II 

118TH CONGRESS 

1ST SESSION S. 44 

To require the Secretary of Energy to establish a program to incentivize 

investment in facilities that carry out the metallurgy of rare earth elements and the production of finished rare earth products, and for other 

purposes. 

IN THE SENATE OF THE UNITED STATES 

JANUARY 24 (legislative day, JANUARY 3), 2023 

Mr. RUBIO introduced the following bill; which was read twice and referred 

to the Committee on Energy and Natural Resources 

A BILL 

To require the Secretary of Energy to establish a program 

to incentivize investment in facilities that carry out the 

metallurgy of rare earth elements and the production 

of finished rare earth products, and for other purposes. 

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. 

4 This Act may be cited as the ‘‘Obtaining National 

5 and Secure Homeland Operations for Rare Earth Manu6 facturing Act of 2023’’ or the ‘‘ONSHORE Manufac7 turing Act of 2023’’. 


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1 SEC. 2. DEFINITIONS. 

2 In this Act: 

3 (1) APPROPRIATE COMMITTEES OF CON4 GRESS.—The term ‘‘appropriate committees of Con5 gress’’ means— 

6 (A) the Select Committee on Intelligence, 

7 the Committee on Energy and Natural Re8 sources, the Committee on Commerce, Science, 

9 and Transportation, the Committee on Foreign 

10 Relations, the Committee on Armed Services, 

11 the Committee on Appropriations, the Com12 mittee on Banking, Housing, and Urban Af13 fairs, the Committee on Homeland Security and 

14 Governmental Affairs, and the Committee on 

15 Finance of the Senate; and 

16 (B) the Permanent Select Committee on 

17 Intelligence, the Committee on Energy and 

18 Commerce, the Committee on Foreign Affairs, 

19 the Committee on Armed Services, the Com20 mittee on Science, Space, and Technology, the 

21 Committee on Appropriations, the Committee 

22 on Financial Services, the Committee on Home23 land Security, and the Committee on Ways and 

24 Means of the House of Representatives. 

25 (2) COVERED ENTITY.—The term ‘‘covered en26 tity’’ means a private entity, a consortium of private 


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1 entities, or a consortium of public and private enti2 ties with a demonstrated ability to substantially fi3 nance, construct, expand, or technologically upgrade 

4 a covered facility. 

5 (3) COVERED FACILITY.—The term ‘‘covered 

6 facility’’ means a facility located in a State that car7 ries out the metallurgy of rare earth elements for 

8 the production of finished rare earth products. 

9 (4) COVERED INCENTIVE.—The term ‘‘covered 

10 incentive’’ means— 

11 (A) an incentive offered by a Federal, 

12 State, local, or Tribal governmental entity to a 

13 covered entity for the purposes of— 

14 (i) constructing within the jurisdiction 

15 of the governmental entity a covered facil16 ity; or 

17 (ii) expanding or technologically up18 grading an existing facility within that ju19 risdiction to be a covered facility; and 

20 (B) a workforce-related incentive (includ21 ing a grant agreement relating to workforce 

22 training or vocational education), any conces23 sion with respect to real property, funding for 

24 research and development with respect to rare 

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1 ucts, and any other incentive determined appro2 priate by the Secretary, in consultation with the 

3 Secretary of State. 

4 (5) FINISHED RARE EARTH PRODUCT.—The 

5 term ‘‘finished rare earth product’’ means a product 

6 composed of significant quantities of rare earth ele7 ments, including— 

8 (A) metals; 

9 (B) alloys; and 

10 (C) permanent magnets. 

11 (6) FOREIGN ENTITY.— 

12 (A) IN GENERAL.—The term ‘‘foreign enti13 ty’’ means— 

14 (i) a government of a foreign country 

15 and a foreign political party; 

16 (ii) a natural person who is not— 

17 (I) a lawful permanent resident 

18 of the United States; 

19 (II) a citizen or national of the 

20 United States; or 

21 (III) any other protected indi22 vidual (as defined in section 

23 274B(a)(3) of the Immigration and 

24 Nationality Act (8 U.S.C. 

25 1324b(a)(3))); and 


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1 (iii) a partnership, association, cor2 poration, organization, or other combina3 tion of persons organized under the laws of 

4 or having its principal place of business in 

5 a foreign country. 

6 (B) INCLUSIONS.—The term ‘‘foreign enti7 ty’’ includes— 

8 (i) any person owned by, controlled 

9 by, or subject to the jurisdiction or direc10 tion of an entity described in subparagraph 

11 (A); 

12 (ii) any person, wherever located, who 

13 acts as an agent, representative, or em14 ployee of an entity described in subpara15 graph (A); 

16 (iii) any person who acts in any other 

17 capacity at the order, request, or under the 

18 influence, direction, or control, of— 

19 (I) an entity described in sub20 paragraph (A); or 

21 (II) a person the activities of 

22 which are directly or indirectly super23 vised, directed, controlled, financed, or 

24 subsidized in whole or in majority 


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1 part by an entity described in sub2 paragraph (A); 

3 (iv) any person who directly or indi4 rectly through any contract, arrangement, 

5 understanding, relationship, or otherwise, 

6 owns 25 percent or more of the equity in7 terests of an entity described in subpara8 graph (A); 

9 (v) any person with significant re10 sponsibility to control, manage, or direct 

11 an entity described in subparagraph (A); 

12 (vi) any person, wherever located, who 

13 is a citizen or resident of a country con14 trolled by an entity described in subpara15 graph (A); and 

16 (vii) any corporation, partnership, as17 sociation, or other organization organized 

18 under the laws of a country controlled by 

19 an entity described in subparagraph (A). 

20 (7) FOREIGN ENTITY OF CONCERN.— 

21 (A) IN GENERAL.—The term ‘‘foreign enti22 ty of concern’’ means any foreign entity that 

23 is— 

24 (i) designated as a foreign terrorist 

25 organization by the Secretary of State 


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1 under section 219 of the Immigration and 

2 Nationality Act (8 U.S.C. 1189); 

3 (ii) included on the list of specially 

4 designated nationals and blocked persons 

5 maintained by the Office of Foreign Assets 

6 Control of the Department of the Treas7 ury; 

8 (iii) owned by, controlled by, or sub9 ject to the jurisdiction, direction, or other10 wise under the undue influence of a gov11 ernment of a covered nation (as defined in 

12 section 4872(d) of title 10, United States 

13 Code); 

14 (iv) alleged by the Attorney General 

15 to have been involved in activities for 

16 which a conviction was obtained under— 

17 (I) chapter 37 of title 18, United 

18 States Code (commonly known as the 

19 ‘‘Espionage Act’’); 

20 (II) section 951 or 1030 of title 

21 18, United States Code; 

22 (III) chapter 90 of title 18, 

23 United States Code (commonly known 

24 as the ‘‘Economic Espionage Act of 

25 1996’’); 


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1 (IV) the Arms Export Control 

2 Act (22 U.S.C. 2751 et seq.); 

3 (V) section 224, 225, 226, 227, 

4 or 236 of the Atomic Energy Act of 

5 1954 (42 U.S.C. 2274–2278; 2284); 

6 (VI) the Export Control Reform 

7 Act of 2018 (50 U.S.C. 4801 et seq.); 

8 or 

9 (VII) the International Emer10 gency Economic Powers Act (50 

11 U.S.C. 1701 et seq.); or 

12 (v) determined by the Secretary, in 

13 consultation with the Secretary of Defense 

14 and the Director of National Intelligence, 

15 to be engaged in unauthorized conduct 

16 that is detrimental to the national security 

17 or foreign policy of the United States 

18 under this Act. 

19 (B) EXCLUSION.—The term ‘‘foreign enti20 ty of concern’’ does not include any entity with 

21 respect to which 1 or more foreign entities de22 scribed in subparagraph (A) owns less than 10 

23 percent of the equity interest. 

24 (8) GOVERNMENTAL ENTITY.—The term ‘‘gov25 ernmental entity’’ means— 


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1 (A) a State; and 

2 (B) a local government of a State. 

3 (9) INTELLIGENCE COMMUNITY.—The term 

4 ‘‘intelligence community’’ has the meaning given the 

5 term in section 3 of the National Security Act of 

6 1947 (50 U.S.C. 3003). 

7 (10) METALLURGY.—The term ‘‘metallurgy’’ 

8 means the process of producing finished rare earth 

9 products from purified rare earth elements. 

10 (11) MINERALS SECURITY PARTNERSHIP.—The 

11 term ‘‘Minerals Security Partnership’’ means the 

12 Minerals Security Partnership established in June 

13 2022. 

14 (12) PERSON.—The term ‘‘person’’ includes an 

15 individual, partnership, association, corporation, or16 ganization, or any other combination of individuals. 

17 (13) PRIVATE CAPITAL.—The term ‘‘private 

18 capital’’ has the meaning given the term in section 

19 103 of the Small Business Investment Act of 1958 

20 (15 U.S.C. 662). 

21 (14) RARE EARTH ELEMENT.—The term ‘‘rare 

22 earth element’’ means a natural element associated 

23 with— 

24 (A) the metallic element scandium, with 

25 atomic number 21; 


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1 (B) the metallic element yttrium, with 

2 atomic number 39; or 

3 (C) any of the series of 15 metallic ele4 ments between lanthanum, with atomic number 

5 57, and lutetium, with atomic number 71, on 

6 the periodic table. 

7 (15) SECRETARY.—The term ‘‘Secretary’’ 

8 means the Secretary of Energy. 

9 (16) STATE.—The term ‘‘State’’ means— 

10 (A) each of the several States of the 

11 United States; 

12 (B) the District of Columbia; 

13 (C) the Commonwealth of Puerto Rico; 

14 (D) Guam; 

15 (E) American Samoa; 

16 (F) the Commonwealth of the Northern 

17 Mariana Islands; 

18 (G) the Federated States of Micronesia; 

19 (H) the Republic of the Marshall Islands; 

20 (I) the Republic of Palau; and 

21 (J) the United States Virgin Islands. 

22 SEC. 3. RARE EARTH METALLURGY FINANCING. 

23 (a) FINANCIAL ASSISTANCE PROGRAM.— 

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

25 in the Department of Energy a program to provide 


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1 Federal financial assistance to covered entities to 

2 incentivize investment in covered facilities, subject to 

3 the availability of appropriations for that purpose. 

4 (2) PROCEDURE.— 

5 (A) IN GENERAL.—A covered entity seek6 ing financial assistance under this subsection 

7 shall submit to the Secretary an application 

8 that describes the project for which the covered 

9 entity is seeking financial assistance. 

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

11 entity to qualify for financial assistance under 

12 this subsection, the covered entity shall dem13 onstrate to the Secretary, in the application 

14 submitted by the covered entity under subpara15 graph (A), that— 

16 (i) the covered entity has a docu17 mented interest in— 

18 (I) constructing a covered facil19 ity; or 

20 (II) expanding or technologically 

21 upgrading a facility owned by the cov22 ered entity to be a covered facility; 

23 and 


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1 (ii) with respect to the project for 

2 which the covered entity is seeking finan3 cial assistance, the covered entity has— 

4 (I) been offered a covered incen5 tive; 

6 (II) made commitments to work7 er and community investment, includ8 ing through— 

9 (aa) training and education 

10 benefits paid by the covered enti11 ty; and 

12 (bb) programs to expand 

13 employment opportunity for eco14 nomically disadvantaged individ15 uals; 

16 (III) secured commitments from 

17 regional educational and training enti18 ties and institutions of higher edu19 cation to provide workforce training, 

20 including programming for training 

21 and job placement of economically dis22 advantaged individuals; and 

23 (IV) an executable plan to sus24 tain a covered facility without addi25 tional Federal financial assistance 


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1 under this subsection for facility sup2 port. 

3 (C) APPLICATION REVIEW.— 

4 (i) IN GENERAL.—The Secretary may 

5 not approve an application submitted by a 

6 covered entity under subparagraph (A)— 

7 (I) unless the Secretary— 

8 (aa) confirms that the cov9 ered entity has satisfied the eligi10 bility criteria under subpara11 graph (B); 

12 (bb) determines that the 

13 project for which the covered en14 tity is seeking financial assist15 ance is in the interest of the 

16 United States; and 

17 (cc) has notified the appro18 priate committees of Congress 

19 not later than 15 days before 

20 making any commitment to pro21 vide an award of financial assist22 ance to any covered entity in an 

23 amount that exceeds 

24 $10,000,000; or 


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1 (II) if the Secretary determines, 

2 in consultation with the Director of 

3 National Intelligence, that the covered 

4 entity is a foreign entity of concern. 

5 (ii) CONSIDERATION.—In reviewing 

6 an application submitted by a covered enti7 ty under subparagraph (A), the Secretary 

8 may consider whether— 

9 (I) the covered entity has pre10 viously received financial assistance 

11 under this subsection; 

12 (II) the governmental entity of13 fering the applicable covered incentive 

14 has benefitted from financial assist15 ance previously provided under this 

16 subsection; 

17 (III) the covered entity has dem18 onstrated that the covered entity is re19 sponsive to the national security needs 

20 or requirements established by the in21 telligence community (or an agency 

22 thereof), the National Nuclear Secu23 rity Administration, or the Depart24 ment of Defense; 


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1 (IV) if practicable, a consortium 

2 that is considered a covered entity in3 cludes a small business concern (as 

4 defined under section 3 of the Small 

5 Business Act (15 U.S.C. 632)), not6 withstanding section 121.103 of title 

7 13, Code of Federal Regulations (or 

8 successor regulations); and 

9 (V) the covered entity intends to 

10 produce finished products for use by 

11 the Department of Defense, the de12 fense industry of the United States, 

13 or critical energy infrastructure. 

14 (iii) PRIORITIZATION.—To the max15 imum extent practicable, the Secretary 

16 shall prioritize awarding financial assist17 ance under this subsection to a covered en18 tity that intends to make finished products 

19 available for use by the Department of De20 fense, the defense industry of the United 

21 States, or critical energy infrastructure. 

22 (D) RECORDS.— 

23 (i) IN GENERAL.—The Secretary may 

24 request records and information from a 

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1 tion under subparagraph (A) to review the 

2 status of a covered entity. 

3 (ii) REQUIREMENT.—The covered en4 tity shall provide the records and informa5 tion requested by the Secretary under 

6 clause (i). 

7 (3) AMOUNT.— 

8 (A) IN GENERAL.—The Secretary shall de9 termine the appropriate amount and funding 

10 type for each financial assistance award pro11 vided to a covered entity under this subsection. 

12 (B) COST-SHARING REQUIREMENT.—The 

13 total amount of financial assistance that may be 

14 guaranteed by the Secretary under this sub15 section shall be not more than 100 percent of 

16 the private capital investment available to a 

17 covered entity for any individual project. 

18 (C) MINIMUM INVESTMENT.—The total 

19 Federal investment in any individual project re20 ceiving a financial assistance award under this 

21 subsection shall be not less than $100,000,000. 

22 (D) LARGER INVESTMENT.—The total 

23 Federal investment in any individual project re24 ceiving a financial assistance award under this 

25 subsection shall not exceed $500,000,000, unVerDate Sep 11 2014 23:03 Jan 27, 2023 Jkt 039200 PO 00000 Frm 00016 Fmt 6652 Sfmt 6201 E:\BILLS\S44.IS S44

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1 less the Secretary, in consultation with the Sec2 retary of Defense and the Director of National 

3 Intelligence, recommends to the President, and 

4 the President certifies and reports to the appro5 priate committees of Congress, that a larger in6 vestment is necessary— 

7 (i) to significantly increase the pro8 portion of reliable domestic supply of fin9 ished rare earth products relevant for na10 tional security and economic competitive11 ness that can be met through domestic 

12 production; and 

13 (ii) to meet the needs of national se14 curity. 

15 (4) USE OF FUNDS.—A covered entity that re16 ceives a financial assistance award under this sub17 section may only use the financial assistance award 

18 amounts— 

19 (A) to finance the construction of a cov20 ered facility (including equipment) or the ex21 pansion or technological upgrade of a facility 

22 (including equipment) of the covered entity to 

23 be a covered facility, as documented in the ap24 plication submitted by the covered entity under 

25 paragraph (2)(A), as determined necessary by 


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1 the Secretary for purposes relating to the na2 tional security and economic competitiveness of 

3 the United States; 

4 (B) to support workforce development for 

5 a covered facility; and 

6 (C) to support site development and tech7 nological upgrade for a covered facility. 

8 (5) CLAWBACK.— 

9 (A) MAJOR AWARDS.— 

10 (i) IN GENERAL.—For all financial as11 sistance awards provided to covered enti12 ties under this subsection, the Secretary 

13 shall, at the time of making the award, de14 termine the target dates by which a cov15 ered entity shall commence and complete 

16 the applicable project. 

17 (ii) PROGRESSIVE RECOVERY FOR

18 DELAYS.—If the covered entity receiving a 

19 financial assistance award under this sub20 section does not complete the applicable 

21 project by the applicable target date deter22 mined under clause (i), the Secretary shall 

23 progressively recover up to the full amount 

24 of the award. 


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1 (iii) WAIVER.—In the case of projects 

2 that do not meet the applicable target date 

3 determined under clause (i), the Secretary 

4 may waive the requirement to recover the 

5 financial award provided for the project 

6 under clause (ii) after making a formal de7 termination that circumstances beyond the 

8 ability of the covered entity to foresee or 

9 control are responsible for the delay. 

10 (iv) CONGRESSIONAL NOTIFICA11 TION.— 

12 (I) IN GENERAL.—Not later than 

13 15 days after making a determination 

14 to recover an award under clause (ii), 

15 the Secretary shall notify the appro16 priate committees of Congress of the 

17 intent of the Secretary to recover the 

18 award. 

19 (II) WAIVERS.—Not later than 

20 15 days after the date on which the 

21 Secretary provides a waiver under 

22 clause (iii), the Secretary shall notify 

23 the appropriate committees of Con24 gress of the waiver. 


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1 (B) JOINT RESEARCH, TECHNOLOGY LI2 CENSING, AND INTELLECTUAL PROPERTY RE3 PORTING.— 

4 (i) IN GENERAL.—Before entering 

5 into an agreement with a foreign entity to 

6 conduct joint research or technology licens7 ing, or to share intellectual property, a 

8 covered entity that has received a financial 

9 assistance award under this subsection— 

10 (I) shall notify the Secretary of 

11 the intent to enter into such an agree12 ment; and 

13 (II) may only enter into such an 

14 agreement if the Secretary determines 

15 the foreign entity is not a foreign en16 tity of concern. 

17 (ii) DETERMINATION.—On receiving a 

18 notification under clause (i), the Secretary, 

19 in consultation with the Director of Na20 tional Intelligence, the Director of the Na21 tional Counterintelligence and Security 

22 Center, and the Director of the Federal 

23 Bureau of Investigation, shall make a de24 termination of whether the applicable for25 eign entity is a foreign entity of concern. 


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1 (iii) TECHNOLOGY CLAWBACK.—The 

2 Secretary shall recover the full amount of 

3 a financial assistance award provided to a 

4 covered entity under this subsection if, 

5 during the applicable term of the award, 

6 the covered entity knowingly engages in 

7 any joint research, technology licensing, or 

8 intellectual property sharing effort with a 

9 foreign entity of concern that relates to a 

10 technology or product that raises national 

11 security concerns, as determined by the 

12 Secretary, in consultation with the Direc13 tor of National Intelligence, the Director of 

14 the National Counterintelligence and Secu15 rity Center, and the Director of the Fed16 eral Bureau of Investigation, on the condi17 tion that the determination of the Sec18 retary shall have been communicated to 

19 the covered entity before the covered entity 

20 engaged in the joint research, technology 

21 licensing, or intellectual property sharing. 

22 (6) CONDITION OF RECEIPT.—A covered entity 

23 to which the Secretary awards Federal financial as24 sistance under this subsection shall enter into an 

25 agreement that specifies that, during the 5-year peVerDate Sep 11 2014 23:03 Jan 27, 2023 Jkt 039200 PO 00000 Frm 00021 Fmt 6652 Sfmt 6201 E:\BILLS\S44.IS S44

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1 riod immediately following the award of the Federal 

2 financial assistance, the covered entity will not make 

3 shareholder distributions in excess of profits. 

4 (b) COORDINATION REQUIRED.—In carrying out the 

5 program established under subsection (a), the Secretary 

6 shall coordinate with the Secretary of State, the Secretary 

7 of Defense, the Secretary of Homeland Security, and the 

8 Director of National Intelligence. 

9 (c) GAO REVIEWS.—The Comptroller General of the 

10 United States shall— 

11 (1) not later than 2 years after the date of dis12 bursement of the first financial award under the 

13 program established under subsection (a), and bien14 nially thereafter for 10 years, conduct a review of 

15 the program, which shall include, at a minimum— 

16 (A) a determination of the number of fi17 nancial assistance awards provided under the 

18 program during the period covered by the re19 view; 

20 (B) an evaluation of how— 

21 (i) the program is being carried out, 

22 including how recipients of financial assist23 ance awards are being selected under the 

24 program; and 


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1 (ii) other Federal programs are lever2 aged for manufacturing, research, and 

3 training to complement the financial assist4 ance awards provided under the program; 

5 and 

6 (C) a description of the outcomes of 

7 projects supported by financial assistance 

8 awards provided under the program, including a 

9 description of— 

10 (i) covered facilities that were con11 structed or facilities that were expanded or 

12 technologically upgraded to be covered fa13 cilities as a result of financial assistance 

14 awards provided under the program; 

15 (ii) workforce training programs car16 ried out with financial assistance awards 

17 provided under the program, including ef18 forts to hire individuals from disadvan19 taged populations; and 

20 (iii) the impact of projects receiving 

21 financial assistance awards under the pro22 gram on the United States share of global 

23 finished rare earth product production; and 


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1 (2) submit to the appropriate committees of 

2 Congress the results of each review conducted under 

3 paragraph (1). 

4 (d) AUTHORIZATION OF APPROPRIATIONS.—There 

5 are authorized to be appropriated to carry out this sec6 tion— 

7 (1) $1,500,000,000 for fiscal year 2024; and 

8 (2) $200,000,000 for each of fiscal years 2025 

9 through 2028. 

10 SEC. 4. FUNDING FOR DEVELOPMENT OF SECURE RARE 

11 EARTH SUPPLY CHAINS. 

12 (a) MINERALS SECURITY PARTNERSHIP FUND.— 

13 (1) ESTABLISHMENT OF FUND.—The Secretary 

14 of the Treasury may establish a trust fund, to be 

15 known as the ‘‘Minerals Security Partnership Fund’’ 

16 (referred to in this section as the ‘‘Fund’’), con17 sisting of such amounts as are appropriated to the 

18 Fund or credited to the Fund under paragraph (3). 

19 (2) REPORTING REQUIREMENT.—If the Fund is 

20 not established by not later than 180 days after the 

21 date of enactment of this Act, on that date, and an22 nually thereafter until the Fund is established, the 

23 Secretary of the Treasury, in coordination with the 

24 Secretary of State, shall provide, in writing, to the 


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1 appropriate committees of Congress a rationale for 

2 not establishing the Fund. 

3 (3) INVESTMENT OF AMOUNTS.— 

4 (A) INVESTMENT OF AMOUNTS.—If the 

5 Fund is established, the Secretary of the Treas6 ury may invest such portion of the Fund as is 

7 not required to meet current withdrawals in in8 terest-bearing obligations of the United States 

9 or in obligations guaranteed as to both prin10 cipal and interest by the United States. 

11 (B) INTEREST AND PROCEEDS.—The in12 terest on, and the proceeds from the sale or re13 demption of, any obligations held in the Fund 

14 shall be credited to and form a part of the 

15 Fund. 

16 (4) USE OF FUND.— 

17 (A) IN GENERAL.—Subject to subpara18 graph (B), amounts in the Fund shall be avail19 able, as provided in advance in an appropria20 tions Act, to the Secretary of State— 

21 (i) to provide funding through the 

22 Minerals Security Partnership common 

23 funding mechanism described in subsection 

24 (b)(1) to support the development and 


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1 adoption of secure rare earth supply 

2 chains; and 

3 (ii) to otherwise carry out this section. 

4 (B) AVAILABILITY CONTINGENT ON INTER5 NATIONAL ARRANGEMENT OR AGREEMENT.— 

6 (i) IN GENERAL.—Amounts in the 

7 Fund shall be available to the Secretary of 

8 State, as provided in advance in an appro9 priations Act, on and after the date on 

10 which the Secretary of State enters into an 

11 arrangement or agreement with the gov12 ernments of countries that are partners of 

13 the United States, as determined by the 

14 Secretary of State, to participate in the 

15 Minerals Security Partnership common 

16 funding mechanism under subsection 

17 (b)(1). 

18 (ii) CONSULTATION.—Before entering 

19 into an arrangement or agreement as de20 scribed in clause (i), the Secretary of 

21 State, in consultation with the Secretary of 

22 Commerce, shall ensure that any govern23 ment that will participate in the arrange24 ment or agreement maintains export con25 trol licensing policies with respect to exVerDate Sep 11 2014 23:03 Jan 27, 2023 Jkt 039200 PO 00000 Frm 00026 Fmt 6652 Sfmt 6201 E:\BILLS\S44.IS S44

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1 ports of finished rare earth products sub2 stantively equivalent to the United States 

3 with respect to restrictions on such exports 

4 to the People’s Republic of China. 

5 (b) MINERALS SECURITY PARTNERSHIP COMMON

6 FUNDING MECHANISM FOR DEVELOPMENT OF SECURE

7 RARE EARTH SUPPLY CHAINS.— 

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

9 consultation with the Secretary of Commerce, the 

10 Secretary of Defense, the Secretary of Homeland Se11 curity, the Secretary of the Treasury, the Director 

12 of National Intelligence, and the Chief Executive Of13 ficer of the United States International Development 

14 Finance Corporation shall ensure that the Minerals 

15 Security Partnership is a mutually beneficial funding 

16 mechanism that, in coordination with the govern17 ments of countries that are partners of the United 

18 States, uses amounts from the Fund, or any other 

19 available Federal funds, to support the development 

20 and adoption of secure rare earth supply chains, in21 cluding for— 

22 (A) research and development collabora23 tions among countries participating in the 

24 mechanism; and 


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1 (B) supplementing bids by foreign entities 

2 that are not foreign entities of concern to se3 cure offtake agreements with entities that mine 

4 rare earth elements. 

5 (2) CONTRIBUTIONS FROM PARTICIPATING

6 COUNTRIES.—In creating and sustaining the Min7 erals Security Partnership common funding mecha8 nism described in paragraph (1), the Secretary of 

9 State shall seek to leverage amounts from the Fund 

10 to secure contributions to the mechanism from the 

11 governments of countries participating in the mecha12 nism, including with respect to cost sharing and 

13 other cooperative measures leading to the develop14 ment and adoption of secure rare earth supply 

15 chains. 

16 (3) COMMITMENTS.—In creating and sustaining 

17 the Minerals Security Partnership common funding 

18 mechanism described in paragraph (1), the Sec19 retary of State shall promote efforts among coun20 tries participating in the mechanism— 

21 (A) to establish transparency requirements 

22 for any subsidies or other financial benefits (in23 cluding revenue foregone) provided to rare 

24 earth firms located in or outside such countries; 


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1 (B) to establish processes similar to the 

2 process of the Committee on Foreign Invest3 ment in the United States under section 721 of 

4 the Defense Production Act of 1950 (50 U.S.C. 

5 4565) for intervening to preempt foreign enti6 ties of concern from investing in, purchasing, or 

7 assuming control of entities, intellectual prop8 erty, and equipment that are created by or ben9 efit from investments by the mechanism; 

10 (C) to establish consistent policies with re11 spect to countries that— 

12 (i) are not participating in the mecha13 nism; and 

14 (ii) do not meet transparency require15 ments established under subparagraph (A); 

16 (D) to promote harmonized treatment of 

17 finished rare earth products and verification 

18 processes for raw materials or products being 

19 exported to a country considered a national se20 curity risk by the government of a country par21 ticipating in the mechanism; 

22 (E) to establish consistent policies among 

23 the governments of countries participating in 

24 the mechanism and common policies among 

25 countries that are not participating to address 


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1 nonmarket economy countries as the behavior 

2 of such countries pertains to rare earth ele3 ments; 

4 (F) to align policies with respect to supply 

5 chain integrity and security, including with re6 spect to protection and enforcement of intellec7 tual property rights; and 

8 (G) to promote harmonized foreign direct 

9 investment screening measures and export con10 trol policies with respect to rare earth elements 

11 to align with national, multilateral, and 

12 plurilateral security priorities. 

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

14 1 year after the date on which the Fund is established, 

15 and annually thereafter for each fiscal year during which 

16 amounts in the Fund are available under subsection 

17 (a)(4), the Secretary of State shall submit to the appro18 priate committees of Congress a report on the status of 

19 the implementation of this section that includes a descrip20 tion of— 

21 (1) any commitments made by the governments 

22 of countries that have entered into an arrangement 

23 or agreement with the United States to provide 

24 funding for the Minerals Security Partnership com25 mon funding mechanism described in subsection 


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1 (b)(1) and the specific amount so committed and 

2 other cooperative measures being taken by such 

3 countries as part of the mechanism; 

4 (2) the criteria established for expenditure of 

5 funds through the mechanism; 

6 (3) how, and to whom, amounts have been ex7 pended from the Fund and a description of progress 

8 made in utilizing the Fund to support the objectives 

9 described in subsection (b)(1); 

10 (4) amounts remaining in the Fund; 

11 (5) the progress of the Secretary of State to12 ward entering into an arrangement or agreement 

13 with the governments of countries that are partners 

14 of the United States to participate in the Minerals 

15 Security Partnership common funding mechanism 

16 and the commitments described in subsection (b)(3); 

17 and 

18 (6) any additional authorities needed to en19 hance the effectiveness of the Fund in achieving the 

20 security goals of the United States. 

21 (d) NOTIFICATIONS TO BE PROVIDED BY THE

22 FUND.— 

23 (1) IN GENERAL.—Not later than 15 days prior 

24 to the Fund making a financial commitment associ25 ated with the provision of expenditures under subVerDate Sep 11 2014 23:03 Jan 27, 2023 Jkt 039200 PO 00000 Frm 00031 Fmt 6652 Sfmt 6201 E:\BILLS\S44.IS S44

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1 section (a)(4)(A) in an amount in excess of 

2 $1,000,000, the Secretary of State shall submit to 

3 the appropriate committees of Congress a report in 

4 writing that includes the information described in 

5 paragraph (2). 

6 (2) INFORMATION REQUIRED.—The information 

7 described in this paragraph is— 

8 (A) the amount of each expenditure de9 scribed in paragraph (1); 

10 (B) an identification of the recipient or 

11 beneficiary of each such expenditure; and 

12 (C) a description of the project or activity 

13 to be carried out and the purpose to be 

14 achieved by each such expenditure. 

15 (3) ARRANGEMENTS OR AGREEMENTS.—The 

16 Secretary of State shall notify the appropriate com17 mittees of Congress not later than 30 days after en18 tering into a new bilateral or multilateral arrange19 ment or agreement described in subsection 

20 (a)(4)(B). 

21 (e) FOREIGN ENTITIES OF CONCERN.—A foreign en22 tity of concern may not be a participant or beneficiary of 

23 the Minerals Security Partnership common funding mech24 anism described in subsection (b)(1). 


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1 (f) APPLICABILITY TO EXISTING FUND OF THE MIN2 ERALS SECURITY PARTNERSHIP.—This section shall 

3 apply to any fund in the Treasury that has been estab4 lished before the date of enactment of this Act for use 

5 of the Minerals Security Partnership. 

6 SEC. 5. WORKFORCE DEVELOPMENT INITIATIVE. 

7 As soon as practicable after the date of enactment 

8 of this Act, the Secretary shall establish an initiative 

9 under which the Secretary shall work with the Secretary 

10 of Labor, the Director of the National Science Founda11 tion, the Critical Minerals Subcommittee of the National 

12 Science and Technology Council, the private sector, insti13 tutions of higher education, and workforce training enti14 ties to incentivize and expand participation in graduate 

15 and undergraduate programs, and to develop workforce 

16 training programs and apprenticeships, relating to ad17 vanced rare earth element mining, separation, processing, 

18 metallurgy, and advanced equipment maintenance capa19 bilities. 

20 SEC. 6. SUPPORT FOR FREELY ASSOCIATED STATES. 

21 Section 1412(c) of the Better Utilization of Invest22 ments Leading to Development Act of 2018 (22 U.S.C. 

23 9612(c)) is amended by adding at the end the following: 

24 ‘‘(3) SUPPORT FOR FREELY ASSOCIATED

25 STATES.—Notwithstanding the income classification 


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1 of the country with which the geopolitical entity is 

2 associated, the Corporation may provide support 

3 under title II to a geopolitical entity that is included, 

4 as of the date on which support is provided, on the 

5 list of dependencies and areas of special sovereignty 

6 prepared by the Department of State.’’. 

7 SEC. 7. PROHIBITION RELATING TO FOREIGN ENTITIES OF 

8 CONCERN. 

9 None of the funds authorized to be appropriated to 

10 carry out this Act may be provided to a foreign entity of 

11 concern. 

12 SEC. 8. DEFENSE PRODUCTION ACT OF 1950 EFFORTS. 

13 (a) IN GENERAL.—Not later than 180 days after the 

14 date of enactment of this Act, the President shall submit 

15 to Congress a report on a plan of action for any use of 

16 authorities available in title III of the Defense Production 

17 Act of 1950 (50 U.S.C. 4531 et seq.) to establish or en18 hance a domestic production capability for finished rare 

19 earth products and related technologies, subject to— 

20 (1) the availability of appropriations for that 

21 purpose; and 

22 (2) a determination made under the plan pursu23 ant to that title that— 


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1 (A) finished rare earth products and re2 lated technologies are essential to the national 

3 defense; and 

4 (B) domestic industrial capabilities are in5 sufficient to meet those needs. 

6 (b) COORDINATION.—The President shall develop the 

7 plan of action required by subsection (a) in consultation 

8 with any relevant head of a Federal agency, an advisory 

9 committee established under section 708(d) of the Defense 

10 Production Act of 1950 (50 U.S.C. 4558(d)), and appro11 priate stakeholders in the private sector. 

Æ 


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