```

[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 5451 Introduced in Senate (IS)]

<DOC>

118th CONGRESS
  2d Session
                                S. 5451

 To enhance the economic and national security of the United States by 
securing a reliable supply of critical minerals and rare earth elements 
          through trade agreements and strategic partnerships.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                            December 5, 2024

 Mr. Young (for himself, Mr. Coons, Mr. Cornyn, and Mr. Hickenlooper) 
introduced the following bill; which was read twice and referred to the 
                          Committee on Finance

_______________________________________________________________________

                                 A BILL

 
 To enhance the economic and national security of the United States by 
securing a reliable supply of critical minerals and rare earth elements 
          through trade agreements and strategic partnerships.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Securing Trade and Resources for 
Advanced Technology, Economic Growth, and International Commerce in 
Minerals Act'' or ``STRATEGIC Minerals Act''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means--
                    (A) the Committee on Finance of the Senate; and
                    (B) the Committee on Ways and Means of the House of 
                Representatives.
            (2) Country.--The term ``country'' means--
                    (A) any foreign country or territory, including any 
                overseas dependent territory or possession of a foreign 
                country; and
                    (B) the Trust Territory of the Pacific Islands.
            (3) Covered free trade agreement.--The term ``covered free 
        trade agreement'' means an agreement with one or more countries 
        that--
                    (A) exclusively focuses on the critical minerals 
                and rare earth elements sector;
                    (B) reduces barriers to trade among the parties to 
                the agreement;
                    (C) includes enforceable provisions to prevent any 
                foreign entity of concern from gaining any benefit from 
                the agreement; and
                    (D) is approved by Congress.
            (4) Critical mineral.--The term ``critical mineral'' has 
        the meaning given that term in section 7002(a) of the Energy 
        Act of 2020 (30 U.S.C. 1606(a)).
            (5) Foreign entity of concern.--The term ``foreign entity 
        of concern'' has the meaning given that term in section 40207 
        of the Infrastructure Investment and Jobs Act (42 U.S.C. 
        18741).
            (6) Rare earth element.--The term ``rare earth element'' 
        means cerium, dysprosium, erbium, europium, gadolinium, 
        holmium, lanthanum, lutetium, neodymium, praseodymium, 
        promethium, samarium, scandium, terbium, thulium, ytterbium, or 
        yttrium.
            (7) Trade representative.--The term ``Trade 
        Representative'' means the United States Trade Representative.

SEC. 3. BRIEFING ON COVERED FREE TRADE AGREEMENTS.

    (a) In General.--Not later than 120 days after the date of the 
enactment of this Act, the Trade Representative, in consultation with 
the Secretary of State, the Secretary of Defense, the Secretary of 
Energy, and the Secretary of the Interior, as appropriate, shall 
provide to the appropriate congressional committees a classified 
briefing on the feasibility and advisability of pursuing and adopting 
covered free trade agreements.
    (b) Elements.--The briefing required by subsection (a) shall 
include--
            (1) an analysis of the most appropriate types of agreements 
        (bilateral, plurilateral, or multilateral) for achieving the 
        negotiating objectives set forth in section 4(d), including 
        considerations of economic impact, strategic partnerships, 
        negotiation feasibility, and national security implications;
            (2) recommendations for which type or types of agreements 
        are most needed to effectively secure critical minerals and 
        rare earth elements supply chains in alignment with the 
        national security and economic interests of the United States; 
        and
            (3) an assessment of potential challenges and proposed 
        solutions in pursuing the recommended type or types of 
        agreement, including legal, regulatory, and geopolitical 
        considerations.

SEC. 4. NEGOTIATING AND TRADE AGREEMENTS AUTHORITY FOR COVERED FREE 
              TRADE AGREEMENTS.

    (a) Authority To Negotiate and Enter Into Agreements.--
            (1) In general.--In order to enhance the economic well-
        being, national security, and economic competitiveness of the 
        United States, the President, acting through the Trade 
        Representative, may negotiate, enter into, and enforce a 
        covered free trade agreement when the President determines that 
        it is in the national interest to do so.
            (2) Limitation.--The President may not initiate 
        negotiations for a covered free trade agreement under paragraph 
        (1) until the date on which the Trade Representative provides 
        the briefing required by section 3(a) to the appropriate 
        congressional committees.
    (b) Modifications Permitted.--The President may proclaim such 
modification or continuance of any existing duty, or such continuance 
of existing duty-free or excise treatment, as the President determines 
to be required or appropriate to carry out a covered free trade 
agreement entered into under subsection (a)(1).
    (c) Negotiating Objectives.--
            (1) Overall negotiating objectives.--The negotiating 
        objectives of the United States for a covered free trade 
        agreement are--
                    (A) to strengthen supply chains of critical 
                minerals and rare earth elements;
                    (B) to reduce or eliminate barriers and distortions 
                that inhibit to trade and investment in critical 
                minerals and rare earth elements;
                    (C) to strengthen international trade and 
                investment disciplines and procedures specific to 
                critical minerals and rare earth elements, including 
                effective dispute settlement mechanisms;
                    (D) to foster economic growth, raise living 
                standards, enhance the competitiveness of the United 
                States, promote full employment, and contribute to the 
                global economy through the development and trade of 
                critical minerals and rare earth elements;
                    (E) to promote policies that advance sustainable 
                practices and circularity in the production and 
                processing of critical minerals and rare earth 
                elements;
                    (F) to encourage the development and adoption of 
                innovative technologies and practices that optimize the 
                use of critical resources;
                    (G) to promote respect for worker rights and the 
                rights of children consistent with core labor standards 
                only as stated in the International Labour Organization 
                Declaration on Fundamental Principles and Rights at 
                Work and its Follow-Up (1998) and an understanding of 
                the relationship between trade and worker rights;
                    (H) to seek provisions in the agreement under which 
                parties ensure they do not weaken or reduce the 
                protections afforded in domestic environmental and 
                labor laws as an encouragement for trade;
                    (I) to afford small businesses equitable trade 
                benefits and to reduce or eliminate trade and 
                investment barriers that disproportionately impact 
                small businesses;
                    (J) to promote universal ratification and full 
                compliance with the International Labour Organization 
                Convention (ILO No. 182) concerning the Prohibition and 
                Immediate Action for the Elimination of the Worst Forms 
                of Child Labor, adopted at Geneva, June 17, 1999;
                    (K) to promote universal ratification and full 
                compliance with the International Labour Organization 
                Convention (ILO No. 176) concerning Safety and Health 
                in Mines, adopted at Geneva, June 22, 1995;
                    (L) to encourage ownership transparency throughout 
                the critical minerals and rare earth elements supply 
                chain to prevent undue influence from foreign entities 
                of concern;
                    (M) to protect legitimate health, safety, essential 
                security, and consumer interests, ensuring that the 
                agreement does not require changes to United States 
                laws relating to those interests unless expressly 
                agreed upon; and
                    (N) to ensure that the agreement does not require 
                changes to United States statutes or regulations.
            (2) Consideration of existing negotiating objectives.--In 
        conducting negotiations under this section, the President shall 
        take into account the principal trade negotiating objectives 
        set forth in paragraphs (5), (7), and (10) of section 102(b) of 
        the Bipartisan Congressional Trade Priorities and 
        Accountability Act of 2015 (19 U.S.C. 4201(b)), to the extent 
        that those objectives are pertinent to the objectives described 
        in paragraph (1).
    (d) Consultation With and Notification to Congress Before 
Initiating Negotiations.--Before initiating negotiations under 
subsection (a)(1), or issuing a proclamation under subsection (b), the 
President shall--
            (1) consult with the appropriate congressional committees 
        regarding the intention to enter into the negotiations or issue 
        the proclamation, as the case may be; and
            (2) notify the appropriate congressional committees in 
        writing at least 30 days before the initiation of the 
        negotiations or the issuance of the proclamation, as the case 
        may be, that includes--
                    (A) a statement of the intention to initiate the 
                negotiations or issue the proclamation;
                    (B) in the case of negotiations--
                            (i) an identification of the country or 
                        countries with which the President intends to 
                        initiate negotiations; and
                            (ii) a description of the specific 
                        objectives for the negotiations; and
                    (C) an assessment of the potential impact of the 
                negotiations or proclamation, as the case may be, on 
                the economic and strategic interests of the United 
                States.
    (e) Participating Countries.--
            (1) In general.--Subject to paragraph (2), the President 
        may--
                    (A) determine which countries to negotiate with 
                toward a covered free trade agreement; and
                    (B) after the implementation of any such agreement 
                and as conditions warrant, identify and engage in 
                negotiations with additional countries that wish to 
                accede to the agreement.
            (2) Exclusive benefits.--
                    (A) In general.--Any covered free trade agreement 
                entered into under subsection (a)(1) shall provide 
                trade benefits, including tariff reductions, 
                preferential treatment, or other trade advantages 
                related to critical minerals and rare earth elements, 
                exclusively to countries that are parties to the 
                agreement.
                    (B) Status of non-participants.--Countries that are 
                not parties to a covered free trade agreement may not 
                receive the trade benefits provided under the 
                agreement, but nothing in this Act shall be construed 
                to impose additional restrictions or penalties on such 
                countries.
            (3) Treatment of nonmarket economy countries.--
                    (A) In general.--The President may not negotiate a 
                covered free trade agreement with a country determined 
                to be a nonmarket economy country pursuant to section 
                771(18) of the Tariff Act of 1930 (19 U.S.C. 1677(18)).
                    (B) After entry into force.--A country described in 
                subparagraph (A) that is not designated as a foreign 
                country of concern (as defined in section 231.102 of 
                title 15, Code of Federal Regulations) may accede to a 
                covered free trade agreement after entry into force of 
                the agreement if a joint resolution is enacted into law 
                approving the accession of that country to the 
                agreement.
    (f) Bills Qualifying for Trade Authorities Procedures.--
            (1) In general.--The provisions of section 151 of the Trade 
        Act of 1974 (19 U.S.C. 2191) (in this section referred to as 
        ``trade authorities procedures'') apply to a bill of either 
        House of Congress which contains provisions described in 
        paragraph (2) to the same extent as such section 151 applies to 
        implementing bills under that section. A bill to which this 
        subsection applies shall hereafter in this section be referred 
        to as an ``implementing bill''.
            (2) Provisions specified.--The provisions described in this 
        paragraph are--
                    (A) a provision approving a covered free trade 
                agreement and approving the statement of administrative 
                action, if any, proposed to implement that agreement; 
                and
                    (B) if changes in existing laws or new statutory 
                authority are required to implement that agreement, 
                only such provisions as are strictly necessary or 
                appropriate to implement the agreement, either 
                repealing or amending existing laws or providing new 
                statutory authority.
    (g) Relationship to Bipartisan Congressional Trade Priorities And 
Accountability Act of 2015.--A covered free trade agreement, including 
such an agreement that does not require changes to United States law, 
shall not enter into force with respect to the United States and an 
implementing bill that relates to such an agreement shall not qualify 
for trade authorities procedures unless the following requirements of 
the Bipartisan Congressional Trade Priorities and Accountability Act of 
2015 (19 U.S.C. 4201 et seq.) are carried out with respect to that 
agreement, to the same extent as would be required with respect to an 
agreement entered into under section 103(b) of that Act (19 U.S.C. 
4202(b)), notwithstanding the expiration of authority to enter into an 
agreement under such section 103(b):
            (1) The congressional oversight and consultation 
        requirements under section 104 of that Act (19 U.S.C. 4203).
            (2) The notification, consultation, and reporting 
        requirements under section 105 of that Act (19 U.S.C. 4204).
            (3) The implementation procedures under section 106 of that 
        Act (19 U.S.C. 4205).
    (h) Termination of Authority.--
            (1) Negotiation and agreements.--
                    (A) In general.--The authority of the President 
                under subsection (a)(1) to negotiate and enter into 
                covered free trade agreements terminates on July 1, 
                2035.
                    (B) Treatment of modifications.--Substantial 
                modifications to, or substantial additional provisions 
                of, a covered free trade agreement that are entered 
                into after July 1, 2035, are not covered by the 
                authority under subsection (a)(1).
            (2) Trade authorities procedures.--The trade authorities 
        procedures apply to an implementing bill with respect to a 
        covered free trade agreement entered into under subsection 
        (a)(1) if--
                    (A) the agreement is entered into on or before July 
                1, 2035; and
                    (B) the implementing bill is submitted to Congress 
                not later than one year after the agreement is entered 
                into.
            (3) Enforcement.--The authority under subsection (a)(1) to 
        enforce a covered free trade agreement remains in effect after 
        July 1, 2035, notwithstanding the termination under paragraph 
        (1) of the authority to negotiate and enter into such 
        agreements.

SEC. 5. INCLUSION OF BUSINESSES OF PARTIES TO COVERED FREE TRADE 
              AGREEMENTS IN DEFINITION OF DOMESTIC SOURCE FOR TITLE III 
              OF DEFENSE PRODUCTION ACT OF 1950.

    Section 702(7)(B) of the Defense Production Act of 1950 (50 U.S.C. 
4552(7)(B)) is amended--
            (1) in clause (i)(I)--
                    (A) in item (aa), by striking ``; or'' and 
                inserting a semicolon;
                    (B) in item (bb), by striking ``; and'' and 
                inserting ``; or''; and
                    (C) by adding at the end the following:
                                            ``(cc) subject to clause 
                                        (iii), the territory of a party 
                                        to a covered free trade 
                                        agreement (as defined in 
                                        section 2 of the Securing Trade 
                                        and Resources for Advanced 
                                        Technology, Economic Growth, 
                                        and International Commerce in 
                                        Minerals Act); and''; and
            (2) by adding at the end the following:
                            ``(iii) Additional requirements for parties 
                        to covered free trade agreements.--
                                    ``(I) In general.--A business 
                                concern described in clause (i)(I)(cc) 
                                may be treated as a domestic source--
                                            ``(aa) only for purposes of 
                                        the exercise of authorities 
                                        under section 303(a)(1) 
                                        relating to minerals activities 
                                        related to minerals the supply 
                                        of which in the United States 
                                        and Canada is deficient; and
                                            ``(bb) only if, for 
                                        minerals activities carried out 
                                        pursuant to such exercise of 
                                        authorities--

                                                    ``(AA) the minerals 
                                                are processed, 
                                                beneficiated, or 
                                                recycled only by 
                                                entities owned by 
                                                entities organized 
                                                under the laws of the 
                                                United States and not 
                                                more than 10 percent or 
                                                more of the equity 
                                                interests of which are 
                                                owned or controlled, 
                                                directly or indirectly, 
                                                by any foreign entity 
                                                of concern, through any 
                                                contract, arrangement, 
                                                understanding, 
                                                relationship, or 
                                                otherwise;

                                                    ``(BB) the business 
                                                concern does not sell 
                                                or transfer any of the 
                                                minerals extracted, 
                                                processed, 
                                                beneficiated, refined, 
                                                recycled, or otherwise 
                                                transformed, or any 
                                                revenues derived from 
                                                those minerals, to 
                                                entities located in the 
                                                People's Republic of 
                                                China or to entities 
                                                owned, directly or 
                                                indirectly, held, or 
                                                controlled by any 
                                                foreign entity of 
                                                concern; and

                                                    ``(CC) no mine used 
                                                for the mining of such 
                                                minerals is owned, 
                                                directly or indirectly, 
                                                held, or controlled by 
                                                any foreign entity of 
                                                concern.

                                    ``(II) Determination of 
                                deficiency.--For purposes of subclause 
                                (I)(aa), in determining if the supply 
                                in the United States and Canada of a 
                                critical mineral or rare earth element 
                                is deficient, the Secretary of Defense, 
                                in consultation with the Secretary of 
                                the Interior and the Secretary of 
                                Energy, shall consider factors 
                                including--
                                            ``(aa) current domestic 
                                        production levels;
                                            ``(bb) projected demand for 
                                        national defense and critical 
                                        infrastructure;
                                            ``(cc) dependence on 
                                        foreign sources, especially 
                                        from foreign entities of 
                                        concern; and
                                            ``(dd) potential for supply 
                                        chain disruptions.
                                    ``(III) Compliance and 
                                verification.--
                                            ``(aa) Guidance.--The 
                                        Secretary of Defense shall 
                                        provide guidance to business 
                                        concerns on compliance with 
                                        this clause.
                                            ``(bb) Notice of and 
                                        penalties for noncompliance.--
                                        If a business concern is found 
                                        to be in violation of this 
                                        clause--

                                                    ``(AA) the 
                                                Secretary of Defense 
                                                shall provide written 
                                                notice to the business 
                                                concern detailing the 
                                                nature of the violation 
                                                and the penalties to be 
                                                imposed;

                                                    ``(BB) the business 
                                                concern may be required 
                                                to repay any funds 
                                                received under section 
                                                303(a)(1);

                                                    ``(CC) the business 
                                                concern may be 
                                                disqualified from 
                                                future contracts or 
                                                financial assistance 
                                                under this Act;

                                                    ``(DD) the business 
                                                concern may be subject 
                                                to civil penalties 
                                                under section 705; and

                                                    ``(EE) the matter 
                                                may be referred to the 
                                                Attorney General for 
                                                criminal prosecution 
                                                under applicable laws.

                                    ``(IV) Definitions.--In this 
                                clause:
                                            ``(aa) Beneficiate; 
                                        beneficiation.--The terms 
                                        `beneficiate' and 
                                        `beneficiation' mean the 
                                        crushing and grinding of 
                                        hardrock mineral ore and such 
                                        processes as are employed to 
                                        free the mineral from other 
                                        constituents, including 
                                        physical and chemical 
                                        separation techniques.
                                            ``(bb) Control.--The term 
                                        `control' means having the 
                                        ability, directly or 
                                        indirectly, to determine 
                                        (without regard to whether 
                                        exercised through 1 or more 
                                        corporate structures) the 
                                        manner in which an entity 
                                        conducts mineral activities, 
                                        through any means, including--

                                                    ``(AA) ownership 
                                                interest;

                                                    ``(BB) authority to 
                                                commit the real or 
                                                financial assets of the 
                                                entity;

                                                    ``(CC) position as 
                                                a director, officer, or 
                                                partner of the entity; 
                                                or

                                                    ``(DD) contractual 
                                                arrangement.

                                            ``(cc) Critical mineral.--
                                        The term `critical mineral' has 
                                        the meaning given that term in 
                                        section 7002(a) of the Energy 
                                        Act of 2020 (30 U.S.C. 
                                        1606(a)).
                                            ``(dd) Deficient.--The term 
                                        `deficient', with respect to 
                                        the supply in the United States 
                                        and Canada of a critical 
                                        mineral or rare earth element, 
                                        means that supply is 
                                        insufficient to meet national 
                                        defense and essential civilian 
                                        industrial requirements, as 
                                        determined by the Secretary of 
                                        Defense, in consultation with 
                                        the Secretary of the Interior 
                                        and the Secretary of Energy.
                                            ``(ee) Foreign entity of 
                                        concern.--The term `foreign 
                                        entity of concern' has the 
                                        meaning given that term in 
                                        section 40207 of the 
                                        Infrastructure Investment and 
                                        Jobs Act (42 U.S.C. 18741).
                                            ``(ff) Mineral 
                                        activities.--The term `mineral 
                                        activities' means any activity 
                                        carried out on a mining claim, 
                                        millsite, or tunnel site, for, 
                                        related to, or incidental to, 
                                        mining, beneficiation, 
                                        processing, refining, alloying, 
                                        or recycling activities for any 
                                        critical mineral or rare earth 
                                        element.
                                            ``(gg) Processing.--The 
                                        term `processing' has the 
                                        meaning given that term in 
                                        Treasury Regulation section 
                                        1.30D-2(b)(37) (or a successor 
                                        regulation).
                                            ``(hh) Rare earth 
                                        element.--The term `rare earth 
                                        element' has the meaning given 
                                        that term in section 2 of the 
                                        Securing Trade and Resources 
                                        for Advanced Technology, 
                                        Economic Growth, and 
                                        International Commerce in 
                                        Minerals Act.
                                            ``(ii) Recycling.--The term 
                                        `recycling' has the meaning 
                                        given that term in Treasury 
                                        Regulation section 1.30D-
                                        2(b)(43) (or a successor 
                                        regulation).
                                            ``(jj) Revenues.--The term 
                                        `revenues' includes any income, 
                                        profits, dividends, royalties, 
                                        or other financial benefits 
                                        obtained from the sale, 
                                        transfer, or other disposition 
                                        of the minerals produced.
                                            ``(kk) Sell or transfer.--
                                        The term `sell or transfer' 
                                        includes any transaction that 
                                        conveys ownership, possession, 
                                        or control of minerals 
                                        produced, or any interest 
                                        therein, including sales, 
                                        leases, exchanges, or gifts.''.
                                 <all>
```