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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 10378 Introduced in House (IH)]

<DOC>

118th CONGRESS
  2d Session
                               H. R. 10378

To establish the Critical Mineral Reserve of the United States, and for 
                            other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                           December 11, 2024

 Mr. Wittman (for himself, Mr. Gimenez, and Mr. Moolenaar) introduced 
  the following bill; which was referred to the Committee on Natural 
 Resources, and in addition to the Committee on Foreign Affairs, for a 
 period to be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the 
                          committee concerned

_______________________________________________________________________

                                 A BILL

 
To establish the Critical Mineral Reserve of the United States, and for 
                            other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Securing Essential and Critical U.S. 
Resources and Elements Minerals Act of 2024'' or ``SECURE Minerals Act 
of 2024''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) Critical minerals and materials are essential to the 
        ongoing economic and national security of the United States, 
        playing a vital role in manufacturing, transportation, medical, 
        technology, defense, and energy sectors. The global demand for 
        critical minerals and materials has been rapidly increasing due 
        to advancements in technology--whether defense, dual-use, or 
        commercial--and the increasing adoption of renewable energy 
        sources and next-generation automative systems, all of which 
        rely heavily on these minerals and materials for the production 
        of batteries, solar panels, wind turbines, high-speed 
        computing, advanced magnetic systems, and other high-tech 
        applications.
            (2) The People's Republic of China currently controls a 
        significant portion of the global supply chain for critical 
        minerals and materials, including rare earth elements, through 
        extensive mining, integrated midstream operations, significant 
        domestic subsidies and incentives, and strategic investments in 
        resource-rich countries. The PRC centrally controls its 
        dominant market share across multiple critical mineral 
        verticals. The PRC predatorily leverages its position as 
        sponsor or consumer, as applicable, over mining projects 
        globally, resulting in a dearth of feedstocks to the great 
        detriment of downstream industries, regions, and countries, 
        including the United States. The PRC's integrated operations, 
        subservient to the Chinese state, are calibrated to weaponize 
        its influence over prices and volumes in the contest for access 
        to critical minerals and materials, as well as the end-use 
        components and applications produced from these minerals and 
        materials. The PRC also acts to undercut efforts in the United 
        States and allied nations to develop alternative sources of 
        supply.
            (3) The United States is heavily reliant on imports for 
        many of the most critical minerals and materials, including 
        rare earth elements, making the nation vulnerable to supply 
        disruptions, geopolitical tensions, and economic manipulation 
        by countries that dominate the market, specifically the PRC. 
        The vulnerabilities to the nation's defense industrial base 
        posed by this reliance cannot be overstated. Given the long 
        lead times in the mining sector as well as the adjacent 
        processing of critical minerals, domestic critical minerals 
        extraction projects are particularly susceptible to China-
        induced price shocks which can depress critical mineral prices 
        for an extended period.
            (4) Increasing domestic primary feedstock production, 
        processing, conversion, recycling, reuse, and repurposing to 
        advanced materials and products, as well as increasing 
        alternative allied supply, is imperative to reduce the impact 
        of market manipulation by foreign state actors, such as the 
        PRC. The United States must ensure that a stable and secure 
        supply chain of these essential resources is available to our 
        domestic innovation and manufacturing ecosystems.
            (5) Sustainable and responsible corporate behavior in 
        companies' operations and across their global value chains is 
        important to ensuring a resilient domestic minerals supply.
            (6) Investments in domestic extraction processing 
        infrastructure, as well as reuse, repurposing, and recycling, 
        are necessary to build a resilient and diversified supply chain 
        for critical minerals and materials, supporting the economic 
        growth and national security interests of the United States.
            (7) Government support to develop and ensure the integrity 
        of Western and allied markets for these critical minerals and 
        materials as a countermeasure against the anti-competitive 
        tactics of the PRC and their supply chain co-collaborators will 
        fill the most acute strategic gap which cannot be otherwise 
        achieved by private industry participants acting alone. To this 
        end, we recommend establishing the ``Critical Mineral Reserve 
        of the United States'', also referred to herein as the Reserve.

SEC. 3. ESTABLISHMENT OF RESERVE.

    (a) Establishment.--
            (1) In general.--There is established a trust with the name 
        ``Critical Mineral Reserve of the United States'', which 
        shall--
                    (A) not be an agency or establishment of the United 
                States Government;
                    (B) manage its assets in the manner set forth in 
                this Act; and
                    (C) be a trust domiciled in the District of 
                Columbia and, to the extent not inconsistent with this 
                Act, be subject to the laws of the District of Columbia 
                applicable to such trusts.
            (2) Purpose.--The purposes of the Reserve are--
                    (A) to support domestic and allied extraction, 
                production, reuse, repurposing, and recycling of and 
                capabilities and infrastructure with respect to 
                critical minerals and materials;
                    (B) to stabilize, support, and protect sustainable 
                prices of critical minerals and materials;
                    (C) to assist in maintaining balanced and adequate 
                supplies of critical minerals and materials to the 
                United States, as determined by the Board;
                    (D) to sustain access to and the supply of critical 
                minerals and materials for the United States and any 
                allied country; and
                    (E) to facilitate the orderly distribution of 
                critical minerals and materials.
            (3) Annual independent audit.--
                    (A) In general.--Not later than 1 year after the 
                date of the enactment of this Act and annually 
                thereafter, an independent qualified public accountant 
                selected by the Board shall audit the financial 
                statements of the Reserve, the results of which shall 
                be made publicly available.
                    (B) Requirements.--Each independent qualified 
                public accountant selected by the Board to perform an 
                audit under subparagraph (A) shall be--
                            (i) certified and licensed by a State board 
                        of accountancy;
                            (ii) independent of the Reserve and each 
                        authorized market maker in accordance with 
                        section 210.2-01 of title 17, Code of Federal 
                        Regulations; and
                            (iii) registered with the Public Company 
                        Accounting and Oversight Board.
            (4) Civil action.--
                    (A) In general.--The Reserve may bring a civil 
                action in any court of competent jurisdiction against 
                any person that--
                            (i) fails to comply with any contractual 
                        obligation or agreement made with the Reserve;
                            (ii) violates any provision of this Act; or
                            (iii) engages in any practice or activity 
                        that unlawfully impairs or interferes with the 
                        operations of the Reserve, including fraud, 
                        misrepresentation, or breach of contract.
                    (B) Award.--In a civil action under this paragraph, 
                the Reserve may seek--
                            (i) economic relief, including compensatory 
                        damages, restitution, interest, costs, and 
                        reasonable attorney's fees;
                            (ii) temporary or permanent injunctive 
                        relief, including specific performance; and
                            (iii) such other equitable relief as a 
                        court determines appropriate.
                    (C) Statute of limitations.--A civil action under 
                this paragraph may not be brought later than 5 years 
                after the date on which the cause of action accrues.
            (5) Initial capitalization.--There is appropriated, out of 
        any amounts in the Treasury not otherwise appropriated, 
        $2,500,000,000 to the Reserve for fiscal year 2025.
    (b) Mandate of Reserve.--
            (1) In general.--The Reserve shall, with respect to each 
        critical mineral and material--
                    (A) support domestic and allied production, 
                including sourcing from domestic and allied reuse, 
                repurposing, and recycling; and
                    (B) to the maximum extent practicable, ensure 
                that--
                            (i) at each stage of the supply chain, the 
                        production rate is equal to or greater than 40 
                        percent; and
                            (ii) at each stage of the supply chain, the 
                        dependence rate is equal to or less than 60 
                        percent; and
                    (C) prioritize--
                            (i) domestic projects and supply chains; 
                        and
                            (ii) projects where the dependence is 100 
                        percent.
            (2) Determination of production rates and dependence 
        rates.--
                    (A) In general.--The Board shall determine the 
                production rate and dependence rate with respect to 
                each critical mineral and material.
                    (B) Use of data.--In determining the production 
                rate and dependence rate with respect to each critical 
                mineral and material under subparagraph (A), the 
                Board--
                            (i) shall use the proprietary dataset 
                        developed under section 5(a)(1);
                            (ii) may use--
                                    (I) the Mineral Commodity Summaries 
                                published by the United States 
                                Geological Service; and
                                    (II) data from any other source the 
                                Board determines to be of value under 
                                similar circumstances, including 
                                commercial data, whether such data is 
                                public or proprietary in nature; and
                            (iii) may solicit private industry for data 
                        and market information.
            (3) Adjustment of production rate and dependence rate.--The 
        Board may annually adjust the production rate and the 
        dependence rate with respect to each critical mineral and 
        material, as initially established under paragraph (2)(A), by 
        not more than 5 percent.
    (c) Review.--The Comptroller General of the United States shall 
carry out a biennial review the Reserve, including a review of--
            (1) the most recent annual report submitted to the Speaker 
        of the House of Representatives and the President of the Senate 
        by the Reserve under section 7;
            (2) the operations and functions of the Reserve as managed 
        by the Board; and
            (3) the performance of the Board in fulfilling the purposes 
        and mandate of the Reserve.
    (d) Identification of Critical Minerals and Materials.--
            (1) In general.--The Reserve, in collaboration with the 
        heads of Federal agencies in accordance with section 5(a)(7), 
        shall establish a list of critical minerals and materials 
        informed by the following:
                    (A) The list of critical minerals published by the 
                United States Geological Survey pursuant to section 
                7002(c) of the Energy Act of 2020 (30 U.S.C. 1606(c)).
                    (B) The list of critical materials published by the 
                Department of Energy pursuant to section 7002(a) of the 
                Energy Act of 2020 (30 U.S.C. 1606(a)).
                    (C) The materials of interest designated as such by 
                the Defense Logistics Agency.
                    (D) Each material with respect to which the 
                President has made a determination under section 
                303(a)(5) of the Defense Production Act of 1950 (50 
                U.S.C. 4533(a)(5)).
                    (E) Each material that is, or in the preceding 5 
                years was, a strategic or critical material for the 
                purposes of the Strategic and Critical Materials Stock 
                Piling Act (50 U.S.C. 98 et seq.) pursuant to a 
                determination by the President under section 3(a) of 
                such Act (50 U.S.C. 98b(a)).
            (2) Requirements.--A mineral or material may only be 
        included in the list of critical minerals and materials 
        established by the Reserve under paragraph (1) if the mineral 
        or material--
                    (A) is a non-fuel mineral or material;
                    (B) is essential to the economic and national 
                security of the United States;
                    (C) has a high-risk supply chain; and
                    (D) is necessary--
                            (i) for the national defense and national 
                        security requirements;
                            (ii) for the energy infrastructure of the 
                        United States, including--
                                    (I) pipelines;
                                    (II) refining capacity;
                                    (III) electrical power generation 
                                and transmission; and
                                    (IV) renewable energy production;
                            (iii) to support domestic manufacturing, 
                        agriculture, housing, telecommunications, 
                        healthcare, or transportation infrastructure; 
                        or
                            (iv) for the economic security of, and 
                        balance of trade in, the United States.
            (3) Exclusions.--A mineral or material may not be included 
        in the list of critical minerals and materials established by 
        the Reserve under paragraph (1) if the mineral or material is--
                    (A) oil, oil shale, natural gas, coal, or uranium;
                    (B) water, ice, or snow; or
                    (C) a common variety of sand, gravel, stone, 
                pumice, cinders, or clay.
            (4) Annual update.--The Reserve shall publish and annually 
        update the list of critical minerals and materials established 
        under paragraph (1).
    (e) Sunset.--The Reserve shall terminate on the date that is 10 
years after the date of the enactment of this Act.

SEC. 4. BOARD OF GOVERNORS OF RESERVE.

    (a) Membership.--
            (1) Appointment.--
                    (A) In general.--Except as provided in paragraph 
                (3)(D), the Board of Governors of the Reserve shall be 
                composed of 7 members appointed by the President, by 
                and with the advice and consent of the Senate.
                    (B) Initial appointments.--Not later than 180 days 
                after the date of the enactment of this Act, the 
                President shall appoint each of the 7 members of the 
                Board, including the Chairman, and the Board shall 
                elect a Vice-Chairman from the members of the Board.
            (2) Qualifications.--To be eligible to be appointed as a 
        member of the Board under paragraph (1), an individual--
                    (A) shall have substantial experience, training, 
                and expertise in--
                            (i) the business and industry of a mineral 
                        or material described in section 3(d)(1); and
                            (ii) the oversight, management, or 
                        administration of financial instruments; and
                    (B) may not--
                            (i) have a direct or indirect financial 
                        interest in an authorized market maker or at-
                        risk CMM; or
                            (ii) be closely related to someone with a 
                        direct financial interest in an authorized 
                        market maker or at-risk CMM.
            (3) Terms.--
                    (A) Chairman.--
                            (i) In general.--An individual who is 
                        appointed as the Chairman under paragraph (1) 
                        shall serve for a single 5-year term.
                            (ii) Restriction.--An individual who is 
                        appointed to serve a term as the Chairman of 
                        the Board under paragraph (1) may not serve any 
                        additional term on the Board after such term 
                        ends.
                    (B) Vice-chairman.--
                            (i) In general.--The Board shall elect a 
                        Vice-Chairman from the members of the Board who 
                        are not the Chairman for a single 2-year term.
                            (ii) Completion of term.--An individual who 
                        is appointed to serve a term as the Vice-
                        Chairman under clause (i) shall, after such 
                        term ends, serve as a member of the Board for 
                        the remainder of the term of such individual in 
                        accordance with subparagraph (C).
                            (iii) Substitute.--The Vice-Chairman, 
                        subject to the supervision of the Board, shall 
                        serve as Interim Chairman in the absence of the 
                        Chairman.
                    (C) Other board members.--
                            (i) In general.--Each member of the Board 
                        who is not the Chairman shall be appointed to a 
                        staggered single 6-year term.
                            (ii) Restriction.--An individual who is 
                        appointed to serve a term as a member of the 
                        Board may only serve an additional term on the 
                        Board if the individual is appointed to serve 
                        as Chairman, regardless of whether the 
                        individual completes the term to which the 
                        individual is initially appointed.
                            (iii) Term length cap.--An individual may 
                        not serve on the Board for more than 6 years 
                        except in accordance with subparagraph (E)(i).
                    (D) Vacancies.--Not later than 6 months after the 
                date on which a vacancy occurs on the Board, the 
                President, by and with the advice and consent of the 
                Senate, shall appoint a new member of the Board to fill 
                such vacancy.
                    (E) Completion of term.--
                            (i) In general.--Upon the expiration of the 
                        term of a member of the Board, such member 
                        shall continue to serve as a member of the 
                        Board until the successor to such member is 
                        appointed and is confirmed.
                            (ii) Replacement order.--Successors to 
                        members of the Board shall be appointed and 
                        confirmed in the order in which the members of 
                        the Board were appointed and confirmed.
            (4) Tribal representation.--At least 1 member of the Board 
        shall be a member of a Tribe.
    (b) Compensation.--
            (1) In general.--No individual who is a member of the Board 
        may engage in any business, vocation, or employment other than 
        that of serving as a member of the Board while such individual 
        is a member of the Board.
            (2) Rate of pay.--The rate of basic pay for--
                    (A) the Chairman shall be equal to the rate of 
                basic pay payable for level I of the Executive 
                Schedule; and
                    (B) each member of the Board other than the 
                Chairman may be set and adjusted by the Chairman.
            (4) Benefits.--The Chairman may provide additional 
        compensation and benefits to employees of the Board in the same 
        manner as compensation and benefits are provided under section 
        4802 of title 5, United States Code.
    (c) Duties.--The Board shall--
            (1) manage the lending authority, contracts, operations, 
        due diligence, and duties of the Reserve;
            (2) oversee all authorized market makers and at-risk CMMs 
        under this Act; and
            (3) determine and prescribe the manner in which--
                    (A) the obligations of the Reserve shall be 
                incurred; and
                    (B) the disbursements and expenses of the Reserve 
                shall be allowed and paid.
    (d) Meetings.--
            (1) In general.--The Chairman of the Board, the Vice-
        Chairman, acting as Interim Chairman in the absence of the 
        Chairman in accordance with subsection (a)(3)(B)(iii), or a 
        Chairman pro tempore elected by the members of the Board 
        present at the meeting, in the absence of the Chairman and the 
        Vice-Chairman, shall preside at each meeting of the Board.
            (2) Quorum.--4 of the members of the Board shall constitute 
        a quorum.
            (3) Closed meetings.--The Board may close any meeting, or 
        portion thereof, that concerns matters or information that 
        pertains to national security.
            (4) Minutes.--Unless closed in accordance with paragraph 
        (3), the minutes of each meeting of the Board shall be made 
        publicly available.
    (e) Restriction on Employment.--
            (1) In general.--During the period beginning on the date on 
        which the term of a member of the Board begins and ending on 
        the date that is 2 years after the date on which the term of 
        such member ends, such member may not hold any ownership, 
        office, position, including an advisory or consultant position, 
        or other employment in or with an authorized market maker or 
        with respect to an at-risk CMM.
            (2) Opportunity to cure violation.--
                    (A) In general.--If the Comptroller General of the 
                United States finds that an individual described in 
                paragraph (1) is in violation of that paragraph, such 
                individual shall cure such violation not later than 30 
                days after the date on which such violation is found.
                    (B) Requirements to cure.--To cure a violation of 
                paragraph (1) as required under subparagraph (A), an 
                individual shall, at a minimum--
                            (i) renounce any pecuniary gain associated 
                        with such violation; and
                            (ii) terminate each relationship that is 
                        the subject of such violation.
            (3) Penalty for uncured violation.--If the Comptroller 
        General of the United States finds that an individual described 
        in paragraph (1) is in violation of that paragraph and such 
        individual does not cure such violation in accordance with 
        paragraph (2) by the date described in subparagraph (A) of that 
        paragraph or, as applicable, established by the Board under 
        paragraph (4), such individual shall be deemed to have violated 
        section 207(a)(2) of title 18, United States Code, and shall 
        immediately be removed from the Board.
            (4) Extension of cure period.--The Board may extend the 
        time provided under paragraph (2) for an individual described 
        in paragraph (1) to cure a violation of that paragraph.
    (f) Principal Office.--The principal office of the Board shall be 
located in the District of Columbia.

SEC. 5. DUTIES AND AUTHORITIES OF RESERVE.

    (a) In General.--In carrying out the purposes and mandate of the 
Reserve, the Reserve shall carry out the following activities:
            (1) Develop and maintain a proprietary dataset sufficient 
        to ensure the thorough analysis of global critical minerals and 
        materials markets.
            (2) Collect and maintain sufficient datasets, including 
        data comprising global, domestic, and allied markets and, to 
        the extent possible, data derived from individual critical 
        mineral and material projects, to inform and estimate--
                    (A) production, extraction, infrastructure, 
                repurposing, and recycling costs for critical minerals 
                and materials supply chains; and
                    (B) the forecast of supply and demand of critical 
                minerals and materials within domestic and allied 
                markets.
            (3) Collect and maintain--
                    (A) actual transaction price data for critical 
                minerals and materials in the global market, including 
                geographic data; and
                    (B) any other datasets necessary to effectuate such 
                purposes and mandate, including datasets produced by or 
                derivative of datasets produced by the PRC.
            (4) Using the most current data collected under paragraphs 
        (2) and (3)--
                    (A) identify market conditions that require 
                intervention according to such purposes and mandate; 
                and
                    (B) determine specific critical minerals and 
                materials that are at-risk CMMs.
            (5) Provide loans to authorized market makers in accordance 
        with subsection (b).
            (6) Maintain an operational team and organization 
        sufficient to fulfill such mandate.
            (7) Consult with the heads of other Federal agencies, 
        including--
                    (A) the Department of Commerce;
                    (B) the Department of Defense;
                    (C) the Department of Energy;
                    (D) the Department of the Interior;
                    (E) the Department of State;
                    (F) the Department of the Treasury;
                    (G) the Department of Agriculture;
                    (H) the United States Geological Survey; and
                    (I) the Export-Import Bank of the United States.
            (8) To the extent possible, mitigate the risk of loss of 
        capital to United States taxpayers.
            (9) Seek to mobilize private capital that furthers the 
        purposes and mandate of the Reserve.
            (10) Act as a partner to authorized market makers, ensuring 
        they can fulfill their role of attracting private sector 
        resources into the critical minerals and materials market and 
        carrying out the purposes and mandate of the Reserve in the 
        marketplace on an on-going basis.
    (b) Loans to Authorized Market Makers.--
            (1) Loan program authorized.--The Reserve may make loans to 
        authorized market makers to enter into financing and purchasing 
        agreements with producers of at-risk CMMs under which such an 
        authorized market maker shall use the loan funds to--
                    (A) provide to a producer of at-risk CMMs an amount 
                equal to or greater than, with respect to the at-risk 
                CMMs, the difference between the all-in sustaining cost 
                and the prevailing market price of the at-risk CMMs, on 
                the condition that the authorized market maker will 
                receive a mutually-agreed-to percent of the profits 
                when such at-risk CMMs are sold; or
                    (B) agree to purchase the at-risk CMMs produced by 
                the producer at an amount equal to or greater than the 
                all-in sustaining cost.
            (2) Loan conditions.--
                    (A) In general.--In making loans under the 
                paragraph (1), the Reserve shall--
                            (i) for each such loan, specify the at-risk 
                        CMMs for which the loan funds may be used; and
                            (ii) in accordance with this Act, establish 
                        such terms and conditions as the Reserve 
                        determines appropriate.
                    (B) Adjustment of loan terms.--The Reserve and 
                authorized market maker may adjust loan terms under a 
                loan under paragraph (1) if the Reserve and authorized 
                market maker agree to the adjustment.
                    (C) Preferential terms for certain loans.--In 
                making loans under paragraph (1), the Reserve--
                            (i) shall provide preferential loan terms, 
                        which may include an interest rate equal to the 
                        Federal funds rate, to authorized market makers 
                        that will use the loan to enter into financing 
                        and purchasing agreements with producers of at-
                        risk CMMs;
                            (ii) may--
                                    (I) provide preferential loan terms 
                                to authorized market makers that will 
                                use the loan to enter into financing 
                                and purchasing agreements with 
                                producers of at-risk CMMs in allied 
                                countries described in subparagraph 
                                (A), (B), or (C) of section 8(2), in 
                                such manner as the Reserve determines 
                                appropriate; and
                                    (II) consult in with the Federal 
                                agencies specified in subsection (a)(7) 
                                with respect to the loan terms 
                                described in subclause (I); and
                            (iii) shall ensure that, under the terms of 
                        such loans, authorized market makers shall, to 
                        the maximum extent practicable, give priority 
                        to United States suppliers of critical minerals 
                        and preference to the United States supply 
                        chain.
            (3) Proposal solicitation.--To be eligible to receive a 
        loan under paragraph (1), an authorized market maker shall 
        submit to the Reserve an application at such time, in such 
        manner, and containing such information as the Reserve may 
        require, including the proposed financing or purchasing 
        agreements described in such paragraph for which the loan will 
        be used.
            (4) Uncured default.--
                    (A) In general.--If an authorized market maker 
                fails to make a required repayment on a loan under 
                paragraph (1) for a 90-day period, the Reserve--
                            (i) shall--
                                    (I) recoup the amount of such loan 
                                by taking possession of the critical 
                                mineral and material inventories of the 
                                authorized market maker and any other 
                                contractual rights of the authorized 
                                market maker to receive critical 
                                minerals or materials from suppliers; 
                                and
                                    (II) revoke the license of the 
                                authorized market maker under section 
                                6; and
                            (ii) subject to subparagraph (B), may 
                        appoint itself as conservator or receiver of 
                        the authorized market maker.
                    (B) Authorities under conservator or 
                receivership.--If the Reserve appoints itself a 
                conservator or receiver of an authorized market maker 
                under subparagraph (A)(ii), the Reserve shall have the 
                same authorities with respect to the authorized market 
                maker that the Federal Deposit Insurance Corporation 
                has with respect to an institution for which the 
                Corporation has appointed itself as conservator or 
                receiver under the Federal Deposit Insurance Act.
                    (C) Treatment of bankruptcy.--An authorized market 
                maker for which the Reserve has appointed itself a 
                conservator or a receiver may not be placed into 
                bankruptcy under title 11, United States Code, during 
                such conservatorship or receivership and any bankruptcy 
                process under title 11, United States Code, that is in 
                effect when such an appointment occurs shall be 
                terminated.
            (5) Allied co-investment.--
                    (A) In general.--An allied country described in 
                subparagraph (A), (B), or (C) of section 8(2) may, if 
                approved by the Reserve, make capital contributions of 
                at least $100,000,000 to the Reserve for purposes of 
                making loans under paragraph (1).
                    (B) Minimum amount.--The Reserve shall annually 
                adjust the amount in subparagraph (A) by the percentage 
                increase in the Consumer Price Index for all urban 
                consumers published by the Department of Labor.
                    (C) Treatment of capital contributions.--The 
                Reserve--
                            (i) shall maintain separate accounts for 
                        the capital contributions of each allied 
                        country that provides such contributions under 
                        subparagraph (A);
                            (ii) shall not commingle the capital 
                        contributions of any allied country with any 
                        other allied country or the funds of the 
                        Reserve;
                            (iii) may return such capital contributions 
                        to the allied country at any time, without 
                        obligation or penalty, or under such other 
                        terms and conditions as agreed to by the 
                        Reserve and the allied country; and
                            (iv) may not guarantee the repayment of 
                        such capital contributions to an allied 
                        country.
                    (D) Loans made with allied co-investment funds.--
                Loans made under paragraph (1) with capital 
                contributions under subparagraph (A) shall be made in 
                the same manner as loans made under paragraph (1) with 
                funds of the Reserve.
                    (E) International advisory council.--
                            (i) In general.--The Reserve may establish 
                        an International Advisory Council of Allies 
                        comprised of--
                                    (I) the Vice-Chairman of the Board, 
                                who shall be the head of the Council; 
                                and
                                    (II) one representative from each 
                                allied country that makes a capital 
                                contribution under subparagraph (A).
                            (ii) Consultation.--The International 
                        Advisory Council shall, at the request of the 
                        Reserve, advise the Reserve on loans made with 
                        capital contributions under subparagraph (A).
            (6) Applicability of federal credit reform act of 1990.--
        Loans made under paragraph (1) shall be subject to the 
        requirements of the Federal Credit Reform Act of 1990 (2 U.S.C. 
        661, et seq.).

SEC. 6. AUTHORIZED MARKET MAKERS.

    (a) In General.--Authorized market makers shall act on critical 
minerals and materials purchase directives issued by the Reserve and 
provide critical minerals and materials market data and insights back 
to the Reserve.
    (b) Licensing of Authorized Market Makers.--
            (1) In general.--The Board shall license authorized market 
        makers in accordance with this section.
            (2) Initial licensing.--Not later than 270 days after the 
        date of the enactment of this Act, the Board shall license not 
        fewer than 5 authorized market makers, of which at least 2 
        shall be small businesses.
            (3) Maximum number of licensed authorized market makers.--
        There may not be more than 5 authorized market makers at a 
        given time.
            (4) Small business requirement.--Not less than 2 of the 
        first 4 authorized market makers licensed under this section 
        shall be small businesses with appropriate experience trading 
        and operating in critical mineral and material markets.
            (5) Duration of license.--
                    (A) In general.--Except as provided for in 
                subparagraph (C), an authorized market maker licensed 
                under this section shall be licensed for 5 years.
                    (B) Renewal.--An authorized market maker may submit 
                to the Board an application for renewal of the license 
                of the authorized market maker.
                    (C) Rescission.--The Board shall have sole 
                authority to revoke the license of an authorized market 
                maker if the Board determines that the authorized 
                market maker--
                            (i) is not eligible to be licensed as an 
                        authorized market maker under subsection (c); 
                        or
                            (ii) is not in compliance with this Act.
    (c) Eligibility; Application.--To be eligible to be licensed as an 
authorized market maker under this section, an entity shall--
            (1) be a private company that is a domestically domiciled 
        corporation;
            (2) submit to the Board an application in such form, at 
        such time, and containing such information as the Board 
        determines appropriate;
            (3) have demonstrated experience and expertise amongst the 
        ownership and active leadership of such private company 
        sufficient to accomplish the authorized market maker role, 
        including--
                    (A) commitment to the national security of the 
                United States;
                    (B) expertise with respect to more than 1 critical 
                mineral or material;
                    (C) expertise with respect to capital management, 
                commodities trading, or finance; and
                    (D) commitment to due diligence; and
            (4) not have any ownership or management influenced by a 
        foreign entity of concern or a citizen of a foreign entity of 
        concern, including any entities affiliated with the private 
        company or the ownership of the private company.
    (d) Clarification of Receipt of Federal Funds.--Whether an 
authorized market maker receives Federal funds pursuant to another 
provision of law shall not be used to determine whether the authorized 
market maker is eligible to receive funds from the Reserve.

SEC. 7. REPORT.

    (a) In General.--The Board shall annually submit to the President, 
the Comptroller General of the United States, the Director of the 
United States Office of Management and Budget, the Speaker of the House 
of Representatives and the President of the Senate, and the Speaker of 
the House of Representatives and the President of the Senate shall 
distribute to Congress, a report regarding the operations of the 
Reserve during the preceding year.
    (b) Contents.--Each report required under subsection (a)--
            (1) shall include--
                    (A) information regarding the administration of the 
                functions of the Board, including recommendations the 
                Board determines appropriate;
                    (B) the assessment of the Board of the extent to 
                which compliance with the requirements of this Act has 
                been achieved;
                    (C) any changes to the maximum number of licensed 
                authorized market makers under section 6(b)(3) that the 
                Board recommends; and
                    (D) a summary of the loans made by the Board to 
                authorized market makers during the preceding year; and
            (2) may not be made publicly available.

SEC. 8. DEFINITIONS.

    In this Act:
            (1) All-in sustaining cost.--The term ``all-in sustaining 
        cost'' means the cost to keep a producer of a critical mineral 
        or material in business, expressed in terms of the cost per 
        unit of payable production that can be readily compared to the 
        relevant commodity price.
            (2) Allied.--The term ``allied'', with respect to the 
        markets or producers of a country, means the market or any 
        producer of--
                    (A) a country with which the United States has 
                entered into a mutual defense treaty or other mutual 
                defense agreement;
                    (B) a country that is recognized by the Secretary 
                of State and the Secretary of Defense as a strategic 
                partner due to an established bilateral agreement that 
                emphasizes mutual interests in security, defense, and 
                critical mineral supply chains, including countries 
                designated under United States strategic frameworks and 
                agreements;
                    (C) a country with which the United States has 
                entered into a comprehensive economic and trade 
                agreement that includes provisions for the 
                collaboration on critical mineral resources and to 
                safeguard supply chains critical to national security 
                and economic stability;
                    (D) a country with which the United States Geologic 
                Survey has a memorandum of understanding concerning 
                scientific and technical cooperation in earth sciences; 
                or
                    (E) a country with which the United States 
                Department of State is working to advance a critical 
                mineral project under a partnership for global 
                infrastructure and investment.
            (3) At-risk cmm.--The term ``at-risk CMM'' means a critical 
        mineral or material that requires, according to the purposes 
        and mandate of the Reserve, support within domestic and allied 
        markets.
            (4) Authorized market maker.--The term ``authorized market 
        maker'' means an entity that is licensed by the Reserve under 
        section 6 to fulfill the purposes and mandate of the Reserve in 
        the marketplace.
            (5) Board.--The term ``Board'' means the Board of Governors 
        of the Reserve.
            (6) Chairman.--The term ``Chairman'' means the Chairman of 
        the Board.
            (7) Covered nation.--The term ``covered nation'' has the 
        meaning given the term in section 2533c(d) of title 10, United 
        States Code.
            (8) Critical mineral and material; critical mineral or 
        material.--The terms ``critical mineral and material'' and 
        ``critical mineral or material'' mean a mineral and material or 
        mineral or material, as applicable, included in the list of 
        critical minerals and materials established by the Reserve 
        under section 3(d).
            (9) Dependence rate.--The term ``dependence rate'' means 
        the portion of domestic end-use consumption of a critical 
        mineral or material that is supplied by production by a foreign 
        entity of concern, in aggregate.
            (10) Due diligence.--The term ``due diligence'' means the 
        degree of attention, continuous directed effort, and timeliness 
        as may reasonably be expected from, and is ordinarily exercised 
        by, a person during a regulatory review period.
            (11) Foreign entity of concern.--The term ``foreign entity 
        of concern'' has the meaning given the term in section 
        40207(a)(5) of the Infrastructure Investment and Jobs Act (42 
        U.S.C. 18741(a)(5)), except that subparagraph (C) of such 
        section shall be applied for purposes of this paragraph as if 
        it read as follows:
                    ``(C)(i) owned, controlled, directed, financed, or 
                otherwise influenced, directly or indirectly, in whole 
                or in any part greater than 25 percent, by the 
                government of a foreign country that is a covered 
                nation (as defined in section 2533c of title 10, United 
                States Code); or
                    ``(ii) otherwise subject to the jurisdiction or 
                direction of a government of a foreign country that is 
                a covered nation.''.
            (12) PRC.--The term ``PRC'' means the People's Republic of 
        China.
            (13) Production rate.--The term ``production rate'' means 
        the portion of domestic end-use consumption of a critical 
        mineral or material that is supplied by domestic and allied 
        production, in aggregate.
            (14) Purposes and mandate of the reserve.--The term 
        ``purposes and mandate of the Reserve'' means the purposes of 
        the Reserve described in section 3(a)(2) and the mandate of the 
        Reserve described in section 3(b)(1).
            (15) Recycling.--The term ``recycling'' means an action or 
        process to convert a critical mineral or material contained 
        within a finished or semi-finished product into a form suitable 
        for repurposing or reuse of such critical mineral or material.
            (16) Repurposing.--The term ``repurposing'' means any 
        operation that results, in whole or in part, in a critical 
        mineral or material being used for a different purpose or 
        application than the one for which the critical mineral or 
        material, or the product the critical mineral or material is 
        manufactured into, was originally intended.
            (17) Reserve.--The term ``Reserve'' means the Critical 
        Mineral Reserve of the United States established by section 
        3(a).
            (18) Reuse.--The term ``reuse'' means the complete or 
        partial direct reuse of a critical mineral or material for the 
        original purpose for which it was intended.
            (19) Small business.--The term ``small business'' has the 
        meaning given the term ``small business concern'' under section 
        3 of the Small Business Act (15 U.S.C. 632).
            (20) Tribe.--The term ``Tribe'' has the meaning given the 
        term ``Indian Tribe'' in section 4(e) of the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 5304(e)).
            (21) Vice-chairman.--The term ``Vice-Chairman'' means the 
        Vice-Chairman of the Board.
                                 <all>
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