II 

116TH CONGRESS 

2D SESSION S. 4324 

To facilitate the availability, development, and production of domestic resources to meet national personal protective equipment and material 

needs, and ensure American leadership in advanced research and development and semiconductor manufacturing. 

IN THE SENATE OF THE UNITED STATES 

JULY 27, 2020 

Mr. GRAHAM (for himself, Mr. BURR, and Mr. DAINES) introduced the 

following bill; which was read twice and referred to the Committee on Finance 

A BILL 

To facilitate the availability, development, and production 

of domestic resources to meet national personal protective equipment and material needs, and ensure American 

leadership in advanced research and development and 

semiconductor manufacturing. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Restoring Critical Supply Chains and Intellectual Prop6 erty Act’’. 


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1 (b) TABLE OF CONTENTS.—The table of contents is 

2 as follows: 

Sec. 1. Short title; table of contents. 

TITLE I—U.S. MADE ACT 

Sec. 101. Short title. 

Sec. 102. Domestic purchasing requirement for personal protective equipment 

acquisitions for the Strategic National Stockpile. 

Sec. 103. Investment credit for qualifying medical personal protective equipment manufacturing projects. 

Sec. 104. Special rules for transfers of intangible property relating to medical 

personal protective equipment to United States shareholders. 

TITLE II—SAFEGUARDING AMERICAN INNOVATION 

Sec. 201. Short title. 

Sec. 202. Definitions. 

Sec. 203. Federal Research Security Council. 

Sec. 204. Federal grant application fraud. 

Sec. 205. Restricting the acquisition of goods, technologies, and sensitive information to certain aliens. 

Sec. 206. Limitations on educational and cultural exchange programs. 

Sec. 207. Amendments to disclosures of foreign gifts. 

TITLE III—CHIPS FOR AMERICA ACT (CREATING HELPFUL 

INCENTIVES TO PRODUCE SEMICONDUCTORS FOR AMERICA) 

Sec. 301. Semiconductor incentive grants. 

Sec. 302. Department of Defense. 

Sec. 303. Department of Commerce study on status of microelectronics technologies in the United States industrial base. 

Sec. 304. Funding for development and adoption of measurably secure microelectronics and measurably secure microelectronics supply 

chains. 

Sec. 305. Advanced semiconductor research and design. 

Sec. 306. Prohibition relating to foreign adversaries. 

TITLE IV—CRITICAL MINERALS 

Sec. 401. Mineral security. 

Sec. 402. Rare earth element advanced coal technologies. 

3 TITLE I—U.S. MADE ACT 

4 SEC. 101. SHORT TITLE. 

5 This title may be cited as the ‘‘United States Manu6 facturing Availability of Domestic Equipment Act’’ or the 

7 ‘‘U.S. MADE Act of 2020’’. 


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1 SEC. 102. DOMESTIC PURCHASING REQUIREMENT FOR 

2 PERSONAL PROTECTIVE EQUIPMENT ACQUI3 SITIONS FOR THE STRATEGIC NATIONAL 

4 STOCKPILE. 

5 Section 319F–2(a) of the Public Health Service Act 

6 (42 U.S.C. 247d–6b(a)) is amended by adding at the end 

7 the following: 

8 ‘‘(6) DOMESTIC PROCUREMENT REQUIREMENT

9 FOR PERSONAL PROTECTIVE EQUIPMENT.— 

10 ‘‘(A) REQUIREMENT.—Except as provided 

11 in subparagraphs (C) and (D), funds appro12 priated or otherwise available to the Secretary 

13 for the Strategic National Stockpile may not be 

14 used for the procurement of an item described 

15 in subparagraph (B) unless the item was 

16 grown, reprocessed, reused, or produced in the 

17 United States. 

18 ‘‘(B) COVERED ITEMS.—An item described 

19 in this subparagraph is an article or item of— 

20 ‘‘(i) personal protective equipment 

21 and clothing (and the materials and com22 ponents thereof), other than sensors, elec23 tronics, or other items added to, and not 

24 normally associated with, such personal 

25 protective equipment; 


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1 ‘‘(ii) sanitizing supplies and ancillary 

2 medical supplies such as disinfecting wipes, 

3 privacy curtains, beds and bedding, testing 

4 swabs, gauze and bandages, tents, tarpau5 lins, covers, or bags; or 

6 ‘‘(iii) any other textile medical sup7 plies and textile equipment described in 

8 paragraph (1). 

9 ‘‘(C) AVAILABILITY EXCEPTION.—Sub10 paragraph (A) shall not apply to an item de11 scribed in subparagraph (B)— 

12 ‘‘(i) that is, or that includes, a mate13 rial listed in section 25.104 of the Federal 

14 Acquisition Regulation as one for which a 

15 non-availability determination has been 

16 made; 

17 ‘‘(ii) as to which the Secretary deter18 mines that a sufficient quantity of a satis19 factory quality of such item that is grown, 

20 reprocessed, reused, or produced in the 

21 United States cannot be procured as, and 

22 when, needed; or 

23 ‘‘(iii) if, after maximizing to the ex24 tent feasible sources consistent with sub25 paragraph (A), the Secretary certifies 


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1 every 90 days that it is necessary to pro2 cure products under this paragraph under 

3 expedited procedures to respond to the im4 mediate needs of a public health emergency 

5 pursuant to section 319. 

6 ‘‘(D) EXCEPTION FOR SMALL PROCURE7 MENTS.—Subparagraph (A) shall not apply to 

8 procurements for amounts that do not exceed 

9 $150,000. A proposed procurement for an 

10 amount in excess of $150,000 may not be di11 vided into several procurements or contracts for 

12 lesser amounts in order to qualify for the excep13 tion under this subparagraph. 

14 ‘‘(E) CONSULTATION.—The Secretary shall 

15 consult with the United States Trade Rep16 resentative on a matter under this subsection 

17 that concerns an obligation of the United States 

18 under any international trade agreement. 

19 ‘‘(F) NOTIFICATION REQUIRED WITHIN 7

20 DAYS AFTER PROCUREMENT CONTRACT AWARD

21 IF CERTAIN EXCEPTIONS APPLIED.—In the case 

22 of any procurement contracts of an item de23 scribed in subparagraph (B), if the Secretary 

24 applies the exception described in subparagraph 

25 (C) with respect to that procurement contract, 


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1 the Secretary shall, not later than 7 days after 

2 the awarding of the procurement contract, post 

3 a notification that the exception has been ap4 plied on the relevant Internet website main5 tained by the General Services Administration, 

6 except for any information that is exempt from 

7 mandatory disclosure under section 552 of title 

8 5, United States Code. 

9 ‘‘(G) TRAINING DURING FISCAL YEAR

10 2021.— 

11 ‘‘(i) IN GENERAL.—The Secretary 

12 shall ensure that each member of the ac13 quisition workforce in the Department of 

14 Health and Human Services who partici15 pates substantially on a regular basis in 

16 procurements related to the maintenance 

17 of the Strategic National Stockpile receives 

18 training during fiscal year 2021 on the re19 quirements of this paragraph. 

20 ‘‘(ii) INCLUSION OF INFORMATION IN

21 NEW TRAINING PROGRAMS.—The Secretary 

22 shall ensure that any training program for 

23 the acquisition workforce, as described in 

24 clause (i), developed or implemented after 

25 fiscal year 2021, includes comprehensive 


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1 information on the requirements described 

2 in subparagraph (A). 

3 ‘‘(H) EFFECTIVE DATE.—The Secretary 

4 shall increase the percentage of contracts by 

5 value entered into for products described in 

6 subparagraph (B) incrementally to 100 percent 

7 as soon as practicable, but in no event later 

8 than the end of the 5-year period beginning on 

9 the date of enactment of this paragraph. The 

10 Secretary shall notify the Committee on Health, 

11 Education, Labor, and Pensions of the Senate 

12 and the Committee on Energy and Commerce 

13 of the House of Representatives within 60 days 

14 of such date of enactment regarding the per15 centage of products described in subparagraph 

16 (B) that meet the requirements of this para17 graph. 

18 ‘‘(I) REPORT.—Not later than 90 days 

19 after the date of enactment of this paragraph, 

20 the Secretary shall submit to the Committee on 

21 Health, Education, Labor, and Pensions of the 

22 Senate and the Committee on Energy and Com23 merce of the House of Representatives a report 

24 assessing the implementation of this paragraph 


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1 and the feasibility of applying the requirements 

2 of this paragraph to— 

3 ‘‘(i) not less than 50 percent of con4 tracts by value entered into for products 

5 described in subparagraph (B) by Sep6 tember 30, 2021; 

7 ‘‘(ii) not less than 75 percent of con8 tracts by value entered into for products 

9 described in subparagraph (B) by March 

10 31, 2022; and 

11 ‘‘(iii) not less than 100 percent of 

12 contracts by value entered into for prod13 ucts described in subparagraph (B) by a 

14 date that is not less than 2 years after the 

15 date of enactment of this paragraph.’’. 

16 SEC. 103. INVESTMENT CREDIT FOR QUALIFYING MEDICAL 

17 PERSONAL PROTECTIVE EQUIPMENT MANU18 FACTURING PROJECTS. 

19 (a) IN GENERAL.—Subpart E of part IV of sub20 chapter A of chapter 1 of the Internal Revenue Code of 

21 1986 is amended by inserting after section 48C the fol22 lowing new section: 


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1 ‘‘SEC. 48D. QUALIFYING MEDICAL PERSONAL PROTECTIVE 

2 EQUIPMENT MANUFACTURING PROJECT 

3 CREDIT. 

4 ‘‘(a) IN GENERAL.—For purposes of section 46, the 

5 qualifying medical personal protective equipment manu6 facturing project credit for any taxable year is an amount 

7 equal to 30 percent of the qualified investment for such 

8 taxable year with respect to any qualifying medical per9 sonal protective equipment manufacturing project of the 

10 taxpayer. 

11 ‘‘(b) QUALIFIED INVESTMENT.— 

12 ‘‘(1) IN GENERAL.—For purposes of subsection 

13 (a), the qualified investment for any taxable year 

14 is— 

15 ‘‘(A) in the case of any eligible property 

16 placed in service by the taxpayer during such 

17 taxable year, the basis of such property, and 

18 ‘‘(B) in the case of any property previously 

19 placed in service by the taxpayer during any pe20 riod before such taxable year which qualifies as 

21 eligible property for such taxable year, the ad22 justed basis of such property (as determined as 

23 of the beginning of such taxable year). 

24 ‘‘(2) CERTAIN QUALIFIED PROGRESS EXPENDI25 TURES RULES MADE APPLICABLE.—Rules similar to 

26 the rules of subsections (c)(4) and (d) of section 46 


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1 (as in effect on the day before the enactment of the 

2 Revenue Reconciliation Act of 1990) shall apply for 

3 purposes of this section. 

4 ‘‘(3) LIMITATION.—The amount which is treat5 ed as the qualified investment for all taxable years 

6 with respect to any qualifying medical personal pro7 tective equipment manufacturing project shall not 

8 exceed the amount designated by the Secretary as el9 igible for the credit under this section. 

10 ‘‘(c) DEFINITIONS.— 

11 ‘‘(1) QUALIFYING MEDICAL PERSONAL PROTEC12 TIVE EQUIPMENT MANUFACTURING PROJECT.— 

13 ‘‘(A) IN GENERAL.—The term ‘qualifying 

14 medical personal protective equipment manufac15 turing project’ means a project— 

16 ‘‘(i) which re-equips, expands, estab17 lishes, or continues a manufacturing facil18 ity for the production of— 

19 ‘‘(I) any item described in para20 graph (6)(B) of section 319F–2(a) of 

21 the Public Health Service Act (42 

22 U.S.C. 247d–6b(a)), or 

23 ‘‘(II) any textile products for 

24 medical applications which are not de25 scribed in subclause (I), as identified 


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1 by the Secretary, in consultation with 

2 the Secretary of Health and Human 

3 Services, and 

4 ‘‘(ii) any portion of the qualified in5 vestment of which is certified by the Sec6 retary under subsection (d) as eligible for 

7 a credit under this section. 

8 ‘‘(B) EXCEPTION.—Subclause (I) of sub9 paragraph (A)(i) shall not include sensors, elec10 tronics, or other items added to, and not nor11 mally associated with, equipment or clothing de12 scribed in such subclause. 

13 ‘‘(2) ELIGIBLE PROPERTY.—The term ‘eligible 

14 property’ means any property— 

15 ‘‘(A) which is necessary for the production 

16 of property described in paragraph (1)(A)(i), 

17 ‘‘(B) which is— 

18 ‘‘(i) tangible personal property, or 

19 ‘‘(ii) other tangible property (not in20 cluding a building or its structural compo21 nents), but only if such property is used as 

22 an integral part of the manufacturing fa23 cility described in such paragraph, 


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1 ‘‘(C) with respect to which depreciation (or 

2 amortization in lieu of depreciation) is allow3 able, and 

4 ‘‘(D) which is part of a qualifying medical 

5 personal protective equipment manufacturing 

6 project. 

7 ‘‘(d) QUALIFYING MEDICAL PERSONAL PROTECTIVE

8 EQUIPMENT MANUFACTURING PROJECT PROGRAM.— 

9 ‘‘(1) ESTABLISHMENT.— 

10 ‘‘(A) IN GENERAL.—Not later than 90 

11 days after the date of enactment of this section, 

12 the Secretary, in consultation with the Sec13 retary of Health and Human Services, shall es14 tablish a qualifying medical personal protective 

15 equipment manufacturing project program to 

16 consider and award certifications for qualified 

17 investments eligible for credits under this sec18 tion to qualifying medical personal protective 

19 equipment manufacturing project sponsors. 

20 ‘‘(B) LIMITATION.—The total amount of 

21 credits that may be allocated under the pro22 gram shall not exceed $7,500,000,000. 

23 ‘‘(2) CERTIFICATION.— 

24 ‘‘(A) APPLICATION PERIOD.—Each appli25 cant for certification under this paragraph shall 


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1 submit an application (containing such informa2 tion as the Secretary may require) during the 

3 1-year period beginning on the date the Sec4 retary establishes the program under paragraph 

5 (1). 

6 ‘‘(B) TIME TO MEET CRITERIA FOR CER7 TIFICATION.—Each applicant for certification 

8 shall have 1 year from the date of acceptance 

9 by the Secretary of the application during 

10 which to provide to the Secretary evidence that 

11 the requirements of the certification have been 

12 met. 

13 ‘‘(C) PERIOD OF ISSUANCE.—An applicant 

14 which receives a certification shall have 2 years 

15 from the date of issuance of the certification in 

16 order to place the project in service and if such 

17 project is not placed in service by that time pe18 riod, then the certification shall no longer be 

19 valid. 

20 ‘‘(3) SELECTION CRITERIA.—In determining 

21 which qualifying medical personal protective equip22 ment manufacturing projects to certify under this 

23 section, the Secretary shall take into consideration 

24 which projects— 


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1 ‘‘(A) will provide the greatest net increase 

2 in job creation (both direct and indirect) within 

3 the United States (as defined in section 

4 4612(a)(4)) during the credit period, 

5 ‘‘(B) will provide the largest net increase 

6 in the amount of medical personal protective 

7 equipment for which there is the greatest need 

8 for purposes of the Strategic National Stockpile 

9 (as described in section 319F–2(a) of the Pub10 lic Health Service Act (42 U.S.C. 247d–6b(a))), 

11 ‘‘(C) have the greatest potential to help 

12 achieve medical manufacturing independence 

13 for the United States, and 

14 ‘‘(D) have the greatest potential to meet 

15 current demand or sudden surges in demand 

16 for personal protective equipment. 

17 ‘‘(4) REVIEW AND REDISTRIBUTION.— 

18 ‘‘(A) REVIEW.—Not later than 3 years 

19 after the date of enactment of this section, the 

20 Secretary shall review the credits allocated 

21 under this section as of such date. 

22 ‘‘(B) REDISTRIBUTION.—The Secretary 

23 may reallocate credits awarded under this sec24 tion if the Secretary determines that— 


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1 ‘‘(i) there is an insufficient quantity 

2 of qualifying applications for certification 

3 pending at the time of the review, or 

4 ‘‘(ii) any certification made pursuant 

5 to paragraph (2) has been revoked pursu6 ant to paragraph (2)(B) because the 

7 project subject to the certification has been 

8 delayed as a result of third party opposi9 tion or litigation to the proposed project. 

10 ‘‘(C) REALLOCATION.—If the Secretary de11 termines that credits under this section are 

12 available for reallocation pursuant to the re13 quirements set forth in paragraph (2), the Sec14 retary is authorized to conduct an additional 

15 program for applications for certification. 

16 ‘‘(5) DISCLOSURE OF ALLOCATIONS.—The Sec17 retary shall, upon making a certification under this 

18 subsection, publicly disclose the identity of the appli19 cant and the amount of the credit with respect to 

20 such applicant. 

21 ‘‘(e) DENIAL OF DOUBLE BENEFIT.—No credit shall 

22 be allowed under any provision of this chapter with respect 

23 to any amount taken in account in determining the credit 

24 allowed to a taxpayer under this section.’’. 

25 (b) CONFORMING AMENDMENTS.— 


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1 (1) Section 46 of the Internal Revenue Code of 

2 1986 is amended— 

3 (A) by striking ‘‘and’’ at the end of para4 graph (5); 

5 (B) by striking the period at the end of 

6 paragraph (6) and inserting ‘‘, and’’; and 

7 (C) by adding at the end the following: 

8 ‘‘(7) the qualifying medical personal protective 

9 equipment manufacturing project credit.’’. 

10 (2) Section 49(a)(1)(C) of such Code is amend11 ed— 

12 (A) by striking ‘‘and’’ at the end of clause 

13 (iv); 

14 (B) by striking the period at the end of 

15 clause (v) and inserting ‘‘, and’’; and 

16 (C) by adding at the end the following: 

17 ‘‘(vi) the basis of any property which 

18 is part of a qualifying medical personal 

19 protective equipment manufacturing 

20 project under section 48D.’’. 

21 (3) Section 50(a)(2)(E) of such Code is amend22 ed by striking ‘‘or 48C(b)(2)’’ and inserting ‘‘, 

23 48C(b)(2), or 48D(b)(2)’’. 

24 (4) The table of sections for subpart E of part 

25 IV of subchapter A of chapter 1 of such Code is 


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1 amended by inserting after the item relating to sec2 tion 48C the following new item: 

‘‘Sec. 48D. Qualifying medical personal protective equipment manufacturing 

project credit.’’. 

3 (c) TREATMENT UNDER BASE EROSION TAX.—Sec4 tion 59A(b)(1)(B)(ii) of the Internal Revenue Code of 

5 1986 is amended by striking ‘‘plus’’ at the end of sub6 clause (I), by redesignating subclause (II) as subclause 

7 (III), and by inserting after subclause (I) the following 

8 new subclause: 

9 ‘‘(II) the credit allowed under 

10 section 38 for the taxable year which 

11 is properly allocable to the portion of 

12 the investment credit determined 

13 under section 46 that is properly allo14 cable to section 48D(a), plus’’. 

15 (d) EFFECTIVE DATE.—The amendments made by 

16 this section shall apply to projects certified after the date 

17 of enactment of this Act. 

18 SEC. 104. SPECIAL RULES FOR TRANSFERS OF INTANGIBLE 

19 PROPERTY RELATING TO MEDICAL PER20 SONAL PROTECTIVE EQUIPMENT TO UNITED 

21 STATES SHAREHOLDERS. 

22 (a) IN GENERAL.—Subpart F of part III of sub23 chapter N of chapter 1 of the Internal Revenue Code of 


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1 1986 is amended by adding at the end the following new 

2 section: 

3 ‘‘SEC. 966. TRANSFERS OF INTANGIBLE PROPERTY RELAT4 ING TO MEDICAL PERSONAL PROTECTIVE 

5 EQUIPMENT TO UNITED STATES SHARE6 HOLDERS. 

7 ‘‘(a) IN GENERAL.—Except as otherwise provided by 

8 the Secretary, if a controlled foreign corporation holds 

9 qualified intangible property on the date of the enactment 

10 of this section and thereafter distributes such property to 

11 a domestic corporation which is a United States share12 holder with respect to such controlled foreign corpora13 tion— 

14 ‘‘(1) for purposes of part I of subchapter C and 

15 any other provision of this title specified by the Sec16 retary, the fair market value of such property on the 

17 date of such distribution shall be treated as not ex18 ceeding the adjusted basis of such property imme19 diately before such distribution, and 

20 ‘‘(2) if any portion of such distribution is not 

21 a dividend— 

22 ‘‘(A) no gain shall be recognized by such 

23 United States shareholder with respect to such 

24 distribution, and 


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1 ‘‘(B) the adjusted basis of such property in 

2 the hands of such United States shareholder 

3 immediately after such distribution shall be the 

4 adjusted basis of such property in the hands of 

5 such controlled foreign corporation immediately 

6 before such distribution reduced by the amount 

7 (if any) of gain not recognized by reason of 

8 subparagraph (A) (determined after the appli9 cation of paragraph (1)). 

10 ‘‘(b) QUALIFIED INTANGIBLE PROPERTY.—For pur11 poses of this section, the term ‘qualified intangible prop12 erty’ means any property described in section 

13 367(d)(4)(A)— 

14 ‘‘(1) the principal purpose of which is use in 

15 connection with— 

16 ‘‘(A) any eligible property, as defined in 

17 section 48D(c)(2), or 

18 ‘‘(B) any item or product described in sub19 clause (I) or (II) of section 48D(c)(1)(A)(i), or 

20 ‘‘(2) substantially all of the income from which 

21 is derived in connection with any eligible property 

22 (as defined in section 48D(c)(2)) or any item or 

23 product described in paragraph (1)(B). 

24 ‘‘(c) REGULATIONS AND GUIDANCE.—The Secretary 

25 shall prescribe such regulations or other guidance as may 


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1 be necessary to carry out the purposes of this section, in2 cluding to prevent abuse by taxpayers related to distribu3 tions of qualified intangible property.’’. 

4 (b) CONFORMING AMENDMENTS.— 

5 (1) Section 197(f)(2)(B)(i) of the Internal Rev6 enue Code of 1986 is amended by inserting 

7 ‘‘966(a),’’ after ‘‘731,’’. 

8 (2) The table of sections for subpart F of part 

9 III of subchapter N of chapter 1 of such Code is 

10 amended by adding at the end the following new 

11 item: 

‘‘Sec. 966. Transfers of intangible property relating to medical personal protective equipment to United States shareholders.’’. 

12 (c) EFFECTIVE DATE.—The amendments made by 

13 this section shall apply to distributions made on or after 

14 the date of enactment of this Act. 

15 TITLE II—SAFEGUARDING 

16 AMERICAN INNOVATION 

17 SEC. 201. SHORT TITLE. 

18 This title may be cited as the ‘‘Safeguarding Amer19 ican Innovation Act’’. 

20 SEC. 202. DEFINITIONS. 

21 In this title: 

22 (1) FEDERAL SCIENCE AGENCY.—The term 

23 ‘‘Federal science agency’’ means any Federal depart24 ment or agency to which more than $100,000,000 in 


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1 research and development funds were appropriated 

2 for fiscal year 2020. 

3 (2) RESEARCH AND DEVELOPMENT.— 

4 (A) IN GENERAL.—The term ‘‘research 

5 and development’’ means all research activities, 

6 both basic and applied, and all development ac7 tivities. 

8 (B) DEVELOPMENT.—The term ‘‘develop9 ment’’ means experimental development. 

10 (C) EXPERIMENTAL DEVELOPMENT.—The 

11 term ‘‘experimental development’’ means cre12 ative and systematic work, drawing upon knowl13 edge gained from research and practical experi14 ence, which— 

15 (i) is directed toward the production 

16 of new products or processes or improving 

17 existing products or processes; and 

18 (ii) like research, will result in gaining 

19 additional knowledge. 

20 (D) RESEARCH.—The term ‘‘research’’— 

21 (i) means a systematic study directed 

22 toward fuller scientific knowledge or under23 standing of the subject studied; and 


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1 (ii) includes activities involving the 

2 training of individuals in research tech3 niques if such activities— 

4 (I) utilize the same facilities as 

5 other research and development activi6 ties; and 

7 (II) are not included in the in8 struction function. 

9 SEC. 203. FEDERAL RESEARCH SECURITY COUNCIL. 

10 (a) IN GENERAL.—Subtitle V of title 31, United 

11 States Code, is amended by adding at the end the fol12 lowing: 

13 ‘‘CHAPTER 79—FEDERAL RESEARCH 

14 SECURITY COUNCIL 

‘‘Sec. 

‘‘7901. Definitions. 

‘‘7902. Federal Research Security Council establishment and membership. 

‘‘7903. Functions and authorities. 

‘‘7904. Strategic plan. 

‘‘7905. Annual report. 

‘‘7906. Requirements for Executive agencies. 

15 ‘‘§ 7901. Definitions 

16 ‘‘In this chapter: 

17 ‘‘(1) APPROPRIATE CONGRESSIONAL COMMIT18 TEES.—The term ‘appropriate congressional com19 mittees’ means— 

20 ‘‘(A) the Committee on Homeland Security 

21 and Governmental Affairs of the Senate; 


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1 ‘‘(B) the Committee on Commerce, 

2 Science, and Transportation of the Senate; 

3 ‘‘(C) the Select Committee on Intelligence 

4 of the Senate; 

5 ‘‘(D) the Committee on Foreign Relations 

6 of the Senate; 

7 ‘‘(E) the Committee on Armed Services of 

8 the Senate; 

9 ‘‘(F) the Committee on Health, Education, 

10 Labor, and Pensions of the Senate; 

11 ‘‘(G) the Committee on Oversight and Re12 form of the House of Representatives; 

13 ‘‘(H) the Committee on Homeland Security 

14 of the House of Representatives; 

15 ‘‘(I) the Committee on Energy and Com16 merce of the House of Representatives; 

17 ‘‘(J) the Permanent Select Committee on 

18 Intelligence of the House of Representatives; 

19 ‘‘(K) the Committee on Foreign Affairs of 

20 the House of Representatives; 

21 ‘‘(L) the Committee on Armed Services of 

22 the House of Representatives; and 

23 ‘‘(M) the Committee on Education and 

24 Labor of the House of Representatives. 


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1 ‘‘(2) COUNCIL.—The term ‘Council’ means the 

2 Federal Research Security Council established under 

3 section 7902(a). 

4 ‘‘(3) EXECUTIVE AGENCY.—The term ‘Execu5 tive agency’ has the meaning given that term in sec6 tion 105 of title 5. 

7 ‘‘(4) FEDERAL RESEARCH SECURITY RISK.— 

8 The term ‘Federal research security risk’ means the 

9 risk posed by malign state actors and other persons 

10 to the security and integrity of research and develop11 ment conducted using grants awarded by Executive 

12 agencies. 

13 ‘‘(5) INSIDER.—The term ‘insider’ means any 

14 person with authorized access to any United States 

15 Government resource, including personnel, facilities, 

16 information, research, equipment, networks, or sys17 tems. 

18 ‘‘(6) INSIDER THREAT.—The term ‘insider 

19 threat’ means the threat that an insider will use his 

20 or her authorized access (wittingly or unwittingly) to 

21 harm the national and economic security of the 

22 United States or negatively affect the integrity of a 

23 Federal agency’s normal processes, including dam24 aging the United States through espionage, sabo25 tage, unauthorized disclosure of national security inVerDate Sep 11 2014 03:23 Jul 28, 2020 Jkt 099200 PO 00000 Frm 00024 Fmt 6652 Sfmt 6201 E:\BILLS\S4324.IS S4324

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1 formation or non-public information, or through the 

2 loss or degradation of departmental resources, capa3 bilities, and functions. 

4 ‘‘(7) RESEARCH AND DEVELOPMENT.— 

5 ‘‘(A) IN GENERAL.—The term ‘research 

6 and development’ means all research activities, 

7 both basic and applied, and all development ac8 tivities. 

9 ‘‘(B) DEVELOPMENT.—The term ‘develop10 ment’ means experimental development. 

11 ‘‘(C) EXPERIMENTAL DEVELOPMENT.— 

12 The term ‘experimental development’ means 

13 creative and systematic work, drawing upon 

14 knowledge gained from research and practical 

15 experience, which— 

16 ‘‘(i) is directed toward the production 

17 of new products or processes or improving 

18 existing products or processes; and 

19 ‘‘(ii) like research, will result in gain20 ing additional knowledge. 

21 ‘‘(D) RESEARCH.—The term ‘research’— 

22 ‘‘(i) means a systematic study directed 

23 toward fuller scientific knowledge or under24 standing of the subject studied; and 


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1 ‘‘(ii) includes activities involving the 

2 training of individuals in research tech3 niques if such activities— 

4 ‘‘(I) utilize the same facilities as 

5 other research and development activi6 ties; and 

7 ‘‘(II) are not included in the in8 struction function. 

9 ‘‘(8) UNITED STATES RESEARCH COMMU10 NITY.—The term ‘United States research commu11 nity’ means— 

12 ‘‘(A) research and development centers of 

13 Executive agencies; 

14 ‘‘(B) private research and development 

15 centers in the United States, including for-prof16 it and nonprofit research institutes; 

17 ‘‘(C) research and development centers at 

18 institutions of higher education (as defined in 

19 section 101(a) of the Higher Education Act of 

20 1965 (20 U.S.C. 1001(a))); 

21 ‘‘(D) research and development centers of 

22 States, United States territories, Indian tribes, 

23 and municipalities; 


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1 ‘‘(E) government-owned, contractor-oper2 ated United States Government research and 

3 development centers; and 

4 ‘‘(F) any person conducting federally fund5 ed research or receiving Federal research grant 

6 funding. 

7 ‘‘§ 7902. Federal Research Security Council establish8 ment and membership 

9 ‘‘(a) ESTABLISHMENT.—There is established, in the 

10 Office of Management and Budget, a Federal Research 

11 Security Council, which shall develop federally funded re12 search and development grant making policy and manage13 ment guidance to protect the national and economic secu14 rity interests of the United States. 

15 ‘‘(b) MEMBERSHIP.— 

16 ‘‘(1) IN GENERAL.—The following agencies 

17 shall be represented on the Council: 

18 ‘‘(A) The Office of Management and 

19 Budget. 

20 ‘‘(B) The Office of Science and Technology 

21 Policy. 

22 ‘‘(C) The Department of Defense. 

23 ‘‘(D) The Department of Homeland Secu24 rity. 


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1 ‘‘(E) The Office of the Director of Na2 tional Intelligence, including the National Coun3 terintelligence and Security Center. 

4 ‘‘(F) The Department of Justice, including 

5 the Federal Bureau of Investigation. 

6 ‘‘(G) The Department of Energy. 

7 ‘‘(H) The Department of Commerce, in8 cluding the National Institute of Standards and 

9 Technology. 

10 ‘‘(I) The Department of Health and 

11 Human Services, including the National Insti12 tutes of Health. 

13 ‘‘(J) The Department of State. 

14 ‘‘(K) The Department of Transportation. 

15 ‘‘(L) The National Aeronautics and Space 

16 Administration. 

17 ‘‘(M) The National Science Foundation. 

18 ‘‘(N) The Department of Education. 

19 ‘‘(O) The Small Business Administration. 

20 ‘‘(P) The Council of Inspectors General on 

21 Integrity and Efficiency. 

22 ‘‘(Q) Other Executive agencies, as deter23 mined by the Chairperson of the Council. 

24 ‘‘(2) LEAD REPRESENTATIVES.— 


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1 ‘‘(A) DESIGNATION.—Not later than 45 

2 days after the date of the enactment of this 

3 chapter, the head of each agency represented on 

4 the Council shall designate a representative of 

5 that agency as the lead representative of the 

6 agency on the Council. 

7 ‘‘(B) FUNCTIONS.—The lead representa8 tive of an agency designated under subpara9 graph (A) shall ensure that appropriate per10 sonnel, including leadership and subject matter 

11 experts of the agency, are aware of the business 

12 of the Council. 

13 ‘‘(c) CHAIRPERSON.— 

14 ‘‘(1) DESIGNATION.—Not later than 45 days 

15 after the date of the enactment of this chapter, the 

16 Director of the Office of Management and Budget 

17 shall designate a senior-level official from the Office 

18 of Management and Budget to serve as the Chair19 person of the Council. 

20 ‘‘(2) FUNCTIONS.—The Chairperson shall per21 form functions that include— 

22 ‘‘(A) subject to subsection (d), developing 

23 a schedule for meetings of the Council; 


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1 ‘‘(B) designating Executive agencies to be 

2 represented on the Council under subsection 

3 (b)(1)(Q); 

4 ‘‘(C) in consultation with the lead rep5 resentative of each agency represented on the 

6 Council, developing a charter for the Council; 

7 and 

8 ‘‘(D) not later than 7 days after comple9 tion of the charter, submitting the charter to 

10 the appropriate congressional committees. 

11 ‘‘(3) LEAD SCIENCE ADVISOR.—The Director of 

12 the Office of Science and Technology Policy shall be 

13 the lead science advisor to the Chairperson for pur14 poses of this chapter. 

15 ‘‘(4) LEAD SECURITY ADVISOR.—The Director 

16 of the National Counterintelligence and Security 

17 Center shall be the lead security advisor to the 

18 Chairperson for purposes of this chapter. 

19 ‘‘(d) MEETINGS.—The Council shall meet not later 

20 than 60 days after the date of the enactment of this chap21 ter and not less frequently than quarterly thereafter. 

22 ‘‘§ 7903. Functions and authorities 

23 ‘‘(a) IN GENERAL.—The Chairperson of the Council 

24 shall consider the missions and responsibilities of Council 

25 members in determining the lead agencies for Council 


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1 functions. The Council shall perform the following func2 tions: 

3 ‘‘(1) Developing and implementing, across all 

4 Executive agencies that award research and develop5 ment grants, a uniform application process for 

6 grants in accordance with subsection (b). 

7 ‘‘(2) Developing and implementing a uniform 

8 and regular reporting process for identifying persons 

9 participating in federally funded research and devel10 opment or that have access to nonpublic federally 

11 funded information, data, research findings, and re12 search and development grant proposals. 

13 ‘‘(3) Identifying or developing criteria, in ac14 cordance with subsection (c), for sharing and receiv15 ing information with respect to Federal research se16 curity risks in order to mitigate such risks with— 

17 ‘‘(A) members of the United States re18 search community; and 

19 ‘‘(B) other persons participating in feder20 ally funded research and development. 

21 ‘‘(4) Identifying an appropriate Executive agen22 cy— 

23 ‘‘(A) to accept and protect information 

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1 eral entities based on the processes established 

2 under paragraphs (1) and (2); and 

3 ‘‘(B) to facilitate the sharing of informa4 tion received under subparagraph (A) to sup5 port, as necessary and appropriate— 

6 ‘‘(i) oversight of federally funded re7 search and development; 

8 ‘‘(ii) criminal and civil investigations 

9 of misappropriated Federal funds, re10 sources, and information; and 

11 ‘‘(iii) counterintelligence investiga12 tions. 

13 ‘‘(5) Identifying, as appropriate, Executive 

14 agencies to provide— 

15 ‘‘(A) shared services, such as support for 

16 conducting Federal research security risk as17 sessments, activities to mitigate such risks, and 

18 oversight and investigations with respect to 

19 grants awarded by Executive agencies; and 

20 ‘‘(B) common contract solutions to support 

21 enhanced information collection and sharing 

22 and the verification of the identities of persons 

23 participating in federally funded research and 

24 development. 


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1 ‘‘(6) Identifying and issuing guidance, in ac2 cordance with subsection (d) and in coordination 

3 with the National Insider Threat Task Force estab4 lished by Executive Order 13587 (50 U.S.C. 3161 

5 note) for developing and implementing insider threat 

6 programs for Executive agencies to deter, detect, 

7 and mitigate insider threats, including the safe8 guarding of sensitive information from exploitation, 

9 compromise, or other unauthorized disclosure, taking 

10 into account risk levels and the distinct needs, mis11 sions, and systems of each such agency. 

12 ‘‘(7) Identifying and issuing guidance for devel13 oping compliance and oversight programs for Execu14 tive agencies to ensure that research and develop15 ment grant recipients accurately report conflicts of 

16 interest and conflicts of commitment in accordance 

17 with subsection (b)(1). Such programs shall include 

18 an assessment of— 

19 ‘‘(A) a grantee’s support from foreign 

20 sources and affiliations with foreign funding in21 stitutions or laboratories; and 

22 ‘‘(B) the impact of such support and affili23 ations on United States national security and 

24 economic interests. 


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1 ‘‘(8) Assessing and making recommendations 

2 with respect to whether openly sharing certain types 

3 of federally funded research and development is in 

4 the economic and national security interests of the 

5 United States. 

6 ‘‘(9) Identifying and issuing guidance to the 

7 United States research community, and other recipi8 ents of Federal research and development funding, 

9 to ensure that such institutions and recipients adopt 

10 existing best practices to reduce the risk of mis11 appropriation of research data. 

12 ‘‘(10) Identifying and issuing guidance on addi13 tional steps that may be necessary to address Fed14 eral research security risks arising in the course of 

15 Executive agencies providing shared services and 

16 common contract solutions under paragraph (5)(B). 

17 ‘‘(11) Engaging with the United States re18 search community in performing the functions de19 scribed in paragraphs (1), (2), and (3) and with re20 spect to issues relating to Federal research security 

21 risks. 

22 ‘‘(12) Carrying out such other functions, as de23 termined by the Council, that are necessary to re24 duce Federal research security risks. 


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1 ‘‘(b) REQUIREMENTS FOR UNIFORM GRANT APPLI2 CATION PROCESS.—In developing the uniform application 

3 process for Federal research and development grants re4 quired under subsection (a)(1), the Council shall— 

5 ‘‘(1) ensure that the process— 

6 ‘‘(A) requires principal investigators, co7 principal investigators, and senior personnel as8 sociated with the proposed Federal research or 

9 development grant project— 

10 ‘‘(i) to disclose biographical informa11 tion, all affiliations, including any foreign 

12 military, foreign government-related orga13 nizations, and foreign-funded institutions, 

14 and all current and pending support, in15 cluding from foreign institutions, foreign 

16 governments, or foreign laboratories, and 

17 all support received from foreign sources; 

18 and 

19 ‘‘(ii) to certify the accuracy of the re20 quired disclosures under penalty of per21 jury; and 

22 ‘‘(B) uses a machine-readable application 

23 form to assist in identifying fraud and ensuring 

24 the eligibility of applicants; 

25 ‘‘(2) design the process— 


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1 ‘‘(A) to reduce the administrative burden 

2 on persons applying for Federal research and 

3 development funding; and 

4 ‘‘(B) to promote information sharing 

5 across the United States research community, 

6 while safeguarding sensitive information; and 

7 ‘‘(3) complete the process not later than 1 year 

8 after the date of the enactment of the Safeguarding 

9 American Innovation Act. 

10 ‘‘(c) REQUIREMENTS FOR INFORMATION SHARING

11 CRITERIA.—In identifying or developing criteria and pro12 cedures for sharing information with respect to Federal 

13 research security risks under subsection (a)(3), the Coun14 cil shall ensure that such criteria address, at a min15 imum— 

16 ‘‘(1) the information to be shared; 

17 ‘‘(2) the circumstances under which sharing is 

18 mandated or voluntary; 

19 ‘‘(3) the circumstances under which it is appro20 priate for an Executive agency to rely on informa21 tion made available through such sharing in exer22 cising the responsibilities and authorities of the 

23 agency under applicable laws relating to the award 

24 of grants; 


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1 ‘‘(4) the procedures for protecting intellectual 

2 capital that may be present in such information; and 

3 ‘‘(5) appropriate privacy protections for persons 

4 involved in Federal research and development. 

5 ‘‘(d) REQUIREMENTS FOR INSIDER THREAT PRO6 GRAM GUIDANCE.—In identifying or developing guidance 

7 with respect to insider threat programs under subsection 

8 (a)(6), the Council shall ensure that such guidance pro9 vides for, at a minimum— 

10 ‘‘(1) such programs— 

11 ‘‘(A) to deter, detect, and mitigate insider 

12 threats; and 

13 ‘‘(B) to leverage counterintelligence, secu14 rity, information assurance, and other relevant 

15 functions and resources to identify and counter 

16 insider threats; and 

17 ‘‘(2) the development of an integrated capability 

18 to monitor and audit information for the detection 

19 and mitigation of insider threats, including 

20 through— 

21 ‘‘(A) monitoring user activity on computer 

22 networks controlled by Executive agencies; 

23 ‘‘(B) providing employees of Executive 

24 agencies with awareness training with respect 


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1 to insider threats and the responsibilities of em2 ployees to report such threats; 

3 ‘‘(C) gathering information for a central4 ized analysis, reporting, and response capa5 bility; and 

6 ‘‘(D) information sharing to aid in track7 ing the risk individuals may pose while moving 

8 across programs and affiliations; 

9 ‘‘(3) the development and implementation of 

10 policies and procedures under which the insider 

11 threat program of an Executive agency accesses, 

12 shares, and integrates information and data derived 

13 from offices within the agency; 

14 ‘‘(4) the designation of senior officials with au15 thority to provide management, accountability, and 

16 oversight of the insider threat program of an Execu17 tive agency and to make resource recommendations 

18 to the appropriate officials; and 

19 ‘‘(5) such additional guidance as is necessary to 

20 reflect the distinct needs, missions, and systems of 

21 each Executive agency. 

22 ‘‘(e) ISSUANCE OF WARNINGS RELATING TO RISKS

23 AND VULNERABILITIES IN INTERNATIONAL SCIENTIFIC

24 COOPERATION.— 


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1 ‘‘(1) IN GENERAL.—The Council, in conjunction 

2 with the lead security advisor under section 

3 7902(c)(4), shall establish a process for informing 

4 members of the United States research community 

5 and the public, through the issuance of warnings de6 scribed in paragraph (2), of potential risks and 

7 vulnerabilities in international scientific cooperation 

8 that may undermine the integrity and security of the 

9 United States research community or place at risk 

10 any federally funded research and development. 

11 ‘‘(2) CONTENT.—A warning described in this 

12 paragraph shall include, to the extent the Council 

13 considers appropriate, a description of— 

14 ‘‘(A) activities by the national government, 

15 local governments, research institutions, or uni16 versities of a foreign country— 

17 ‘‘(i) to exploit, interfere, or undermine 

18 research and development by the United 

19 States research community; or 

20 ‘‘(ii) to misappropriate scientific 

21 knowledge resulting from federally funded 

22 research and development; 

23 ‘‘(B) efforts by strategic competitors to ex24 ploit the research enterprise of a foreign coun25 try that may place at risk— 


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1 ‘‘(i) the science and technology of that 

2 foreign country; or 

3 ‘‘(ii) federally funded research and de4 velopment; and 

5 ‘‘(C) practices within the research enter6 prise of a foreign country that do not adhere to 

7 the United States scientific values of openness, 

8 transparency, reciprocity, integrity, and merit9 based competition. 

10 ‘‘(f) PROGRAM OFFICE AND COMMITTEES.—The 

11 interagency working group established under section 1746 

12 of the National Defense Authorization Act for Fiscal Year 

13 2020 (Public Law 116–92) shall be a working group under 

14 the Council performing duties authorized under such sec15 tion and as directed by the Council. The Council shall use 

16 any findings or work product, existing or forthcoming, by 

17 such working group. The Council may also establish a pro18 gram office and any committees, working groups, or other 

19 constituent bodies the Council deems appropriate, in its 

20 sole and unreviewable discretion, to carry out its func21 tions. 

22 ‘‘(g) EXCLUSION ORDERS.—To reduce Federal re23 search security risk, the Interagency Suspension and De24 barment Committee shall provide quarterly reports to the 

25 Council that detail— 


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1 ‘‘(1) the number of ongoing investigations by 

2 Council Members related to Federal research secu3 rity that may result, or have resulted, in agency pre4 notice letters, suspensions, proposed debarments, 

5 and debarments; 

6 ‘‘(2) Federal agencies’ performance and compli7 ance with interagency suspensions and debarments; 

8 ‘‘(3) efforts by the Interagency Suspension and 

9 Debarment Committee to mitigate Federal research 

10 security risk; 

11 ‘‘(4) proposals for developing a unified Federal 

12 policy on suspensions and debarments; and 

13 ‘‘(5) other current suspension and debarment 

14 related issues. 

15 ‘‘§ 7904. Strategic plan 

16 ‘‘(a) IN GENERAL.—Not later than 180 days after 

17 the date of the enactment of this chapter, the Council shall 

18 develop a strategic plan for addressing Federal research 

19 security risks and for managing such risks, that in20 cludes— 

21 ‘‘(1) the criteria and processes required under 

22 section 7903(a), including a threshold and require23 ments for sharing relevant information about such 

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1 priate, with other Federal entities, foreign govern2 ments, and non-Federal entities; 

3 ‘‘(2) an identification of existing authorities for 

4 addressing such risks; 

5 ‘‘(3) an identification and promulgation of best 

6 practices and procedures, and an identification of 

7 available resources, for Executive agencies to assess 

8 and mitigate such risks; 

9 ‘‘(4) recommendations for any legislative, regu10 latory, or other policy changes to improve efforts to 

11 address such risks; 

12 ‘‘(5) recommendations for any legislative, regu13 latory, or other policy changes to incentivize the 

14 adoption of best practices for avoiding and miti15 gating Federal research security risks by the United 

16 States research community and key United States 

17 foreign research partners; 

18 ‘‘(6) an evaluation of the effect of implementing 

19 new policies or procedures on existing Federal grant 

20 processes, regulations, and disclosures of conflicts of 

21 interest and conflicts of commitment; 

22 ‘‘(7) a plan for engaging with Executive agen23 cies, the private sector, and other nongovernmental 

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1 mation between Executive agencies, the private sec2 tor, and nongovernmental stakeholders; and 

3 ‘‘(8) a plan for identification, assessment, miti4 gation, and vetting of Federal research security 

5 risks. 

6 ‘‘(b) SUBMISSION TO CONGRESS.—Not later than 7 

7 calendar days after completion of the strategic plan re8 quired by subsection (a), the Chairperson of the Council 

9 shall submit the plan to the appropriate congressional 

10 committees. 

11 ‘‘§ 7905. Annual report 

12 ‘‘Not later than December 15 of each year, the Chair13 person of the Council shall submit a report to the appro14 priate congressional committees that describes— 

15 ‘‘(1) the activities of the Council during the 

16 preceding fiscal year; and 

17 ‘‘(2) the progress made toward implementing 

18 the strategic plan required under section 7904 after 

19 such plan has been submitted to Congress. 

20 ‘‘§ 7906. Requirements for Executive agencies 

21 ‘‘(a) IN GENERAL.—The head of each Executive 

22 agency on the Council shall be responsible for— 

23 ‘‘(1) assessing Federal research security risks 

24 posed by persons participating in federally funded 

25 research and development; 


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1 ‘‘(2) avoiding or mitigating such risks, as ap2 propriate and consistent with the standards, guide3 lines, requirements, and practices identified by the 

4 Council under section 7903(a); 

5 ‘‘(3) prioritizing Federal research security risk 

6 assessments conducted under paragraph (1) based 

7 on the applicability and relevance of the research 

8 and development to the national security and eco9 nomic competitiveness of the United States; and 

10 ‘‘(4) ensuring that all agency initiatives impact11 ing Federally funded research grant making policy 

12 and management to protect the national and eco13 nomic security interests of the United States are in14 tegrated with the activities of the Council. 

15 ‘‘(b) INCLUSIONS.—The responsibility of the head of 

16 an Executive agency for assessing Federal research secu17 rity risk described in subsection (a) includes— 

18 ‘‘(1) developing an overall Federal research se19 curity risk management strategy and implementation 

20 plan and policies and processes to guide and govern 

21 Federal research security risk management activities 

22 by the Executive agency; 

23 ‘‘(2) integrating Federal research security risk 

24 management practices throughout the lifecycle of the 

25 grant programs of the Executive agency; 


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1 ‘‘(3) sharing relevant information with other 

2 Executive agencies, as determined appropriate by 

3 the Council in a manner consistent with section 

4 7903; and 

5 ‘‘(4) reporting on the effectiveness of the Fed6 eral research security risk management strategy of 

7 the Executive agency consistent with guidance issued 

8 by the Office of Management and Budget and the 

9 Council.’’. 

10 (b) CLERICAL AMENDMENT.—The table of chapters 

11 at the beginning of title 31, United States Code, is amend12 ed by inserting after the item relating to chapter 77 the 

13 following new item: 

‘‘79. Federal Research Security Council .................................. 7901.’’. 

14 SEC. 204. FEDERAL GRANT APPLICATION FRAUD. 

15 (a) IN GENERAL.—Chapter 47 of title 18, United 

16 States Code, is amended by adding at the end the fol17 lowing: 

18 ‘‘§ 1041. Federal grant application fraud 

19 ‘‘(a) DEFINITIONS.—In this section: 

20 ‘‘(1) FEDERAL AGENCY.—The term ‘Federal 

21 agency’ has the meaning given the term ‘agency’ in 

22 section 551 of title 5, United States Code. 

23 ‘‘(2) FEDERAL GRANT.—The term ‘Federal 

24 grant’— 


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1 ‘‘(A) means a grant awarded by a Federal 

2 agency; 

3 ‘‘(B) includes a subgrant awarded by a 

4 non-Federal entity to carry out a Federal grant 

5 program; and 

6 ‘‘(C) does not include— 

7 ‘‘(i) direct United States Government 

8 cash assistance to an individual; 

9 ‘‘(ii) a subsidy; 

10 ‘‘(iii) a loan; 

11 ‘‘(iv) a loan guarantee; or 

12 ‘‘(v) insurance. 

13 ‘‘(3) FEDERAL GRANT APPLICATION.—The 

14 term ‘Federal grant application’ means an applica15 tion for a Federal grant. 

16 ‘‘(4) FOREIGN COMPENSATION.—The term ‘for17 eign compensation’ means a title, monetary com18 pensation, access to a laboratory or other resource, 

19 or other benefit received from— 

20 ‘‘(A) a foreign government; 

21 ‘‘(B) a foreign government institution; or 

22 ‘‘(C) a foreign public enterprise. 

23 ‘‘(5) FOREIGN GOVERNMENT.—The term ‘for24 eign government’ includes a person acting or pur25 porting to act on behalf of— 


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1 ‘‘(A) a faction, party, department, agency, 

2 bureau, subnational administrative entity, or 

3 military of a foreign country; or 

4 ‘‘(B) a foreign government or a person 

5 purporting to act as a foreign government, re6 gardless of whether the United States recog7 nizes the government. 

8 ‘‘(6) FOREIGN GOVERNMENT INSTITUTION.— 

9 The term ‘foreign government institution’ means a 

10 foreign entity owned by, subject to the control of, or 

11 subject to regulation by a foreign government. 

12 ‘‘(7) FOREIGN PUBLIC ENTERPRISE.—The term 

13 ‘foreign public enterprise’ means an enterprise over 

14 which a foreign government directly or indirectly ex15 ercises a dominant influence. 

16 ‘‘(8) LAW ENFORCEMENT AGENCY.—The term 

17 ‘law enforcement agency’— 

18 ‘‘(A) means a Federal, State, local, or 

19 Tribal law enforcement agency; and 

20 ‘‘(B) includes— 

21 ‘‘(i) the Office of Inspector General of 

22 an establishment (as defined in section 12 

23 of the Inspector General Act of 1978 (5 

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1 spector General Act of 1978 (5 U.S.C. 

2 App.)); and 

3 ‘‘(ii) the Office of Inspector General, 

4 or similar office, of a State or unit of local 

5 government. 

6 ‘‘(9) OUTSIDE COMPENSATION.—The term ‘out7 side compensation’ means any compensation, re8 source, or support regardless of monetary value 

9 made available to the applicant in support of or re10 lated to any research endeavor, including, but not 

11 limited to, a title, research grant, cooperative agree12 ment, contract, institutional award, access to a lab13 oratory, or other resource, including, but not limited 

14 to, materials, travel compensation, or work incen15 tives. 

16 ‘‘(b) PROHIBITION.—It shall be unlawful for any in17 dividual to knowingly— 

18 ‘‘(1) prepare or submit a Federal grant applica19 tion that fails to disclose the receipt of any outside 

20 compensation, including foreign compensation, by 

21 the individual; 

22 ‘‘(2) forge, counterfeit, or otherwise falsify a 

23 document for the purpose of obtaining a Federal 

24 grant; or 


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1 ‘‘(3) prepare, submit, or assist in the prepara2 tion or submission of a Federal grant application or 

3 document in connection with a Federal grant appli4 cation that— 

5 ‘‘(A) contains a false statement; 

6 ‘‘(B) contains a material misrepresenta7 tion; 

8 ‘‘(C) has no basis in law or fact; or 

9 ‘‘(D) fails to disclose a material fact. 

10 ‘‘(c) EXCEPTION.—Subsection (b) does not apply to 

11 an activity— 

12 ‘‘(1) carried out in connection with a lawfully 

13 authorized investigative, protective, or intelligence 

14 activity of— 

15 ‘‘(A) a law enforcement agency; or 

16 ‘‘(B) a Federal intelligence agency; or 

17 ‘‘(2) authorized under chapter 224. 

18 ‘‘(d) PENALTY.—Any individual who violates sub19 section (b)— 

20 ‘‘(1) shall be fined in accordance with this title, 

21 imprisoned for not more than 5 years, or both; and 

22 ‘‘(2) shall be prohibited from receiving a Fed23 eral grant during the 5-year period beginning on the 

24 date on which a sentence is imposed on the indi25 vidual under paragraph (1).’’. 


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1 (b) CLERICAL AMENDMENT.—The table of sections 

2 for chapter 47 of title 18, United States Code, is amended 

3 by adding at the end the following: 

‘‘1041. Federal grant application fraud.’’. 

4 SEC. 205. RESTRICTING THE ACQUISITION OF GOODS, 

5 TECHNOLOGIES, AND SENSITIVE INFORMA6 TION TO CERTAIN ALIENS. 

7 (a) GROUNDS OF INADMISSIBILITY.—Section 

8 212(a)(3)(A)(i) of the Immigration and Nationality Act 

9 (8 U.S.C. 1182(a)(3)(A)(i)) is amended to read as follows: 

10 ‘‘(i) any activity— 

11 ‘‘(I) to violate any law of the 

12 United States relating to espionage or 

13 sabotage; 

14 ‘‘(II) to violate or evade any law 

15 prohibiting the export from the 

16 United States of goods, technologies, 

17 or sensitive information; or 

18 ‘‘(III) to acquire export-con19 trolled goods, technologies, or sen20 sitive information (notwithstanding 

21 any exclusions for items not normally 

22 subject to export controls) if the Sec23 retary of State has determined that 

24 the acquisition of those goods, tech25 nologies, or sensitive information by a 


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1 category of aliens that includes such 

2 alien would be contrary to an 

3 articulable national security (including 

4 economic security) interest of the 

5 United States;’’. 

6 (b) DETERMINING FACTORS.— 

7 (1) IN GENERAL.—In establishing criteria for 

8 determining whether an alien is included in a cat9 egory of aliens that may be inadmissible under sec10 tion 212(a)(3)(A)(i)(III) of the Immigration and 

11 Nationality Act, as amended by subsection (a), offi12 cials of the Department of State shall— 

13 (A) seek advice and assistance from offi14 cials at the Office of the Director of National 

15 Intelligence, the Office of Science and Tech16 nology Policy, the Department of Health and 

17 Human Services, the Department of Defense, 

18 the Department of Homeland Security, the De19 partment of Energy, the Department of Com20 merce, and other appropriate Federal agencies; 

21 (B) consider factors such as the alien’s 

22 past or likely employment or cooperation with— 

23 (i) foreign military and security re24 lated organizations that are adversarial to 

25 the United States; 


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1 (ii) foreign institutions involved in the 

2 theft of United States research; 

3 (iii) entities involved in export control 

4 violations or the theft of intellectual prop5 erty; and 

6 (iv) a government that seeks to under7 mine the integrity and security of the 

8 United States research community; and 

9 (C) weigh the proportionality of risk for 

10 the factors listed in subparagraph (B). 

11 (2) MACHINE-READABLE DOCUMENTS.—Not 

12 later than 1 year after the date of the enactment of 

13 this Act, the Secretary of State shall— 

14 (A) use a machine-readable visa applica15 tion form; and 

16 (B) make available documents submitted in 

17 support of a visa application in a machine read18 able format to assist in— 

19 (i) identifying fraud; 

20 (ii) conducting lawful law enforcement 

21 activities; and 

22 (iii) determining the eligibility of ap23 plicants for a visa under the Immigration 

24 and Nationality Act (8 U.S.C. 1101 et 

25 seq.). 


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1 (c) REPORTING REQUIREMENT.—Not later than 180 

2 days after the date of the enactment of this Act, and annu3 ally thereafter, the Secretary of State, in coordination with 

4 the Director of National Intelligence, the Director of the 

5 Office of Science and Technology Policy, the Secretary of 

6 Homeland Security, the Secretary of Defense, the Sec7 retary of Energy, the Secretary of Commerce, and the 

8 heads of other appropriate Federal agencies, shall submit 

9 a report to Congress that identifies— 

10 (1) the criteria used to describe the category of 

11 aliens to which such section 212(a)(3)(A)(i)(III) 

12 may apply; and 

13 (2) the number of individuals determined to be 

14 inadmissible under such section 212(a)(3)(A)(i)(III), 

15 including the nationality of each such individual. 

16 (d) CLASSIFICATION OF ANNUAL REPORT.—Each 

17 annual report required under subsection (c) shall be sub18 mitted, to the extent practicable, in an unclassified form, 

19 but may be accompanied by a classified appendix detailing 

20 the criteria used to describe the category of aliens to which 

21 such section 212(a)(3)(A)(i)(III) applies if the Secretary 

22 of State determines that such action— 

23 (1) is in the national security and economic se24 curity interests of the United States; or 


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1 (2) is necessary to further the purposes of this 

2 title. 

3 (e) REPORT.—Not later than 45 days after date of 

4 the enactment of this Act, the Secretary of State shall sub5 mit a report to the Committee on Homeland Security and 

6 Governmental Affairs of the Senate, the Committee on 

7 Commerce, Science, and Transportation of the Senate, the 

8 Select Committee on Intelligence of the Senate, the Com9 mittee on Foreign Relations of the Senate; the Committee 

10 on Oversight and Reform of the House of Representatives, 

11 the Committee on Homeland Security of the House of 

12 Representatives, the Committee on Energy and Commerce 

13 of the House of Representatives, the Permanent Select 

14 Committee on Intelligence of the House of Representa15 tives, and the Committee on Foreign Affairs of the House 

16 of Representatives that— 

17 (1) describes how supplementary documents 

18 provided by a visa applicant in support of a visa ap19 plication are stored and shared by the Department 

20 of State with authorized Federal agencies; 

21 (2) identifies the sections of a visa application 

22 that are machine-readable and the sections that are 

23 not machine-readable; 

24 (3) provides cost estimates, including personnel 

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1 ferent technologies, including optical character rec2 ognition, for— 

3 (A) making every element of a visa appli4 cation, and documents submitted in support of 

5 a visa application, machine-readable; and 

6 (B) ensuring that such system— 

7 (i) protects personally-identifiable in8 formation; and 

9 (ii) permits the sharing of visa infor10 mation with Federal agencies in accord11 ance with existing law; and 

12 (4) includes an estimated timeline for com13 pleting the implementation of subsection (b)(2). 

14 SEC. 206. LIMITATIONS ON EDUCATIONAL AND CULTURAL 

15 EXCHANGE PROGRAMS. 

16 Section 102(b)(5) of the Mutual Educational and 

17 Cultural Exchange Act of 1961 (22 U.S.C. 2452(b)(5)) 

18 is amended by striking the semicolon at the end and in19 serting the following: ‘‘by developing exchange programs 

20 for foreign researchers and scientists, while protecting 

21 technologies regulated by export control laws important to 

22 the national security and economic interests of the United 

23 States, including requiring sponsors— 

24 ‘‘(A) to disclose to the Department of 

25 State whether an exchange visitor, as a primary 


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1 part of his or her exchange program, will have 

2 released to them controlled technology or tech3 nical data regulated by export control laws at 

4 sponsor organizations through research activi5 ties, lectures, course work, sponsor employees, 

6 officers, agents, third parties at which the spon7 sor places the exchange visitor, volunteers, or 

8 other individuals or entities associated with a 

9 sponsor’s administration of the exchange visitor 

10 program; 

11 ‘‘(B) to provide a plan to the Department 

12 of State that establishes appropriate program 

13 safeguards to prevent the unauthorized release 

14 of controlled technology or technical data regu15 lated by export control laws at sponsor organi16 zations or through their employees, officers, 

17 agents, third parties, volunteers, or other indi18 viduals or entities associated with a sponsor’s 

19 administration of the exchange visitor program; 

20 and 

21 ‘‘(C) to demonstrate, to the satisfaction of 

22 the Secretary of State, that programs that will 

23 release controlled technology or technical data 

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1 ceived appropriate authorization from the De2 partment of State, the Department of Com3 merce, other cognizant Federal agency before 

4 the sponsor releases controlled technology or 

5 technical data;’’. 

6 SEC. 207. AMENDMENTS TO DISCLOSURES OF FOREIGN 

7 GIFTS. 

8 Section 117 of the Higher Education Act of 1965 (20 

9 U.S.C. 1011f) is amended— 

10 (1) by amending subsection (a) to read as fol11 lows: 

12 ‘‘(a) DISCLOSURE REPORT.— 

13 ‘‘(1) IN GENERAL.—An institution shall file a 

14 disclosure report with the Secretary not later than 

15 March 31 occurring after— 

16 ‘‘(A) the calendar year in which a foreign 

17 source gains ownership of, or control over, the 

18 institution; or 

19 ‘‘(B) the calendar year in which the insti20 tution receives a gift from, or enters into a con21 tract with, a foreign source, the value of which 

22 is $50,000 or more, considered alone or in com23 bination with all other gifts from or contracts 

24 with that foreign source within a calendar year. 


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1 ‘‘(2) REVISIONS; UPDATES.—The Secretary 

2 shall permit institutions to revise and update disclo3 sure reports previously filed to ensure accuracy, 

4 compliance, and the ability to cure.’’; 

5 (2) by amending subsection (b) to read as fol6 lows: 

7 ‘‘(b) CONTENTS OF REPORT.—Each report to the 

8 Secretary required by this section shall contain the fol9 lowing: 

10 ‘‘(1) For gifts received from or contracts en11 tered into with a foreign source other than a foreign 

12 government, the aggregate dollar amount of such 

13 gifts and contracts attributable to a particular coun14 try and the legal or formal name of the foreign 

15 source. The country to which a gift is attributable 

16 is the country of citizenship, or if unknown, the 

17 principal residence for a foreign source who is a nat18 ural person, and the country of incorporation, or if 

19 unknown, the principal place of business, for a for20 eign source which is a legal entity. 

21 ‘‘(2) For gifts received from or contracts en22 tered into with a foreign government, the aggregate 

23 amount of such gifts and contracts received from 

24 each foreign government. 


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1 ‘‘(3) In the case of an institution which is 

2 owned or controlled by a foreign source, the identity 

3 of the foreign source, the date on which the foreign 

4 source assumed ownership or control, and any 

5 changes in program or structure resulting from the 

6 change in ownership or control. 

7 ‘‘(4) An assurance that the institution will 

8 maintain true copies of gift and contract agreements 

9 subject to the disclosure requirements under this 

10 section for at least the duration of the agreement. 

11 ‘‘(5) An assurance that the institution will 

12 produce true copies of gift and contract agreements 

13 subject to the disclosure requirements under this 

14 section upon request of the Secretary during a com15 pliance audit or other institutional investigation.’’; 

16 (3) by amending subsection (e) to read as fol17 lows: 

18 ‘‘(e) PUBLIC INSPECTION.—Not later than 30 days 

19 after receiving a disclosure report under this section, the 

20 Secretary shall make such report electronically available 

21 to the public for downloading on a searchable database 

22 under which institutions can be individually identified and 

23 compared.’’; 

24 (4) in subsection (f), by adding at the end the 

25 following: 


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1 ‘‘(3) FINES.— 

2 ‘‘(A) IN GENERAL.—The Secretary may 

3 impose a fine on any institution that repeatedly 

4 fails to file a disclosure report for a receipt of 

5 a gift from or contract with a foreign source in 

6 accordance with subsection (a) in an amount 

7 that is not more than 3 times the amount of 

8 the gift or contract with the foreign source. 

9 ‘‘(B) DEFINITION OF REPEATEDLY

10 FAILS.—In this paragraph, the term ‘repeatedly 

11 fails’ means that the institution failed to file a 

12 disclosure report for a receipt of a gift from or 

13 contract with a foreign source in 3 consecutive 

14 years.’’; 

15 (5) by amending subsection (g) to read as fol16 lows: 

17 ‘‘(g) RULEMAKING.— 

18 ‘‘(1) IN GENERAL.—Not later than 1 year after 

19 the date of enactment of the Safeguarding American 

20 Innovation Act, the Secretary shall issue regulations 

21 to carry out this section using the negotiated rule22 making procedure set forth in section 492(b). 

23 ‘‘(2) ELEMENTS.—Regulations issued pursuant 

24 to paragraph (1) shall— 

25 ‘‘(A) incorporate instructions for— 


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1 ‘‘(i) reporting structured gifts and 

2 contracts; and 

3 ‘‘(ii) reporting contracts that balances 

4 the need for transparency, while protecting 

5 the proprietary information of institutes of 

6 higher education; and 

7 ‘‘(B) clarify the definition of ‘subunit’, for 

8 purposes of subsection (i)(4)(C).’’; 

9 (6) by redesignating subsection (h) as sub10 section (i); 

11 (7) by inserting after subsection (g) the fol12 lowing: 

13 ‘‘(h) TREATMENT OF TUITION PAYMENT.—A tuition 

14 and related fees and expenses payment to an institution 

15 by, or a scholarship from, a foreign source made on behalf 

16 of a student enrolled at such institution shall not be con17 sidered a gift from or contract with a foreign source under 

18 this section.’’; and 

19 (8) in subsection (i), as redesignated— 

20 (A) in paragraph (3), by striking ‘‘or prop21 erty’’ and inserting ‘‘, property, human re22 sources, or staff, including staff salaries’’; and 

23 (B) in paragraph (5)(B), by inserting ‘‘in24 stitutes, instructional programs,’’ after ‘‘cen25 ters,’’. 


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1 TITLE III—CHIPS FOR AMERICA 

2 ACT (CREATING HELPFUL IN3 CENTIVES TO PRODUCE SEMI4 CONDUCTORS FOR AMERICA) 

5 SEC. 301. SEMICONDUCTOR INCENTIVE GRANTS. 

6 (a) DEFINITIONS.—In this section— 

7 (1) the term ‘‘appropriate committees of Con8 gress’’ means— 

9 (A) the Select Committee on Intelligence, 

10 the Committee on Commerce, Science, and 

11 Transportation, the Committee on Foreign Re12 lations, the Committee on Armed Services, the 

13 Committee on Appropriations, the Committee 

14 on Banking, Housing, and Urban Affairs, and 

15 the Committee on Homeland Security and Gov16 ernmental Affairs of the Senate; and 

17 (B) the Permanent Select Committee on 

18 Intelligence, the Committee on Energy and 

19 Commerce, the Committee on Foreign Affairs, 

20 the Committee on Armed Services, the Com21 mittee on Science, Space, and Technology, the 

22 Committee on Appropriations, the Committee 

23 on Financial Services, and the Committee on 

24 Homeland Security of the House of Representa25 tives; 


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1 (2) the term ‘‘covered entity’’ means a private 

2 entity, a consortium of private entities, or a consor3 tium of public and private entities with a dem4 onstrated ability to construct, expand, or modernize 

5 a facility relating to the fabrication, assembly, test6 ing, advanced packaging, or advanced research and 

7 development of semiconductors; 

8 (3) the term ‘‘covered incentive’’— 

9 (A) means an incentive offered by a gov10 ernmental entity to a covered entity for the pur11 poses of constructing within the jurisdiction of 

12 the governmental entity, or expanding or mod13 ernizing an existing facility within that jurisdic14 tion, a facility described in paragraph (2); and 

15 (B) includes any tax incentive (such as an 

16 incentive or reduction with respect to employ17 ment or payroll taxes or a tax abatement with 

18 respect to personal or real property), a work19 force-related incentive (including a grant agree20 ment relating to workforce training or voca21 tional education), any concession with respect 

22 to real property, funding for research and devel23 opment with respect to semiconductors, and any 

24 other incentive determined appropriate by the 


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1 Secretary, in consultation with the Secretary of 

2 State; 

3 (4) the term ‘‘foreign adversary’’ means any 

4 foreign government or foreign nongovernment person 

5 that is engaged in a long-term pattern, or is involved 

6 in a serious instance, of conduct that is significantly 

7 adverse to— 

8 (A) the national security of the United 

9 States or an ally of the United States; or 

10 (B) the security and safety of United 

11 States persons; 

12 (5) the term ‘‘governmental entity’’ means a 

13 State or local government; 

14 (6) the term ‘‘Secretary’’ means the Secretary 

15 of Commerce; and 

16 (7) the term ‘‘semiconductor’’ has the meaning 

17 given the term by the Secretary. 

18 (b) GRANT PROGRAM.— 

19 (1) IN GENERAL.—The Secretary shall establish 

20 in the Department of Commerce a program that, in 

21 accordance with the requirements of this section, 

22 provides grants to covered entities. 

23 (2) PROCEDURE.— 

24 (A) IN GENERAL.—A covered entity shall 

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1 scribes the project for which the covered entity 

2 is seeking a grant under this section. 

3 (B) ELIGIBILITY.—In order for a covered 

4 entity to qualify for a grant under this section, 

5 the covered entity shall demonstrate to the Sec6 retary, in the application submitted by the cov7 ered entity under subparagraph (A), that— 

8 (i) the covered entity has a docu9 mented interest in constructing, expanding, 

10 or modernizing a facility described in sub11 section (a)(2); and 

12 (ii) with respect to the project de13 scribed in clause (i), the covered entity 

14 has— 

15 (I) been offered a covered incen16 tive; 

17 (II) made commitments to work18 er and community investment, includ19 ing through— 

20 (aa) training and education 

21 benefits paid by the covered enti22 ty; and 

23 (bb) programs to expand 

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1 nomically disadvantaged individ2 uals; and 

3 (III) secured commitments from 

4 regional educational and training enti5 ties and institutions of higher edu6 cation to provide workforce training, 

7 including programming for training 

8 and job placement of economically dis9 advantaged individuals. 

10 (C) CONSIDERATIONS FOR REVIEW.—With 

11 respect to the review by the Secretary of an ap12 plication submitted by a covered entity under 

13 subparagraph (A)— 

14 (i) the Secretary may not approve the 

15 application unless the Secretary— 

16 (I) confirms that the covered en17 tity has satisfied the eligibility criteria 

18 under subparagraph (B); and 

19 (II) determines that the project 

20 to which the application relates is in 

21 the interest of the United States; and 

22 (ii) the Secretary may consider wheth23 er— 


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1 (I) the covered entity has pre2 viously received a grant made under 

3 this subsection; and 

4 (II) the governmental entity of5 fering the applicable covered incentive 

6 has benefitted from a grant previously 

7 made under this subsection. 

8 (3) AMOUNT.—The amount of a grant made by 

9 the Secretary to a covered entity under this sub10 section shall be in an amount that is not more than 

11 $3,000,000,000. 

12 (4) USE OF FUNDS.—A covered entity that re13 ceives a grant under this subsection may only use 

14 the grant amounts to— 

15 (A) finance the construction, expansion, or 

16 modernization of a facility described in sub17 section (a)(2), as documented in the application 

18 submitted by the covered entity under para19 graph (2)(A), or for similar uses in state of 

20 practice and legacy facilities, as determined 

21 necessary by the Secretary for purposes relating 

22 to the national security and economic competi23 tiveness of the United States; 

24 (B) support workforce development for the 

25 facility described in subparagraph (A); or 


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1 (C) support site development for the facil2 ity described in subparagraph (A). 

3 (5) CLAWBACK.—The Secretary shall recover 

4 the full amount of a grant provided to a covered en5 tity under this subsection if— 

6 (A) as of the date that is 5 years after the 

7 date on which the Secretary makes the grant, 

8 the project to which the grant relates has not 

9 been completed, except that the Secretary may 

10 issue a waiver with respect to the requirement 

11 under this subparagraph if the Secretary deter12 mines that issuing such a waiver is appropriate 

13 and in the interests of the United States; or 

14 (B) during the applicable term with re15 spect to the grant, the covered entity engages 

16 in any joint research or technology licensing ef17 fort— 

18 (i) with the Government of the Peo19 ple’s Republic of China, the Government of 

20 the Russian Federation, the Government of 

21 Iran, the Government of North Korea, or 

22 another foreign adversary; and 

23 (ii) that relates to a sensitive tech24 nology or product, as determined by the 

25 Secretary. 


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1 (c) CONSULTATION AND COORDINATION RE2 QUIRED.—In carrying out the program established under 

3 subsection (b), the Secretary shall consult and coordinate 

4 with the Secretary of State and the Secretary of Defense. 

5 (d) GAO REVIEWS.—The Comptroller General of the 

6 United States shall— 

7 (1) not later than 2 years after the date of en8 actment of this Act, and biennially thereafter until 

9 the date that is 10 years after that date of enact10 ment, conduct a review of the program established 

11 under subsection (b), which shall include, at a min12 imum— 

13 (A) a determination of the number of in14 stances in which grants were provided under 

15 that subsection during the period covered by 

16 the review in violation of a requirement of this 

17 section; 

18 (B) an evaluation of how— 

19 (i) the program is being carried out, 

20 including how recipients of grants are 

21 being selected under the program; and 

22 (ii) other Federal programs are lever23 aged for manufacturing, research, and 

24 training to complement the grants awarded 

25 under the program; and 


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1 (C) a description of the outcomes of 

2 projects supported by grants made under the 

3 program, including a description of— 

4 (i) facilities described in subsection 

5 (a)(2) that were constructed, expanded, or 

6 modernized as a result of grants made 

7 under the program; 

8 (ii) research and development carried 

9 out with grants made under the program; 

10 and 

11 (iii) workforce training programs car12 ried out with grants made under the pro13 gram, including efforts to hire individuals 

14 from disadvantaged populations; and 

15 (2) submit to the appropriate committees of 

16 Congress the results of each review conducted under 

17 paragraph (1). 

18 SEC. 302. DEPARTMENT OF DEFENSE. 

19 (a) DEPARTMENT OF DEFENSE EFFORTS.— 

20 (1) IN GENERAL.—The Secretary of Defense 

21 shall, in consultation with the Secretary of Com22 merce, the Secretary of Homeland Security, and the 

23 Director of National Intelligence, work with the pri24 vate sector through a public-private partnership, in25 cluding by incentivizing the formation of a consorVerDate Sep 11 2014 03:23 Jul 28, 2020 Jkt 099200 PO 00000 Frm 00070 Fmt 6652 Sfmt 6201 E:\BILLS\S4324.IS S4324

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1 tium of United States companies, to ensure the de2 velopment and production of advanced, measurably 

3 secure microelectronics for use by the Department of 

4 Defense, the intelligence community, critical infra5 structure sectors, and other national security appli6 cations. Such work may include providing incentives 

7 for the creation, expansion, or modernization of one 

8 or more commercially competitive and sustainable 

9 microelectronics manufacturing or advanced research 

10 and development facilities. 

11 (2) RISK MITIGATION REQUIREMENTS.—A par12 ticipant in a consortium formed with incentives 

13 under paragraph (1) shall— 

14 (A) have the potential to perform fabrica15 tion, assembly, package, or test functions for 

16 microelectronics deemed critical to national se17 curity as defined by export control regulatory 

18 agencies in consultation with the National Secu19 rity Adviser and the Secretary of Defense; 

20 (B) include management processes to iden21 tify and mitigate supply chain security risks; 

22 and 

23 (C) be able to produce microelectronics 

24 consistent with applicable measurably secure 

25 supply chain and operational security standards 


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1 established under section 224(b) of the Na2 tional Defense Authorization Act for Fiscal 

3 Year 2020 (Public Law 116–92). 

4 (3) NATIONAL SECURITY CONSIDERATIONS.— 

5 The Secretary of Defense and the Director of Na6 tional Intelligence shall select participants for the 

7 consortium formed with incentives under paragraph 

8 (1). In selecting such participants, the Secretary and 

9 the Director may jointly consider whether the 

10 United States companies— 

11 (A) have participated in previous programs 

12 and projects of the Department of Defense, De13 partment of Energy, or the intelligence commu14 nity, including— 

15 (i) the Trusted Integrated Circuit pro16 gram of the Intelligence Advanced Re17 search Projects Activity; 

18 (ii) trusted and assured microelec19 tronics projects, as administered by the 

20 Department of Defense; 

21 (iii) the Electronics Resurgence Initia22 tive (ERI) program of the Defense Ad23 vanced Research Projects Agency; or 


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1 (iv) relevant semiconductor research 

2 programs of Advanced Research Projects 

3 Agency–Energy; 

4 (B) have demonstrated an ongoing com5 mitment to performing contracts for the De6 partment of Defense and the intelligence com7 munity; 

8 (C) are approved by the Defense Counter9 intelligence and Security Agency or the Office 

10 of the Director of National Intelligence as pre11 senting an acceptable security risk, taking into 

12 account supply chain assurance vulnerabilities, 

13 counterintelligence risks, and any risks pre14 sented by companies whose owners are located 

15 outside the United States; and 

16 (D) are evaluated periodically for foreign 

17 ownership, control, or influence by foreign ad18 versaries. 

19 (4) NONTRADITIONAL DEFENSE CONTRACTORS

20 AND COMMERCIAL ENTITIES.—Arrangements en21 tered into to carry out paragraph (1) shall be in 

22 such form as the Secretary of Defense determines 

23 appropriate to encourage industry participation of 

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1 ative agreement, a commercial agreement, the use of 

2 other transaction authority under section 2371 of 

3 title 10, United States Code, or another such ar4 rangement. 

5 (5) DISCHARGE.—The Secretary of Defense 

6 shall carry out paragraph (1) jointly through the Of7 fice of the Under Secretary of Defense for Research 

8 and Engineering and the Office of the Under Sec9 retary of Defense for Acquisition and Sustainment, 

10 or such other component of the Department of De11 fense as the Secretary considers appropriate. 

12 (6) OTHER INITIATIVES.—The Secretary of De13 fense shall dedicate initiatives within the Depart14 ment of Defense to advance radio frequency, mixed 

15 signal, radiation tolerant, and radiation hardened 

16 microelectronics that support national security and 

17 dual-use applications. 

18 (7) REPORTS.— 

19 (A) REPORT BY SECRETARY OF DE20 FENSE.—Not later than 90 days after the date 

21 of the enactment of this Act, the Secretary of 

22 Defense shall submit to Congress a report on 

23 the plans of the Secretary to carry out para24 graph (1). 


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1 (B) BIENNIAL REPORTS BY COMPTROLLER

2 GENERAL OF THE UNITED STATES.—Not later 

3 than 1 year after the date on which the Sec4 retary submits the report required by subpara5 graph (A) and not less frequently than once 

6 every 2 years thereafter for a period of 10 

7 years, the Comptroller General of the United 

8 States shall submit to Congress a report on the 

9 activities carried out under this subsection. 

10 (b) DEFENSE PRODUCTION ACT OF 1950 EF11 FORTS.— 

12 (1) IN GENERAL.—Not later than 120 days 

13 after the date of the enactment of this Act, the 

14 President shall submit to Congress a report on a 

15 plan for use by the Department of Defense of au16 thorities available in title III of the Defense Produc17 tion Act of 1950 (50 U.S.C. 4531 et seq.) to estab18 lish and enhance a domestic production capability 

19 for microelectronics technologies and related tech20 nologies, subject to the availability of appropriations 

21 for that purpose. 

22 (2) CONSULTATION.—The President shall de23 velop the plan required by paragraph (1) in coordi24 nation with the Secretary of Defense, and in con25 sultation with the Secretary of State, the Secretary 


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1 of Commerce, and appropriate stakeholders in the 

2 private sector. 

3 (c) DEPARTMENT OF DEFENSE REQUIREMENTS FOR

4 SOURCING FROM DOMESTIC MICROELECTRONICS DESIGN

5 AND FOUNDRY SERVICES.— 

6 (1) REQUIREMENTS REQUIRED.—Not later 

7 than 1 year after the date of the enactment of this 

8 Act, the Secretary of Defense, in coordination with 

9 the Secretary of Energy, the Secretary of Homeland 

10 Security, and the Director of National Intelligence, 

11 shall establish requirements, standards, and a 

12 timeline for enforcement of such requirements, to 

13 the extent possible, for domestic sourcing for micro14 electronics design and foundry services, and for com15 mercial microelectronics products, by programs, con16 tractors, subcontractors, and other recipients of 

17 funding from the Department of Defense, Depart18 ment of Energy, Department of Homeland Security, 

19 and the Director of National Intelligence. 

20 (2) PROCESSES FOR WAIVERS.—The require21 ments established under paragraph (1) shall include 

22 processes to permit waivers for specific contracts or 

23 transactions for domestic sourcing requirements 

24 based on cost, availability, severity of technical and 

25 mission requirements, emergency requirements and 


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1 operational needs, other legal or international treaty 

2 obligations, or other factors. 

3 (3) UPDATES.—Not less frequently than once 

4 each year, the Secretary shall— 

5 (A) update the requirements and timelines 

6 established under paragraph (1) and the proc7 esses under paragraph (2); and 

8 (B) submit to Congress a report on the up9 dates made under subparagraph (A). 

10 SEC. 303. DEPARTMENT OF COMMERCE STUDY ON STATUS 

11 OF MICROELECTRONICS TECHNOLOGIES IN 

12 THE UNITED STATES INDUSTRIAL BASE. 

13 (a) IN GENERAL.—Commencing not later than 120 

14 days after the date of the enactment of this Act, the Sec15 retary of Commerce and the Secretary of Homeland Secu16 rity, in consultation with the Secretary of Defense and the 

17 heads of other appropriate Federal departments and agen18 cies, shall undertake a review, which shall include a sur19 vey, using authorities in section 705 of the Defense Pro20 duction Act (50 U.S.C. 4555), to assess the capabilities 

21 of the United States industrial base to support the na22 tional defense in light of the global nature of the supply 

23 chain and significant interdependencies between the 

24 United States industrial base and the industrial base of 


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1 foreign countries with respect to the manufacture, design, 

2 and end use of microelectronics. 

3 (b) RESPONSE TO SURVEY.—The Secretary shall en4 sure compliance with the survey from among all relevant 

5 potential respondents, including the following: 

6 (1) Corporations, partnerships, associations, or 

7 any other organized groups domiciled and with sub8 stantial operations in the United States. 

9 (2) Corporations, partnerships, associations, or 

10 any other organized groups domiciled in the United 

11 States with operations outside the United States. 

12 (3) Foreign domiciled corporations, partner13 ships, associations, or any other organized groups 

14 with substantial operations or business presence in, 

15 or substantial revenues derived from, the United 

16 States. 

17 (4) Foreign domiciled corporations, partner18 ships, associations, or any other organized groups in 

19 defense treaty or assistance countries where the pro20 duction of the entity concerned involves critical tech21 nologies covered by section 2. 

22 (c) INFORMATION REQUESTED.—The information 

23 sought from a responding entity pursuant to the survey 

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1 formation on the following with respect to the manufac2 ture. design, or end use of microelectronics by such entity: 

3 (1) An identification of the geographic scope of 

4 operations. 

5 (2) Information on relevant cost structures. 

6 (3) An identification of types of microelec7 tronics development, manufacture, assembly, test, 

8 and packaging equipment in operation at such enti9 ty. 

10 (4) An identification of all relevant intellectual 

11 property, raw materials, and semi-finished goods and 

12 components sourced domestically and abroad by 

13 such entity. 

14 (5) Specifications of the microelectronics manu15 factured or designed by such entity, descriptions of 

16 the end-uses of such microelectronics, and a descrip17 tion of any technical support provided to end-users 

18 of such microelectronics by such entity. 

19 (6) Information on domestic and export market 

20 sales by such entity. 

21 (7) Information on the financial performance, 

22 including income and expenditures, of such entity. 

23 (8) A list of all foreign and domestic subsidies, 

24 and any other financial incentives, received by such 

25 entity in each market in which such entity operates. 


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1 (9) A list of information requests from the Peo2 ple’s Republic of China to such entity, and a de3 scription of the nature of each request and the type 

4 of information provided. 

5 (10) Information on any joint ventures, tech6 nology licensing agreements, and cooperative re7 search or production arrangements of such entity. 

8 (11) A description of efforts by such entity to 

9 evaluate and control supply chain risks it faces. 

10 (12) A list and description of any sales, licens11 ing agreements, or partnerships between such entity 

12 and the People’s Liberation Army or People’s Armed 

13 Police, including any business relationships with en14 tities through which such sales, licensing agree15 ments, or partnerships may occur. 

16 (d) REPORT.— 

17 (1) IN GENERAL.—The Secretary of Commerce 

18 shall, in consultation with the Secretary of Defense, 

19 the Secretary of Homeland Security, and the heads 

20 of other appropriate Federal departments and agen21 cies, submit to Congress a report on the results of 

22 the review required by subsection (a). The report 

23 shall include the following: 

24 (A) An assessment of the results of the 

25 survey. 


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1 (B) A list of critical technology areas im2 pacted by potential disruptions in production of 

3 microelectronics, and a detailed description and 

4 assessment of the impact of such potential dis5 ruptions on such areas. 

6 (C) A description and assessment of gaps 

7 and vulnerabilities in the microelectronics sup8 ply chain and the national industrial supply 

9 base. 

10 (2) FORM.—The report required by paragraph 

11 (1) may be submitted in classified form. 

12 SEC. 304. FUNDING FOR DEVELOPMENT AND ADOPTION OF 

13 MEASURABLY SECURE MICROELECTRONICS 

14 AND MEASURABLY SECURE MICROELEC15 TRONICS SUPPLY CHAINS. 

16 (a) MULTILATERAL MICROELECTRONICS SECURITY

17 FUND.— 

18 (1) ESTABLISHMENT OF FUND.—There is es19 tablished in the Treasury of the United States a 

20 trust fund, to be known as the ‘‘Multilateral Micro21 electronics Security Fund’’ (in this section referred 

22 to as the ‘‘Fund’’), consisting of such amounts as 

23 may be appropriated to such Fund and any amounts 

24 that may be credited to the Fund under paragraph 

25 (2). 


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1 (2) INVESTMENT OF AMOUNTS.— 

2 (A) INVESTMENT OF AMOUNTS.—The Sec3 retary of the Treasury shall invest such portion 

4 of the Fund as is not required to meet current 

5 withdrawals in interest-bearing obligations of 

6 the United States or in obligations guaranteed 

7 as to both principal and interest by the United 

8 States. 

9 (B) INTEREST AND PROCEEDS.—The in10 terest on, and the proceeds from the sale or re11 demption of, any obligations held in the Fund 

12 shall be credited to and form a part of the 

13 Fund. 

14 (3) USE OF FUND.— 

15 (A) IN GENERAL.—Subject to subpara16 graph (B), amounts in the Fund shall be avail17 able, as provided in advance in an appropria18 tions Act, to the Secretary of State— 

19 (i) to provide funding through the 

20 common funding mechanism described in 

21 subsection (b)(1) to support the develop22 ment and adoption of measurably secure 

23 microelectronics and measurably secure 

24 microelectronics supply chains; and 

25 (ii) to otherwise carry out this section. 


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1 (B) AVAILABILITY CONTINGENT ON INTER2 NATIONAL AGREEMENT.—Amounts in the Fund 

3 shall be available to the Secretary of State on 

4 and after the date on which the Secretary en5 ters into an agreement with the governments of 

6 countries that are partners of the United States 

7 to participate in the common funding mecha8 nism under paragraph (1) of subsection (b) and 

9 the commitments described in paragraph (2) of 

10 that subsection. 

11 (4) AVAILABILITY OF AMOUNTS.— 

12 (A) IN GENERAL.—Amounts in the Fund 

13 shall remain available through the end of the 

14 tenth fiscal year beginning after the date of the 

15 enactment of this Act. 

16 (B) REMAINDER TO TREASURY.—Any 

17 amounts remaining in the Fund after the end 

18 of the fiscal year described in subparagraph (A) 

19 shall be deposited in the general fund of the 

20 Treasury. 

21 (b) COMMON FUNDING MECHANISM FOR DEVELOP22 MENT AND ADOPTION OF MEASURABLY SECURE MICRO23 ELECTRONICS AND MEASURABLY SECURE MICROELEC24 TRONICS SUPPLY CHAINS.— 


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1 (1) IN GENERAL.—The Secretary of State, in 

2 consultation with the Secretary of Commerce, the 

3 Secretary of Defense, the Secretary of Homeland Se4 curity, the Secretary of the Treasury, and the Direc5 tor of National Intelligence, shall seek to establish a 

6 common funding mechanism, in coordination with 

7 the governments of countries that are partners of 

8 the United States, that uses amounts from the 

9 Fund, and amounts committed by such governments, 

10 to support the development and adoption of secure 

11 microelectronics and secure microelectronics supply 

12 chains, including for use in research and develop13 ment collaborations among countries participating in 

14 the common funding mechanism. 

15 (2) MUTUAL COMMITMENTS.—The Secretary of 

16 State, in consultation with the United States Trade 

17 Representative, the Secretary of the Treasury, and 

18 the Secretary of Commerce, shall seek to negotiate 

19 a set of mutual commitments with the governments 

20 of countries that are partners of the United States 

21 upon which to condition any expenditure of funds 

22 pursuant to the common funding mechanism de23 scribed in paragraph (1). Such commitments shall, 

24 at a minimum— 


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1 (A) establish transparency requirements 

2 for any subsidies or other financial benefits (in3 cluding revenue foregone) provided to microelec4 tronics firms located in or outside such coun5 tries; 

6 (B) establish consistent policies with re7 spect to countries that— 

8 (i) are not participating in the com9 mon funding mechanism; and 

10 (ii) do not meet transparency require11 ments established under subparagraph (A); 

12 (C) promote harmonized treatment of 

13 microelectronics and verification processes for 

14 items being exported to a country considered a 

15 national security risk by a country participating 

16 in the common funding mechanism; 

17 (D) establish consistent policies and com18 mon external policies to address nonmarket 

19 economies as the behavior of such countries 

20 pertains to microelectronics; 

21 (E) align policies on supply chain integrity 

22 and microelectronics security, including with re23 spect to protection and enforcement of intellec24 tual property rights; and 


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1 (F) promote harmonized foreign direct in2 vestment screening measures with respect to 

3 microelectronics to align with national and mul4 tilateral security priorities. 

5 (c) ANNUAL REPORT TO CONGRESS.—Not later than 

6 one year after the date of the enactment of this Act, and 

7 annually thereafter for each fiscal year during which 

8 amounts in the Fund are available under subsection 

9 (a)(4), the Secretary of State shall submit to Congress a 

10 report on the status of the implementation of this section 

11 that includes a description of— 

12 (1) any commitments made by the governments 

13 of countries that are partners of the United States 

14 to providing funding for the common funding mecha15 nism described in subsection (b)(1) and the specific 

16 amount so committed; 

17 (2) the criteria established for expenditure of 

18 funds through the common funding mechanism; 

19 (3) how, and to whom, amounts have been ex20 pended from the Fund; 

21 (4) amounts remaining in the Fund; 

22 (5) the progress of the Secretary of State to23 ward entering into an agreement with the govern24 ments of countries that are partners of the United 

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1 nism and the commitments described in subsection 

2 (b)(2); and 

3 (6) any additional authorities needed to en4 hance the effectiveness of the Fund in achieving the 

5 security goals of the United States. 

6 SEC. 305. ADVANCED SEMICONDUCTOR RESEARCH AND DE7 SIGN. 

8 (a) APPROPRIATE COMMITTEES OF CONGRESS.—In 

9 this section, the term ‘‘appropriate committees of Con10 gress’’ means— 

11 (1) the Committee on Intelligence, the Com12 mittee on Commerce, Science, and Transportation, 

13 the Committee on Foreign Relations, the Committee 

14 on Armed Services, the Committee on Energy and 

15 Natural Resources, the Committee on Appropria16 tions, the Committee on Banking, Housing, and 

17 Urban Affairs, and the Committee on Homeland Se18 curity and Governmental Affairs of the Senate; and 

19 (2) the Permanent Select Committee on Intel20 ligence, the Committee on Energy and Commerce, 

21 the Committee on Foreign Affairs, the Committee 

22 on Armed Services, the Committee on Science, 

23 Space, and Technology, the Committee on Financial 

24 Services, and the Committee on Homeland Security 

25 of the House of Representatives. 


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1 (b) SENSE OF CONGRESS.—It is the sense of Con2 gress that the leadership of the United States in semicon3 ductor technology and innovation is critical to the eco4 nomic growth and national security of the United States. 

5 (c) SUBCOMMITTEE ON SEMICONDUCTOR LEADER6 SHIP.— 

7 (1) ESTABLISHMENT REQUIRED.—The Presi8 dent shall establish in the National Science and 

9 Technology Council a subcommittee on matters re10 lating to leadership of the United States in semicon11 ductor technology and innovation. 

12 (2) DUTIES.—The duties of the subcommittee 

13 established under paragraph (1) are as follows: 

14 (A) NATIONAL STRATEGY ON SEMICON15 DUCTOR RESEARCH.— 

16 (i) DEVELOPMENT.—In coordination 

17 with the Secretary of Defense, the Sec18 retary of Energy, the Secretary of State, 

19 the Secretary of Commerce, the Secretary 

20 of Homeland Security, the Director of the 

21 National Science Foundation, and the Di22 rector of the National Institute of Stand23 ards and Technology and in consultation 

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1 conductor research, development, manufac2 turing, and supply chain security, includ3 ing guidance for the funding of research, 

4 and strengthening of the domestic micro5 electronics workforce. 

6 (ii) REPORTING AND UPDATES.—Not 

7 less frequently than once every 5 years, to 

8 update the strategy developed under clause 

9 (i) and to submit the revised strategy to 

10 the appropriate committees of Congress. 

11 (iii) IMPLEMENTATION.—In coordina12 tion with the Secretary of Defense, the 

13 Secretary of Energy, the Secretary of 

14 State, the Secretary of Commerce, the Sec15 retary of Homeland Security, the Director 

16 of the National Science Foundation, and 

17 the Director of the National Institute of 

18 Standards and Technology, on an annual 

19 basis coordinate and recommend each 

20 agency’s semiconductor related research 

21 and development programs and budgets to 

22 ensure consistency with the National Semi23 conductor Strategy. 

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1 ordination of semiconductor research and devel2 opment. 

3 (3) SUNSET.—The subcommittee established 

4 under paragraph (1) shall terminate on the date 

5 that is 10 years after the date of enactment of this 

6 Act. 

7 (d) INDUSTRIAL ADVISORY COMMITTEE.—The Presi8 dent shall establish a standing subcommittee of the Presi9 dent’s Council of Advisors on Science and Technology to 

10 advise the United States Government on matters relating 

11 to microelectronics policy. 

12 (e) NATIONAL SEMICONDUCTOR TECHNOLOGY CEN13 TER.— 

14 (1) ESTABLISHMENT.—The Secretary of Com15 merce shall establish a national semiconductor tech16 nology center to conduct research and prototyping of 

17 advanced semiconductor technology to strengthen 

18 the economic competitiveness and security of the do19 mestic supply chain, which will be operated as a 

20 public private-sector consortium with participation 

21 from the private sector, the Department of Defense, 

22 the Department of Energy, the Department of 

23 Homeland Security, the National Science Founda24 tion, and the National Institute of Standards and 

25 Technology. 


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1 (2) FUNCTIONS.—The functions of the center 

2 established under paragraph (1) shall be as follows: 

3 (A) To conduct advanced semiconductor 

4 manufacturing, design research and prototyping 

5 that strengthens the entire domestic ecosystem 

6 and is aligned with the National Strategy on 

7 Semiconductor Research. 

8 (B) To establish a National Advanced 

9 Packaging Manufacturing Program led by the 

10 National Institute of Standards and Tech11 nology, in coordination with the Center, to 

12 strengthen semiconductor advanced test, assem13 bly, and packaging capability in the domestic 

14 ecosystem, and which shall coordinate with the 

15 Manufacturing USA institute established under 

16 paragraph (4). 

17 (C) To establish an investment fund, in 

18 partnership with the private sector, to support 

19 startups in the domestic semiconductor eco20 system. 

21 (D) To establish a Semiconductor Manu22 facturing Program through the Director of the 

23 National Institute of Standards and Technology 

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1 ization, instrumentation, testing, and manufac2 turing capabilities that will accelerate the un3 derlying research and development for metrol4 ogy of next generation semiconductors and en5 sure the competitiveness and leadership of the 

6 United States within this sector. 

7 (E) To work with the Secretary of Labor, 

8 the private sector, educational institutions, and 

9 workforce training entities to develop workforce 

10 training programs and apprenticeships in ad11 vanced microelectronic packaging capabilities. 

12 (3) COMPONENTS.—The fund established under 

13 paragraph (2)(C) shall cover the following: 

14 (A) Advanced metrology and characteriza15 tion for manufacturing of microchips using 3 

16 nanometer transistor processes or more ad17 vanced processes. 

18 (B) Metrology for security and supply 

19 chain verification. 

20 (4) CREATION OF A MANUFACTURING USA IN21 STITUTE.—The fund established under paragraph 

22 (2)(C) may also cover the creation of a Manufac23 turing USA institute described in section 34(d) of 

24 the National Institute of Standards and Technology 

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1 ductor manufacturing. Such institute may emphasize 

2 the following: 

3 (A) Research to support the virtualization 

4 and automation of maintenance of semicon5 ductor machinery. 

6 (B) Development of new advanced test, as7 sembly and packaging capabilities. 

8 (C) Developing and deploying educational 

9 and skills training curricula needed to support 

10 the industry sector and ensure the U.S. can 

11 build and maintain a trusted and predictable 

12 talent pipeline. 

13 (f) DOMESTIC PRODUCTION REQUIREMENTS.—The 

14 head of any executive agency receiving funding under this 

15 section shall develop policies to require domestic produc16 tion, to the extent possible, for any intellectual property 

17 resulting from microelectronics research and development 

18 conducted as a result of these funds and domestic control 

19 requirements to protect any such intellectual property 

20 from foreign adversaries. 

21 SEC. 306. PROHIBITION RELATING TO FOREIGN ADVER22 SARIES. 

23 None of the funds appropriated pursuant to an au24 thorization in this title may be provided to an entity— 


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1 (1) under the foreign ownership, control, or in2 fluence of the Government of the People’s Republic 

3 of China or the Chinese Communist Party, or other 

4 foreign adversary (as defined in section 301(a)(4)); 

5 or 

6 (2) determined to have beneficial ownership 

7 from foreign individuals subject to the jurisdiction, 

8 direction, or influence of foreign adversaries (as so 

9 defined). 

10 TITLE IV—CRITICAL MINERALS 

11 SEC. 401. MINERAL SECURITY. 

12 (a) DEFINITIONS.—In this section: 

13 (1) BYPRODUCT.—The term ‘‘byproduct’’ 

14 means a critical mineral— 

15 (A) the recovery of which depends on the 

16 production of a host mineral that is not des17 ignated as a critical mineral; and 

18 (B) that exists in sufficient quantities to 

19 be recovered during processing or refining. 

20 (2) CRITICAL MINERAL.— 

21 (A) IN GENERAL.—The term ‘‘critical min22 eral’’ means any mineral, element, substance, or 

23 material designated as critical by the Secretary 

24 under subsection (c). 


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1 (B) EXCLUSIONS.—The term ‘‘critical 

2 mineral’’ does not include— 

3 (i) fuel minerals, including oil, natural 

4 gas, or any other fossil fuels; or 

5 (ii) water, ice, or snow. 

6 (3) INDIAN TRIBE.—The term ‘‘Indian tribe’’ 

7 has the meaning given the term in section 4 of the 

8 Indian Self-Determination and Education Assistance 

9 Act (25 U.S.C. 5304). 

10 (4) SECRETARY.—The term ‘‘Secretary’’ means 

11 the Secretary of the Interior. 

12 (5) STATE.—The term ‘‘State’’ means— 

13 (A) a State; 

14 (B) the District of Columbia; 

15 (C) the Commonwealth of Puerto Rico; 

16 (D) Guam; 

17 (E) American Samoa; 

18 (F) the Commonwealth of the Northern 

19 Mariana Islands; and 

20 (G) the United States Virgin Islands. 

21 (b) POLICY.— 

22 (1) IN GENERAL.—Section 3 of the National 

23 Materials and Minerals Policy, Research and Devel24 opment Act of 1980 (30 U.S.C. 1602) is amended 

25 in the second sentence— 


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1 (A) by striking paragraph (3) and insert2 ing the following: 

3 ‘‘(3) establish an analytical and forecasting ca4 pability for identifying critical mineral demand, sup5 ply, and other factors to allow informed actions to 

6 be taken to avoid supply shortages, mitigate price 

7 volatility, and prepare for demand growth and other 

8 market shifts;’’; 

9 (B) in paragraph (6), by striking ‘‘and’’ 

10 after the semicolon at the end; and 

11 (C) by striking paragraph (7) and insert12 ing the following: 

13 ‘‘(7) facilitate the availability, development, and 

14 environmentally responsible production of domestic 

15 resources to meet national material or critical min16 eral needs; 

17 ‘‘(8) avoid duplication of effort, prevent unnec18 essary paperwork, and minimize delays in the ad19 ministration of applicable laws (including regula20 tions) and the issuance of permits and authoriza21 tions necessary to explore for, develop, and produce 

22 critical minerals and to construct critical mineral 

23 manufacturing facilities in accordance with applica24 ble environmental and land management laws; 

25 ‘‘(9) strengthen— 


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1 ‘‘(A) educational and research capabilities 

2 at not lower than the secondary school level; 

3 and 

4 ‘‘(B) workforce training for exploration 

5 and development of critical minerals and critical 

6 mineral manufacturing; 

7 ‘‘(10) bolster international cooperation through 

8 technology transfer, information sharing, and other 

9 means; 

10 ‘‘(11) promote the efficient production, use, and 

11 recycling of critical minerals; 

12 ‘‘(12) develop alternatives to critical minerals; 

13 and 

14 ‘‘(13) establish contingencies for the production 

15 of, or access to, critical minerals for which viable 

16 sources do not exist within the United States.’’. 

17 (2) CONFORMING AMENDMENT.—Section 2(b) 

18 of the National Materials and Minerals Policy, Re19 search and Development Act of 1980 (30 U.S.C. 

20 1601(b)) is amended by striking ‘‘(b) As used in this 

21 Act, the term’’ and inserting the following: 

22 ‘‘(b) DEFINITIONS.—In this Act: 

23 ‘‘(1) CRITICAL MINERAL.—The term ‘critical 

24 mineral’ means any mineral, element, substance, or 

25 material designated as critical by the Secretary 


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1 under section 401(c) of the Restoring Critical Sup2 ply Chains and Intellectual Property Act. 

3 ‘‘(2) MATERIALS.—The term’’. 

4 (c) CRITICAL MINERAL DESIGNATIONS.— 

5 (1) DRAFT METHODOLOGY AND LIST.—The 

6 Secretary, acting through the Director of the United 

7 States Geological Survey (referred to in this sub8 section as the ‘‘Secretary’’), shall publish in the Fed9 eral Register for public comment— 

10 (A) a description of the draft methodology 

11 used to identify a draft list of critical minerals; 

12 (B) a draft list of minerals, elements, sub13 stances, and materials that qualify as critical 

14 minerals; and 

15 (C) a draft list of critical minerals recov16 ered as byproducts. 

17 (2) AVAILABILITY OF DATA.—If available data 

18 is insufficient to provide a quantitative basis for the 

19 methodology developed under this subsection, quali20 tative evidence may be used to the extent necessary. 

21 (3) FINAL METHODOLOGY AND LIST.—After re22 viewing public comments on the draft methodology 

23 and the draft lists published under paragraph (1) 

24 and updating the methodology and lists as appro25 priate, not later than 45 days after the date on 


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1 which the public comment period with respect to the 

2 draft methodology and draft lists closes, the Sec3 retary shall publish in the Federal Register— 

4 (A) a description of the final methodology 

5 for determining which minerals, elements, sub6 stances, and materials qualify as critical min7 erals; 

8 (B) the final list of critical minerals; and 

9 (C) the final list of critical minerals recov10 ered as byproducts. 

11 (4) DESIGNATIONS.— 

12 (A) IN GENERAL.—For purposes of car13 rying out this subsection, the Secretary shall 

14 maintain a list of minerals, elements, sub15 stances, and materials designated as critical, 

16 pursuant to the final methodology published 

17 under paragraph (3), that the Secretary deter18 mines— 

19 (i) are essential to the economic or 

20 national security of the United States; 

21 (ii) the supply chain of which is vul22 nerable to disruption (including restrictions 

23 associated with foreign political risk, ab24 rupt demand growth, military conflict, vio25 lent unrest, anti-competitive or protecVerDate Sep 11 2014 03:23 Jul 28, 2020 Jkt 099200 PO 00000 Frm 00099 Fmt 6652 Sfmt 6201 E:\BILLS\S4324.IS S4324

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1 tionist behaviors, and other risks through2 out the supply chain); and 

3 (iii) serve an essential function in the 

4 manufacturing of a product (including en5 ergy technology-, defense-, currency-, agri6 culture-, consumer electronics-, and health 

7 care-related applications), the absence of 

8 which would have significant consequences 

9 for the economic or national security of the 

10 United States. 

11 (B) INCLUSIONS.—Notwithstanding the 

12 criteria under paragraph (3), the Secretary may 

13 designate and include on the list any mineral, 

14 element, substance, or material determined by 

15 another Federal agency to be strategic and crit16 ical to the defense or national security of the 

17 United States. 

18 (C) REQUIRED CONSULTATION.—The Sec19 retary shall consult with the Secretaries of De20 fense, Commerce, Agriculture, and Energy and 

21 the United States Trade Representative in des22 ignating minerals, elements, substances, and 

23 materials as critical under this paragraph. 

24 (5) SUBSEQUENT REVIEW.— 


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1 (A) IN GENERAL.—The Secretary, in con2 sultation with the Secretaries of Defense, Com3 merce, Agriculture, and Energy and the United 

4 States Trade Representative, shall review the 

5 methodology and list under paragraph (3) and 

6 the designations under paragraph (4) at least 

7 every 3 years, or more frequently as the Sec8 retary considers to be appropriate. 

9 (B) REVISIONS.—Subject to paragraph 

10 (4)(A), the Secretary may— 

11 (i) revise the methodology described in 

12 this subsection; 

13 (ii) determine that minerals, elements, 

14 substances, and materials previously deter15 mined to be critical minerals are no longer 

16 critical minerals; and 

17 (iii) designate additional minerals, ele18 ments, substances, or materials as critical 

19 minerals. 

20 (6) NOTICE.—On finalization of the method21 ology and the list under paragraph (3), or any revi22 sion to the methodology or list under paragraph (5), 

23 the Secretary shall submit to Congress written no24 tice of the action. 

25 (d) RESOURCE ASSESSMENT.— 


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1 (1) IN GENERAL.—Not later than 4 years after 

2 the date of enactment of this Act, in consultation 

3 with applicable State (including geological surveys), 

4 local, academic, industry, and other entities, the Sec5 retary (acting through the Director of the United 

6 States Geological Survey) or a designee of the Sec7 retary, shall complete a comprehensive national as8 sessment of each critical mineral that— 

9 (A) identifies and quantifies known critical 

10 mineral resources, using all available public and 

11 private information and datasets, including ex12 ploration histories; and 

13 (B) provides a quantitative and qualitative 

14 assessment of undiscovered critical mineral re15 sources throughout the United States, including 

16 probability estimates of tonnage and grade, 

17 using all available public and private informa18 tion and datasets, including exploration his19 tories. 

20 (2) SUPPLEMENTARY INFORMATION.—In car21 rying out this subsection, the Secretary may carry 

22 out surveys and field work (including drilling, re23 mote sensing, geophysical surveys, topographical and 

24 geological mapping, and geochemical sampling and 

25 analysis) to supplement existing information and 


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1 datasets available for determining the existence of 

2 critical minerals in the United States. 

3 (3) PUBLIC ACCESS.—Subject to applicable law, 

4 to the maximum extent practicable, the Secretary 

5 shall make all data and metadata collected from the 

6 comprehensive national assessment carried out 

7 under paragraph (1) publically and electronically ac8 cessible. 

9 (4) TECHNICAL ASSISTANCE.—At the request of 

10 the Governor of a State or the head of an Indian 

11 tribe, the Secretary may provide technical assistance 

12 to State governments and Indian tribes conducting 

13 critical mineral resource assessments on non-Federal 

14 land. 

15 (5) PRIORITIZATION.— 

16 (A) IN GENERAL.—The Secretary may se17 quence the completion of resource assessments 

18 for each critical mineral such that critical min19 erals considered to be most critical under the 

20 methodology established under subsection (c) 

21 are completed first. 

22 (B) REPORTING.—During the period be23 ginning not later than 1 year after the date of 

24 enactment of this Act and ending on the date 

25 of completion of all of the assessments required 


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1 under this subsection, the Secretary shall sub2 mit to Congress on an annual basis an interim 

3 report that— 

4 (i) identifies the sequence and sched5 ule for completion of the assessments if the 

6 Secretary sequences the assessments; or 

7 (ii) describes the progress of the as8 sessments if the Secretary does not se9 quence the assessments. 

10 (6) UPDATES.—The Secretary may periodically 

11 update the assessments conducted under this sub12 section based on— 

13 (A) the generation of new information or 

14 datasets by the Federal Government; or 

15 (B) the receipt of new information or 

16 datasets from critical mineral producers, State 

17 geological surveys, academic institutions, trade 

18 associations, or other persons. 

19 (7) ADDITIONAL SURVEYS.—The Secretary 

20 shall complete a resource assessment for each addi21 tional mineral or element subsequently designated as 

22 a critical mineral under subsection (c)(5)(B) not 

23 later than 2 years after the designation of the min24 eral or element. 


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1 (8) REPORT.—Not later than 2 years after the 

2 date of enactment of this Act, the Secretary shall 

3 submit to Congress a report describing the status of 

4 geological surveying of Federal land for any mineral 

5 commodity— 

6 (A) for which the United States was de7 pendent on a foreign country for more than 25 

8 percent of the United States supply, as depicted 

9 in the report issued by the United States Geo10 logical Survey entitled ‘‘Mineral Commodity 

11 Summaries 2020’’; but 

12 (B) that is not designated as a critical 

13 mineral under subsection (c). 

14 (e) PERMITTING.— 

15 (1) SENSE OF CONGRESS.—It is the sense of 

16 Congress that— 

17 (A) critical minerals are fundamental to 

18 the economy, competitiveness, and security of 

19 the United States; 

20 (B) to the maximum extent practicable, 

21 the critical mineral needs of the United States 

22 should be satisfied by minerals responsibly pro23 duced and recycled in the United States; and 

24 (C) the Federal permitting process has 

25 been identified as an impediment to mineral 


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1 production and the mineral security of the 

2 United States. 

3 (2) PERFORMANCE IMPROVEMENTS.—To im4 prove the quality and timeliness of decisions, the 

5 Secretary (acting through the Director of the Bu6 reau of Land Management) and the Secretary of Ag7 riculture (acting through the Chief of the Forest 

8 Service) (referred to in this subsection as the ‘‘Sec9 retaries’’) shall, to the maximum extent practicable, 

10 with respect to critical mineral production on Fed11 eral land, complete Federal permitting and review 

12 processes with maximum efficiency and effectiveness, 

13 while supporting vital economic growth, by— 

14 (A) establishing and adhering to timelines 

15 and schedules for the consideration of, and final 

16 decisions regarding, applications, operating 

17 plans, leases, licenses, permits, and other use 

18 authorizations for mineral-related activities on 

19 Federal land; 

20 (B) establishing clear, quantifiable, and 

21 temporal permitting performance goals and 

22 tracking progress against those goals; 

23 (C) engaging in early collaboration among 

24 agencies, project sponsors, and affected stake25 holders— 


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1 (i) to incorporate and address the in2 terests of those parties; and 

3 (ii) to minimize delays; 

4 (D) ensuring transparency and account5 ability by using cost-effective information tech6 nology to collect and disseminate information 

7 regarding individual projects and agency per8 formance; 

9 (E) engaging in early and active consulta10 tion with State, local, and Indian tribal govern11 ments to avoid conflicts or duplication of effort, 

12 resolve concerns, and allow for concurrent, 

13 rather than sequential, reviews; 

14 (F) providing demonstrable improvements 

15 in the performance of Federal permitting and 

16 review processes, including lower costs and 

17 more timely decisions; 

18 (G) expanding and institutionalizing per19 mitting and review process improvements that 

20 have proven effective; 

21 (H) developing mechanisms to better com22 municate priorities and resolve disputes among 

23 agencies at the national, regional, State, and 

24 local levels; and 


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1 (I) developing other practices, such as 

2 preapplication procedures. 

3 (3) REVIEW AND REPORT.—Not later than 1 

4 year after the date of enactment of this Act, the 

5 Secretaries shall submit to Congress a report that— 

6 (A) identifies additional measures (includ7 ing regulatory and legislative proposals, as ap8 propriate) that would increase the timeliness of 

9 permitting activities for the exploration and de10 velopment of domestic critical minerals; 

11 (B) identifies options (including cost recov12 ery paid by permit applicants) for ensuring ade13 quate staffing and training of Federal entities 

14 and personnel responsible for the consideration 

15 of applications, operating plans, leases, licenses, 

16 permits, and other use authorizations for crit17 ical mineral-related activities on Federal land; 

18 (C) quantifies the amount of time typically 

19 required (including range derived from min20 imum and maximum durations, mean, median, 

21 variance, and other statistical measures or rep22 resentations) to complete each step (including 

23 those aspects outside the control of the execu24 tive branch, such as judicial review, applicant 

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1 volvement) associated with the development and 

2 processing of applications, operating plans, 

3 leases, licenses, permits, and other use author4 izations for critical mineral-related activities on 

5 Federal land, which shall serve as a baseline for 

6 the performance metric under paragraph (4); 

7 and 

8 (D) describes actions carried out pursuant 

9 to paragraph (2). 

10 (4) PERFORMANCE METRIC.—Not later than 90 

11 days after the date of submission of the report 

12 under paragraph (3), the Secretaries, after providing 

13 public notice and an opportunity to comment, shall 

14 develop and publish a performance metric for evalu15 ating the progress made by the executive branch to 

16 expedite the permitting of activities that will in17 crease exploration for, and development of, domestic 

18 critical minerals, while maintaining environmental 

19 standards. 

20 (5) ANNUAL REPORTS.—Beginning with the 

21 first budget submission by the President under sec22 tion 1105 of title 31, United States Code, after pub23 lication of the performance metric required under 

24 paragraph (4), and annually thereafter, the Secre25 taries shall submit to Congress a report that— 


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1 (A) summarizes the implementation of rec2 ommendations, measures, and options identified 

3 in subparagraphs (A) and (B) of paragraph (3); 

4 (B) using the performance metric under 

5 paragraph (4), describes progress made by the 

6 executive branch, as compared to the baseline 

7 established pursuant to paragraph (3)(C), on 

8 expediting the permitting of activities that will 

9 increase exploration for, and development of, 

10 domestic critical minerals; and 

11 (C) compares the United States to other 

12 countries in terms of permitting efficiency and 

13 any other criteria relevant to the globally com14 petitive critical minerals industry. 

15 (6) INDIVIDUAL PROJECTS.—Using data from 

16 the Secretaries generated under paragraph (5), the 

17 Director of the Office of Management and Budget 

18 shall prioritize inclusion of individual critical mineral 

19 projects on the website operated by the Office of 

20 Management and Budget in accordance with section 

21 1122 of title 31, United States Code. 

22 (7) REPORT OF SMALL BUSINESS ADMINISTRA23 TION.—Not later than 1 year and 300 days after the 

24 date of enactment of this Act, the Administrator of 

25 the Small Business Administration shall submit to 


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1 the applicable committees of Congress a report that 

2 assesses the performance of Federal agencies with 

3 respect to— 

4 (A) complying with chapter 6 of title 5, 

5 United States Code (commonly known as the 

6 ‘‘Regulatory Flexibility Act’’), in promulgating 

7 regulations applicable to the critical minerals 

8 industry; and 

9 (B) performing an analysis of regulations 

10 applicable to the critical minerals industry that 

11 may be outmoded, inefficient, duplicative, or ex12 cessively burdensome. 

13 (f) FEDERAL REGISTER PROCESS.— 

14 (1) DEPARTMENTAL REVIEW.—Absent any ex15 traordinary circumstance, and except as otherwise 

16 required by law, the Secretary and the Secretary of 

17 Agriculture shall ensure that each Federal Register 

18 notice described in paragraph (2) shall be— 

19 (A) subject to any required reviews within 

20 the Department of the Interior or the Depart21 ment of Agriculture; and 

22 (B) published in final form in the Federal 

23 Register not later than 45 days after the date 

24 of initial preparation of the notice. 


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1 (2) PREPARATION.—The preparation of Federal 

2 Register notices required by law associated with the 

3 issuance of a critical mineral exploration or mine 

4 permit shall be delegated to the organizational level 

5 within the agency responsible for issuing the critical 

6 mineral exploration or mine permit. 

7 (3) TRANSMISSION.—All Federal Register no8 tices regarding official document availability, an9 nouncements of meetings, or notices of intent to un10 dertake an action shall be originated in, and trans11 mitted to the Federal Register from, the office in 

12 which, as applicable— 

13 (A) the documents or meetings are held; or 

14 (B) the activity is initiated. 

15 (g) RECYCLING, EFFICIENCY, AND ALTERNATIVES.— 

16 (1) ESTABLISHMENT.—The Secretary of En17 ergy (referred to in this subsection as the ‘‘Sec18 retary’’) shall conduct a program of research and de19 velopment— 

20 (A) to promote the efficient production, 

21 use, and recycling of critical minerals through22 out the supply chain; and 

23 (B) to develop alternatives to critical min24 erals that do not occur in significant abundance 

25 in the United States. 


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1 (2) COOPERATION.—In carrying out the pro2 gram, the Secretary shall cooperate with appro3 priate— 

4 (A) Federal agencies and National Labora5 tories; 

6 (B) critical mineral producers; 

7 (C) critical mineral processors; 

8 (D) critical mineral manufacturers; 

9 (E) trade associations; 

10 (F) academic institutions; 

11 (G) small businesses; and 

12 (H) other relevant entities or individuals. 

13 (3) ACTIVITIES.—Under the program, the Sec14 retary shall carry out activities that include the iden15 tification and development of— 

16 (A) advanced critical mineral extraction, 

17 production, separation, alloying, or processing 

18 technologies that decrease the energy consump19 tion, environmental impact, and costs of those 

20 activities, including— 

21 (i) efficient water and wastewater 

22 management strategies; 

23 (ii) technologies and management 

24 strategies to control the environmental im25 pacts of radionuclides in ore tailings; 


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1 (iii) technologies for separation and 

2 processing; and 

3 (iv) technologies for increasing the re4 covery rates of byproducts from host metal 

5 ores; 

6 (B) technologies or process improvements 

7 that minimize the use, or lead to more efficient 

8 use, of critical minerals across the full supply 

9 chain; 

10 (C) technologies, process improvements, or 

11 design optimizations that facilitate the recycling 

12 of critical minerals, and options for improving 

13 the rates of collection of products and scrap 

14 containing critical minerals from post-con15 sumer, industrial, or other waste streams; 

16 (D) commercial markets, advanced storage 

17 methods, energy applications, and other bene18 ficial uses of critical minerals processing by19 products; 

20 (E) alternative minerals, metals, and mate21 rials, particularly those available in abundance 

22 within the United States and not subject to po23 tential supply restrictions, that lessen the need 

24 for critical minerals; and 


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1 (F) alternative energy technologies or al2 ternative designs of existing energy tech3 nologies, particularly those that use minerals 

4 that— 

5 (i) occur in abundance in the United 

6 States; and 

7 (ii) are not subject to potential supply 

8 restrictions. 

9 (4) REPORTS.—Not later than 2 years after the 

10 date of enactment of this Act, and annually there11 after, the Secretary shall submit to Congress a re12 port summarizing the activities, findings, and 

13 progress of the program. 

14 (h) ANALYSIS AND FORECASTING.— 

15 (1) CAPABILITIES.—In order to evaluate exist16 ing critical mineral policies and inform future ac17 tions that may be taken to avoid supply shortages, 

18 mitigate price volatility, and prepare for demand 

19 growth and other market shifts, the Secretary (act20 ing through the Director of the United States Geo21 logical Survey) or a designee of the Secretary, in 

22 consultation with the Energy Information Adminis23 tration, academic institutions, and others in order to 

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1 els and similar analytical tools, shall conduct and 

2 publish the results of an annual report that in3 cludes— 

4 (A) as part of the annually published Min5 eral Commodity Summaries from the United 

6 States Geological Survey, a comprehensive re7 view of critical mineral production, consump8 tion, and recycling patterns, including— 

9 (i) the quantity of each critical min10 eral domestically produced during the pre11 ceding year; 

12 (ii) the quantity of each critical min13 eral domestically consumed during the pre14 ceding year; 

15 (iii) market price data or other price 

16 data for each critical mineral; 

17 (iv) an assessment of— 

18 (I) critical mineral requirements 

19 to meet the national security, energy, 

20 economic, industrial, technological, 

21 and other needs of the United States 

22 during the preceding year; 

23 (II) the reliance of the United 

24 States on foreign sources to meet 


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1 those needs during the preceding year; 

2 and 

3 (III) the implications of any sup4 ply shortages, restrictions, or disrup5 tions during the preceding year; 

6 (v) the quantity of each critical min7 eral domestically recycled during the pre8 ceding year; 

9 (vi) the market penetration during the 

10 preceding year of alternatives to each crit11 ical mineral; 

12 (vii) a discussion of international 

13 trends associated with the discovery, pro14 duction, consumption, use, costs of produc15 tion, prices, and recycling of each critical 

16 mineral as well as the development of al17 ternatives to critical minerals; and 

18 (viii) such other data, analyses, and 

19 evaluations as the Secretary finds are nec20 essary to achieve the purposes of this sub21 section; and 

22 (B) a comprehensive forecast, entitled the 

23 ‘‘Annual Critical Minerals Outlook’’, of pro24 jected critical mineral production, consumption, 

25 and recycling patterns, including— 


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1 (i) the quantity of each critical min2 eral projected to be domestically produced 

3 over the subsequent 1-year, 5-year, and 

4 10-year periods; 

5 (ii) the quantity of each critical min6 eral projected to be domestically consumed 

7 over the subsequent 1-year, 5-year, and 

8 10-year periods; 

9 (iii) an assessment of— 

10 (I) critical mineral requirements 

11 to meet projected national security, 

12 energy, economic, industrial, techno13 logical, and other needs of the United 

14 States; 

15 (II) the projected reliance of the 

16 United States on foreign sources to 

17 meet those needs; and 

18 (III) the projected implications of 

19 potential supply shortages, restric20 tions, or disruptions; 

21 (iv) the quantity of each critical min22 eral projected to be domestically recycled 

23 over the subsequent 1-year, 5-year, and 

24 10-year periods; 


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1 (v) the market penetration of alter2 natives to each critical mineral projected to 

3 take place over the subsequent 1-year, 5- 

4 year, and 10-year periods; 

5 (vi) a discussion of reasonably foresee6 able international trends associated with 

7 the discovery, production, consumption, 

8 use, costs of production, and recycling of 

9 each critical mineral as well as the develop10 ment of alternatives to critical minerals; 

11 and 

12 (vii) such other projections relating to 

13 each critical mineral as the Secretary de14 termines to be necessary to achieve the 

15 purposes of this subsection. 

16 (2) PROPRIETARY INFORMATION.—In preparing 

17 a report described in paragraph (1), the Secretary 

18 shall ensure, consistent with section 5(f) of the Na19 tional Materials and Minerals Policy, Research and 

20 Development Act of 1980 (30 U.S.C. 1604(f)), 

21 that— 

22 (A) no person uses the information and 

23 data collected for the report for a purpose other 

24 than the development of or reporting of aggre25 gate data in a manner such that the identity of 


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1 the person or firm who supplied the information 

2 is not discernible and is not material to the in3 tended uses of the information; 

4 (B) no person discloses any information or 

5 data collected for the report unless the informa6 tion or data has been transformed into a statis7 tical or aggregate form that does not allow the 

8 identification of the person or firm who sup9 plied particular information; and 

10 (C) procedures are established to require 

11 the withholding of any information or data col12 lected for the report if the Secretary determines 

13 that withholding is necessary to protect propri14 etary information, including any trade secrets 

15 or other confidential information. 

16 (i) EDUCATION AND WORKFORCE.— 

17 (1) WORKFORCE ASSESSMENT.—Not later than 

18 1 year and 300 days after the date of enactment of 

19 this Act, the Secretary of Labor (in consultation 

20 with the Secretary, the Director of the National 

21 Science Foundation, institutions of higher education 

22 with substantial expertise in mining, institutions of 

23 higher education with significant expertise in min24 erals research, including fundamental research into 

25 alternatives, and employers in the critical minerals 


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1 sector) shall submit to Congress an assessment of 

2 the domestic availability of technically trained per3 sonnel necessary for critical mineral exploration, de4 velopment, assessment, production, manufacturing, 

5 recycling, analysis, forecasting, education, and re6 search, including an analysis of— 

7 (A) skills that are in the shortest supply as 

8 of the date of the assessment; 

9 (B) skills that are projected to be in short 

10 supply in the future; 

11 (C) the demographics of the critical min12 erals industry and how the demographics will 

13 evolve under the influence of factors such as an 

14 aging workforce; 

15 (D) the effectiveness of training and edu16 cation programs in addressing skills shortages; 

17 (E) opportunities to hire locally for new 

18 and existing critical mineral activities; 

19 (F) the sufficiency of personnel within rel20 evant areas of the Federal Government for 

21 achieving the policies described in section 3 of 

22 the National Materials and Minerals Policy, Re23 search and Development Act of 1980 (30 

24 U.S.C. 1602); and 


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1 (G) the potential need for new training 

2 programs to have a measurable effect on the 

3 supply of trained workers in the critical min4 erals industry. 

5 (2) CURRICULUM STUDY.— 

6 (A) IN GENERAL.—The Secretary and the 

7 Secretary of Labor shall jointly enter into an 

8 arrangement with the National Academy of 

9 Sciences and the National Academy of Engi10 neering under which the Academies shall co11 ordinate with the National Science Foundation 

12 on conducting a study— 

13 (i) to design an interdisciplinary pro14 gram on critical minerals that will support 

15 the critical mineral supply chain and im16 prove the ability of the United States to 

17 increase domestic, critical mineral explo18 ration, development, production, manufac19 turing, research, including fundamental re20 search into alternatives, and recycling; 

21 (ii) to address undergraduate and 

22 graduate education, especially to assist in 

23 the development of graduate level pro24 grams of research and instruction that 

25 lead to advanced degrees with an emphasis 


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1 on the critical mineral supply chain or 

2 other positions that will increase domestic, 

3 critical mineral exploration, development, 

4 production, manufacturing, research, in5 cluding fundamental research into alter6 natives, and recycling; 

7 (iii) to develop guidelines for pro8 posals from institutions of higher edu9 cation with substantial capabilities in the 

10 required disciplines for activities to im11 prove the critical mineral supply chain and 

12 advance the capacity of the United States 

13 to increase domestic, critical mineral explo14 ration, research, development, production, 

15 manufacturing, and recycling; and 

16 (iv) to outline criteria for evaluating 

17 performance and recommendations for the 

18 amount of funding that will be necessary 

19 to establish and carry out the program de20 scribed in paragraph (3). 

21 (B) REPORT.—Not later than 2 years after 

22 the date of enactment of this Act, the Secretary 

23 shall submit to Congress a description of the re24 sults of the study required under subparagraph 

25 (A). 


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1 (3) PROGRAM.— 

2 (A) ESTABLISHMENT.—The Secretary and 

3 the Secretary of Labor shall jointly conduct a 

4 competitive grant program under which institu5 tions of higher education may apply for and re6 ceive 4-year grants for— 

7 (i) startup costs for newly designated 

8 faculty positions in integrated critical min9 eral education, research, innovation, train10 ing, and workforce development programs 

11 consistent with paragraph (2); 

12 (ii) internships, scholarships, and fel13 lowships for students enrolled in programs 

14 related to critical minerals; 

15 (iii) equipment necessary for inte16 grated critical mineral innovation, training, 

17 and workforce development programs; and 

18 (iv) research of critical minerals and 

19 their applications, particularly concerning 

20 the manufacture of critical components 

21 vital to national security. 

22 (B) RENEWAL.—A grant under this para23 graph shall be renewable for up to 2 additional 

24 3-year terms based on performance criteria out25 lined under paragraph (2)(A)(iv). 


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1 (j) NATIONAL GEOLOGICAL AND GEOPHYSICAL DATA

2 PRESERVATION PROGRAM.—Section 351(k) of the Energy 

3 Policy Act of 2005 (42 U.S.C. 15908(k)) is amended by 

4 striking ‘‘$30,000,000 for each of fiscal years 2006 

5 through 2010’’ and inserting ‘‘$5,000,000 for each of fis6 cal years 2021 through 2030, to remain available until ex7 pended’’. 

8 (k) ADMINISTRATION.— 

9 (1) IN GENERAL.—The National Critical Mate10 rials Act of 1984 (30 U.S.C. 1801 et seq.) is re11 pealed. 

12 (2) CONFORMING AMENDMENT.—Section 3(d) 

13 of the National Superconductivity and Competitive14 ness Act of 1988 (15 U.S.C. 5202(d)) is amended 

15 in the first sentence by striking ‘‘, with the assist16 ance of the National Critical Materials Council as 

17 specified in the National Critical Materials Act of 

18 1984 (30 U.S.C. 1801 et seq.),’’. 

19 (3) SAVINGS CLAUSES.— 

20 (A) IN GENERAL.—Nothing in this section 

21 or an amendment made by this section modifies 

22 any requirement or authority provided by— 

23 (i) the matter under the heading ‘‘GE24 OLOGICAL SURVEY’’ of the first section 


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1 of the Act of March 3, 1879 (43 U.S.C. 

2 31(a)); or 

3 (ii) the first section of Public Law 

4 87–626 (43 U.S.C. 31(b)). 

5 (B) EFFECT ON DEPARTMENT OF DE6 FENSE.—Nothing in this section or an amend7 ment made by this section affects the authority 

8 of the Secretary of Defense with respect to the 

9 work of the Department of Defense on critical 

10 material supplies in furtherance of the national 

11 defense mission of the Department of Defense. 

12 (C) SECRETARIAL ORDER NOT AF13 FECTED.—This section shall not apply to any 

14 mineral described in Secretarial Order No. 

15 3324, issued by the Secretary on December 3, 

16 2012, in any area to which the order applies. 

17 (4) APPLICATION OF CERTAIN PROVISIONS.— 

18 (A) IN GENERAL.—Subsections (e) and (f) 

19 shall apply to— 

20 (i) an exploration project in which the 

21 presence of a byproduct is reasonably ex22 pected, based on known mineral 

23 companionality, geologic formation, min24 eralogy, or other factors; and 


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1 (ii) a project that demonstrates that 

2 the byproduct is of sufficient grade that, 

3 when combined with the production of a 

4 host mineral, the byproduct is economic to 

5 recover, as determined by the applicable 

6 Secretary in accordance with subparagraph 

7 (B). 

8 (B) REQUIREMENT.—In making the deter9 mination under subparagraph (A)(ii), the appli10 cable Secretary shall consider the cost effective11 ness of the byproducts recovery. 

12 (l) AUTHORIZATION OF APPROPRIATIONS.—There is 

13 authorized to be appropriated to carry out this section 

14 $50,000,000 for each of fiscal years 2021 through 2030. 

15 SEC. 402. RARE EARTH ELEMENT ADVANCED COAL TECH16 NOLOGIES. 

17 (a) PROGRAM FOR EXTRACTION AND RECOVERY OF

18 RARE EARTH ELEMENTS AND MINERALS FROM COAL

19 AND COAL BYPRODUCTS.— 

20 (1) IN GENERAL.—The Secretary of Energy, 

21 acting through the Assistant Secretary for Fossil 

22 Energy (referred to in this section as the ‘‘Sec23 retary’’), shall carry out a program under which the 

24 Secretary shall develop advanced separation tech25 nologies for the extraction and recovery of rare earth 


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1 elements and minerals from coal and coal byprod2 ucts. 

3 (2) AUTHORIZATION OF APPROPRIATIONS.— 

4 There is authorized to be appropriated to the Sec5 retary to carry out the program described in para6 graph (1) $23,000,000 for each of fiscal years 2021 

7 through 2028. 

8 (b) REPORT.—Not later than 1 year after the date 

9 of enactment of this Act, the Secretary shall submit to 

10 the Committee on Energy and Natural Resources of the 

11 Senate and the Committee on Energy and Commerce of 

12 the House of Representatives a report evaluating the de13 velopment of advanced separation technologies for the ex14 traction and recovery of rare earth elements and minerals 

15 from coal and coal byproducts, including acid mine drain16 age from coal mines. 

Æ 


pamtmann on DSKBC07HB2PROD with BILLS