AUKUS Undersea Defense Act

To provide for the transfer of not more than two Virginia class submarines from the inventory of the Navy to the Government of Australia on a sale basis under section 21 of the Arms Export Control Act, and for other purposes. 1. Short title This Act may be cited as the AUKUS Undersea Defense Act 2. Findings Congress finds the following: (1) The new trilateral security partnership between Australia, the United Kingdom, and the United States (in this section referred to as the AUKUS partnership (2) This trilateral security partnership builds on and enhances the United States, Australia, and the United Kingdom’s commitment to a free and open Indo-Pacific, and more broadly to a rules-based international order. (3) Australia has a strong record of leadership in the international nuclear non-proliferation regime and is fully committed to responsible stewardship of naval nuclear propulsion technology. (4) Pillar 1 of the AUKUS partnership aims to provide Australia with a conventionally armed, nuclear-powered submarine capability while upholding the highest non‑proliferation standards. (5) In support of this Pillar 1 goal, the United States and the United Kingdom plan to increase port visits to Australia of conventionally armed, nuclear-powered submarines then begin forward rotations of such submarines to Australia at Submarine Rotational Force-West. (6) In support of these goals, the United States will transfer Virginia-class submarines to Australia to bolster its critical undersea capabilities and enhance its undersea presence in the Indo-Pacific region. (7) Pillar 1 of the AUKUS partnership will enhance all three nations’ defense industrial capacity to produce and sustain interoperable nuclear-powered submarines, expand collective undersea presence in the Indo-Pacific, and contribute to freedom of navigation, security, and stability in the Indo-Pacific region. (8) Trilateral security cooperation that strengthens joint capabilities, enhances the ability to share information and technology safely, and integrates defense industrial bases and supply chains will contribute to the security of each nation as well as peace and stability in the Indo-Pacific region. 3. Australia, United Kingdom, and United States submarine security activities (a) Authorization To transfer submarines (1) In general Subject to paragraph (6), the President may transfer not more than two Virginia class submarines from the inventory of the Navy to the Government of Australia on a sale basis under section 21 of the Arms Export Control Act ( 22 U.S.C. 2761 (2) Costs of transfer Any expense incurred by the United States in connection with the transfer authorized by this subsection shall be charged to the Government of Australia. (3) Waiver of certification requirement The requirement for the Chief of Naval Operations to make a certification under section 8678 of title 10, United States Code, shall not apply to a transfer under this subsection. (4) Use of funds The Secretary of the Navy may use the proceeds of a transfer under this subsection— (A) for the acquisition of vessels to replace the vessels transferred to the Government of Australia; or (B) to carry out any other authority the use of which the Secretary of the Navy determines would improve the submarine industrial base. (5) Crediting of receipts Notwithstanding any provision of law pertaining to the crediting of amounts received from a sale under the terms of the Arms Export Control Act ( 22 U.S.C. 2761 (A) be credited, at the discretion of the Secretary of the Navy to— (i) the appropriation, fund, or account used in incurring the original obligation; (ii) an appropriate appropriation, fund, or account currently available for the purposes for which the expenditures were made; or (iii) any other appropriation, fund, or account available for the purpose specified in paragraph (4)(B); and (B) remain available for obligation until expended for the same purpose as the appropriation to which the receipt is credited. (6) Applicability of existing law to transfer special nuclear material and utilization facilities for military applications (A) In general With respect to any special nuclear material for use in utilization facilities or any portion of a vessel transferred under this subsection constituting utilization facilities for military applications under section 91 of the Atomic Energy Act of 1954 ( 42 U.S.C. 2121 (B) Use of funds The Secretary of Energy may use proceeds from a transfer described in subparagraph (A) for the acquisition of submarine naval nuclear propulsion plants and the nuclear fuel to replace the propulsion plants and fuel transferred to the Government of Australia. (b) Repair and refurbishment of AUKUS submarines Section 8680 of title 10, United States Code, is amended— (1) by redesignating subsection (c) as subsection (d); and (2) by inserting after subsection (b) the following: (c) Repair and refurbishment of certain submarines (1) Notwithstanding any other provision of this section, the Secretary of the Navy shall determine the appropriate shipyard in the United States, Australia, or the United Kingdom to perform any repair or refurbishment of a United States submarine involved in submarine security activities between Australia, the United Kingdom, and the United States (in this section referred to as AUKUS (2) Repair or refurbishment described in paragraph (1) may be carried out by personnel of the United States, United Kingdom, or Australia in accordance with the international arrangements governing AUKUS submarine security activities. . 4. Acceptance of contributions in support of Australia, United Kingdom, and United States submarine security activities (a) In general Chapter 155 section 2608 2609. Acceptance of contributions for Australia, United Kingdom, and United States submarine security activities; Submarine Security Activities Account (a) Acceptance authority The Secretary of Defense may accept from the Government of Australia contributions of money made by the Government of Australia for use by the Department of Defense in support of non-nuclear related aspects of submarine security activities between Australia, the United Kingdom, and the United States (in this section referred to as AUKUS (b) Establishment of submarine security activities account (1) There is established in the Treasury of the United States a special account to be known as the Submarine Security Activities Account (2) Contributions of money accepted by the Secretary of Defense under subsection (a) shall be credited to the Submarine Security Activities Account. (c) Use of the submarine security activities account (1) The Secretary of Defense may use funds in the Submarine Security Activities Account— (A) for any purpose authorized by law that the Secretary determines would support AUKUS submarine security activities; or (B) to carry out a military construction project that is consistent with the purposes for which the contributions were made and is not otherwise authorized by law. (2) Funds in the Submarine Security Activities Account may be used as described in this subsection without further specific authorization in law. (d) Transfers of funds (1) In carrying out subsection (c), the Secretary of Defense may transfer funds available in the Submarine Security Activities Account to appropriations available to the Department of Defense. (2) In carrying out subsection (c), and in accordance with the Atomic Energy Act of 1954 ( 42 U.S.C. 2011 et seq. (3) Funds transferred under this subsection shall be available for obligation for the same time period and for the same purpose as the appropriation to which transferred. (4) Upon a determination by the Secretary that all or part of the funds transferred from the Submarine Security Activities Account are not necessary for the purposes for which such funds were transferred, all or such part of such funds shall be transferred back to the Submarine Security Activities Account. (e) Investment of money (1) Upon request by the Secretary of Defense, the Secretary of the Treasury may invest money in the Submarine Security Activities Account in securities of the United States or in securities guaranteed as to principal and interest by the United States. (2) Any interest or other income that accrues from investment in securities referred to in paragraph (1) shall be deposited to the credit of the Submarine Security Activities Account. (f) Report (1) Not later than 60 days after the date on which contributions of money accepted by the Secretary of Defense under subsection (a) are credited to the Submarine Security Activities Account under subsection (b), the Secretary of Defense shall submit to the appropriate congressional committees a report on— (A) the amount of money so transferred; (B) a description of the intended use of the funds; and (C) any other matters related to the administration of the Submarine Security Activities Account as determined necessary by the Secretary. (2) The report required by this subsection shall be submitted in unclassified form but may include a classified annex. (3) In this subsection, the term appropriate congressional committees (A) the congressional defense committees; and (B) the Committee on Foreign Affairs of the House of Representatives and the Committee on Foreign Relations of the Senate. (g) Relationship to other laws The authority to accept or transfer funds under this section is in addition to any other authority to accept or transfer funds. . (b) Clerical amendment The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 2608 the following: 2609. Acceptance of contributions for Australia, United Kingdom, and United States submarine security activities; Submarine Security Activities Account. . 5. Australia, United Kingdom, and United States submarine security training (a) In general The President may transfer or authorize the export of defense services to the Government of Australia under the Arms Export Control Act ( 22 U.S.C. 2751 et seq. AUKUS (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 subsection (a) shall only be made in accordance with the requirements of the Arms Export Control Act ( 22 U.S.C. 2751 et seq.

Summary: AUKUS Undersea Defense Act This bill authorizes the Department of Defense (DOD) to sell Australia up to two Virginia-class attack submarines under the Australia-United Kingdom-United States security partnership agreement (AUKUS). The bill authorizes DOD to transfer the submarines from existing Navy inventories. The bill also applies existing law to the transfer under this bill of special nuclear material related to submarine reactors, authorizes the Navy to determine the appropriate shipyard in any of the AUKUS countries for repair of U.S. Navy submarines, establishes a submarine security activities account to accept payments from Australia for non-nuclear related aspects of submarine security activities, and authorizes the President to transfer defense services to Australia to develop the Australian submarine industrial base for AUKUS activities.