S.Amdt. 962

SA 962. Mr. MENENDEZ (for himself, Mr. Schumer, Mr. Kaine, Mr.
Schatz, and Mrs. Shaheen) submitted an amendment intended to be
proposed to amendment SA 935 proposed by Mr. Schumer (for Mr. Reed (for
himself and Mr. Wicker)) to the bill S. 2226, to authorize
appropriations for fiscal year 2024 for military activities of the
Department of Defense, for military construction, and for defense
activities of the Department of Energy, to prescribe military personnel
strengths for such fiscal year, and for other purposes; which was
ordered to lie on the table; as follows:

Strike sections 6801 through 6841 of division F and insert
the following:

SEC. 6801. DEFINITIONS.

In this title:
(1) Activities necessary for the safe hosting and operation
of nuclear-powered submarines.--The term ``activities
necessary for the safe hosting and operation of nuclear-
powered submarines'' means each of the following activities
as it relates to Virginia class and Astute class submarines,
as appropriate, and in accordance with applicable United
States Navy or other Government agency instructions,
regulations, and standards:
(A) Maintenance.
(B) Training.
(C) Technical oversight.
(D) Safety certifications.
(E) Physical, communications, operational, cyber, and other
security measures.
(F) Port operations and infrastructure support.

[[Page S3412]]

(G) Storage, including spare parts, repair parts, and
munitions.
(H) Hazardous material handling and storage.
(I) Information technology systems.
(J) Support functions, including those related to medical,
quality-of-life, and family needs.
(K) Such other related tasks as may be specified by the
Secretary of Defense.
(2) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(A) the Committee on Foreign Relations, the Committee on
Armed Services, and the Committee on Appropriations of the
Senate; and
(B) the Committee on Foreign Affairs, the Committee on
Armed Services, and the Committee on Appropriations of the
House of Representatives.
(3) AUKUS partnership.--
(A) In general.--The term ``AUKUS partnership'' means the
enhanced trilateral security partnership between Australia,
the United Kingdom, and the United States announced in
September 2021.
(B) Pillars.--The AUKUS partnership includes the following
two pillars:
(i) Pillar One is focused on developing a pathway for
Australia to acquire conventionally armed, nuclear-powered
submarines.
(ii) Pillar Two is focused on enhancing trilateral
collaboration on advanced defense capabilities, including
hypersonic and counter hypersonic capabilities, quantum
technologies, undersea technologies, and artificial
intelligence.
(4) International traffic in arms regulations.--The term
``International Traffic in Arms Regulations'' means
subchapter M of chapter I of title 22, Code of Federal
Regulations (or successor regulations).

Subtitle A--Outlining the AUKUS Partnership

SEC. 6811. STATEMENT OF POLICY ON THE AUKUS PARTNERSHIP.

(a) Statement of Policy.--It is the policy of the United
States that--
(1) the AUKUS partnership is integral to United States
national security, increasing United States and allied
capability in the undersea domain of the Indo-Pacific, and
developing cutting edge military capabilities;
(2) the transfer of conventionally armed, nuclear-powered
submarines to Australia, if implemented appropriately, will
position the United States and its allies to maintain peace
and security in the Indo-Pacific;
(3) the transfer of conventionally armed, nuclear-powered
submarines to Australia will be safely implemented with the
highest nonproliferation standards in alignment with--
(A) safeguards established by the International Atomic
Energy Agency; and
(B) the Additional Protocol to the Agreement between
Australia and the International Atomic Energy Agency for the
application of safeguards in connection with the Treaty on
the Non-Proliferation of Nuclear Weapons, signed at Vienna
September 23, 1997;
(4) the United States will enter into a mutual defense
agreement with Australia, modeled on the 1958 bilateral
mutual defense agreement with the United Kingdom, for the
sole purpose of facilitating the transfer of naval nuclear
propulsion technology to Australia;
(5) working with the United Kingdom and Australia to
develop and provide joint advanced military capabilities to
promote security and stability in the Indo-Pacific will have
tangible impacts on United States military effectiveness
across the world;
(6) in order to better facilitate cooperation under Pillar
2 of the AUKUS partnership, it is imperative that every
effort be made to streamline United States export controls
consistent with necessary and reciprocal security safeguards
on United States technology at least comparable to those of
the United States;
(7) the trade authorization mechanism for the AUKUS
partnership administered by the Department is a critical
first step in reimagining the United States export control
system to carry out the AUKUS partnership and expedite
technology sharing and defense trade among the United States,
Australia, and the United Kingdom; and
(8) the vast majority of United States defense trade with
Australia is conducted through the Foreign Military Sales
(FMS) process, the preponderance of defense trade with the
United Kingdom is conducted through Direct Commercial Sales
(DCS), and efforts to streamline United States export
controls should focus on both Foreign Military Sales and
Direct Commercial Sales.

SEC. 6812. SENIOR ADVISOR FOR THE AUKUS PARTNERSHIP AT THE
DEPARTMENT OF STATE.

(a) In General.--There shall be a Senior Advisor for the
AUKUS partnership at the Department, who--
(1) shall report directly to the Secretary; and
(2) may not hold another position in the Department
concurrently while holding the position of Senior Advisor for
the AUKUS partnership.
(b) Duties.--The Senior Advisor shall--
(1) be responsible for coordinating efforts related to the
AUKUS partnership across the Department, including the
bureaus engaged in nonproliferation, defense trade, security
assistance, and diplomatic relations in the Indo-Pacific;
(2) serve as the lead within the Department for
implementation of the AUKUS partnership in interagency
processes, consulting with counterparts in the Department of
Defense, the Department of Commerce, the Department of
Energy, the Office of Naval Reactors, and any other relevant
agencies;
(3) lead diplomatic efforts related to the AUKUS
partnership with other governments to explain how the
partnership will enhance security and stability in the Indo-
Pacific; and
(4) consult regularly with the appropriate congressional
committees, and keep such committees fully and currently
informed, on issues related to the AUKUS partnership,
including in relation to the AUKUS Pillar 1 objective of
supporting Australia's acquisition of conventionally armed,
nuclear-powered submarines and the Pillar 2 objective of
jointly developing advanced military capabilities to support
security and stability in the Indo-Pacific, as affirmed by
the President of the United States, the Prime Minister of the
United Kingdom, and the Prime Minister of Australia on April
5, 2022.
(c) Personnel to Support the Senior Advisor.--The Secretary
shall ensure that the Senior Advisor is adequately staffed,
including through encouraging details, or assignment of
employees of the Department, with expertise related to the
implementation of the AUKUS partnership, including staff with
expertise in--
(1) nuclear policy, including nonproliferation;
(2) defense trade and security cooperation, including
security assistance; and
(3) relations with respect to political-military issues in
the Indo-Pacific and Europe.
(d) Notification.--Not later than 180 days after the date
of the enactment of this Act, and not later than 90 days
after a Senior Advisor assumes such position, the Secretary
shall notify the appropriate congressional committees of the
number of full-time equivalent positions, relevant expertise,
and duties of any employees of the Department or detailees
supporting the Senior Advisor.
(e) Sunset.--
(1) In general.--The position of the Senior Advisor for the
AUKUS partnership shall terminate on the date that is 8 years
after the date of the enactment of this Act.
(2) Renewal.--The Secretary may renew the position of the
Senior Advisor for the AUKUS partnership for 1 additional
period of 4 years, following notification to the appropriate
congressional committees of the renewal.

Subtitle B--Authorization for Submarine Transfers, Support, and
Infrastructure Improvement Activities

SEC. 6821. AUSTRALIA, UNITED KINGDOM, AND UNITED STATES
SUBMARINE SECURITY ACTIVITIES.

(a) Authorization to Transfer Submarines.--
(1) In general.--Subject to paragraphs (3), (4), and (11),
the President may, under section 21 of the Arms Export
Control Act (22 U.S.C. 2761)--
(A) transfer not more than two Virginia class submarines
from the inventory of the United States Navy to the
Government of Australia on a sale basis; and
(B) transfer not more than one additional Virginia class
submarine to the Government of Australia on a sale basis.
(2) Requirements not applicable.--A sale carried out under
paragraph (1)(B) shall not be subject to the requirements
of--
(A) section 36 of the Arms Export Control Act (22 U.S.C.
2776); or
(B) section 8677 of title 10, United States Code.
(3) Certification; briefing.--
(A) Presidential certification.--The President may exercise
the authority provided by paragraph (1) not earlier than 60
days after the date on which the President certifies to the
appropriate congressional committees that any submarine
transferred under such authority shall be used to support the
joint security interests and military operations of the
United States and Australia.
(B) Waiver of chief of naval operations certification.--The
requirement for the Chief of Naval Operations to make a
certification under section 8678 of title 10, United States
Code, shall not apply to a transfer under paragraph (1).
(C) Briefing.--Not later than 90 days before the sale of
any submarine under paragraph (1), the Secretary of the Navy
shall provide to the appropriate congressional committees a
briefing on--
(i) the impacts of such sale to the readiness of the
submarine fleet of the United States, including with respect
to maintenance timelines, deployment-to-dwell ratios,
training, exercise participation, and the ability to meet
combatant commander requirements;
(ii) the impacts of such sale to the submarine industrial
base of the United States, including with respect to
projected maintenance requirements, acquisition timelines for
spare and replacement parts, and future procurement of
Virginia class submarines for the submarine fleet of the
United States; and
(iii) other relevant topics as determined by the Secretary
of the Navy.
(4) Required mutual defense agreement.--Before any transfer
occurs under subsection (a), the United States and Australia
shall have a mutual defense agreement in place, which shall--
(A) provide a clear legal framework for the sole purpose of
Australia's acquisition of conventionally armed, nuclear-
powered submarines; and

[[Page S3413]]

(B) meet the highest nonproliferation standards for the
exchange of nuclear materials, technology, equipment, and
information between the United States and Australia.
(5) Subsequent sales.--A sale of a Virginia class submarine
that occurs after the sales described in paragraph (1) may
occur only if such sale is explicitly authorized in
legislation enacted after the date of the enactment of this
Act.
(6) Costs of transfer.--Any expense incurred by the United
States in connection with a transfer under paragraph (1)
shall be charged to the Government of Australia.
(7) Crediting of receipts.--Notwithstanding any provision
of law pertaining to the crediting of amounts received from a
sale under section 21 of the Arms Export Control Act (22
U.S.C. 2761), any funds received by the United States
pursuant to a transfer under paragraph (1) shall--
(A) be credited, at the discretion of the President, to--
(i) the fund or account used in incurring the original
obligation for the acquisition of submarines transferred
under paragraph (1);
(ii) an appropriate fund or account available for the
purposes for which the expenditures for the original
acquisition of submarines transferred under paragraph (1)
were made; or
(iii) any other fund or account available for the purpose
specified in paragraph (8)(B); and
(B) remain available for obligation until expended.
(8) Use of funds.--Subject to paragraphs (9) and (10)(A),
the President may use funds received pursuant to a transfer
under paragraph (1)--
(A) for the acquisition of submarines to replace the
submarines transferred to the Government of Australia; or
(B) for improvements to the submarine industrial base of
the United States.
(9) Plan for use of funds.--Before any use of any funds
received pursuant to a transfer under paragraph (1), the
President shall submit to the appropriate congressional
committees a plan detailing how such funds will be used,
including specific amounts and purposes.
(10) Notification and report.--
(A) Achievement.--Not later than 30 days before the date of
the first delivery of a submarine under paragraph (1), the
President shall notify the appropriate congressional
committees that--
(i) Submarine Rotational Forces-West Full Operational
Capability to support 4 rotationally deployed Virginia class
submarines and one Astute class submarine has been achieved,
including the Government of Australia having demonstrated the
domestic capacity to fully perform all the associated
activities necessary for the safe hosting and operation of
nuclear-powered submarines; and
(ii) Australia Sovereign-Ready Initial Operational
Capability to support a Royal Australian Navy Virginia class
submarine has been achieved, including the Government of
Australia having demonstrated the domestic capacity to fully
perform all the associated--

(I) activities necessary for the safe hosting and operation
of nuclear-powered submarines;
(II) crewing;
(III) operations;
(IV) regulatory and emergency procedures, including those
specific to nuclear power plants; and
(V) detailed planning for enduring Virginia class submarine
ownership, including each significant event leading up to and
including nuclear defueling.

(B) Amounts.--Not later than 30 days after the date of any
transfer under paragraph (1), and upon any transfer or
depositing of funds received pursuant to such a transfer, the
President shall notify the appropriate congressional
committees of--
(i) the amount of funds received pursuant to the transfer;
and
(ii) the specific account or fund into which the funds
described in clause (i) are deposited.
(C) Annual report.--Not later than November 30 of each year
until 1 year after the date on which all funds received
pursuant to transfers under paragraph (1) have been fully
expended, the President shall submit to the committees
described in subparagraph (A) a report that includes an
accounting of how funds received pursuant to transfers under
paragraph (1) were used in the fiscal year preceding the
fiscal year in which the report is submitted.
(11) Applicability of existing law to transfer of special
nuclear material and utilization facilities for military
applications.--
(A) In general.--With respect to any special nuclear
material for use in utilization facilities or any portion of
a submarine transferred under paragraph (1) constituting
utilization facilities for military applications under
section 91 of the Atomic Energy Act of 1954 (42 U.S.C. 2121),
transfer of such material or such facilities shall occur only
in accordance with such section 91.
(B) Use of funds.--The President may use proceeds from a
transfer described in subparagraph (A) for the acquisition of
submarine naval nuclear propulsion plants and nuclear fuel to
replace propulsion plants and fuel transferred to the
Government of Australia.
(b) Repair and Refurbishment of AUKUS Submarines.--Section
8680 of title 10, United States Code, is amended--
(1) by redesignating subsection (c) as subsection (d); and
(2) by inserting after subsection (b) the following new
subsection (c):
``(c) Repair and Refurbishment of Certain Submarines.--
``(1) Shipyard.--Notwithstanding any other provision of
this section, and subject to paragraph (2), the President
shall determine the appropriate public or private shipyard in
the United States, Australia, or the United Kingdom to
perform any repair or refurbishment of a United States
submarine involved in submarine security activities between
the United States, Australia, and the United Kingdom.
``(2) Conditions.--
``(A) In general.--The President may determine under
paragraph (1) that repair or refurbishment described in such
paragraph may be performed in Australia or the United Kingdom
only if--
``(i) such repair or refurbishment will facilitate the
development of repair or refurbishment capabilities in the
United Kingdom or Australia;
``(ii) such repair or refurbishment will be for a United
States submarine that is assigned to a port outside of the
United States; or
``(iii) the Secretary of Defense certifies to Congress that
performing such repair or refurbishment at a shipyard in
Australia or the United Kingdom is required due to an exigent
threat to the national security interests of the United
States.
``(B) Consideration.--In making a determination under
subparagraph (A), the President shall consider any effects of
such determination on the capacity and capability of
shipyards in the United States.
``(C) Briefing required.--Not later than 15 days after the
date on which the Secretary of Defense makes a certification
under subparagraph (A)(iii), the Secretary shall brief the
congressional defense committees on--
``(i) the threat that requires the use of a shipyard in
Australia or the United Kingdom; and
``(ii) opportunities to mitigate the future potential need
to leverage foreign shipyards.
``(3) Personnel.--Repair or refurbishment described in
paragraph (1) may be carried out by personnel of the United
States, the United Kingdom, or Australia in accordance with
the international arrangements governing the submarine
security activities described in such paragraph.''.

SEC. 6822. ACCEPTANCE OF CONTRIBUTIONS FOR AUSTRALIA, UNITED
KINGDOM, AND UNITED STATES SUBMARINE SECURITY
ACTIVITIES; AUKUS SUBMARINE SECURITY ACTIVITIES
ACCOUNT.

(a) Acceptance Authority.--The President may accept from
the Government of Australia contributions of money made by
the Government of Australia for use by the Department of
Defense in support of non-nuclear related aspects of
submarine security activities between Australia, the United
Kingdom, and the United States (AUKUS).
(b) Establishment of AUKUS Submarine Security Activities
Account.--
(1) In general.--There is established in the Treasury of
the United States a special account to be known as the
``AUKUS Submarine Security Activities Account''.
(2) Crediting of contributions of money.--Contributions of
money accepted by the President under subsection (a) shall be
credited to the AUKUS Submarine Security Activities Account.
(3) Availability.--Amounts credited to the AUKUS Submarine
Security Activities Account shall remain available until
expended.
(c) Use of AUKUS Submarine Security Activities Account.--
(1) In general.--Subject to paragraph (2), and only after
September 30, 2025, the President may use funds in the AUKUS
Submarine Security Activities Account--
(A) for any purpose authorized by law that the President
determines would support submarine security activities
between Australia, the United Kingdom, and the United States;
(B) to carry out a military construction project related to
the AUKUS partnership that is not otherwise authorized by
law;
(C) to develop and increase the submarine industrial base
workforce by investing in recruiting, training, and retaining
key specialized labor at public and private shipyards; or
(D) to upgrade facilities, equipment, and infrastructure
needed to repair and maintain submarines at public and
private shipyards .
(2) Plan for use of funds.--Before any use of any funds in
the AUKUS Submarine Security Activities Account, the
President shall submit to the appropriate congressional
committees a plan detailing--
(A) the amount of funds in the AUKUS Submarine Security
Activities Account; and
(B) how such funds will be used, including specific amounts
and purposes.
(d) Transfers of Funds.--
(1) In general.--In carrying out subsection (c) and subject
to paragraphs (2) and (5), the President may transfer funds
available in the AUKUS Submarine Security Activities Account
to an account or fund available to the Department of Defense
or any other appropriate agency.
(2) Department of energy.--In carrying out subsection (c),
and in accordance with the Atomic Energy Act of 1954 (42
U.S.C. 2011 et seq.), the President may transfer funds
available in the AUKUS Submarine Security Activities Account
to an account or fund available to the Department of Energy
to

[[Page S3414]]

carry out activities related to submarine security activities
between Australia, the United Kingdom, and the United States.
(3) Availability for obligation.--Funds transferred under
this subsection shall be available for obligation for the
same time period and for the same purpose as the account or
fund to which transferred.
(4) Transfer back to account.--Upon a determination by the
President that all or part of the funds transferred from the
AUKUS Submarine Security Activities Account are not necessary
for the purposes for which such funds were transferred, and
subject to paragraph (5), all or such part of such funds
shall be transferred back to the AUKUS Submarine Security
Activities Account.
(5) Notification and report.--
(A) Notification.--The President shall notify the
appropriate congressional committees of--
(i) before the transfer of any funds under this
subsection--

(I) the amount of funds to be transferred; and
(II) the planned or anticipated purpose of such funds; and

(ii) before the obligation of any funds transferred under
this subsection--

(I) the amount of funds to be obligated; and
(II) the purpose of the obligation.

(B) Annual report.--Not later than November 30 of each year
until 1 year after the date on which all funds transferred
under this subsection have been fully expended, the President
shall submit to the committees described in subparagraph (A)
a report that includes a detailed accounting of--
(i) the amount of funds transferred under this subsection
during the fiscal year preceding the fiscal year in which the
report is submitted; and
(ii) the purposes for which such funds were used.
(e) Investment of Money.--
(1) Authorized investments.--The President may invest money
in the AUKUS Submarine Security Activities Account in
securities of the United States or in securities guaranteed
as to principal and interest by the United States.
(2) Interest and other income.--Any interest or other
income that accrues from investment in securities referred to
in paragraph (1) shall be deposited to the credit of the
AUKUS Submarine Security Activities Account.
(f) Relationship to Other Laws.--The authority to accept or
transfer funds under this section is in addition to any other
authority to accept or transfer funds.

SEC. 6823. AUSTRALIA, UNITED KINGDOM, AND UNITED STATES
SUBMARINE SECURITY TRAINING.

(a) In General.--The President may transfer or export
directly to private individuals in Australia defense services
that may be transferred to the Government of Australia under
the Arms Export Control Act (22 U.S.C. 2751 et seq.) to
support the development of the submarine industrial base of
Australia necessary for submarine security activities between
Australia, the United Kingdom, and the United States,
including if such individuals are not officers, employees, or
agents of the Government of Australia.
(b) Security Controls.--
(1) In general.--Any defense service transferred or
exported under subsection (a) shall be subject to appropriate
security controls to ensure that any sensitive information
conveyed by such transfer or export is protected from
disclosure to persons unauthorized by the United States to
receive such information.
(2) Certification.--Not later than 30 days before the first
transfer or export of a defense service under subsection (a),
and annually thereafter, the President shall certify to the
Committee on Foreign Relations of the Senate and the
Committee on Foreign Affairs of the House of Representatives
that the controls described in paragraph (1) will protect the
information described in such paragraph for the defense
services so transferred or exported.
(c) Application of Requirements for Retransfer and
Reexport.--Any person who receives any defense service
transferred or exported under subsection (a) may retransfer
or reexport such service to other persons only in accordance
with the requirements of the Arms Export Control Act (22
U.S.C. 2751 et seq.).

Subtitle C--Streamlining and Protecting Transfers of United States
Military Technology From Compromise

SEC. 6831. PRIORITY FOR AUSTRALIA AND THE UNITED KINGDOM IN
FOREIGN MILITARY SALES AND DIRECT COMMERCIAL
SALES.

(a) In General.--The President shall institute policies and
procedures for letters of request from Australia and the
United Kingdom to transfer defense articles and services
under section 21 of the Arms Export Control Act (22 U.S.C.
2761) related to AUKUS to receive expedited consideration and
processing relative to all other letters of request other
than from Taiwan and Ukraine.
(b) Technology Transfer Policy for Australia, Canada, and
the United Kingdom.--
(1) In general.--The Secretary, in consultation with the
Secretary of Defense, shall create an anticipatory release
policy for the transfer of technologies described in
paragraph (2) to Australia, the United Kingdom, and Canada
through Foreign Military Sales and Direct Commercial Sales
that are not covered by an exemption under the International
Traffic in Arms Regulations.
(2) Capabilities described.--The capabilities described in
this paragraph are--
(A) Pillar One-related technologies associated with
submarine and associated combat systems; and
(B) Pillar Two-related technologies, including hypersonic
missiles, cyber capabilities, artificial intelligence,
quantum technologies, undersea capabilities, and other
advanced technologies.
(3) Expedited decision-making.--Review of a transfer under
the policy established under paragraph (1) shall be subject
to an expedited decision-making process.
(c) Interagency Policy and Guidance.--The Secretary and the
Secretary of Defense shall jointly review and update
interagency policies and implementation guidance related to
requests for Foreign Military Sales and Direct Commercial
Sales, including by incorporating the anticipatory release
provisions of this section.

SEC. 6832. IDENTIFICATION AND PRE-CLEARANCE OF PLATFORMS,
TECHNOLOGIES, AND EQUIPMENT FOR SALE TO
AUSTRALIA AND THE UNITED KINGDOM THROUGH
FOREIGN MILITARY SALES AND DIRECT COMMERCIAL
SALES.

Not later than 90 days after the date of the enactment of
this Act, and on a biennial basis thereafter for 8 years, the
President shall submit to the Committee on Foreign Relations
of the Senate and the Committee on Foreign Affairs of the
House of Representatives a report that includes a list of
advanced military platforms, technologies, and equipment that
are pre-cleared and prioritized for sale and release to
Australia, the United Kingdom and Canada through the Foreign
Military Sales and Direct Commercial Sales programs without
regard to whether a letter of request or license to purchase
such platforms, technologies, or equipment has been received
from any of such country. Each list may include items that
are not related to the AUKUS partnership but may not include
items that are not covered by an exemption under the
International Traffic in Arms Regulations except unmanned
aerial or hypersonic systems.

SEC. 6833. EXPORT CONTROL EXEMPTIONS AND STANDARDS.

(a) In General.--Section 38 of the Arms Export Control Act
of 1976 (22 U.S.C. 2778) is amended by adding at the end the
following new subsection:
``(l) AUKUS Defense Trade Cooperation.--
``(1) Exemption from licensing and approval requirements.--
Subject to paragraph (2) and notwithstanding any other
provision of this section, the Secretary of State may exempt
from the licensing or other approval requirements of this
section exports and transfers (including reexports,
retransfers, temporary imports, and brokering activities) of
defense articles and defense services between or among the
United States, the United Kingdom, and Australia that--
``(A) are not excluded by those countries;
``(B) are not referred to in subsection(j)(1)(C)(ii); and
``(C) involve only persons or entities that are approved
by--
``(i) the Secretary of State; and
``(ii) the Ministry of Defense, the Ministry of Foreign
Affairs, or other similar authority within those countries.
``(2) Limitation.--The authority provided in subparagraph
(1) shall not apply to any activity, including exports,
transfers, reexports, retransfers, temporary imports, or
brokering, of United States defense articles and defense
services involving any country or a person or entity of any
country other than the United States, the United Kingdom, and
Australia.''.
(b) Required Standards of Export Controls.--The Secretary
may only exercise the authority under subsection (l)(1) of
section 38 of the Arms Export Control Act of 1976, as added
by subsection (a) of this section, with respect to the United
Kingdom or Australia 30 days after the Secretary submits to
the appropriate congressional committees an unclassified
certification and detailed unclassified assessment (which may
include a classified annex) that the country concerned has
implemented standards for a system of export controls that
satisfies the elements of section 38(j)(2) of the Arms Export
Control Act (22 U.S.C. 2778(j)(2)) for United States-origin
defense articles and defense services, and for controlling
the provision of military training, that are comparable to
those standards administered by the United States in effect
on the date of the enactment of this Act.
(c) Certain Requirements Not Applicable.--
(1) In general.--Paragraphs (1), (2), and (3) of section
3(d) of the Arms Export Control Act (22 U.S.C. 2753(d)) shall
not apply to any export or transfer that is the subject of an
exemption under subsection (l)(1) of section 38 of the Arms
Export Control Act of 1976, as added by subsection (a) of
this section.
(2) Quarterly reports.--The Secretary shall--
(A) require all exports and transfers that would be subject
to the requirements of paragraphs (1), (2), and (3) of
section 3(d) of the Arms Export Control Act (22 U.S.C.
2753(d)) but for the application of subsection (l)(1) of
section 38 of the Arms Export Control Act of 1976, as added
by subsection (a) of this section, to be reported to the
Secretary; and
(B) submit such reports to the Committee on Foreign
Relations of the Senate and Committee on Foreign Affairs of
the House of Representatives on a quarterly basis.
(d) Sunset.--Any exemption under subsection (l)(1) of
section 38 of the Arms Export

[[Page S3415]]

Control Act of 1976, as added by subsection (a) of this
section, shall terminate on the date that is 15 years after
the date of the enactment of this Act. The Secretary of State
may renew such exemption for 5 years upon a certification to
the Committee on Foreign Relations of the Senate and the
Committee on Foreign Affairs of the House of Representatives
that such exemption is in the vital national interest of the
United States with a detailed justification for such
certification.
(e) Reports.--
(1) Annual report.--
(A) In general.--Not later than one year after the date of
the enactment of this Act, and annually thereafter until no
exemptions under subsection (l)(1) of section 38 of the Arms
Export Control Act of 1976, as added by subsection (a) of
this section, remain in effect, the Secretary shall submit to
the Committee on Foreign Relations of the Senate and the
Committee on Foreign Affairs of the House of Representatives
a report on the operation of exemptions issued under such
subsection (l)(1), including whether any changes to such
exemptions are likely to be made in the coming year.
(B) Initial report.--The first report submitted under
subparagraph (A) shall also include an assessment of key
recommendations the United States Government has provided to
the Governments of Australia and the United Kingdom to revise
laws, regulations, and policies of such countries that are
required to implement the AUKUS partnership.
(2) Report on expedited review of export licenses for
exports of advanced technologies.--Not later than 180 days
after the date of the enactment of this Act, the Secretary of
State, in coordination with the Secretary of Defense, shall
report on the practical application of a possible ``fast
track'' decision-making process for applications, classified
or unclassified, to export defense articles and defense
services to Australia, the United Kingdom, and Canada.

SEC. 6834. EXPEDITED REVIEW OF EXPORT LICENSES FOR EXPORTS OF
ADVANCED TECHNOLOGIES TO AUSTRALIA, THE UNITED
KINGDOM, AND CANADA.

(a) In General.--Not later than 180 days after the date of
the enactment of this Act, the Secretary, in coordination
with the Secretary of Defense, shall initiate a rulemaking to
establish an expedited decision-making process, classified or
unclassified, for applications to export to Australia, the
United Kingdom, and Canada commercial, advanced-technology
defense articles and defense services that are not covered by
an exemption under the International Traffic in Arms
Regulations.
(b) Eligibility.--To qualify for the expedited decision-
making process described in subsection (a), an application
shall be for an export of defense articles or defense
services that will take place wholly within or between the
physical territory of Australia, Canada, or the United
Kingdom and the United States and with governments or
corporate entities from such countries.
(c) Availability of Expedited Process.--The expedited
decision-making process described in subsection (a) shall be
available for both classified and unclassified items, and the
process must satisfy the following criteria to the extent
practicable:
(1) Any licensing application to export defense articles
and services that is related to a government to government
agreement must be approved, returned, or denied within 30
days of submission.
(2) For all other licensing requests, any review shall be
completed not later than 45 calendar days after the date of
application.

SEC. 6835. UNITED STATES MUNITIONS LIST.

(a) Exemption for the Governments of the United Kingdom and
Australia From Certification and Congressional Notification
Requirements Applicable to Certain Transfers.--Section
38(f)(3) of the Arms Export Control Act (22 U.S.C.
2778(f)(3)) is amended by inserting ``, the United Kingdom,
or Australia'' after ``Canada''.
(b) United States Munitions List Periodic Reviews.--
(1) In general.--The Secretary, acting through authority
delegated by the President to carry out periodic reviews of
items on the United States Munitions List under section 38(f)
of the Arms Export Control Act (22 U.S.C. 2778(f)) and in
coordination with the Secretary of Defense, the Secretary of
Energy, the Secretary of Commerce, and the Director of the
Office of Management and Budget, shall carry out such reviews
not less frequently than every 3 years.
(2) Scope.--The periodic reviews described in paragraph (1)
shall focus on matters including--
(A) interagency resources to address current threats faced
by the United States;
(B) the evolving technological and economic landscape;
(C) the widespread availability of certain technologies and
items on the United States Munitions List; and
(D) risks of misuse of United States-origin defense
articles.
(3) Consultation.--The Department of State may consult with
the Defense Trade Advisory Group (DTAG) and other interested
parties in conducting the periodic review described in
paragraph (1).

Subtitle D--Other AUKUS Matters

SEC. 6841. REPORTING RELATED TO THE AUKUS PARTNERSHIP.

(a) Report on Instruments.--
(1) In general.--Not later than 30 days after the
signature, conclusion, or other finalization of any non-
binding instrument related to the AUKUS partnership, the
President shall submit to the appropriate congressional
committees the text of such instrument.
(2) Non-duplication of efforts; rule of construction.--To
the extent the text of a non-binding instrument is submitted
to the appropriate congressional committees pursuant to
subsection (a), such text does not need to be submitted to
Congress pursuant to section 112b(a)(1)(A)(ii) of title 1,
United States Code, as amended by section 5947 of the James
M. Inhofe National Defense Authorization Act for Fiscal Year
2023 (Public Law 117-263; 136 Stat. 3476). Paragraph (1)
shall not be construed to relieve the executive branch of any
other requirement of section 112b of title 1, United States
Code, as amended so amended, or any other provision of law.
(3) Definitions.--In this section:
(A) In general.--The term ``text'', with respect to a non-
binding instrument, includes--
(i) any annex, appendix, codicil, side agreement, side
letter, or any document of similar purpose or function to the
aforementioned, regardless of the title of the document, that
is entered into contemporaneously and in conjunction with the
non-binding instrument; and
(ii) any implementing agreement or arrangement, or any
document of similar purpose or function to the
aforementioned, regardless of the title of the document, that
is entered into contemporaneously and in conjunction with the
non-binding instrument.
(B) Contemporaneously and in conjunction with.--As used in
subparagraph (A), the term ``contemporaneously and in
conjunction with''--
(i) shall be construed liberally; and
(ii) may not be interpreted to require any action to have
occurred simultaneously or on the same day.
(b) Report on AUKUS Partnership.--
(1) In general.--Not later than one year after the date of
the enactment of this Act, and biennially thereafter, the
Secretary, in coordination with the Secretary of Defense and
other appropriate heads of agencies, shall submit to the
appropriate congressional committees a report on the AUKUS
partnership.
(2) Elements.--Each report required under paragraph (1)
shall include the following elements:
(A) Strategy.--
(i) An identification of the defensive military capability
gaps and capacity shortfalls that the AUKUS partnership seeks
to offset.
(ii) An explanation of the total cost to the United States
associated with Pillar One of the AUKUS partnership.
(iii) A detailed explanation of how enhanced access to the
industrial base of Australia is contributing to strengthening
the United States strategic position in Asia.
(iv) A detailed explanation of the military and strategic
benefit provided by the improved access provided by naval
bases of Australia.
(v) A detailed assessment of how Australia's sovereign
conventionally armed nuclear attack submarines contribute to
United States defense and deterrence objectives in the Indo-
Pacific region.
(B) Implement the aukus partnership.--
(i) Progress made on achieving the Optimal Pathway
established for Australia's development of conventionally
armed, nuclear-powered submarines, including the following
elements:

(I) A description of progress made by Australia, the United
Kingdom, and the United States to conclude an Article 14
arrangement with the International Atomic Energy Agency.
(II) A description of the status of efforts of Australia,
the United Kingdom, and the United States to build the
supporting infrastructure to base conventionally armed,
nuclear-powered attack submarines.
(III) Updates on the efforts by Australia, the United
Kingdom, and the United States to train a workforce that can
build, sustain, and operate conventionally armed, nuclear-
powered attack submarines.
(IV) A description of progress in establishing submarine
support facilities capable of hosting rotational forces in
western Australia by 2027.
(V) A description of progress made in improving United
States submarine production capabilities that will enable the
United States to meet--

(aa) its objectives of providing up to five Virginia Class
submarines to Australia by the early to mid-2030's; and
(bb) United States submarine production requirements.
(ii) Progress made on Pillar Two of the AUKUS partnership,
including the following elements:

(I) An assessment of the efforts of Australia, the United
Kingdom, and the United States to enhance collaboration
across the following eight trilateral lines of effort:

(aa) Underseas capabilities.
(bb) Quantum technologies.
(cc) Artificial intelligence and autonomy.
(dd) Advanced cyber capabilities.
(ee) Hypersonic and counter-hypersonic capabilities.
(ff) Electronic warfare.
(gg) Innovation.
(hh) Information sharing.

(II) An assessment of any new lines of effort established.

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