ONSHORE Manufacturing Act of 2023

Subjects: Energy


<html><body><pre>[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2888 Introduced in House (IH)]

&lt;DOC&gt;






118th CONGRESS
  1st Session
                                H. R. 2888

     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 HOUSE OF REPRESENTATIVES

                             April 26, 2023

  Mr. Tony Gonzales of Texas introduced the following bill; which was 
 referred to the Committee on Energy and Commerce, and in addition to 
  the Committees on Foreign Affairs, Education and the Workforce, and 
 Financial Services, for a period to be subsequently determined by the 
  Speaker, in each case for consideration of such provisions as fall 
           within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
     To 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.

    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 ``Obtaining National and Secure 
Homeland Operations for Rare Earth Manufacturing Act of 2023'' or the 
``ONSHORE Manufacturing Act of 2023''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Appropriate committees of congress.--The term 
        ``appropriate committees of Congress'' means--
                    (A) the Select Committee on Intelligence, the 
                Committee on Energy and Natural Resources, the 
                Committee on Commerce, Science, and Transportation, the 
                Committee on Foreign Relations, the Committee on Armed 
                Services, the Committee on Appropriations, the 
                Committee on Banking, Housing, and Urban Affairs, the 
                Committee on Homeland Security and Governmental 
                Affairs, and the Committee on Finance of the Senate; 
                and
                    (B) the Permanent Select Committee on Intelligence, 
                the Committee on Energy and Commerce, the Committee on 
                Foreign Affairs, the Committee on Armed Services, the 
                Committee on Science, Space, and Technology, the 
                Committee on Appropriations, the Committee on Financial 
                Services, the Committee on Homeland Security, and the 
                Committee on Ways and Means of the House of 
                Representatives.
            (2) Covered entity.--The term ``covered entity'' means a 
        private entity, a consortium of private entities, or a 
        consortium of public and private entities with a demonstrated 
        ability to substantially finance, construct, expand, or 
        technologically upgrade a covered facility.
            (3) Covered facility.--The term ``covered facility'' means 
        a facility located in a State that carries out the metallurgy 
        of rare earth elements for the production of finished rare 
        earth products.
            (4) Covered incentive.--The term ``covered incentive'' 
        means--
                    (A) an incentive offered by a Federal, State, 
                local, or Tribal governmental entity to a covered 
                entity for the purposes of--
                            (i) constructing within the jurisdiction of 
                        the governmental entity a covered facility; or
                            (ii) expanding or technologically upgrading 
                        an existing facility within that jurisdiction 
                        to be a covered facility; and
                    (B) a workforce-related incentive (including a 
                grant agreement relating to workforce training or 
                vocational education), any concession with respect to 
                real property, funding for research and development 
                with respect to rare earth elements and finished rare 
                earth products, and any other incentive determined 
                appropriate by the Secretary, in consultation with the 
                Secretary of State.
            (5) Finished rare earth product.--The term ``finished rare 
        earth product'' means a product composed of significant 
        quantities of rare earth elements, including--
                    (A) metals;
                    (B) alloys; and
                    (C) permanent magnets.
            (6) Foreign entity.--
                    (A) In general.--The term ``foreign entity'' 
                means--
                            (i) a government of a foreign country and a 
                        foreign political party;
                            (ii) a natural person who is not--
                                    (I) a lawful permanent resident of 
                                the United States;
                                    (II) a citizen or national of the 
                                United States; or
                                    (III) any other protected 
                                individual (as defined in section 
                                274B(a)(3) of the Immigration and 
                                Nationality Act (8 U.S.C. 
                                1324b(a)(3))); and
                            (iii) a partnership, association, 
                        corporation, organization, or other combination 
                        of persons organized under the laws of or 
                        having its principal place of business in a 
                        foreign country.
                    (B) Inclusions.--The term ``foreign entity'' 
                includes--
                            (i) any person owned by, controlled by, or 
                        subject to the jurisdiction or direction of an 
                        entity described in subparagraph (A);
                            (ii) any person, wherever located, who acts 
                        as an agent, representative, or employee of an 
                        entity described in subparagraph (A);
                            (iii) any person who acts in any other 
                        capacity at the order, request, or under the 
                        influence, direction, or control, of--
                                    (I) an entity described in 
                                subparagraph (A); or
                                    (II) a person the activities of 
                                which are directly or indirectly 
                                supervised, directed, controlled, 
                                financed, or subsidized in whole or in 
                                majority part by an entity described in 
                                subparagraph (A);
                            (iv) any person who directly or indirectly 
                        through any contract, arrangement, 
                        understanding, relationship, or otherwise, owns 
                        25 percent or more of the equity interests of 
                        an entity described in subparagraph (A);
                            (v) any person with significant 
                        responsibility to control, manage, or direct an 
                        entity described in subparagraph (A);
                            (vi) any person, wherever located, who is a 
                        citizen or resident of a country controlled by 
                        an entity described in subparagraph (A); and
                            (vii) any corporation, partnership, 
                        association, or other organization organized 
                        under the laws of a country controlled by an 
                        entity described in subparagraph (A).
            (7) Foreign entity of concern.--
                    (A) In general.--The term ``foreign entity of 
                concern'' means any foreign entity that is--
                            (i) designated as a foreign terrorist 
                        organization by the Secretary of State under 
                        section 219 of the Immigration and Nationality 
                        Act (8 U.S.C. 1189);
                            (ii) included on the list of specially 
                        designated nationals and blocked persons 
                        maintained by the Office of Foreign Assets 
                        Control of the Department of the Treasury;
                            (iii) owned by, controlled by, or subject 
                        to the jurisdiction, direction, or otherwise 
                        under the undue influence of a government of a 
                        covered nation (as defined in section 4872(d) 
                        of title 10, United States Code);
                            (iv) alleged by the Attorney General to 
                        have been involved in activities for which a 
                        conviction was obtained under--
                                    (I) chapter 37 of title 18, United 
                                States Code (commonly known as the 
                                ``Espionage Act'');
                                    (II) section 951 or 1030 of title 
                                18, United States Code;
                                    (III) chapter 90 of title 18, 
                                United States Code (commonly known as 
                                the ``Economic Espionage Act of 
                                1996'');
                                    (IV) the Arms Export Control Act 
                                (22 U.S.C. 2751 et seq.);
                                    (V) section 224, 225, 226, 227, or 
                                236 of the Atomic Energy Act of 1954 
                                (42 U.S.C. 2274-2278; 2284);
                                    (VI) the Export Control Reform Act 
                                of 2018 (50 U.S.C. 4801 et seq.); or
                                    (VII) the International Emergency 
                                Economic Powers Act (50 U.S.C. 1701 et 
                                seq.); or
                            (v) determined by the Secretary, in 
                        consultation with the Secretary of Defense and 
                        the Director of National Intelligence, to be 
                        engaged in unauthorized conduct that is 
                        detrimental to the national security or foreign 
                        policy of the United States under this Act.
                    (B) Exclusion.--The term ``foreign entity of 
                concern'' does not include any entity with respect to 
                which 1 or more foreign entities described in 
                subparagraph (A) owns less than 10 percent of the 
                equity interest.
            (8) Governmental entity.--The term ``governmental entity'' 
        means--
                    (A) a State; and
                    (B) a local government of a State.
            (9) Intelligence community.--The term ``intelligence 
        community'' has the meaning given the term in section 3 of the 
        National Security Act of 1947 (50 U.S.C. 3003).
            (10) Metallurgy.--The term ``metallurgy'' means the process 
        of producing finished rare earth products from purified rare 
        earth elements.
            (11) Minerals security partnership.--The term ``Minerals 
        Security Partnership'' means the Minerals Security Partnership 
        established in June 2022.
            (12) Person.--The term ``person'' includes an individual, 
        partnership, association, corporation, organization, or any 
        other combination of individuals.
            (13) Private capital.--The term ``private capital'' has the 
        meaning given the term in section 103 of the Small Business 
        Investment Act of 1958 (15 U.S.C. 662).
            (14) Rare earth element.--The term ``rare earth element'' 
        means a natural element associated with--
                    (A) the metallic element scandium, with atomic 
                number 21;
                    (B) the metallic element yttrium, with atomic 
                number 39; or
                    (C) any of the series of 15 metallic elements 
                between lanthanum, with atomic number 57, and lutetium, 
                with atomic number 71, on the periodic table.
            (15) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
            (16) State.--The term ``State'' means--
                    (A) each of the several States of the United 
                States;
                    (B) the District of Columbia;
                    (C) the Commonwealth of Puerto Rico;
                    (D) Guam;
                    (E) American Samoa;
                    (F) the Commonwealth of the Northern Mariana 
                Islands;
                    (G) the Federated States of Micronesia;
                    (H) the Republic of the Marshall Islands;
                    (I) the Republic of Palau; and
                    (J) the United States Virgin Islands.

SEC. 3. RARE EARTH METALLURGY FINANCING.

    (a) Financial Assistance Program.--
            (1) In general.--The Secretary shall establish in the 
        Department of Energy a program to provide Federal financial 
        assistance to covered entities to incentivize investment in 
        covered facilities, subject to the availability of 
        appropriations for that purpose.
            (2) Procedure.--
                    (A) In general.--A covered entity seeking financial 
                assistance under this subsection shall submit to the 
                Secretary an application that describes the project for 
                which the covered entity is seeking financial 
                assistance.
                    (B) Eligibility.--In order for a covered entity to 
                qualify for financial assistance under this subsection, 
                the covered entity shall demonstrate to the Secretary, 
                in the application submitted by the covered entity 
                under subparagraph (A), that--
                            (i) the covered entity has a documented 
                        interest in--
                                    (I) constructing a covered 
                                facility; or
                                    (II) expanding or technologically 
                                upgrading a facility owned by the 
                                covered entity to be a covered 
                                facility; and
                            (ii) with respect to the project for which 
                        the covered entity is seeking financial 
                        assistance, the covered entity has--
                                    (I) been offered a covered 
                                incentive;
                                    (II) made commitments to worker and 
                                community investment, including 
                                through--
                                            (aa) training and education 
                                        benefits paid by the covered 
                                        entity; and
                                            (bb) programs to expand 
                                        employment opportunity for 
                                        economically disadvantaged 
                                        individuals;
                                    (III) secured commitments from 
                                regional educational and training 
                                entities and institutions of higher 
                                education to provide workforce 
                                training, including programming for 
                                training and job placement of 
                                economically disadvantaged individuals; 
                                and
                                    (IV) an executable plan to sustain 
                                a covered facility without additional 
                                Federal financial assistance under this 
                                subsection for facility support.
                    (C) Application review.--
                            (i) In general.--The Secretary may not 
                        approve an application submitted by a covered 
                        entity under subparagraph (A)--
                                    (I) unless the Secretary--
                                            (aa) confirms that the 
                                        covered entity has satisfied 
                                        the eligibility criteria under 
                                        subparagraph (B);
                                            (bb) determines that the 
                                        project for which the covered 
                                        entity is seeking financial 
                                        assistance is in the interest 
                                        of the United States; and
                                            (cc) has notified the 
                                        appropriate committees of 
                                        Congress not later than 15 days 
                                        before making any commitment to 
                                        provide an award of financial 
                                        assistance to any covered 
                                        entity in an amount that 
                                        exceeds $10,000,000; or
                                    (II) if the Secretary determines, 
                                in consultation with the Director of 
                                National Intelligence, that the covered 
                                entity is a foreign entity of concern.
                            (ii) Consideration.--In reviewing an 
                        application submitted by a covered entity under 
                        subparagraph (A), the Secretary may consider 
                        whether--
                                    (I) the covered entity has 
                                previously received financial 
                                assistance under this subsection;
                                    (II) the governmental entity 
                                offering the applicable covered 
                                incentive has benefitted from financial 
                                assistance previously provided under 
                                this subsection;
                                    (III) the covered entity has 
                                demonstrated that the covered entity is 
                                responsive to the national security 
                                needs or requirements established by 
                                the intelligence community (or an 
                                agency thereof), the National Nuclear 
                                Security Administration, or the 
                                Department of Defense;
                                    (IV) if practicable, a consortium 
                                that is considered a covered entity 
                                includes a small business concern (as 
                                defined under section 3 of the Small 
                                Business Act (15 U.S.C. 632)), 
                                notwithstanding section 121.103 of 
                                title 13, Code of Federal Regulations 
                                (or successor regulations); and
                                    (V) the covered entity intends to 
                                produce finished products for use by 
                                the Department of Defense, the defense 
                                industry of the United States, or 
                                critical energy infrastructure.
                            (iii) Prioritization.--To the maximum 
                        extent practicable, the Secretary shall 
                        prioritize awarding financial assistance under 
                        this subsection to a covered entity that 
                        intends to make finished products available for 
                        use by the Department of Defense, the defense 
                        industry of the United States, or critical 
                        energy infrastructure.
                    (D) Records.--
                            (i) In general.--The Secretary may request 
                        records and information from a covered entity 
                        that submitted an application under 
                        subparagraph (A) to review the status of a 
                        covered entity.
                            (ii) Requirement.--The covered entity shall 
                        provide the records and information requested 
                        by the Secretary under clause (i).
            (3) Amount.--
                    (A) In general.--The Secretary shall determine the 
                appropriate amount and funding type for each financial 
                assistance award provided to a covered entity under 
                this subsection.
                    (B) Cost-sharing requirement.--The total amount of 
                financial assistance that may be guaranteed by the 
                Secretary under this subsection shall be not more than 
                100 percent of the private capital investment available 
                to a covered entity for any individual project.
                    (C) Minimum investment.--The total Federal 
                investment in any individual project receiving a 
                financial assistance award under this subsection shall 
                be not less than $100,000,000.
                    (D) Larger investment.--The total Federal 
                investment in any individual project receiving a 
                financial assistance award under this subsection shall 
                not exceed $500,000,000, unless the Secretary, in 
                consultation with the Secretary of Defense and the 
                Director of National Intelligence, recommends to the 
                President, and the President certifies and reports to 
                the appropriate committees of Congress, that a larger 
                investment is necessary--
                            (i) to significantly increase the 
                        proportion of reliable domestic supply of 
                        finished rare earth products relevant for 
                        national security and economic competitiveness 
                        that can be met through domestic production; 
                        and
                            (ii) to meet the needs of national 
                        security.
            (4) Use of funds.--A covered entity that receives a 
        financial assistance award under this subsection may only use 
        the financial assistance award amounts--
                    (A) to finance the construction of a covered 
                facility (including equipment) or the expansion or 
                technological upgrade of a facility (including 
                equipment) of the covered entity to be a covered 
                facility, as documented in the application submitted by 
                the covered entity under paragraph (2)(A), as 
                determined necessary by the Secretary for purposes 
                relating to the national security and economic 
                competitiveness of the United States;
                    (B) to support workforce development for a covered 
                facility; and
                    (C) to support site development and technological 
                upgrade for a covered facility.
            (5) Clawback.--
                    (A) Major awards.--
                            (i) In general.--For all financial 
                        assistance awards provided to covered entities 
                        under this subsection, the Secretary shall, at 
                        the time of making the award, determine the 
                        target dates by which a covered entity shall 
                        commence and complete the applicable project.
                            (ii) Progressive recovery for delays.--If 
                        the covered entity receiving a financial 
                        assistance award under this subsection does not 
                        complete the applicable project by the 
                        applicable target date determined under clause 
                        (i), the Secretary shall progressively recover 
                        up to the full amount of the award.
                            (iii) Waiver.--In the case of projects that 
                        do not meet the applicable target date 
                        determined under clause (i), the Secretary may 
                        waive the requirement to recover the financial 
                        award provided for the project under clause 
                        (ii) after making a formal determination that 
                        circumstances beyond the ability of the covered 
                        entity to foresee or control are responsible 
                        for the delay.
                            (iv) Congressional notification.--
                                    (I) In general.--Not later than 15 
                                days after making a determination to 
                                recover an award under clause (ii), the 
                                Secretary shall notify the appropriate 
                                committees of Congress of the intent of 
                                the Secretary to recover the award.
                                    (II) Waivers.--Not later than 15 
                                days after the date on which the 
                                Secretary provides a waiver under 
                                clause (iii), the Secretary shall 
                                notify the appropriate committees of 
                                Congress of the waiver.
                    (B) Joint research, technology licensing, and 
                intellectual property reporting.--
                            (i) In general.--Before entering into an 
                        agreement with a foreign entity to conduct 
                        joint research or technology licensing, or to 
                        share intellectual property, a covered entity 
                        that has received a financial assistance award 
                        under this subsection--
                                    (I) shall notify the Secretary of 
                                the intent to enter into such an 
                                agreement; and
                                    (II) may only enter into such an 
                                agreement if the Secretary determines 
                                the foreign entity is not a foreign 
                                entity of concern.
                            (ii) Determination.--On receiving a 
                        notification under clause (i), the Secretary, 
                        in consultation with the Director of National 
                        Intelligence, the Director of the National 
                        Counterintelligence and Security Center, and 
                        the Director of the Federal Bureau of 
                        Investigation, shall make a determination of 
                        whether the applicable foreign entity is a 
                        foreign entity of concern.
                            (iii) Technology clawback.--The Secretary 
                        shall recover the full amount of a financial 
                        assistance award provided to a covered entity 
                        under this subsection if, during the applicable 
                        term of the award, the covered entity knowingly 
                        engages in any joint research, technology 
                        licensing, or intellectual property sharing 
                        effort with a foreign entity of concern that 
                        relates to a technology or product that raises 
                        national security concerns, as determined by 
                        the Secretary, in consultation with the 
                        Director of National Intelligence, the Director 
                        of the National Counterintelligence and 
                        Security Center, and the Director of the 
                        Federal Bureau of Investigation, on the 
                        condition that the determination of the 
                        Secretary shall have been communicated to the 
                        covered entity before the covered entity 
                        engaged in the joint research, technology 
                        licensing, or intellectual property sharing.
            (6) Condition of receipt.--A covered entity to which the 
        Secretary awards Federal financial assistance under this 
        subsection shall enter into an agreement that specifies that, 
        during the 5-year period immediately following the award of the 
        Federal financial assistance, the covered entity will not make 
        shareholder distributions in excess of profits.
    (b) Coordination Required.--In carrying out the program established 
under subsection (a), the Secretary shall coordinate with the Secretary 
of State, the Secretary of Defense, the Secretary of Homeland Security, 
and the Director of National Intelligence.
    (c) GAO Reviews.--The Comptroller General of the United States 
shall--
            (1) not later than 2 years after the date of disbursement 
        of the first financial award under the program established 
        under subsection (a), and biennially thereafter for 10 years, 
        conduct a review of the program, which shall include, at a 
        minimum--
                    (A) a determination of the number of financial 
                assistance awards provided under the program during the 
                period covered by the review;
                    (B) an evaluation of how--
                            (i) the program is being carried out, 
                        including how recipients of financial 
                        assistance awards are being selected under the 
                        program; and
                            (ii) other Federal programs are leveraged 
                        for manufacturing, research, and training to 
                        complement the financial assistance awards 
                        provided under the program; and
                    (C) a description of the outcomes of projects 
                supported by financial assistance awards provided under 
                the program, including a description of--
                            (i) covered facilities that were 
                        constructed or facilities that were expanded or 
                        technologically upgraded to be covered 
                        facilities as a result of financial assistance 
                        awards provided under the program;
                            (ii) workforce training programs carried 
                        out with financial assistance awards provided 
                        under the program, including efforts to hire 
                        individuals from disadvantaged populations; and
                            (iii) the impact of projects receiving 
                        financial assistance awards under the program 
                        on the United States share of global finished 
                        rare earth product production; and
            (2) submit to the appropriate committees of Congress the 
        results of each review conducted under paragraph (1).
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section--
            (1) $1,500,000,000 for fiscal year 2024; and
            (2) $200,000,000 for each of fiscal years 2025 through 
        2028.

SEC. 4. FUNDING FOR DEVELOPMENT OF SECURE RARE EARTH SUPPLY CHAINS.

    (a) Minerals Security Partnership Fund.--
            (1) Establishment of fund.--The Secretary of the Treasury 
        may establish a trust fund, to be known as the ``Minerals 
        Security Partnership Fund'' (referred to in this section as the 
        ``Fund''), consisting of such amounts as are appropriated to 
        the Fund or credited to the Fund under paragraph (3).
            (2) Reporting requirement.--If the Fund is not established 
        by not later than 180 days after the date of enactment of this 
        Act, on that date, and annually thereafter until the Fund is 
        established, the Secretary of the Treasury, in coordination 
        with the Secretary of State, shall provide, in writing, to the 
        appropriate committees of Congress a rationale for not 
        establishing the Fund.
            (3) Investment of amounts.--
                    (A) Investment of amounts.--If the Fund is 
                established, the Secretary of the Treasury may invest 
                such portion of the Fund as is not required to meet 
                current withdrawals in interest-bearing obligations of 
                the United States or in obligations guaranteed as to 
                both principal and interest by the United States.
                    (B) Interest and proceeds.--The interest on, and 
                the proceeds from the sale or redemption of, any 
                obligations held in the Fund shall be credited to and 
                form a part of the Fund.
            (4) Use of fund.--
                    (A) In general.--Subject to subparagraph (B), 
                amounts in the Fund shall be available, as provided in 
                advance in an appropriations Act, to the Secretary of 
                State--
                            (i) to provide funding through the Minerals 
                        Security Partnership common funding mechanism 
                        described in subsection (b)(1) to support the 
                        development and adoption of secure rare earth 
                        supply chains; and
                            (ii) to otherwise carry out this section.
                    (B) Availability contingent on international 
                arrangement or agreement.--
                            (i) In general.--Amounts in the Fund shall 
                        be available to the Secretary of State, as 
                        provided in advance in an appropriations Act, 
                        on and after the date on which the Secretary of 
                        State enters into an arrangement or agreement 
                        with the governments of countries that are 
                        partners of the United States, as determined by 
                        the Secretary of State, to participate in the 
                        Minerals Security Partnership common funding 
                        mechanism under subsection (b)(1).
                            (ii) Consultation.--Before entering into an 
                        arrangement or agreement as described in clause 
                        (i), the Secretary of State, in consultation 
                        with the Secretary of Commerce, shall ensure 
                        that any government that will participate in 
                        the arrangement or agreement maintains export 
                        control licensing policies with respect to 
                        exports of finished rare earth products 
                        substantively equivalent to the United States 
                        with respect to restrictions on such exports to 
                        the People's Republic of China.
    (b) Minerals Security Partnership Common Funding Mechanism for 
Development of Secure Rare Earth Supply Chains.--
            (1) In general.--The Secretary of State, in consultation 
        with the Secretary of Commerce, the Secretary of Defense, the 
        Secretary of Homeland Security, the Secretary of the Treasury, 
        the Director of National Intelligence, and the Chief Executive 
        Officer of the United States International Development Finance 
        Corporation shall ensure that the Minerals Security Partnership 
        is a mutually beneficial funding mechanism that, in 
        coordination with the governments of countries that are 
        partners of the United States, uses amounts from the Fund, or 
        any other available Federal funds, to support the development 
        and adoption of secure rare earth supply chains, including 
        for--
                    (A) research and development collaborations among 
                countries participating in the mechanism; and
                    (B) supplementing bids by foreign entities that are 
                not foreign entities of concern to secure offtake 
                agreements with entities that mine rare earth elements.
            (2) Contributions from participating countries.--In 
        creating and sustaining the Minerals Security Partnership 
        common funding mechanism described in paragraph (1), the 
        Secretary of State shall seek to leverage amounts from the Fund 
        to secure contributions to the mechanism from the governments 
        of countries participating in the mechanism, including with 
        respect to cost sharing and other cooperative measures leading 
        to the development and adoption of secure rare earth supply 
        chains.
            (3) Commitments.--In creating and sustaining the Minerals 
        Security Partnership common funding mechanism described in 
        paragraph (1), the Secretary of State shall promote efforts 
        among countries participating in the mechanism--
                    (A) to establish transparency requirements for any 
                subsidies or other financial benefits (including 
                revenue foregone) provided to rare earth firms located 
                in or outside such countries;
                    (B) to establish processes similar to the process 
                of the Committee on Foreign Investment in the United 
                States under section 721 of the Defense Production Act 
                of 1950 (50 U.S.C. 4565) for intervening to preempt 
                foreign entities of concern from investing in, 
                purchasing, or assuming control of entities, 
                intellectual property, and equipment that are created 
                by or benefit from investments by the mechanism;
                    (C) to establish consistent policies with respect 
                to countries that--
                            (i) are not participating in the mechanism; 
                        and
                            (ii) do not meet transparency requirements 
                        established under subparagraph (A);
                    (D) to promote harmonized treatment of finished 
                rare earth products and verification processes for raw 
                materials or products being exported to a country 
                considered a national security risk by the government 
                of a country participating in the mechanism;
                    (E) to establish consistent policies among the 
                governments of countries participating in the mechanism 
                and common policies among countries that are not 
                participating to address nonmarket economy countries as 
                the behavior of such countries pertains to rare earth 
                elements;
                    (F) to align policies with respect to supply chain 
                integrity and security, including with respect to 
                protection and enforcement of intellectual property 
                rights; and
                    (G) to promote harmonized foreign direct investment 
                screening measures and export control policies with 
                respect to rare earth elements to align with national, 
                multilateral, and plurilateral security priorities.
    (c) Annual Report to Congress.--Not later than 1 year after the 
date on which the Fund is established, and annually thereafter for each 
fiscal year during which amounts in the Fund are available under 
subsection (a)(4), the Secretary of State shall submit to the 
appropriate committees of Congress a report on the status of the 
implementation of this section that includes a description of--
            (1) any commitments made by the governments of countries 
        that have entered into an arrangement or agreement with the 
        United States to provide funding for the Minerals Security 
        Partnership common funding mechanism described in subsection 
        (b)(1) and the specific amount so committed and other 
        cooperative measures being taken by such countries as part of 
        the mechanism;
            (2) the criteria established for expenditure of funds 
        through the mechanism;
            (3) how, and to whom, amounts have been expended from the 
        Fund and a description of progress made in utilizing the Fund 
        to support the objectives described in subsection (b)(1);
            (4) amounts remaining in the Fund;
            (5) the progress of the Secretary of State toward entering 
        into an arrangement or agreement with the governments of 
        countries that are partners of the United States to participate 
        in the Minerals Security Partnership common funding mechanism 
        and the commitments described in subsection (b)(3); and
            (6) any additional authorities needed to enhance the 
        effectiveness of the Fund in achieving the security goals of 
        the United States.
    (d) Notifications To Be Provided by the Fund.--
            (1) In general.--Not later than 15 days prior to the Fund 
        making a financial commitment associated with the provision of 
        expenditures under subsection (a)(4)(A) in an amount in excess 
        of $1,000,000, the Secretary of State shall submit to the 
        appropriate committees of Congress a report in writing that 
        includes the information described in paragraph (2).
            (2) Information required.--The information described in 
        this paragraph is--
                    (A) the amount of each expenditure described in 
                paragraph (1);
                    (B) an identification of the recipient or 
                beneficiary of each such expenditure; and
                    (C) a description of the project or activity to be 
                carried out and the purpose to be achieved by each such 
                expenditure.
            (3) Arrangements or agreements.--The Secretary of State 
        shall notify the appropriate committees of Congress not later 
        than 30 days after entering into a new bilateral or 
        multilateral arrangement or agreement described in subsection 
        (a)(4)(B).
    (e) Foreign Entities of Concern.--A foreign entity of concern may 
not be a participant or beneficiary of the Minerals Security 
Partnership common funding mechanism described in subsection (b)(1).
    (f) Applicability to Existing Fund of the Minerals Security 
Partnership.--This section shall apply to any fund in the Treasury that 
has been established before the date of enactment of this Act for use 
of the Minerals Security Partnership.

SEC. 5. WORKFORCE DEVELOPMENT INITIATIVE.

    As soon as practicable after the date of enactment of this Act, the 
Secretary shall establish an initiative under which the Secretary shall 
work with the Secretary of Labor, the Director of the National Science 
Foundation, the Critical Minerals Subcommittee of the National Science 
and Technology Council, the private sector, institutions of higher 
education, and workforce training entities to incentivize and expand 
participation in graduate and undergraduate programs, and to develop 
workforce training programs and apprenticeships, relating to advanced 
rare earth element mining, separation, processing, metallurgy, and 
advanced equipment maintenance capabilities.

SEC. 6. SUPPORT FOR FREELY ASSOCIATED STATES.

     Section 1412(c) of the Better Utilization of Investments Leading 
to Development Act of 2018 (22 U.S.C. 9612(c)) is amended by adding at 
the end the following:
            ``(3) Support for freely associated states.--
        Notwithstanding the income classification of the country with 
        which the geopolitical entity is associated, the Corporation 
        may provide support under title II to a geopolitical entity 
        that is included, as of the date on which support is provided, 
        on the list of dependencies and areas of special sovereignty 
        prepared by the Department of State.''.

SEC. 7. PROHIBITION RELATING TO FOREIGN ENTITIES OF CONCERN.

    None of the funds authorized to be appropriated to carry out this 
Act may be provided to a foreign entity of concern.

SEC. 8. DEFENSE PRODUCTION ACT OF 1950 EFFORTS.

    (a) In General.--Not later than 180 days after the date of 
enactment of this Act, the President shall submit to Congress a report 
on a plan of action for any use of authorities available in title III 
of the Defense Production Act of 1950 (50 U.S.C. 4531 et seq.) to 
establish or enhance a domestic production capability for finished rare 
earth products and related technologies, subject to--
            (1) the availability of appropriations for that purpose; 
        and
            (2) a determination made under the plan pursuant to that 
        title that--
                    (A) finished rare earth products and related 
                technologies are essential to the national defense; and
                    (B) domestic industrial capabilities are 
                insufficient to meet those needs.
    (b) Coordination.--The President shall develop the plan of action 
required by subsection (a) in consultation with any relevant head of a 
Federal agency, an advisory committee established under section 708(d) 
of the Defense Production Act of 1950 (50 U.S.C. 4558(d)), and 
appropriate stakeholders in the private sector.
                                 &lt;all&gt;
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