II 

117TH CONGRESS 

2D SESSION S. 4033 

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 

APRIL 7, 2022 

Mr. RUBIO (for himself and Mrs. HYDE-SMITH) 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’’ or the ‘‘ONSHORE Manufacturing Act’’. 


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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) CONCENTRATED RARE EARTH ELEMENT.— 

26 The term ‘‘concentrated rare earth element’’ means 


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1 a rare earth element that has been extracted or sep2 arated from raw materials and concentrated. 

3 (3) COVERED ENTITY.—The term ‘‘covered en4 tity’’ means a private entity, a consortium of private 

5 entities, or a consortium of public and private enti6 ties with a demonstrated ability to substantially fi7 nance, construct, expand, or technologically upgrade 

8 a covered facility. 

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

10 facility’’ means a facility located in a State that car11 ries out the metallurgy of rare earth elements for 

12 the production of finished rare earth products. 

13 (5) COVERED INCENTIVE.—The term ‘‘covered 

14 incentive’’ means— 

15 (A) an incentive offered by a Federal, 

16 State, local, or Tribal governmental entity to a 

17 covered entity for the purposes of— 

18 (i) constructing within the jurisdiction 

19 of the governmental entity a covered facil20 ity; or 

21 (ii) expanding or technologically up22 grading an existing facility within that ju23 risdiction to be a covered facility; and 

24 (B) a workforce-related incentive (includ25 ing a grant agreement relating to workforce 


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1 training or vocational education), any conces2 sion with respect to real property, funding for 

3 research and development with respect to rare 

4 earth elements and finished rare earth prod5 ucts, and any other incentive determined appro6 priate by the Secretary, in consultation with the 

7 Secretary of State. 

8 (6) FINISHED RARE EARTH PRODUCT.—The 

9 term ‘‘finished rare earth product’’ means— 

10 (A) a product composed of— 

11 (i) metal powders, such as rare earth 

12 oxides and rare earth salts, including 

13 chlorides and nitrates; 

14 (ii) metals containing rare earth ele15 ments; 

16 (iii) alloys; or 

17 (iv) magnets; and 

18 (B) any other value-added product that is 

19 composed fully or partially of rare earth ele20 ments. 

21 (7) FOREIGN ENTITY.— 

22 (A) IN GENERAL.—The term ‘‘foreign enti23 ty’’ means— 

24 (i) a government of a foreign country 

25 and a foreign political party; 


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1 (ii) a natural person who is not— 

2 (I) a lawful permanent resident 

3 of the United States; 

4 (II) a citizen or national of the 

5 United States; or 

6 (III) any other protected indi7 vidual (as defined in section 

8 274B(a)(3) of the Immigration and 

9 Nationality Act (8 U.S.C. 

10 1324b(a)(3))); and 

11 (iii) a partnership, association, cor12 poration, organization, or other combina13 tion of persons organized under the laws of 

14 or having its principal place of business in 

15 a foreign country. 

16 (B) INCLUSIONS.—The term ‘‘foreign enti17 ty’’ includes— 

18 (i) any person owned by, controlled 

19 by, or subject to the jurisdiction or direc20 tion of an entity described in subparagraph 

21 (A); 

22 (ii) any person, wherever located, who 

23 acts as an agent, representative, or em24 ployee of an entity described in subpara25 graph (A); 


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1 (iii) any person who acts in any other 

2 capacity at the order, request, or under the 

3 influence, direction, or control, of— 

4 (I) an entity described in sub5 paragraph (A); or 

6 (II) a person the activities of 

7 which are directly or indirectly super8 vised, directed, controlled, financed, or 

9 subsidized in whole or in majority 

10 part by an entity described in sub11 paragraph (A); 

12 (iv) any person who directly or indi13 rectly through any contract, arrangement, 

14 understanding, relationship, or otherwise, 

15 owns 25 percent or more of the equity in16 terests of an entity described in subpara17 graph (A); 

18 (v) any person with significant re19 sponsibility to control, manage, or direct 

20 an entity described in subparagraph (A); 

21 (vi) any person, wherever located, who 

22 is a citizen or resident of a country con23 trolled by an entity described in subpara24 graph (A); and 


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1 (vii) any corporation, partnership, as2 sociation, or other organization organized 

3 under the laws of a country controlled by 

4 an entity described in subparagraph (A). 

5 (8) FOREIGN ENTITY OF CONCERN.—The term 

6 ‘‘foreign entity of concern’’ means any foreign entity 

7 that is— 

8 (A) designated as a foreign terrorist orga9 nization by the Secretary of State under section 

10 219 of the Immigration and Nationality Act (8 

11 U.S.C. 1189); 

12 (B) included on the list of specially des13 ignated nationals and blocked persons main14 tained by the Office of Foreign Assets Control 

15 of the Department of the Treasury; 

16 (C) owned by, controlled by, or subject to 

17 the jurisdiction, direction, or otherwise under 

18 the undue influence of a government of a cov19 ered nation (as defined in section 2533c(d) of 

20 title 10, United States Code); 

21 (D) alleged by the Attorney General to 

22 have been involved in activities for which a con23 viction was obtained under— 


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1 (i) chapter 37 of title 18, United 

2 States Code (commonly known as the ‘‘Es3 pionage Act’’); 

4 (ii) section 951 or 1030 of title 18, 

5 United States Code; 

6 (iii) chapter 90 of title 18, United 

7 States Code (commonly known as the 

8 ‘‘Economic Espionage Act of 1996’’); 

9 (iv) the Arms Export Control Act (22 

10 U.S.C. 2751 et seq.); 

11 (v) section 224, 225, 226, 227, or 236 

12 of the Atomic Energy Act of 1954 (42 

13 U.S.C. 2274–2278; 2284); 

14 (vi) the Export Control Reform Act of 

15 2018 (50 U.S.C. 4801 et seq.); or 

16 (vii) the International Emergency 

17 Economic Powers Act (50 U.S.C. 1701 et 

18 seq.); or 

19 (E) determined by the Secretary, in con20 sultation with the Secretary of Defense and the 

21 Director of National Intelligence, to be engaged 

22 in unauthorized conduct that is detrimental to 

23 the national security or foreign policy of the 

24 United States under this Act. 


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1 (9) GOVERNMENTAL ENTITY.—The term ‘‘gov2 ernmental entity’’ means— 

3 (A) a State; and 

4 (B) a local government of a State. 

5 (10) INTELLIGENCE COMMUNITY.—The term 

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

7 term in section 3 of the National Security Act of 

8 1947 (50 U.S.C. 3003). 

9 (11) METALLURGY.—The term ‘‘metallurgy’’ 

10 means the process of producing finished rare earth 

11 products from concentrated rare earth elements. 

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

13 individual, partnership, association, corporation, or14 ganization, or any other combination of individuals. 

15 (13) RARE EARTH ELEMENT.—The term ‘‘rare 

16 earth element’’ means a natural element associated 

17 with— 

18 (A) the metallic element scandium, with 

19 atomic number 21; 

20 (B) the metallic element yttrium, with 

21 atomic number 39; or 

22 (C) any of the series of 15 metallic ele23 ments between lanthanum, with atomic number 

24 57, and lutetium, with atomic number 71, on 

25 the periodic table. 


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1 (14) SECRETARY.—The term ‘‘Secretary’’ 

2 means the Secretary of Energy. 

3 (15) STATE.—The term ‘‘State’’ means— 

4 (A) each of the several States of the 

5 United States; 

6 (B) the District of Columbia; 

7 (C) the Commonwealth of Puerto Rico; 

8 (D) Guam; 

9 (E) American Samoa; 

10 (F) the Commonwealth of the Northern 

11 Mariana Islands; 

12 (G) the Federated States of Micronesia; 

13 (H) the Republic of the Marshall Islands; 

14 (I) the Republic of Palau; and 

15 (J) the United States Virgin Islands. 

16 SEC. 3. RARE EARTH METALLURGY FINANCING. 

17 (a) FINANCIAL ASSISTANCE PROGRAM.— 

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

19 in the Department of Energy a program to provide 

20 Federal financial assistance to covered entities to 

21 incentivize investment in covered facilities, subject to 

22 the availability of appropriations for that purpose. 

23 (2) PROCEDURE.— 

24 (A) IN GENERAL.—A covered entity seek25 ing financial assistance under this subsection 


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1 shall submit to the Secretary an application 

2 that describes the project for which the covered 

3 entity is seeking financial assistance. 

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

5 entity to qualify for financial assistance under 

6 this subsection, the covered entity shall dem7 onstrate to the Secretary, in the application 

8 submitted by the covered entity under subpara9 graph (A), that— 

10 (i) the covered entity has a docu11 mented interest in— 

12 (I) constructing a covered facil13 ity; or 

14 (II) expanding or technologically 

15 upgrading a facility owned by the cov16 ered entity to be a covered facility; 

17 and 

18 (ii) with respect to the project for 

19 which the covered entity is seeking finan20 cial assistance, the covered entity has— 

21 (I) been offered a covered incen22 tive; 

23 (II) made commitments to work24 er and community investment, includ25 ing through— 


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1 (aa) training and education 

2 benefits paid by the covered enti3 ty; and 

4 (bb) programs to expand 

5 employment opportunity for eco6 nomically disadvantaged individ7 uals; 

8 (III) secured commitments from 

9 regional educational and training enti10 ties and institutions of higher edu11 cation to provide workforce training, 

12 including programming for training 

13 and job placement of economically dis14 advantaged individuals; and 

15 (IV) an executable plan to sus16 tain a covered facility without addi17 tional Federal financial assistance 

18 under this subsection for facility sup19 port. 

20 (C) APPLICATION REVIEW.— 

21 (i) IN GENERAL.—The Secretary may 

22 not approve an application submitted by a 

23 covered entity under subparagraph (A)— 

24 (I) unless the Secretary— 


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1 (aa) confirms that the cov2 ered entity has satisfied the eligi3 bility criteria under subpara4 graph (B); 

5 (bb) determines that the 

6 project for which the covered en7 tity is seeking financial assist8 ance is in the interest of the 

9 United States; and 

10 (cc) has notified the appro11 priate committees of Congress 

12 not later than 15 days before 

13 making any commitment to pro14 vide an award of financial assist15 ance to any covered entity in an 

16 amount that exceeds 

17 $10,000,000; or 

18 (II) if the Secretary determines, 

19 in consultation with the Director of 

20 National Intelligence, that the covered 

21 entity is a foreign entity of concern. 

22 (ii) CONSIDERATION.—In reviewing 

23 an application submitted by a covered enti24 ty under subparagraph (A), the Secretary 

25 may consider whether— 


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1 (I) the covered entity has pre2 viously received financial assistance 

3 under this subsection; 

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

6 has benefitted from financial assist7 ance previously provided under this 

8 subsection; 

9 (III) the covered entity has dem10 onstrated that the covered entity is re11 sponsive to the national security needs 

12 or requirements established by the in13 telligence community (or an agency 

14 thereof), the National Nuclear Secu15 rity Administration, or the Depart16 ment of Defense; 

17 (IV) if practicable, a consortium 

18 that is considered a covered entity in19 cludes a small business concern (as 

20 defined under section 3 of the Small 

21 Business Act (15 U.S.C. 632)), not22 withstanding section 121.103 of title 

23 13, Code of Federal Regulations (or 

24 successor regulations); and 


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1 (V) the covered entity intends to 

2 produce finished products for use by 

3 the Department of Defense, the de4 fense industry of the United States, 

5 or critical energy infrastructure. 

6 (iii) PRIORITIZATION.—To the max7 imum extent practicable, the Secretary 

8 shall prioritize awarding financial assist9 ance under this subsection to a covered en10 tity that— 

11 (I) utilizes raw material feedstock 

12 sourced from 1 or more offtake agree13 ments with entities that are not for14 eign entities of concern; 

15 (II) utilizes raw material feed16 stock sourced from 2 or more— 

17 (aa) entities; 

18 (bb) offtake agreements; or 

19 (cc) geographic locations; 

20 (III) utilizes concentrated rare 

21 earth elements sourced from 2 or 

22 more— 

23 (aa) entities; 

24 (bb) offtake agreements; or 


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1 (cc) geographic locations; 

2 and 

3 (IV) intends to produce finished 

4 products for use by the Department of 

5 Defense, the defense industry of the 

6 United States, or critical energy infra7 structure. 

8 (D) RECORDS.— 

9 (i) IN GENERAL.—The Secretary may 

10 request records and information from a 

11 covered entity that submitted an applica12 tion under subparagraph (A) to review the 

13 status of a covered entity. 

14 (ii) REQUIREMENT.—The covered en15 tity shall provide the records and informa16 tion requested by the Secretary under 

17 clause (i). 

18 (3) AMOUNT.— 

19 (A) IN GENERAL.—The Secretary shall de20 termine the appropriate amount and funding 

21 type for each financial assistance award pro22 vided to a covered entity under this subsection. 

23 (B) LARGER INVESTMENT.—The total 

24 Federal investment in any individual project re25 ceiving a financial assistance award under this 


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1 subsection shall not exceed $500,000,000, un2 less the Secretary, in consultation with the Sec3 retary of Defense and the Director of National 

4 Intelligence, recommends to the President, and 

5 the President certifies and reports to the appro6 priate committees of Congress, that a larger in7 vestment is necessary— 

8 (i) to significantly increase the pro9 portion of reliable domestic supply of fin10 ished rare earth products relevant for na11 tional security and economic competitive12 ness that can be met through domestic 

13 production; and 

14 (ii) to meet the needs of national se15 curity. 

16 (4) USE OF FUNDS.—A covered entity that re17 ceives a financial assistance award under this sub18 section may only use the financial assistance award 

19 amounts— 

20 (A) to finance the construction of a cov21 ered facility (including equipment) or the ex22 pansion or technological upgrade of a facility 

23 (including equipment) of the covered entity to 

24 be a covered facility, as documented in the ap25 plication submitted by the covered entity under 


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

2 the Secretary for purposes relating to the na3 tional security and economic competitiveness of 

4 the United States; 

5 (B) to support workforce development for 

6 a covered facility; 

7 (C) to support site development and tech8 nological upgrade for a covered facility; and 

9 (D) to pay reasonable costs relating to the 

10 operating expenses for a covered facility, includ11 ing specialized workforce, essential materials, 

12 and complex equipment maintenance. 

13 (5) CLAWBACK.— 

14 (A) MAJOR AWARDS.— 

15 (i) IN GENERAL.—For all financial as16 sistance awards of more than $10,000,000 

17 provided to covered entities under this sub18 section, the Secretary shall, at the time of 

19 making the award, determine the target 

20 dates by which a covered entity shall com21 mence and complete the applicable project. 

22 (ii) PROGRESSIVE RECOVERY FOR

23 DELAYS.—If the covered entity receiving a 

24 financial assistance award of more than 

25 $10,000,000 under this subsection does 


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1 not complete the applicable project by the 

2 applicable target date determined under 

3 clause (i), the Secretary shall progressively 

4 recover up to the full amount of the award. 

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

6 that do not meet the applicable target date 

7 determined under clause (i), the Secretary 

8 may waive the requirement to recover the 

9 financial award provided for the project 

10 under clause (ii) after making a formal de11 termination that circumstances beyond the 

12 ability of the covered entity to foresee or 

13 control are responsible for the delay. 

14 (iv) CONGRESSIONAL NOTIFICA15 TION.— 

16 (I) IN GENERAL.—Not later than 

17 15 days after making a determination 

18 to recover an award under clause (ii), 

19 the Secretary shall notify the appro20 priate committees of Congress of the 

21 intent of the Secretary to recover the 

22 award. 

23 (II) WAIVERS.—Not later than 

24 15 days after the date on which the 

25 Secretary provides a waiver under 


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1 clause (iii), the Secretary shall notify 

2 the appropriate committees of Con3 gress of the waiver. 

4 (B) JOINT RESEARCH, TECHNOLOGY LI5 CENSING, AND INTELLECTUAL PROPERTY RE6 PORTING.— 

7 (i) IN GENERAL.—Before entering 

8 into an agreement with a foreign entity to 

9 conduct joint research or technology licens10 ing, or to share intellectual property, a 

11 covered entity that has received a financial 

12 assistance award under this subsection— 

13 (I) shall notify the Secretary of 

14 the intent to enter into such an agree15 ment; and 

16 (II) may only enter into such an 

17 agreement if the Secretary determines 

18 the foreign entity is not a foreign en19 tity of concern. 

20 (ii) DETERMINATION.—On receiving a 

21 notification under clause (i), the Secretary, 

22 in consultation with the Director of Na23 tional Intelligence, the Director of the Na24 tional Counterintelligence and Security 

25 Center, and the Director of the Federal 


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1 Bureau of Investigation, shall make a de2 termination of whether the applicable for3 eign entity is a foreign entity of concern. 

4 (iii) TECHNOLOGY CLAWBACK.—The 

5 Secretary shall recover the full amount of 

6 a financial assistance award provided to a 

7 covered entity under this subsection if, 

8 during the applicable term of the award, 

9 the covered entity knowingly engages in 

10 any joint research, technology licensing, or 

11 intellectual property sharing effort with a 

12 foreign entity of concern that relates to a 

13 technology or product that raises national 

14 security concerns, as determined by the 

15 Secretary, in consultation with the Direc16 tor of National Intelligence, the Director of 

17 the National Counterintelligence and Secu18 rity Center, and the Director of the Fed19 eral Bureau of Investigation, on the condi20 tion that the determination of the Sec21 retary shall have been communicated to 

22 the covered entity before the covered entity 

23 engaged in the joint research, technology 

24 licensing, or intellectual property sharing. 


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

2 to which the Secretary awards Federal financial as3 sistance under this subsection shall enter into an 

4 agreement that specifies that, during the 5-year pe5 riod immediately following the award of the Federal 

6 financial assistance, the covered entity will not make 

7 shareholder distributions in excess of profits. 

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

9 program established under subsection (a), the Secretary 

10 shall coordinate with the Secretary of State, the Secretary 

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

12 Director of National Intelligence. 

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

14 United States shall— 

15 (1) not later than 2 years after the date of dis16 bursement of the first financial award under the 

17 program established under subsection (a), and bien18 nially thereafter for 10 years, conduct a review of 

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

20 (A) a determination of the number of fi21 nancial assistance awards provided under the 

22 program during the period covered by the re23 view; 

24 (B) an evaluation of how— 


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1 (i) the program is being carried out, 

2 including how recipients of financial assist3 ance awards are being selected under the 

4 program; and 

5 (ii) other Federal programs are lever6 aged for manufacturing, research, and 

7 training to complement the financial assist8 ance awards provided under the program; 

9 and 

10 (C) a description of the outcomes of 

11 projects supported by financial assistance 

12 awards provided under the program, including a 

13 description of— 

14 (i) covered facilities that were con15 structed or facilities that were expanded or 

16 technologically upgraded to be covered fa17 cilities as a result of financial assistance 

18 awards provided under the program; 

19 (ii) workforce training programs car20 ried out with financial assistance awards 

21 provided under the program, including ef22 forts to hire individuals from disadvan23 taged populations; and 

24 (iii) the impact of projects receiving 

25 financial assistance awards under the proVerDate Sep 11 2014 04:37 Apr 14, 2022 Jkt 029200 PO 00000 Frm 00023 Fmt 6652 Sfmt 6201 E:\BILLS\S4033.IS S4033

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1 gram on the United States share of global 

2 finished rare earth product production; and 

3 (2) submit to the appropriate committees of 

4 Congress the results of each review conducted under 

5 paragraph (1). 

6 (d) AUTHORIZATION OF APPROPRIATIONS.—There 

7 are authorized to be appropriated to carry out this sec8 tion— 

9 (1) $1,500,000,000 for fiscal year 2023; and 

10 (2) $200,000,000 for each of fiscal years 2024 

11 through 2027. 

12 SEC. 4. FUNDING FOR DEVELOPMENT OF SECURE RARE 

13 EARTH SUPPLY CHAINS. 

14 (a) MULTILATERAL RARE EARTH SECURITY

15 FUND.— 

16 (1) ESTABLISHMENT OF FUND.—The Secretary 

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

18 known as the ‘‘Multilateral Rare Earth Security 

19 Fund’’ (in this section referred to as the ‘‘Fund’’), 

20 consisting of such amounts as are appropriated to 

21 the Fund or credited to the Fund under paragraph 

22 (3). 

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

24 not established by not later than 180 days after the 

25 date of the enactment of this Act, on that date, and 


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1 annually thereafter until the Fund is established, the 

2 Secretary of the Treasury, in coordination with the 

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

4 appropriate committees of Congress a rationale for 

5 not establishing the Fund. 

6 (3) INVESTMENT OF AMOUNTS.— 

7 (A) INVESTMENT OF AMOUNTS.—If the 

8 Fund is established, the Secretary of the Treas9 ury may invest such portion of the Fund as is 

10 not required to meet current withdrawals in in11 terest-bearing obligations of the United States 

12 or in obligations guaranteed as to both prin13 cipal and interest by the United States. 

14 (B) INTEREST AND PROCEEDS.—The in15 terest on, and the proceeds from the sale or re16 demption of, any obligations held in the Fund 

17 shall be credited to and form a part of the 

18 Fund. 

19 (4) USE OF FUND.— 

20 (A) IN GENERAL.—Subject to subpara21 graph (B), amounts in the Fund shall be avail22 able, as provided in advance in an appropria23 tions Act, to the Secretary of State— 

24 (i) to provide funding through the 

25 common funding mechanism described in 


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1 subsection (b)(1) to support the develop2 ment and adoption of secure rare earth 

3 supply chains; and 

4 (ii) to otherwise carry out this section. 

5 (B) AVAILABILITY CONTINGENT ON INTER6 NATIONAL ARRANGEMENT OR AGREEMENT.— 

7 (i) IN GENERAL.—Amounts in the 

8 Fund shall be available to the Secretary of 

9 State, as provided in advance in an appro10 priations Act, on and after the date on 

11 which the Secretary of State enters into an 

12 arrangement or agreement with the gov13 ernments of countries that are partners of 

14 the United States, as determined by the 

15 Secretary of State, to participate in the 

16 common funding mechanism under sub17 section (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 04:37 Apr 14, 2022 Jkt 029200 PO 00000 Frm 00026 Fmt 6652 Sfmt 6201 E:\BILLS\S4033.IS S4033

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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) COMMON FUNDING MECHANISM FOR DEVELOP6 MENT OF SECURE RARE EARTH SUPPLY CHAINS.— 

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

8 consultation with the Secretary of Commerce, the 

9 Secretary of Defense, the Secretary of Homeland Se10 curity, the Secretary of the Treasury, the Secretary 

11 of Energy, and the Director of National Intelligence, 

12 may establish a common funding mechanism, in co13 ordination with the governments of countries that 

14 are partners of the United States, that uses amounts 

15 from the Fund to support the development and 

16 adoption of secure rare earth supply chains, includ17 ing for— 

18 (A) research and development collabora19 tions among countries participating in the 

20 mechanism; and 

21 (B) supplementing bids by foreign entities 

22 that are not foreign entities of concern to se23 cure offtake agreements with entities that mine 

24 rare earth elements. 


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1 (2) CONTRIBUTIONS FROM PARTICIPATING

2 COUNTRIES.—In establishing and sustaining a com3 mon funding mechanism described in paragraph (1), 

4 the Secretary of State shall seek to leverage 

5 amounts from the Fund to secure contributions to 

6 the mechanism from the governments of countries 

7 participating in the mechanism, including with re8 spect to cost sharing and other cooperative measures 

9 leading to the development and adoption of secure 

10 rare earth supply chains. 

11 (3) COMMITMENTS.—In creating and sustaining 

12 a common funding mechanism described in para13 graph (1), the Secretary of State shall promote ef14 forts among countries participating in the mecha15 nism— 

16 (A) to establish transparency requirements 

17 for any subsidies or other financial benefits (in18 cluding revenue foregone) provided to rare 

19 earth firms located in or outside such countries; 

20 (B) to establish processes similar to the 

21 process of the Committee on Foreign Invest22 ment in the United States under section 721 of 

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

24 4565) for intervening to preempt foreign enti25 ties of concern from investing in, purchasing, or 


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1 assuming control of entities, intellectual prop2 erty, and equipment that are created by or ben3 efit from investments by the mechanism; 

4 (C) to establish consistent policies with re5 spect to countries that— 

6 (i) are not participating in the mecha7 nism; and 

8 (ii) do not meet transparency require9 ments established under subparagraph (A); 

10 (D) to promote harmonized treatment of 

11 finished rare earth products and verification 

12 processes for raw materials or products being 

13 exported to a country considered a national se14 curity risk by the government of a country par15 ticipating in the mechanism; 

16 (E) to establish consistent policies among 

17 the governments of countries participating in 

18 the mechanism and common policies among 

19 countries that are not participating to address 

20 nonmarket economy countries as the behavior 

21 of such countries pertains to rare earth ele22 ments; 

23 (F) to align policies with respect to supply 

24 chain integrity and security, including with reVerDate Sep 11 2014 04:37 Apr 14, 2022 Jkt 029200 PO 00000 Frm 00029 Fmt 6652 Sfmt 6201 E:\BILLS\S4033.IS S4033

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1 spect to protection and enforcement of intellec2 tual property rights; and 

3 (G) to promote harmonized foreign direct 

4 investment screening measures and export con5 trol policies with respect to rare earth elements 

6 to align with national, multilateral, and 

7 plurilateral security priorities. 

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

9 1 year after the date on which the Fund is established, 

10 and annually thereafter for each fiscal year during which 

11 amounts in the Fund are available under subsection 

12 (a)(4), the Secretary of State shall submit to the appro13 priate committees of Congress a report on the status of 

14 the implementation of this section that includes a descrip15 tion of— 

16 (1) any commitments made by the governments 

17 of countries that have entered into an arrangement 

18 or agreement with the United States to provide 

19 funding for the common funding mechanism de20 scribed in subsection (b)(1) and the specific amount 

21 so committed and other cooperative measures being 

22 taken by such countries as part of the mechanism; 

23 (2) the criteria established for expenditure of 

24 funds through the mechanism; 


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1 (3) how, and to whom, amounts have been ex2 pended from the Fund and a description of progress 

3 made in utilizing the Fund to support the objectives 

4 described in subsection (b)(1); 

5 (4) amounts remaining in the Fund; 

6 (5) the progress of the Secretary of State to7 ward entering into an arrangement or agreement 

8 with the governments of countries that are partners 

9 of the United States to participate in the common 

10 funding mechanism and the commitments described 

11 in subsection (b)(2); and 

12 (6) any additional authorities needed to en13 hance the effectiveness of the Fund in achieving the 

14 security goals of the United States. 

15 (d) NOTIFICATIONS TO BE PROVIDED BY THE

16 FUND.— 

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

18 to the Fund making a financial commitment associ19 ated with the provision of expenditures under sub20 section (a)(4)(A) in an amount in excess of 

21 $1,000,000, the Secretary of State shall submit to 

22 the appropriate committees of Congress a report in 

23 writing that includes the information described in 

24 paragraph (2). 


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1 (2) INFORMATION REQUIRED.—The information 

2 described in this paragraph is— 

3 (A) the amount of each expenditure de4 scribed in paragraph (1); 

5 (B) an identification of the recipient or 

6 beneficiary of each such expenditure; and 

7 (C) a description of the project or activity 

8 to be carried out and the purpose to be 

9 achieved by each such expenditure. 

10 (3) ARRANGEMENTS OR AGREEMENTS.—The 

11 Secretary of State shall notify the appropriate com12 mittees of Congress not later than 30 days after en13 tering into a new bilateral or multilateral arrange14 ment or agreement described in subsection 

15 (a)(4)(B). 

16 SEC. 5. WORKFORCE DEVELOPMENT INITIATIVE. 

17 As soon as practicable after the date of enactment 

18 of this Act, the Secretary shall establish an initiative 

19 under which the Secretary shall work with the Secretary 

20 of Labor, the Director of the National Science Founda21 tion, the Critical Minerals Subcommittee of the National 

22 Science and Technology Council, the private sector, insti23 tutions of higher education, and workforce training enti24 ties to incentivize and expand participation in graduate 

25 and undergraduate programs, and to develop workforce 


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1 training programs and apprenticeships, relating to ad2 vanced rare earth element mining, separation, processing, 

3 metallurgy, and advanced equipment maintenance capa4 bilities. 

5 SEC. 6. PROHIBITION RELATING TO FOREIGN ENTITIES OF 

6 CONCERN. 

7 None of the funds authorized to be appropriated to 

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

9 concern. 

10 SEC. 7. DEFENSE PRODUCTION ACT OF 1950 EFFORTS. 

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

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

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

14 authorities available in title III of the Defense Production 

15 Act of 1950 (50 U.S.C. 4531 et seq.) to establish or en16 hance a domestic production capability for finished rare 

17 earth products and related technologies, subject to— 

18 (1) the availability of appropriations for that 

19 purpose; and 

20 (2) a determination made under the plan pursu21 ant to that title that— 

22 (A) finished rare earth products and re23 lated technologies are essential to the national 

24 defense; and 


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1 (B) domestic industrial capabilities are in2 sufficient to meet those needs. 

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

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

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

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

7 Production Act of 1950 (50 U.S.C. 4558(d)), and appro8 priate stakeholders in the private sector. 

Æ 


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