Building Resilient Supply Chains Act

To establish the Supply Chain Resiliency and Crisis Response Office in the Department of Commerce, and for other purposes. 1. Short title This Act may be cited as the Building Resilient Supply Chains Act 2. Critical Supply Chain Resilience Program (a) Establishment There is established in the Office of the Secretary of Commerce a Supply Chain Resiliency and Crisis Response Office to carry out the Critical Supply Chain Resilience Program described in subsection (d). (b) Mission The mission of the Office shall be the following: (1) Help to promote the leadership of the United States with respect to critical industries and supply chains that— (A) strengthen the national security of the United States; and (B) have a significant effect on the economic security of the United States. (2) Encourage partnerships and collaboration with the Federal Government and the private sector, labor organizations, the governments of countries that are allies or key international partners of the United States, State governments and other political subdivisions of a State, and Tribal governments in order to— (A) promote the resilience of supply chains; and (B) respond to supply chain shocks to— (i) critical industries; and (ii) supply chains. (3) Support the development, maintenance, improvement, competitiveness, restoration, and expansion of the productive capacities, efficiency, and workforce of critical industries and domestic manufacturers of critical goods and services, industrial equipment, and manufacturing technology. (4) Prepare for and take appropriate steps to minimize the effects of supply chain shocks on critical industries and supply chains. (5) Support the creation of jobs with competitive wages in the manufacturing sector. (6) Encourage manufacturing growth and opportunities in economically distressed areas and communities of color. (7) Promote the health of the economy of the United States and the competitiveness of manufacturing in the United States. (8) Coordinate executive branch actions necessary to carry out the functions described in paragraphs (1) through (7). (c) Under Secretary of the Office (1) Appointment and term The head of the Office shall be the Under Secretary of the Office of Supply Chain Resiliency and Crisis Response, appointed by the President, by and with the advice and consent of the Senate, for a term of not more than 5 years. (2) Pay The Under Secretary shall be compensated at the rate in effect for level II of the Executive Schedule under section 5313 of title 5, United States Code. (3) Administrative authorities The Under Secretary may appoint officers and employees in accordance with chapter 51 and subchapter III of chapter 53 (d) Critical Supply Chain Resilience Program (1) In general The Under Secretary shall support the resilience, diversity, security, and strength of supply chains by providing grants, loans, and loan guarantees for eligible activities described under subsection (e) to eligible entities described under subsection (f). (2) Application To be eligible for a grant, loan, or loan guarantee under this section, an eligible entity described in subsection (f) shall submit to the Under Secretary an application at such time, in such form, and containing such information as the Under Secretary may require, including— (A) a description of the proposed activity to be carried out with such a grant, loan, or loan guarantee; (B) a description of the supply chain supported by the proposed activity; and (C) an estimate of the total costs for such activity. (e) Eligible activities The following activities may be carried out with amounts made available under this section: (1) The development, diversification, preservation, improvement, support, restoration, or expansion of supply chains and the domestic manufacturing of critical goods and services, industrial equipment, and manufacturing technology, including activities that support any of the following: (A) The domestic manufacturing of a critical good or service or industrial equipment. (B) The commercialization, adoption, deployment, or use of manufacturing technology by domestic manufacturers. (C) The design, engineering, construction, expansion, improvement, repair, or maintenance of critical infrastructure or a manufacturing facility in the United States. (D) The purchase, lease, enhancement, or retooling of industrial equipment for use in the United States. (E) The purchase, lease, or acquisition of critical goods and services, industrial equipment, or manufacturing technology from reliable sources. (2) The manufacture or acquisition of a substitute for a critical good or service, industrial equipment, or manufacturing technology. (3) The establishment, improvement, development, expansion, or preservation of surge capacity or stockpiling of a critical good or service or industrial equipment, as appropriate and necessary. (4) The establishment, improvement, or preservation of diverse, secure, reliable, and strong sources and locations of a critical good or service in the United States. (f) Eligible entities The following entities are eligible to receive grants, loans, and loan guarantees under this section: (1) A domestic manufacturer. (2) A domestic enterprise. (3) A State, county, city, or other political subdivision of a State. (4) A Tribal government. (5) A manufacturing extension center established as part of the Hollings Manufacturing Extension Partnership. (6) A Manufacturing USA institute as described in section 34(d) of the National Institute of Standards and Technology Act ( 15 U.S.C. 278s(d) (7) An institution of higher education acting as part of a consortium, partnership, or joint venture with another eligible entity described in paragraphs (1) through (6). (8) A public or private nonprofit organization or association acting as part of a consortium, partnership, or joint venture with another eligible entity described in paragraphs (1) through (6). (9) A consortium, partnership, or joint venture of two or more eligible entities described under paragraphs (1) through (8). (g) Requirements The Under Secretary may only make a grant, loan, or loan guarantee available to an eligible entity if the Under Secretary makes a determination of the following: (1) The grant, loan, or loan guarantee is for an activity described under subsection (e). (2) Without a grant, loan, or loan guarantee the eligible entity would not be able to fund or finance the activity under reasonable terms and conditions. (3) A grant, loan, or loan guarantee is a cost effective, expedient, and practical financial assistance for the activity. (4) There is a reasonable assurance that— (A) the eligible entity will implement the activity in accordance with the application submitted pursuant to paragraph (2) of subsection (d); and (B) the activity will support— (i) the resilience, diversity, security, or strength of a supply chain; or (ii) the national security or economic security of the United States. (5) The eligible entity agrees to provide the information required under paragraph (3) of subsection (m). (h) Criteria The Under Secretary shall establish criteria for the awarding of grants, loans, and loan guarantees that meet the requirements under subsection (g), including the following: (1) The extent to which the activity supports the resilience, diversity, security, and strength of supply chains. (2) The extent to which the activity is funded or financed by non-Federal sources. (3) The extent to which the grant, loan, or loan guarantee will assist small and medium-sized domestic manufacturers. (4) The amount of appropriations that are required to fund or finance the grant, loan, or loan guarantee made available under this section. (i) Grant cost share (1) In general The Federal share of the cost of a grant awarded to an eligible entity under this section may not exceed 80 percent of the total cost of the activity. (2) Waiver Upon providing written justification for a determination made pursuant to this paragraph, which may be submitted with a classified annex to the Committee on Energy and Commerce of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate, the Under Secretary may waive the cost share requirement under paragraph (1)— (A) during a period of national emergency declared by an Act of Congress or the President; or (B) upon making a determination that a grant is necessary to avert the disruption, strain, compromise, or elimination of a supply chain that would severely affect the national security or economic security of the United States. (3) Maximum Federal involvement Federal assistance other than a grant under this section may be used to satisfy the non-Federal share of the cost of the activity. (j) Loans and loan guarantees (1) In general The Under Secretary may enter into agreements with one or more eligible entities to make a loan, the proceeds of which shall be used to finance eligible activities. (2) Maximum amount The amount of a loan under this section shall not exceed 80 percent of the reasonably anticipated costs of an activity. (3) Waiver Upon providing written justification for a determination made pursuant to this paragraph, which may be submitted with a classified annex to the Committee on Energy and Commerce of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate, the Under Secretary may waive the requirement under paragraph (2)— (A) during a period of national emergency declared by an Act of Congress or the President; or (B) upon making a determination that a loan or loan guarantee is necessary to avert the disruption, strain, compromise, or elimination of a supply chain that would severely affect the economic security of the United States. (4) Maximum Federal involvement The proceeds of a loan under this section may be used to pay any non-Federal share of activity costs required if the loan is repayable from non-Federal funds. (5) Loan guarantees The Under Secretary may provide a loan guarantee to a lender in lieu of making a loan under this subsection. (6) Loan guarantee terms The terms of a loan guarantee provided under this subsection shall be consistent with the terms established in this subsection for a loan. (k) Creditworthiness (1) In general For a loan or loan guarantee issued under subsection (j), the eligible activity and eligible entity receiving such loan or loan guarantee shall be creditworthy, which shall be determined by the Under Secretary. (2) Considerations In determining the creditworthiness of an eligible activity and eligible entity, the Under Secretary shall take into consideration relevant factors, including the following: (A) The terms, conditions, financial structure, and security features of the proposed financing. (B) The revenue sources that will secure or fund any note, bond, debenture, or other debt obligation issued in connection with the Federal financing. (C) The financial assumptions upon which the loan or loan guarantee is based. (D) The ability of the eligible entity to successfully achieve the goal of the activity. (E) The financial soundness and credit history of the eligible entity. (l) Conditions The Under Secretary is authorized to prescribe— (1) either specifically or by maximum limits or otherwise, rates of interest, guarantee and commitment fees, and other charges which may be made in connection with a loan or loan guarantee made under this section; and (2) regulations governing the forms and procedures (which shall be uniform to the extent practicable) to be used in connection with such loans and loan guarantees. (m) Performance measures For grants, loans, and loan guarantees awarded under this section, the Under Secretary shall— (1) develop metrics to assess the extent to which the activities meet the criteria under subsection (h); (2) evaluate the extent to which each eligible entity awarded a grant, loan, or loan guarantee is meeting the criteria under subsection (h); and (3) require that any information the Under Secretary determines to be necessary for the evaluation described under paragraph (2) be provided by eligible entities awarded a grant, including subawardees. (n) Revocation The Under Secretary may revoke a grant, loan, or loan guarantee if the eligible entity fails to meet any requirement under this section. (o) Construction projects Section 602 of the Public Works and Economic Development Act of 1965 ( 42 U.S.C. 3212 (p) Critical supply chain resilience fund (1) Establishment There is established in the Treasury of the United States a fund to be known as the Supply Chains for Critical Manufacturing Industries Fund Fund (2) Revolving loan fund The proceeds of any conditions prescribed under subsection (l)(1) shall be deposited into the Fund. (q) Program evaluation Not later than 4 years after the date of enactment of this Act, and every 4 years thereafter, the Inspector General of the Department of Commerce shall conduct an audit of the Office to— (1) evaluate the performance of the activities supported by a grant, loan, or loan guarantee under this section; (2) evaluate the extent to which the requirements and criteria under this section are met; and (3) provide recommendations on any proposed changes to improve the effectiveness of the Office on meeting the mission under subsection (b). (r) Regulations The Under Secretary may promulgate such regulations as the Under Secretary determines to be appropriate to carry out this section. (s) Authorization of appropriations There is authorized to be appropriated— (1) to the Fund $41,000,000,000 for fiscal years 2024 through 2028, to remain available until expended, of which not more than— (A) $31,000,000,000 may be used for loans and loan guarantees to eligible entities; (B) $10,000,000,000 may be used for grants; and (C) 2 percent per fiscal year may be used for administrative costs; and (2) to the Inspector General of the Department of Commerce $5,000,000 for fiscal years 2024 through 2028, to remain available until expended, to carry out subsection (q). (t) Consistency with international agreements This Act shall be applied in a manner consistent with United States obligations under international agreements. (u) Workforce protections Any eligible entity applying for a grant, loan, or loan guarantee under this section and with 100 or more employees shall make a good-faith certification that— (1) the eligible entity will not abrogate existing collective bargaining agreements for— (A) the term of the grant; or (B) the term of the loan or loan guarantee and 2 years after completing repayment of the loan; and (2) the eligible entity will remain neutral in any union organizing effort for the term of the grant, loan, or loan guarantee. (v) Definitions In this section: (1) Ally or key international partner The term ally or key international partner (2) Critical good or service The term critical good or service (A) the national security or economic security of the United States; and (B) critical infrastructure. (3) Critical industry The term critical industry (4) Critical infrastructure The term critical infrastructure 42 U.S.C. 5195c (5) Domestic enterprise The term domestic enterprise (6) Domestic manufacturer The term domestic manufacturer (A) conducts in the United States the research and development, engineering, or production activities necessary or incidental to manufacturing; or (B) if provided a grant, loan, loan guarantee, or equity investment pursuant to this section, will conduct in the United States the research and development, engineering, or production activities necessary or incidental to manufacturing. (7) Industrial equipment The term industrial equipment (8) Institution of higher education The term institution of higher education 20 U.S.C. 1001(a) (9) Key technology focus areas The term key technology focus areas (A) Artificial intelligence, machine learning, autonomy, and related advances. (B) High performance computing, semiconductors, and advanced computer hardware and software. (C) Quantum information science and technology. (D) Robotics, automation, and advanced manufacturing. (E) Natural and anthropogenic disaster prevention or mitigation. (F) Advanced communications technology, including optical transmission components. (G) Biotechnology, medical technology, genomics, and synthetic biology. (H) Data storage, data management, distributed ledger technologies, and cybersecurity, including biometrics. (I) Advanced energy and industrial efficacy technologies, such as batteries, advanced nuclear technologies, and polysilicon for use in solar photovoltaics, including for the purposes of electric generation (consistent with section 15 of the National Science Foundation Act of 1950 ( 42 U.S.C. 1874 (J) Advanced materials science, including composites and 2D materials and equipment, aerospace grade metals, and aerospace specific manufacturing enabling chemicals. (10) Lender The term lender (11) Loan The term loan (12) Loan guarantee The term loan guarantee (13) Manufacture The term manufacture (14) Manufacturing facility The term manufacturing facility (15) Manufacturing technology The term manufacturing technology (16) Nonprofit organization The term nonprofit organization section 501(c)(3) (17) Office The term Office (18) State The term State (19) Supply chain The term supply chain (20) Tribal government The term Tribal government (21) Under Secretary The term Under Secretary

Summary: Building Resilient Supply Chains Act This bill establishes the Supply Chain Resiliency and Crisis Response Office within the Department of Commerce to make grants and loans to support domestic manufacturing of critical goods and services, industrial equipment, and manufacturing technology. The grants and loans also may be used to support the security and expansion of supply chains.