical
mineral manufacturing facilities in accordance with
applicable environmental and land management laws;
``(9) strengthen--
``(A) educational and research capabilities at not lower
than the secondary school level; and
``(B) workforce training for exploration and development of
critical minerals and critical mineral manufacturing;
``(10) bolster international cooperation through technology
transfer, information sharing, and other means;
``(11) promote the efficient production, use, and recycling
of critical minerals;
``(12) develop alternatives to critical minerals; and
``(13) establish contingencies for the production of, or
access to, critical minerals for which viable sources do not
exist within the United States.''.
(2) Conforming amendment.--Section 2(b) of the National
Materials and Minerals Policy, Research and Development Act
of 1980 (30 U.S.C. 1601(b)) is amended by striking ``(b) As
used in this Act, the term'' and inserting the following:
``(b) Definitions.--In this Act:
``(1) Critical mineral.--The term `critical mineral' means
any mineral, element, substance, or material designated as
critical by the Secretary under section 401(c) of the
Restoring Critical Supply Chains and Intellectual Property
Act.
``(2) Materials.--The term''.
(c) Critical Mineral Designations.--
(1) Draft methodology and list.--The Secretary, acting
through the Director of the United States Geological Survey
(referred to in this subsection as the ``Secretary''), shall
publish in the Federal Register for public comment--
(A) a description of the draft methodology used to identify
a draft list of critical minerals;
(B) a draft list of minerals, elements, substances, and
materials that qualify as critical minerals; and
(C) a draft list of critical minerals recovered as
byproducts.
(2) Availability of data.--If available data is
insufficient to provide a quantitative basis for the
methodology developed under this subsection, qualitative
evidence may be used to the extent necessary.
(3) Final methodology and list.--After reviewing public
comments on the draft methodology and the draft lists
published under paragraph (1) and updating the methodology
and lists as appropriate, not later than 45 days after the
date on which the public comment period with respect to the
draft methodology and draft lists closes, the Secretary shall
publish in the Federal Register--
(A) a description of the final methodology for determining
which minerals, elements, substances, and materials qualify
as critical minerals;
(B) the final list of critical minerals; and
(C) the final list of critical minerals recovered as
byproducts.
(4) Designations.--
(A) In general.--For purposes of carrying out this
subsection, the Secretary shall maintain a list of minerals,
elements, substances, and materials designated as critical,
pursuant to the final methodology published under paragraph
(3), that the Secretary determines--
(i) are essential to the economic or national security of
the United States;
(ii) the supply chain of which is vulnerable to disruption
(including restrictions associated with foreign political
risk, abrupt demand growth, military conflict, violent
unrest, anti-competitive or protectionist behaviors, and
other risks throughout the supply chain); and
(iii) serve an essential function in the manufacturing of a
product (including energy technology-, defense-, currency-,
agriculture-, consumer electronics-, and health care-related
applications), the absence of which would have significant
consequences for the

[[Page S4853]]

economic or national security of the United States.
(B) Inclusions.--Notwithstanding the criteria under
paragraph (3), the Secretary may designate and include on the
list any mineral, element, substance, or material determined
by another Federal agency to be strategic and critical to the
defense or national security of the United States.
(C) Required consultation.--The Secretary shall consult
with the Secretaries of Defense, Commerce, Agriculture, and
Energy and the United States Trade Representative in
designating minerals, elements, substances, and materials as
critical under this paragraph.
(5) Subsequent review.--
(A) In general.--The Secretary, in consultation with the
Secretaries of Defense, Commerce, Agriculture, and Energy and
the United States Trade Representative, shall review the
methodology and list under paragraph (3) and the designations
under paragraph (4) at least every 3 years, or more
frequently as the Secretary considers to be appropriate.
(B) Revisions.--Subject to paragraph (4)(A), the Secretary
may--
(i) revise the methodology described in this subsection;
(ii) determine that minerals, elements, substances, and
materials previously determined to be critical minerals are
no longer critical minerals; and
(iii) designate additional minerals, elements, substances,
or materials as critical minerals.
(6) Notice.--On finalization of the methodology and the
list under paragraph (3), or any revision to the methodology
or list under paragraph (5), the Secretary shall submit to
Congress written notice of the action.
(d) Resource Assessment.--
(1) In general.--Not later than 4 years after the date of
enactment of this Act, in consultation with applicable State
(including geological surveys), local, academic, industry,
and other entities, the Secretary (acting through the
Director of the United States Geological Survey) or a
designee of the Secretary, shall complete a comprehensive
national assessment of each critical mineral that--
(A) identifies and quantifies known critical mineral
resources, using all available public and private information
and datasets, including exploration histories; and
(B) provides a quantitative and qualitative assessment of
undiscovered critical mineral resources throughout the United
States, including probability estimates of tonnage and grade,
using all available public and private information and
datasets, including exploration histories.
(2) Supplementary information.--In carrying out this
subsection, the Secretary may carry out surveys and field
work (including drilling, remote sensing, geophysical
surveys, topographical and geological mapping, and
geochemical sampling and analysis) to supplement existing
information and datasets available for determining the
existence of critical minerals in the United States.
(3) Public access.--Subject to applicable law, to the
maximum extent practicable, the Secretary shall make all data
and metadata collected from the comprehensive national
assessment carried out under paragraph (1) publically and
electronically accessible.
(4) Technical assistance.--At the request of the Governor
of a State or the head of an Indian tribe, the Secretary may
provide technical assistance to State governments and Indian
tribes conducting critical mineral resource assessments on
non-Federal land.
(5) Prioritization.--
(A) In general.--The Secretary may sequence the completion
of resource assessments for each critical mineral such that
critical minerals considered to be most critical under the
methodology established under subsection (c) are completed
first.
(B) Reporting.--During the period beginning not later than
1 year after the date of enactment of this Act and ending on
the date of completion of all of the assessments required
under this subsection, the Secretary shall submit to Congress
on an annual basis an interim report that--
(i) identifies the sequence and schedule for completion of
the assessments if the Secretary sequences the assessments;
or
(ii) describes the progress of the assessments if the
Secretary does not sequence the assessments.
(6) Updates.--The Secretary may periodically update the
assessments conducted under this subsection based on--
(A) the generation of new information or datasets by the
Federal Government; or
(B) the receipt of new information or datasets from
critical mineral producers, State geological surveys,
academic institutions, trade associations, or other persons.
(7) Additional surveys.--The Secretary shall complete a
resource assessment for each additional mineral or element
subsequently designated as a critical mineral under
subsection (c)(5)(B) not later than 2 years after the
designation of the mineral or element.
(8) Report.--Not later than 2 years after the date of
enactment of this Act, the Secretary shall submit to Congress
a report describing the status of geological surveying of
Federal land for any mineral commodity--
(A) for which the United States was dependent on a foreign
country for more than 25 percent of the United States supply,
as depicted in the report issued by the United States
Geological Survey entitled ``Mineral Commodity Summaries
2020''; but
(B) that is not designated as a critical mineral under
subsection (c).
(e) Permitting.--
(1) Sense of congress.--It is the sense of Congress that--
(A) critical minerals are fundamental to the economy,
competitiveness, and security of the United States;
(B) to the maximum extent practicable, the critical mineral
needs of the United States should be satisfied by minerals
responsibly produced and recycled in the United States; and
(C) the Federal permitting process has been identified as
an impediment to mineral production and the mineral security
of the United States.
(2) Performance improvements.--To improve the quality and
timeliness of decisions, the Secretary (acting through the
Director of the Bureau of Land Management) and the Secretary
of Agriculture (acting through the Chief of the Forest
Service) (referred to in this subsection as the
``Secretaries'') shall, to the maximum extent practicable,
with respect to critical mineral production on Federal land,
complete Federal permitting and review processes with maximum
efficiency and effectiveness, while supporting vital economic
growth, by--
(A) establishing and adhering to timelines and schedules
for the consideration of, and final decisions regarding,
applications, operating plans, leases, licenses, permits, and
other use authorizations for mineral-related activities on
Federal land;
(B) establishing clear, quantifiable, and temporal
permitting performance goals and tracking progress against
those goals;
(C) engaging in early collaboration among agencies, project
sponsors, and affected stakeholders--
(i) to incorporate and address the interests of those
parties; and
(ii) to minimize delays;
(D) ensuring transparency and accountability by using cost-
effective information technology to collect and disseminate
information regarding individual projects and agency
performance;
(E) engaging in early and active consultation with State,
local, and Indian tribal governments to avoid conflicts or
duplication of effort, resolve concerns, and allow for
concurrent, rather than sequential, reviews;
(F) providing demonstrable improvements in the performance
of Federal permitting and review processes, including lower
costs and more timely decisions;
(G) expanding and institutionalizing permitting and review
process improvements that have proven effective;
(H) developing mechanisms to better communicate priorities
and resolve disputes among agencies at the national,
regional, State, and local levels; and
(I) developing other practices, such as preapplication
procedures.
(3) Review and report.--Not later than 1 year after the
date of enactment of this Act, the Secretaries shall submit
to Congress a report that--
(A) identifies additional measures (including regulatory
and legislative proposals, as appropriate) that would
increase the timeliness of permitting activities for the
exploration and development of domestic critical minerals;
(B) identifies options (including cost recovery paid by
permit applicants) for ensuring adequate staffing and
training of Federal entities and personnel responsible for
the consideration of applications, operating plans, leases,
licenses, permits, and other use authorizations for critical
mineral-related activities on Federal land;
(C) quantifies the amount of time typically required
(including range derived from minimum and maximum durations,
mean, median, variance, and other statistical measures or
representations) to complete each step (including those
aspects outside the control of the executive branch, such as
judicial review, applicant decisions, or State and local
government involvement) associated with the development and
processing of applications, operating plans, leases,
licenses, permits, and other use authorizations for critical
mineral-related activities on Federal land, which shall serve
as a baseline for the performance metric under paragraph (4);
and
(D) describes actions carried out pursuant to paragraph
(2).
(4) Performance metric.--Not later than 90 days after the
date of submission of the report under paragraph (3), the
Secretaries, after providing public notice and an opportunity
to comment, shall develop and publish a performance metric
for evaluating the progress made by the executive branch to
expedite the permitting of activities that will increase
exploration for, and development of, domestic critical
minerals, while maintaining environmental standards.
(5) Annual reports.--Beginning with the first budget
submission by the President under section 1105 of title 31,
United States Code, after publication of the performance
metric required under paragraph (4), and annually thereafter,
the Secretaries shall submit to Congress a report that--
(A) summarizes the implementation of recommendations,
measures, and options identified in subparagraphs (A) and (B)
of paragraph (3);
(B) using the performance metric under paragraph (4),
describes progress made by the executive branch, as compared
to the baseline established pursuant to paragraph (3)(C), on
expediting the permitting of activities

[[Page S4854]]

that will increase exploration for, and development of,
domestic critical minerals; and
(C) compares the United States to other countries in terms
of permitting efficiency and any other criteria relevant to
the globally competitive critical minerals industry.
(6) Individual projects.--Using data from the Secretaries
generated under paragraph (5), the Director of the Office of
Management and Budget shall prioritize inclusion of
individual critical mineral projects on the website operated
by the Office of Management and Budget in accordance with
section 1122 of title 31, United States Code.
(7) Report of small business administration.--Not later
than 1 year and 300 days after the date of enactment of this
Act, the Administrator of the Small Business Administration
shall submit to the applicable committees of Congress a
report that assesses the performance of Federal agencies with
respect to--
(A) complying with chapter 6 of title 5, United States Code
(commonly known as the ``Regulatory Flexibility Act''), in
promulgating regulations applicable to the critical minerals
industry; and
(B) performing an analysis of regulations applicable to the
critical minerals industry that may be outmoded, inefficient,
duplicative, or excessively burdensome.
(f) Federal Register Process.--
(1) Departmental review.--Absent any extraordinary
circumstance, and except as otherwise required by law, the
Secretary and the Secretary of Agriculture shall ensure that
each Federal Register notice described in paragraph (2) shall
be--
(A) subject to any required reviews within the Department
of the Interior or the Department of Agriculture; and
(B) published in final form in the Federal Register not
later than 45 days after the date of initial preparation of
the notice.
(2) Preparation.--The preparation of Federal Register
notices required by law associated with the issuance of a
critical mineral exploration or mine permit shall be
delegated to the organizational level within the agency
responsible for issuing the critical mineral exploration or
mine permit.
(3) Transmission.--All Federal Register notices regarding
official document availability, announcements of meetings, or
notices of intent to undertake an action shall be originated
in, and transmitted to the Federal Register from, the office
in which, as applicable--
(A) the documents or meetings are held; or
(B) the activity is initiated.
(g) Recycling, Efficiency, and Alternatives.--
(1) Establishment.--The Secretary of Energy (referred to in
this subsection as the ``Secretary'') shall conduct a program
of research and development--
(A) to promote the efficient production, use, and recycling
of critical minerals throughout the supply chain; and
(B) to develop alternatives to critical minerals that do
not occur in significant abundance in the United States.
(2) Cooperation.--In carrying out the program, the
Secretary shall cooperate with appropriate--
(A) Federal agencies and National Laboratories;
(B) critical mineral producers;
(C) critical mineral processors;
(D) critical mineral manufacturers;
(E) trade associations;
(F) academic institutions;
(G) small businesses; and
(H) other relevant entities or individuals.
(3) Activities.--Under the program, the Secretary shall
carry out activities that include the identification and
development of--
(A) advanced critical mineral extraction, production,
separation, alloying, or processing technologies that
decrease the energy consumption, environmental impact, and
costs of those activities, including--
(i) efficient water and wastewater management strategies;
(ii) technologies and management strategies to control the
environmental impacts of radionuclides in ore tailings;
(iii) technologies for separation and processing; and
(iv) technologies for increasing the recovery rates of
byproducts from host metal ores;
(B) technologies or process improvements that minimize the
use, or lead to more efficient use, of critical minerals
across the full supply chain;
(C) technologies, process improvements, or design
optimizations that facilitate the recycling of critical
minerals, and options for improving the rates of collection
of products and scrap containing critical minerals from post-
consumer, industrial, or other waste streams;
(D) commercial markets, advanced storage methods, energy
applications, and other beneficial uses of critical minerals
processing byproducts;
(E) alternative minerals, metals, and materials,
particularly those available in abundance within the United
States and not subject to potential supply restrictions, that
lessen the need for critical minerals; and
(F) alternative energy technologies or alternative designs
of existing energy technologies, particularly those that use
minerals that--
(i) occur in abundance in the United States; and
(ii) are not subject to potential supply restrictions.
(4) Reports.--Not later than 2 years after the date of
enactment of this Act, and annually thereafter, the Secretary
shall submit to Congress a report summarizing the activities,
findings, and progress of the program.
(h) Analysis and Forecasting.--
(1) Capabilities.--In order to evaluate existing critical
mineral policies and inform future actions that may be taken
to avoid supply shortages, mitigate price volatility, and
prepare for demand growth and other market shifts, the
Secretary (acting through the Director of the United States
Geological Survey) or a designee of the Secretary, in
consultation with the Energy Information Administration,
academic institutions, and others in order to maximize the
application of existing competencies related to developing
and maintaining computer-models and similar analytical tools,
shall conduct and publish the results of an annual report
that includes--
(A) as part of the annually published Mineral Commodity
Summaries from the United States Geological Survey, a
comprehensive review of critical mineral production,
consumption, and recycling patterns, including--
(i) the quantity of each critical mineral domestically
produced during the preceding year;
(ii) the quantity of each critical mineral domestically
consumed during the preceding year;
(iii) market price data or other price data for each
critical mineral;
(iv) an assessment of--

(I) critical mineral requirements to meet the national
security, energy, economic, industrial, technological, and
other needs of the United States during the preceding year;
(II) the reliance of the United States on foreign sources
to meet those needs during the preceding year; and
(III) the implications of any supply shortages,
restrictions, or disruptions during the preceding year;

(v) the quantity of each critical mineral domestically
recycled during the preceding year;
(vi) the market penetration during the preceding year of
alternatives to each critical mineral;
(vii) a discussion of international trends associated with
the discovery, production, consumption, use, costs of
production, prices, and recycling of each critical mineral as
well as the development of alternatives to critical minerals;
and
(viii) such other data, analyses, and evaluations as the
Secretary finds are necessary to achieve the purposes of this
subsection; and
(B) a comprehensive forecast, entitled the ``Annual
Critical Minerals Outlook'', of projected critical mineral
production, consumption, and recycling patterns, including--
(i) the quantity of each critical mineral projected to be
domestically produced over the subsequent 1-year, 5-year, and
10-year periods;
(ii) the quantity of each critical mineral projected to be
domestically consumed over the subsequent 1-year, 5-year, and
10-year periods;
(iii) an assessment of--

(I) critical mineral requirements to meet projected
national security, energy, economic, industrial,
technological, and other needs of the United States;
(II) the projected reliance of the United States on foreign
sources to meet those needs; and
(III) the projected implications of potential supply
shortages, restrictions, or disruptions;

(iv) the quantity of each critical mineral projected to be
domestically recycled over the subsequent 1-year, 5-year, and
10-year periods;
(v) the market penetration of alternatives to each critical
mineral projected to take place over the subsequent 1-year,
5-year, and 10-year periods;
(vi) a discussion of reasonably foreseeable international
trends associated with the discovery, production,
consumption, use, costs of production, and recycling of each
critical mineral as well as the development of alternatives
to critical minerals; and
(vii) such other projections relating to each critical
mineral as the Secretary determines to be necessary to
achieve the purposes of this subsection.
(2) Proprietary information.--In preparing a report
described in paragraph (1), the Secretary shall ensure,
consistent with section 5(f) of the National Materials and
Minerals Policy, Research and Development Act of 1980 (30
U.S.C. 1604(f)), that--
(A) no person uses the information and data collected for
the report for a purpose other than the development of or
reporting of aggregate data in a manner such that the
identity of the person or firm who supplied the information
is not discernible and is not material to the intended uses
of the information;
(B) no person discloses any information or data collected
for the report unless the information or data has been
transformed into a statistical or aggregate form that does
not allow the identification of the person or firm who
supplied particular information; and
(C) procedures are established to require the withholding
of any information or data collected for the report if the
Secretary determines that withholding is necessary to protect
proprietary information, including any trade secrets or other
confidential information.
(i) Education and Workforce.--

[[Page S4855]]

(1) Workforce assessment.--Not later than 1 year and 300
days after the date of enactment of this Act, the Secretary
of Labor (in consultation with the Secretary, the Director of
the National Science Foundation, institutions of higher
education with substantial expertise in mining, institutions
of higher education with significant expertise in minerals
research, including fundamental research into alternatives,
and employers in the critical minerals sector) shall submit
to Congress an assessment of the domestic availability of
technically trained personnel necessary for critical mineral
exploration, development, assessment, production,
manufacturing, recycling, analysis, forecasting, education,
and research, including an analysis of--
(A) skills that are in the shortest supply as of the date
of the assessment;
(B) skills that are projected to be in short supply in the
future;
(C) the demographics of the critical minerals industry and
how the demographics will evolve under the influence of
factors such as an aging workforce;
(D) the effectiveness of training and education programs in
addressing skills shortages;
(E) opportunities to hire locally for new and existing
critical mineral activities;
(F) the sufficiency of personnel within relevant areas of
the Federal Government for achieving the policies described
in section 3 of the National Materials and Minerals Policy,
Research and Development Act of 1980 (30 U.S.C. 1602); and
(G) the potential need for new training programs to have a
measurable effect on the supply of trained workers in the
critical minerals industry.
(2) Curriculum study.--
(A) In general.--The Secretary and the Secretary of Labor
shall jointly enter into an arrangement with the National
Academy of Sciences and the National Academy of Engineering
under which the Academies shall coordinate with the National
Science Foundation on conducting a study--
(i) to design an interdisciplinary program on critical
minerals that will support the critical mineral supply chain
and improve the ability of the United States to increase
domestic, critical mineral exploration, development,
production, manufacturing, research, including fundamental
research into alternatives, and recycling;
(ii) to address undergraduate and graduate education,
especially to assist in the development of graduate level
programs of research and instruction that lead to advanced
degrees with an emphasis on the critical mineral supply chain
or other positions that will increase domestic, critical
mineral exploration, development, production, manufacturing,
research, including fundamental research into alternatives,
and recycling;
(iii) to develop guidelines for proposals from institutions
of higher education with substantial capabilities in the
required disciplines for activities to improve the critical
mineral supply chain and advance the capacity of the United
States to increase domestic, critical mineral exploration,
research, development, production, manufacturing, and
recycling; and
(iv) to outline criteria for evaluating performance and
recommendations for the amount of funding that will be
necessary to establish and carry out the program described in
paragraph (3).
(B) Report.--Not later than 2 years after the date of
enactment of this Act, the Secretary shall submit to Congress
a description of the results of the study required under
subparagraph (A).
(3) Program.--
(A) Establishment.--The Secretary and the Secretary of
Labor shall jointly conduct a competitive grant program under
which institutions of higher education may apply for and
receive 4-year grants for--
(i) startup costs for newly designated faculty positions in
integrated critical mineral education, research, innovation,
training, and workforce development programs consistent with
paragraph (2);
(ii) internships, scholarships, and fellowships for
students enrolled in programs related to critical minerals;
(iii) equipment necessary for integrated critical mineral
innovation, training, and workforce development programs; and
(iv) research of critical minerals and their applications,
particularly concerning the manufacture of critical
components vital to national security.
(B) Renewal.--A grant under this paragraph shall be
renewable for up to 2 additional 3-year terms based on
performance criteria outlined under paragraph (2)(A)(iv).
(j) National Geological and Geophysical Data Preservation
Program.--Section 351(k) of the Energy Policy Act of 2005 (42
U.S.C. 15908(k)) is amended by striking ``$30,000,000 for
each of fiscal years 2006 through 2010'' and inserting
``$5,000,000 for each of fiscal years 2021 through 2030, to
remain available until expended''.
(k) Administration.--
(1) In general.--The National Critical Materials Act of
1984 (30 U.S.C. 1801 et seq.) is repealed.
(2) Conforming amendment.--Section 3(d) of the National
Superconductivity and Competitiveness Act of 1988 (15 U.S.C.
5202(d)) is amended in the first sentence by striking ``,
with the assistance of the National Critical Materials
Council as specified in the National Critical Materials Act
of 1984 (30 U.S.C. 1801 et seq.),''.
(3) Savings clauses.--
(A) In general.--Nothing in this section or an amendment
made by this section modifies any requirement or authority
provided by--
(i) the matter under the heading ``geological survey'' of
the first section of the Act of March 3, 1879 (43 U.S.C.
31(a)); or
(ii) the first section of Public Law 87-626 (43 U.S.C.
31(b)).
(B) Effect on department of defense.--Nothing in this
section or an amendment made by this section affects the
authority of the Secretary of Defense with respect to the
work of the Department of Defense on critical material
supplies in furtherance of the national defense mission of
the Department of Defense.
(C) Secretarial order not affected.--This section shall not
apply to any mineral described in Secretarial Order No. 3324,
issued by the Secretary on December 3, 2012, in any area to
which the order applies.
(4) Application of certain provisions.--
(A) In general.--Subsections (e) and (f) shall apply to--
(i) an exploration project in which the presence of a
byproduct is reasonably expected, based on known mineral
companionality, geologic formation, mineralogy, or other
factors; and
(ii) a project that demonstrates that the byproduct is of
sufficient grade that, when combined with the production of a
host mineral, the byproduct is economic to recover, as
determined by the applicable Secretary in accordance with
subparagraph (B).
(B) Requirement.--In making the determination under
subparagraph (A)(ii), the applicable Secretary shall consider
the cost effectiveness of the byproducts recovery.
(l) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $50,000,000 for
each of fiscal years 2021 through 2030.

SEC. _42. RARE EARTH ELEMENT ADVANCED COAL TECHNOLOGIES.

(a) Program for Extraction and Recovery of Rare Earth
Elements and Minerals From Coal and Coal Byproducts.--
(1) In general.--The Secretary of Energy, acting through
the Assistant Secretary for Fossil Energy (referred to in
this section as the ``Secretary''), shall carry out a program
under which the Secretary shall develop advanced separation
technologies for the extraction and recovery of rare earth
elements and minerals from coal and coal byproducts.
(2) Authorization of appropriations.--There is authorized
to be appropriated to the Secretary to carry out the program
described in paragraph (1) $23,000,000 for each of fiscal
years 2021 through 2028.
(b) Report.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall submit to the
Committee on Energy and Natural Resources of the Senate and
the Committee on Energy and Commerce of the House of
Representatives a report evaluating the development of
advanced separation technologies for the extraction and
recovery of rare earth elements and minerals from coal and
coal byproducts, including acid mine drainage from coal
mines.
______