Building Resilient Supply Chains Act
Bill: H.R.5495 | Sponsor: Rep. Malinowski, Tom (D-NJ)
Policy area: Commerce

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.

To establish the Supply Chain Resiliency and Crisis Response Office in 
          the Department of Commerce, 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 ``Building Resilient Supply Chains 
Act''.

SEC. 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 of title 5, United States 
        Code.
    (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) shall apply to a 
construction project that receives financial assistance from the Under 
Secretary under this section.
    (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'' (referred to in this 
        section as the ``Fund'') which shall solely be used by the 
        Under Secretary to carry out this section.
            (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 2022 
        through 2027, 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 2022 through 2027, 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'' does not include countries that 
        pose a significant national security or economic security risk 
        to the United States.
            (2) Critical good or service.--The term ``critical good or 
        service'' means any raw, in process, or manufactured material 
        (including any mineral, metal, or advanced processed material), 
        article, commodity, supply, product, or item of supply the 
        absence of which would have a significant effect on--
                    (A) the national security or economic security of 
                the United States; and
                    (B) critical infrastructure.
            (3) Critical industry.--The term ``critical industry'' 
        means an industry that is critical for the national security or 
        economic security of the United States, considering key 
        technology focus areas under this section and critical 
        infrastructure.
            (4) Critical infrastructure.--The term ``critical 
        infrastructure'' has the meaning given to that term in the 
        Critical Infrastructures Protection Act of 2001 (42 U.S.C. 
        5195c).
            (5) Domestic enterprise.--The term ``domestic enterprise'' 
        means an enterprise that conducts business in the United States 
        and procures a critical good or service.
            (6) Domestic manufacturer.--The term ``domestic 
        manufacturer'' means a business that--
                    (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'' means any component, subsystem, system, equipment, 
        tooling, accessory, part, or assembly necessary for the 
        manufacturing of a critical good or service.
            (8) Institution of higher education.--The term 
        ``institution of higher education'' has the meaning given that 
        term under section 101(a) of the Higher Education Act of 1965 
        (20 U.S.C. 1001(a)).
            (9) Key technology focus areas.--The term ``key technology 
        focus areas'' means the following:
                    (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'' means any non-Federal 
        qualified institutional buyer (as defined in section 
        230.144A(a) of title 17, Code of Federal Regulations or a 
        successor regulation).
            (11) Loan.--The term ``loan'' means a direct loan or other 
        debt obligation issued by an eligible entity and funded by the 
        Under Secretary in connection with the financing of an activity 
        under this section.
            (12) Loan guarantee.--The term ``loan guarantee'' means any 
        guarantee or other pledge by the Under Secretary to pay all or 
        part of the principal of, and interest on, a loan or other debt 
        obligation entered into by an eligible entity and funded by a 
        lender.
            (13) Manufacture.--The term ``manufacture'' means any 
        activity that is necessary for or incidental to the 
        development, production, processing, distribution, or delivery 
        of any raw, in process, or manufactured material (including 
        minerals, metals, and advanced processed materials), article, 
        commodity, supply, product, critical good or service, or item 
        of supply.
            (14) Manufacturing facility.--The term ``manufacturing 
        facility'' means any type of building, structure, or real 
        property necessary or incidental to the manufacturing of a 
        critical good or service.
            (15) Manufacturing technology.--The term ``manufacturing 
        technology'' means technologies that are necessary or 
        incidental to the manufacturing of a critical good or service.
            (16) Nonprofit organization.--The term ``nonprofit 
        organization'' means an organization that is described in 
        section 501(c)(3) of the Internal Revenue Code of 1986 and 
        exempt from taxation under section 501(a) of such Code.
            (17) Office.--The term ``Office'' means the Supply Chain 
        Resiliency and Crisis Response Office established under 
        subsection (a).
            (18) State.--The term ``State'' means each State of the 
        United States, the District of Columbia, American Samoa, Guam, 
        the Commonwealth of the Northern Mariana Islands, the 
        Commonwealth of Puerto Rico, the Virgin Islands of the United 
        States, and any other territory or possession of the United 
        States.
            (19) Supply chain.--The term ``supply chain'' means a 
        supply chain for a critical good or service.
            (20) Tribal government.--The term ``Tribal government'' 
        means Indian Tribes, Alaska Native Tribal entities, and Native 
        Hawaiian communities.
            (21) Under secretary.--The term ``Under Secretary'' means 
        the Under Secretary of the Office of Supply Chain Resiliency 
        and Crisis Response appointed pursuant to subsection (c).
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