Truncating Onerous Regulations for Partners and Enhancing Deterrence Operations (TORPEDO) Act of 2023

Subjects: International Affairs


<html><body><pre>[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 1471 Introduced in Senate (IS)]

&lt;DOC&gt;






118th CONGRESS
  1st Session
                                S. 1471

       To bolster the AUKUS partnership, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 4, 2023

Mr. Risch (for himself and Mr. Hagerty) introduced the following bill; 
which was read twice and referred to the Committee on Foreign Relations

_______________________________________________________________________

                                 A BILL


 
       To bolster the AUKUS partnership, 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Truncating Onerous 
Regulations for Partners and Enhancing Deterrence Operations (TORPEDO) 
Act of 2023''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
Sec. 3. Findings.
Sec. 4. Statement of policy.
Sec. 5. Department of State personnel and resources.
Sec. 6. Reporting requirements.
Sec. 7. Exemption for license requirements for export of defense items 
                            to the United Kingdom and Australia.
Sec. 8. United States Munitions List.
Sec. 9. Open general license for the export, reexport, transfer, and 
                            retransfer of certain defense articles to 
                            Australia, Canada, and the United Kingdom 
                            under ITAR.
Sec. 10. License exception for export, reexport, and in-country 
                            transfer of items on Commerce Control List 
                            to or between Australia, Canada, and the 
                            United Kingdom under Export Administration 
                            Regulations.
Sec. 11. Treatment of national technology and industrial base as 
                            domestic source under Defense Production 
                            Act of 1950.
Sec. 12. Expedited release of advanced technologies to Australia, 
                            Canada, and the United Kingdom through the 
                            Foreign Military Sales program.
Sec. 13. Anticipatory disclosure policy for Australia, Canada, and the 
                            United Kingdom.
Sec. 14. Report on AUKUS strategy.
Sec. 15. Australia, United Kingdom, and United States submarine 
                            security training.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means--
                    (A) the Committee on Foreign Relations, the 
                Committee on Appropriations, and the Committee on Armed 
                Services of the Senate; and
                    (B) the Committee on Foreign Affairs, the Committee 
                on Appropriations, and the Committee on Armed Services 
                of the House of Representatives.
            (2) AUKUS; aukus partnership.--The terms ``AUKUS'' and 
        ``AUKUS partnership'' means the trilateral security partnership 
        between the United States, the United Kingdom, and Australia, 
        which includes the following two pillars:
                    (A) Pillar One of AUKUS is focused on developing a 
                pathway for Australia to acquire conventionally armed, 
                nuclear powered submarines.
                    (B) Pillar Two of AUKUS is focused on enhancing 
                trilateral collaboration on advanced defense 
                capabilities to include hypersonic and counter 
                hypersonic capabilities, quantum technologies, undersea 
                technologies, and artificial intelligence.
            (3) AUKUS partner.--The term ``AUKUS partner'' refers to a 
        member of AUKUS.
            (4) Defense article; defense service.--The terms ``defense 
        article'' and ``defense service'' have the meanings given those 
        terms in section 47 of the Arms Export Control Act (22 U.S.C. 
        2794).

SEC. 3. FINDINGS.

    Congress makes the following findings:
            (1) The United States has entered into a period of intense 
        strategic rivalry with China that includes military competition 
        on a scale unseen in generations.
            (2) The perpetuation of a military balance of power in the 
        Indo-Pacific favorable to the United States and its allies and 
        partners can no longer be assumed as China continues to invest 
        massive resources in its military.
            (3) China has undertaken a nuclear breakout, fields the 
        world's largest navy, and is fielding a fully modernized air 
        force.
            (4) North Korea remains an urgent and gathering threat as 
        it fields an increasingly diverse and advanced nuclear and 
        missile force backed by a massive conventional army.
            (5) Iran continues to pursue a nuclear weapons capability 
        while fomenting unrest in the Middle East and beyond.
            (6) While China remains the pacing threat for the United 
        States, Russia's unprovoked and brutal invasion of Ukraine 
        makes clear that multiple dissatisfied powers are coalescing 
        into an informal bloc designed to challenge the existing United 
        States-led global order.
            (7) United States efforts to help Ukraine defend itself 
        against Russian aggression and strengthen Taiwan's ability to 
        resist the coercion of the Chinese Communist Party have exposed 
        the production constraints inherent in the United States 
        defense industrial base.
            (8) The capacity limitations of the United States defense 
        industrial base require urgent remedy to include a renewed 
        examination of burden sharing roles with United States allies.
            (9) To meet this comprehensive challenge to American 
        interests, we must act at the speed of relevance to expand the 
        resilience and capacity of our defense industrial base. United 
        States allies should be full partners in this effort and the 
        AUKUS partnership is a necessary first step to share the 
        responsibility of perpetuating the existing rules-based order.
            (10) The security partnership between Australia, the United 
        Kingdom, and the United States (referred to as the ``AUKUS 
        partnership'') is meant to bolster capability of the United 
        States and allies in the Indo-Pacific and beyond through 
        technology sharing, cooperation, and defense exports.
            (11) The AUKUS partnership's focus on conventionally armed 
        nuclear-powered submarines and advanced capabilities, known 
        respectively as Pillars One and Two, rightly centers on 
        cooperation at the highest end of security and geostrategic 
        competition.
            (12) Pillar One, while bold, is complex, highly contingent 
        and unlikely to produce additive submarine capability in the 
        Indo-Pacific until the 2030s.
            (13) The Pillar One initiative will rely on the expertise 
        developed by the United States and United Kingdom in operating 
        their submarine fleets to bring an Australian capability into 
        service at the earliest achievable date.
            (14) Pillar Two proposes that AUKUS partners will also 
        deepen cooperation and integration on advanced defense 
        technologies to include hypersonic missiles, space technology, 
        artificial intelligence, quantum technologies and additional 
        undersea capabilities.
            (15) Pillar Two, if executed with the vision described by 
        the three allies in the AUKUS announcement of September 2021, 
        offers the potential to produce meaningful capability and 
        increase industrial capacity during the current decade.
            (16) Pillar Two can also expand and build resilience across 
        the supply chain of the AUKUS partners.
            (17) However, certain statutory components of the United 
        States export control and regulatory system are overly 
        cumbersome for industries in the United States, Australia, and 
        the United Kingdom, delaying and complicating the United States 
        from achieving national security objectives at the speed of 
        relevance.
            (18) Australia and the United Kingdom have legal, 
        regulatory, and technology control regimes that are 
        sufficiently comparable to those of the United States.
            (19) United States technology controls and export licensing 
        decisions must balance the relatively low risk of compromise 
        that exists across all three AUKUS partners regulatory regimes 
        against the requirements to respond at the speed of relevance 
        to the rapid military advances made by the Chinese People's 
        Liberation Army.
            (20) In order to implement the AUKUS agreement and realize 
        the value of increased cooperation between the United States, 
        the United Kingdom, and Australia, the United States must 
        ensure cooperation is fostered, not inhibited, by the United 
        States regulatory system.
            (21) The United States export control system, encompassing 
        both the International Traffic and Arms Regulations and the 
        Export Administration Regulations, is largely based on a 
        bilateral government-to-government relationship, is not 
        optimized for a trilateral arrangement, and must reflect the 
        new era of allied partnership continuing evolution of United 
        States export control regulation.
            (22) The Department of State, in concert with the 
        Department of Defense, the Department of Commerce, and other 
        relevant United States agencies, should clearly communicate to 
        our AUKUS partners any United States requirements to address 
        matters related to the technology security and export control 
        measures of Australia and the United Kingdom.
            (23) Further, the Department of State, in concert with the 
        Department of Defense, the Department of Commerce, and other 
        relevant United States agencies, should work to reduce barriers 
        to defense innovation, cooperation, trade, production, and 
        sustainment with the governments and industry partners of the 
        United Kingdom and Australia.
            (24) These barriers include the overuse of ``no foreign 
        nationals'' (NOFORN) and Controlled Unclassified Information 
        (CUI) determinations that inhibit collaboration among AUKUS 
        partners in determining requirements, design, development, 
        acquisition, testing, operation, and sustainment of 
        capabilities designed to be interoperable.
            (25) The successful implementation of the AUKUS partnership 
        requires regulatory and licensing changes on the part of all 
        AUKUS partner countries and the continued enhancement of the 
        export control and technology security regimes of all three 
        nations.
            (26) If AUKUS realizes its potential, it will set a 
        precedent and incentivize similar agreements with other close 
        United States allies, which will be necessary if we are to 
        prevail in the long-term competition with China, Russia and its 
        partners.

SEC. 4. STATEMENT OF POLICY.

    It is the policy of the United States--
            (1) to support a transformation and expansion of our 
        already close cooperation on a range of defense and security 
        issues with the United Kingdom and Australia, including 
        enhancing cooperation in the development and fielding of 
        advanced commercial and defense capabilities and in pursuing 
        deeper integration of our defense industrial bases and 
        supporting supply chains;
            (2) to use AUKUS to enhance trilateral cooperation across 
        the submarine fleets of the partner countries and to support 
        Australian efforts to acquire nuclear-powered submarines for 
        the Royal Australian Navy;
            (3) to reassess, and as needed revise, existing regulatory 
        and legal regimes, to include licensing, technology release and 
        contracting procedures to meet the objectives outlined in the 
        September 15, 2021, announcement of the AUKUS partnership;
            (4) to reinvigorate burden sharing with United States 
        allies as a key component of adopting a sustainable long-term 
        strategy to compete with China, Russia, and other revanchist 
        dissatisfied powers; and
            (5) to modernize the United States export control system to 
        reflect the new era of cooperation with partners and allies, 
        incorporating commercial and defense technology that preserve, 
        and enhance our way of life.

SEC. 5. DEPARTMENT OF STATE PERSONNEL AND RESOURCES.

    (a) Senior Advisor at the State Department for AUKUS.--
            (1) Designation.--The Secretary of State shall appoint a 
        senior advisor at the Department of State to oversee and 
        coordinate the implementation of the AUKUS agreement by the 
        Department of State (referred to in this Act as the ``Senior 
        Advisor'').
            (2) Reporting.--The senior advisor shall report directly to 
        the Secretary of State.
            (3) Responsibilities.--It shall be the responsibility of 
        the senior advisor--
                    (A) to coordinate AUKUS implementation between 
                relevant Department of State bureaus, directorates, and 
                offices;
                    (B) to represent the Department of State on matters 
                relating to AUKUS in the interagency process;
                    (C) to engage with relevant government and industry 
                entities in the United Kingdom and Australia; and
                    (D) to issue guidance, including promulgating 
                regulations, in order to reduce barriers to defense 
                collaboration, innovation, trade, and production with 
                the Governments and industry partners of the United 
                States, United Kingdom, and Australia.
            (4) Salary.--The annual salary of the senior advisor 
        described in this section shall not exceed salaries authorized 
        in the Office of Personnel Management's Executive pay scale.
    (b) Directorate of Defense Trade Controls Staffing.--Section 45 of 
the State Department Basic Authorities Act of 1956 (22 U.S.C. 2717) is 
amended--
            (1) in the first sentence, by striking ``100 percent of the 
        registration fees collected by the Office of Defense Trade 
        Controls of the Department of State'' and inserting ``100 
        percent of the defense trade control registration fees 
        collected by the Department of State'';
            (2) in the second sentence, by inserting ``management, 
        licensing, compliance, and policy activities in the defense 
        trade controls function, including'' after ``incurred for'';
            (3) in paragraph (1), by striking ``contract personnel to 
        assist in'';
            (4) in paragraph (2), by striking ``; and'' and inserting a 
        semicolon;
            (5) in paragraph (3), by striking the period at the end and 
        inserting ``; and''; and
            (6) by adding at the end the following new paragraphs:
            ``(4) the facilitation of defense trade policy development, 
        implementation, and cooperation with a specific focus on 
        Canada, Australia, and the United Kingdom, review of commodity 
        jurisdiction determinations, outreach to United States industry 
        and foreign parties, and analysis of scientific and 
        technological developments as they relate to the exercise of 
        defense trade control authorities; and
            ``(5) contract personnel to assist in such activities.''.

SEC. 6. REPORTING REQUIREMENTS.

    (a) Report on Department of State Implementation of Partnership.--
            (1) In general.--Not later than 90 days after the date of 
        the enactment of this Act, the Secretary of State, in 
        coordination with the Secretary of Defense and, as appropriate, 
        the Secretary of Commerce and the Secretary of Energy, shall 
        submit to the appropriate congressional committees a report on 
        efforts of the Department of State to implement the AUKUS 
        partnership.
            (2) Elements.--The report required under paragraph (1) 
        shall include the following elements:
                    (A) Regarding the achievement of Phase One goals 
                for of the Optimal Pathway for AUKUS Pillar One for 
                each of calendar years 2023, 2024, 2025, 2026, and 
                2027, the following:
                            (i) A description of progress by the 
                        Government of Australia in negotiating an 
                        Article 14 Arrangement with the International 
                        Atomic Energy Agency.
                            (ii) A description of the status of efforts 
                        by the Government of Australia to build the 
                        supporting infrastructure to base 
                        conventionally armed nuclear powered attack 
                        submarines.
                            (iii) Updates on the efforts by the 
                        Government of Australia to train a workforce 
                        that can build, sustain, and operate 
                        conventionally armed nuclear powered attack 
                        submarines.
                            (iv) A description of progress by the 
                        Government of Australia in building a new 
                        submarine facility to support the basing and 
                        disposition of a nuclear attack submarine on 
                        the east coast of Australia.
                            (v) The number of Australian personnel 
                        embedded on United States Navy ships during 
                        Phase One of the Optimal Pathway.
                            (vi) A description of progress in 
                        establishing basing to support submarine 
                        rotational forces in western Australia by 2027.
                            (vii) A description of how the United 
                        States plans to provide up to five Virginia 
                        Class submarines to Australia by the early to 
                        mid-2030's.
                            (viii) A strategy for AUKUS partners to 
                        integrate newly built SSN-AUKUS submarines and 
                        five United States Virginia Class submarines 
                        into a single, cohesive fleet.
                            (ix) A detailed assessment of how 
                        Australia's sovereign conventionally armed 
                        nuclear attack submarines contribute to United 
                        States defense and deterrence objectives in the 
                        Indo-Pacific region.
                    (B) For each of the calendar years 2021 and 2022--
                            (i) the average and median times for the 
                        United States Government to review applications 
                        for licenses, disaggregated by license type and 
                        other agreements, to export defense articles or 
                        defense services to persons, corporations, and 
                        the governments (including agencies and 
                        subdivisions of such governments, including 
                        official missions of such governments) of 
                        Australia and the United Kingdom;
                            (ii) the number of applications from 
                        Australia and the United Kingdom for licenses 
                        to export defense articles and defense services 
                        that were denied, returned without action, or 
                        approved with provisos, listed by year;
                            (iii) the average and median times for the 
                        United States Government to review applications 
                        from Australia and the United Kingdom for 
                        foreign military sales beginning from the date 
                        Australia or the United Kingdom submitted a 
                        letter of request that resulted in a letter of 
                        acceptance; and
                            (iv) the number of requests from Australia 
                        and the United Kingdom for foreign military 
                        sales that were denied.
                    (C) A list of relevant United States laws, 
                regulations, and treaties and other international 
                agreements to which the United States is a party that 
                govern authorizations to export defense articles or 
                defense services that are required to implement the 
                AUKUS partnership.
                    (D) An assessment of key recommendations the United 
                States Government has provided to the Governments of 
                Australia and the United Kingdom to revise laws, 
                regulations, and policies of such countries that are 
                required to implement the AUKUS partnership.
                    (E) An assessment of--
                            (i) recommended improvements to export 
                        control laws and regulations of Australia, the 
                        United Kingdom, and the United States that such 
                        countries should make to implement the AUKUS 
                        partnership and to otherwise meet the 
                        requirements of section 38(j)(2) of the Arms 
                        Export Control Act (22 U.S.C. 2778(j)(2)); and
                            (ii) the challenges the Governments of 
                        Australia and the United Kingdom have conveyed 
                        in meeting these requirements, including with 
                        respect to sensitive defense technology 
                        security controls.
    (b) Report on Interagency Actions.--
            (1) In general.--Not later than 90 days after the date of 
        the enactment of this Act, the Secretary of State, in 
        coordination with the Secretary of Defense, the Secretary of 
        Energy, and the Secretary of Commerce, shall submit to the 
        appropriate congressional committees a report on actions taken 
        at the interagency level to implement the advanced capabilities 
        pillar of the AUKUS agreement.
            (2) Elements.--The report required under paragraph (1) 
        shall include the following elements:
                    (A) A description of changes to the International 
                Traffic in Regulations (ITAR) and the United States 
                export control regime that are necessary to implement 
                the AUKUS agreement and to permit AUKUS member states 
                and Canada to exchange defense items at classified and 
                unclassified levels.
                    (B) A plan for reducing barriers and implementing 
                the changes as described in ITAR, including a 
                description of any changes that will require new 
                authorities from Congress.
                    (C) A description of the progress the Department of 
                Defense, the Department of Energy, and the Department 
                of Commerce have made in implementing any changes as 
                described in subparagraphs (A) and (B).
                    (D) A list of actions the Departments have 
                requested the Governments of the United Kingdom and 
                Australia to take in order to amend their export 
                control systems in a way that is comparable to that of 
                the United States.
                    (E) An assessment of the efforts of AUKUS partners 
                to enhance collaboration across the following eight 
                trilateral Lines of Effort:
                            (i) Undersea capabilities.
                            (ii) Quantum technologies.
                            (iii) Artificial Intelligence and autonomy.
                            (iv) Advanced cyber capabilities.
                            (v) Hypersonic and counter-hypersonic 
                        capabilities.
                            (vi) Electronic warfare.
                            (vii) Innovation.
                            (viii) Information sharing.
                    (F) An annex describing the content and timing of 
                consultations amongst AUKUS partners on Pillar One and 
                for the eight Lines of Effort in Pillar Two.
    (c) Briefing.--Not later than 90 days after the date of enactment 
of this Act, and annually thereafter for 7 years, the President shall 
provide a briefing to the appropriate congressional committees 
regarding the status of AUKUS implementation across both pillars and on 
all lines of effort.

SEC. 7. EXEMPTION FOR LICENSE REQUIREMENTS FOR EXPORT OF DEFENSE ITEMS 
              TO THE UNITED KINGDOM AND AUSTRALIA.

    Section 38(j)(1) of the Arms Export Control Act (22 U.S.C. 
2778(j)(1)) is amended--
            (1) in subparagraph (B)--
                    (A) in the subsection heading, by inserting ``, the 
                United Kingdom, and Australia'' after ``Canada''; and
                    (B) by inserting ``, the United Kingdom, or 
                Australia'' after ``Canada''; and
            (2) in subparagraph (C)--
                    (A) by striking ``treaties.--'' and all that 
                follows through ``(i) In general.--The requirement'' 
                and inserting ``treaties.--The requirement'';
                    (B) by striking clause (ii); and
                    (C) by redesignating subclauses (I) and (II) as 
                clauses (i) and (ii) and moving such clauses, as so 
                redesignated, two ems to the left.

SEC. 8. UNITED STATES MUNITIONS LIST.

    (a) Exemption for the Governments of the United Kingdom and 
Australia From Certification and Congressional Notification 
Requirements Applicable to Certain Transfers.--Section 38(f)(3) of the 
Arms Export Control Act (22 U.S.C. 2778(f)(3)) is amended by inserting 
``, the United Kingdom, or Australia'' after ``Canada''.
    (b) United States Munitions List Periodic Reviews.--
            (1) In general.--The Secretary of State, acting through 
        authority delegated by the President to carry out period 
        reviews of items on the United States Munitions List under 
        subsection (f) of section 38 of the Arms Export Control Act (22 
        U.S.C. 2778) and in coordination with the Secretary of Defense, 
        the Secretary of Energy, the Secretary of Commerce, and the 
        Director of the Office of Management and Budget, shall carry 
        out such reviews not less than every 2 years.
            (2) Scope.--The periodic reviews described under paragraph 
        (1) shall focus on interagency resources to address current 
        threats faced by the United States, the evolving technological 
        and economic landscape, and the widespread availability of 
        certain technologies and items on the United States Munitions 
        List.
            (3) Consultation.--The periodic reviews described under 
        paragraph (1) shall be conducted in coordination with the 
        Defense Trade Advisory Group (DTAG), who shall provide relevant 
        industry expertise and recommendations for improvements to 
        facilitate cooperation.

SEC. 9. OPEN GENERAL LICENSE FOR THE EXPORT, REEXPORT, TRANSFER, AND 
              RETRANSFER OF CERTAIN DEFENSE ARTICLES TO AUSTRALIA, 
              CANADA, AND THE UNITED KINGDOM UNDER ITAR.

    (a) In General.--Not later than 90 days after the date of the 
enactment of this Act, the Secretary of State shall publish in the 
Federal Register a notice of proposed rulemaking relating to amending 
the International Traffic in Arms Regulations (ITAR) to establish a 
Final Rule establishing an Open General Export License for export, 
reexport, transfer, and retransfer of certain defense articles and 
services to or between the United States, Australia, Canada, and the 
United Kingdom. The Open General License shall be available for 
exports, reexports, transfers, and retransfers of defense articles and 
services between or among--
            (1) the Government of Australia;
            (2) the Government of Canada;
            (3) the Government of the United Kingdom;
            (4) members of the Australian Community as defined in part 
        126.16(d) of the ITAR, at all locations in Australia;
            (5) members of the United Kingdom Community as defined in 
        part 126.17(d) of the ITAR, at all locations in the United 
        Kingdom; and
            (6) Canadian-registered persons as defined in part 126.5(b) 
        of the ITAR.
    (b) Applicable Requirements and Limitations.--The export, reexport, 
transfer, or retransfer of any unclassified defense article pursuant to 
subsection (a) to any of the parties listed in such subsection shall be 
subject to the following requirements and limitations:
            (1) Compliance with the requirements of part 123.9(b) of 
        the ITAR.
            (2) Maintenance of the following records with respect to 
        each export, reexport, transfer, and retransfer:
                    (A) A description of the defense article or 
                service, including technical data.
                    (B) The name and address of the recipient and the 
                end-user, and other available contract information.
                    (C) The name of the person responsible for the 
                transaction.
                    (D) The stated end use of the defense article.
                    (E) The date of the transaction.
                    (F) The method of transfer.
            (3) Ensuring that such records are made available upon 
        request to the Directorate of Defense Trade Controls (DDTC) of 
        the Department of State.
            (4) Defense articles may not be exported, reexported, 
        transferred, or retransferred under the licenses under 
        subsection (a) if they will be used to support the design, 
        development, engineering, manufacture, production, assembly, 
        testing, repair, maintenance, modification, operation, 
        destruction or processing of missile or space launch vehicles 
        listed as missile technology on the United States Munitions 
        List (USML) maintained under part 121 of the ITAR.
            (5) The export, reexport, transfer, or retransfer must take 
        place wholly within or between the physical territory of 
        Australia, Canada, or the United Kingdom and the United States 
        except for the purposes of maintenance, repair, replacement, or 
        overhaul.
            (6) Any export, reexport, transfer, or retransfer of a 
        defense article other than technical data shall be for end use 
        by, or operation on behalf of, the Government of Australia, the 
        Government of Canada, the Government of the United Kingdom, or 
        the Government of the United States.
            (7) A license issued pursuant to subsection (a) may not be 
        utilized by persons to whom a presumption of denial is applied 
        by DDTC pursuant to part 120.1(c) or 127.11(a) of the ITAR, 
        including, among other reasons, for past convictions of certain 
        United States criminal statutes or because the persons are 
        otherwise ineligible to contract with or receive an export or 
        import license from an agency of the United States Government.
            (8) No exporter may use a license issued pursuant to 
        subsection (a) to export, reexport, transfer, retransfer, or 
        otherwise provide defense articles, defense services, or 
        technical data to any foreign person subject to any United 
        States sanctions as administered by the Office of Foreign 
        Assets Control (OFAC), subject to any embargo maintained by the 
        United States, or otherwise ineligible to receive defense 
        articles, defense services, or technical data under ITAR 
        license or authorizations.
    (c) Congressional Notification.--The export, reexport, transfer, or 
retransfer pursuant to subsection (a) of any major defense equipment 
(as defined in part 120.8 of the ITAR) valued (in terms of its original 
acquisition cost) at $25,000,000 or more or any defense article or 
related training or other defense service valued (in terms of its 
original acquisition cost) at $100,000,000 or more shall be notified to 
Congress for a 15 day formal review period as outlined in the Arms 
Export Control Act (22 U.S.C. 2751 et seq.).

SEC. 10. LICENSE EXCEPTION FOR EXPORT, REEXPORT, AND IN-COUNTRY 
              TRANSFER OF ITEMS ON COMMERCE CONTROL LIST TO OR BETWEEN 
              AUSTRALIA, CANADA, AND THE UNITED KINGDOM UNDER EXPORT 
              ADMINISTRATION REGULATIONS.

    (a) In General.--Not later than 90 days after the date of the 
enactment of this Act, the Secretary of Commerce shall publish in the 
Federal Register a notice of proposed rulemaking relating to amending 
the Export Administration Regulations to establish a license exception 
for the export, reexport, and in-country transfer of items on the 
Commerce Control List to or between covered persons in Australia, 
Canada, and the United Kingdom.
    (b) Requirements.--A person that exports, reexports, or in-country 
transfers an item on the Commerce Control List under the license 
exception established under subsection (a), and a recipient of such an 
item, shall--
            (1) comply with all applicable requirements of the Export 
        Administration Regulations;
            (2) maintain, for each such export, reexport, or in-country 
        transfer, a record of--
                    (A) the exporter;
                    (B) a description of the item, including 
                technology;
                    (C) the name and address, and other available 
                contact information, of the recipient and the end-user 
                of the item;
                    (D) the name of the person responsible for the 
                transaction;
                    (E) the stated end use of the item;
                    (F) the date of the transaction; and
                    (G) the method of transfer; and
            (3) ensure that such records are made available, upon 
        request, to the Under Secretary of Commerce for Industry and 
        Security.
    (c) Limitations.--
            (1) Limitation on reexports through third countries.--The 
        export, reexport, or in-country transfer of an item under the 
        license exception established under subsection (a) is required 
        to take place wholly within or between the physical territory 
        of Australia, Canada, the United Kingdom, or the United States, 
        except for the export, reexport, or in-country transfer of such 
        an item for the purposes of maintenance, repair, replacement, 
        or overhaul.
            (2) Prohibition on exports to restricted persons.--An item 
        may not be exported, reexported, or in-country transferred 
        under the license exception established under subsection (a) to 
        any foreign person--
                    (A) with respect to which sanctions have been 
                imposed by the Office of Foreign Assets Control of the 
                Department of the Treasury;
                    (B) on any restricted parties list;
                    (C) subject to any embargo maintained by the United 
                States; or
                    (D) that is otherwise ineligible to receive 
                controlled dual-use or commercial articles or 
                technology on the Commerce Control List.
    (d) Definitions.--In this section:
            (1) Commerce control list.--The term ``Commerce Control 
        List'' means the list maintained by the Bureau of Industry and 
        Security of the Department of Commerce and set forth in 
        Supplement No. 1 to part 774 of the Export Administration 
        Regulations.
            (2) Covered person.--
                    (A) In general.--Except as provided by subparagraph 
                (B), the term ``covered person'' means--
                            (i) the government of Australia, Canada, or 
                        the United Kingdom;
                            (ii) a citizen or national of Australia, 
                        Canada, or the United Kingdom; or
                            (iii) an entity organized under the laws 
                        of, or otherwise subject to the jurisdiction 
                        of, Australia, Canada, or the United Kingdom.
                    (B) Exclusions.--The term ``covered person'' does 
                not include any person on any a restricted parties 
                list.
            (3) Restricted parties list.--The term ``restricted parties 
        list'' means any of the following lists maintained by the 
        Bureau of Industry and Security:
                    (A) The Entity List set forth in Supplement No. 4 
                to part 744 of the Export Administration Regulations.
                    (B) The Military End-User List set forth in 
                Supplement No. 7 to part 744 of the Export 
                Administration Regulations.
                    (C) The Denied Persons List maintained pursuant to 
                section 764.3(a)(2) of the Export Administration 
                Regulations.
                    (D) The Unverified List set forth in Supplement No. 
                6 to part 744 of the Export Administration Regulations.
            (4) Other terms.--The terms ``export'', ``Export 
        Administration Regulations'', ``in-country transfer'', 
        ``item'', and ``reexport'' have the meanings given those terms 
        in section 1742 of the Export Control Reform Act of 2018 (50 
        U.S.C. 4801).

SEC. 11. TREATMENT OF NATIONAL TECHNOLOGY AND INDUSTRIAL BASE AS 
              DOMESTIC SOURCE UNDER DEFENSE PRODUCTION ACT OF 1950.

    Section 702(7)(A) of the Defense Production Act of 1950 (50 U.S.C. 
4552(7)(A)) is amended by striking ``Canada'' and inserting ``a country 
of the national technology and industrial base (as defined in section 
4801 of title 10, United States Code)''.

SEC. 12. EXPEDITED RELEASE OF ADVANCED TECHNOLOGIES TO AUSTRALIA, 
              CANADA, AND THE UNITED KINGDOM THROUGH THE FOREIGN 
              MILITARY SALES PROGRAM.

    (a) Preclearance of Certain Military Sales Items.--
            (1) In general.--Not later than 90 days after the date of 
        the enactment of this Act, and annually thereafter, the 
        Secretary of State, in coordination with the Secretary of 
        Defense, and in conjunction with coordinating entities such as 
        the National Disclosure Policy Committee, the Arms Transfer and 
        Technology Release Senior Steering Group, and other appropriate 
        entities, shall compile a list of available and emerging 
        military platforms, technologies, and equipment that are pre-
        cleared and prioritized for sale and release to Australia, 
        Canada, and the United Kingdom through the Foreign Military 
        Sales program.
            (2) Rules of construction regarding selection of items.--
                    (A) No limitation on foreign military sales program 
                activities.--The list compiled pursuant to paragraph 
                (1) shall not be construed as limiting the type, 
                timing, or quantity of items that may be requested by, 
                or sold to, Australia, the United Kingdom, and Canada 
                under the Foreign Military Sales program.
                    (B) Congressional notification requirements.--
                Nothing in this Act shall be construed to supersede 
                congressional notification requirements under the Arms 
                Export Control Act (22 U.S.C. 2751 et. seq.).
    (b) Expedited Processing of Foreign Military Sales Requests.--The 
Secretary of State and the Secretary of Defense shall expedite the 
processing of requests of Australia, the United Kingdom, and Canada 
under the Foreign Military Sales program.
    (c) Release Policy for Australia, Canada, and the United Kingdom.--
The Secretary of State, in consultation with the Secretary of Defense, 
shall create an anticipatory release policy for key Foreign Military 
Sales capabilities for Australia, the United Kingdom, and Canada. 
Review of these capabilities for releasability shall be subject to a 
``fast track'' decision-making process with a presumption of approval. 
The capabilities subject to this policy should include--
            (1) Pillar One technologies associated with submarine and 
        associated combat systems; and
            (2) Pillar Two technologies, including hypersonic missiles, 
        cyber capabilities, artificial intelligence, quantum 
        technologies, and undersea capabilities, and other advanced 
        technologies.
    (d) Interagency Policy.--The Secretary of State and the Secretary 
of Defense shall jointly review and update interagency policies and 
implementation guidance related to Foreign Military Sales requests, 
including incorporating the anticipatory release provisions of this 
section.

SEC. 13. ANTICIPATORY DISCLOSURE POLICY FOR AUSTRALIA, CANADA, AND THE 
              UNITED KINGDOM.

    The Secretary of Defense, in consultation with the Secretary of 
State, shall direct the National Disclosure Policy Committee (NDPC) to 
adopt a classification category for the purposes of anticipatory 
disclosure policy to facilitate information sharing on Pillar One, 
Pillar Two, and other critical technologies for Australia, Canada, and 
the United Kingdom.

SEC. 14. REPORT ON AUKUS STRATEGY.

    (a) In General.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary of Defense and the Secretary of 
State shall submit a report to the appropriate congressional committees 
an AUKUS strategy identifying.
    (b) Elements.--The strategy required under subsection (a) shall 
include the following elements:
            (1) An identification of the defensive military capability 
        gaps and capacity shortfalls that AUKUS seeks to offset.
            (2) An explanation of the total cost associated with Pillar 
        One of AUKUS and the operational rationale for Australia's 
        acquisition of nuclear submarines.
            (3) An assessment of possible opportunity costs for other 
        defense capabilities associated with investing in the SSN-AUKUS 
        program.
            (4) A detailed explanation of how the Australian industrial 
        base will contribute to strengthening the United States 
        strategic position in Asia.
            (5) A detailed explanation of the military and strategic 
        benefit provided by the improved access provided by Australian 
        naval bases.
            (6) An assessment of how sovereign United Kingdom and 
        Australian submarines contribute to the achievement of United 
        States military objectives as defined in United States strategy 
        and planning documents.
            (7) A net assessment contrasting the investments the 
        Government of the People's Republic of China is making in its 
        submarine, hypersonic missile, and unmanned antisubmarine 
        technologies relative to that of the AUKUS partners.

SEC. 15. AUSTRALIA, UNITED KINGDOM, AND UNITED STATES SUBMARINE 
              SECURITY TRAINING.

    (a) In General.--The President may transfer or authorize export of 
defense services to the Government of Australia under the Arms Export 
Control Act (22 U.S.C. 2751 et seq.) that may also be directly exported 
to Australian private sector personnel to support the development of 
the Australian submarine industrial base necessary for submarine 
security activities between Australia, the United Kingdom, and the 
United States, including where such private-sector personnel are not 
officers, employees, or agents of the Government of Australia.
    (b) Application of Requirements for Further Transfer.--Any transfer 
of defense services to the Government of Australia pursuant to 
subsection (a) to persons other than those directly provided such 
defense services pursuant to such subsection shall only be made in 
accordance with the requirements of the Arms Export Control Act (22 
U.S.C. 2751 et seq.).
                                 &lt;all&gt;
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