REEShore Act of 2022
Bill: H.R.8272 | Sponsor: Rep. Slotkin, Elissa (D-MI)
Policy area: Energy

Summary:
Restoring Essential Energy and Security Holdings Onshore for Rare Earths Act of 2022 or the REEShore Act of 2022
This bill requires the inclusion of rare earth elements and certain other critical minerals in the National Defense Stockpile and sets out other requirements related to those elements and minerals.
Specifically, the bill requires defense contractors to disclose the provenance of permanent magnets that contain those elements or minerals and expands prohibitions that restrict the Department of Defense from procuring goods or services, including those elements and minerals, from companies affiliated with China.
The bill also expands the President's authorities under the Defense Production Act of 1950 to support domestic sources for those elements and minerals. (The Defense Production Act of 1950 confers on the President a broad set of authorities to influence domestic industry in order to provide essential materials and goods needed for the national defense.)

To encourage the extraction and processing of rare earth elements and 
    critical minerals in the United States, 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 ``Restoring Essential Energy and 
Security Holdings Onshore for Rare Earths Act of 2022'' or the 
``REEShore Act of 2022''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means--
                    (A) the Committee on Armed Services and the 
                Committee on Energy and Natural Resources of the 
                Senate; and
                    (B) the Committee on Armed Services and the 
                Committee on Energy and Commerce of the House of 
                Representatives.
            (2) Covered critical mineral.--The term ``covered critical 
        mineral'' means--
                    (A) antimony;
                    (B) beryllium;
                    (C) cobalt;
                    (D) graphite;
                    (E) lithium;
                    (F) manganese;
                    (G) nickel;
                    (H) tantalum;
                    (I) tungsten; or
                    (J) vanadium.
            (3) Rare earth element.--The term ``rare earth element'' 
        means--
                    (A) cerium;
                    (B) dysprosium;
                    (C) erbium;
                    (D) europium;
                    (E) gadolinium;
                    (F) holmium;
                    (G) lanthanum;
                    (H) lutetium;
                    (I) neodymium;
                    (J) praseodymium;
                    (K) promethium;
                    (L) samarium;
                    (M) scandium;
                    (N) terbium;
                    (O) thulium;
                    (P) ytterbium; or
                    (Q) yttrium.
            (4) Rare earth or covered critical mineral product.--The 
        term ``rare earth or covered critical mineral product'' means a 
        finished, semi-finished, or other intermediate good or 
        component, including a battery or permanent magnet, that 
        contains a rare earth element or covered critical mineral.

SEC. 3. EXPANSION OF NATIONAL DEFENSE STOCKPILE REQUIREMENTS AND 
              CAPACITY RELATING TO RARE EARTH ELEMENTS AND COVERED 
              CRITICAL MINERALS.

    (a) Findings.--Congress finds that increasing the storage of 
substantial quantities of rare earth elements, covered critical 
minerals, and rare earth or covered critical mineral products in the 
National Defense Stockpile will--
            (1) diminish the vulnerability of the United States to the 
        effects of severe disruptions to the supply chains for such 
        elements, minerals, and products; and
            (2) provide limited protection from the consequences of an 
        interruption in supplies of such elements, minerals, and 
        products, particularly such elements, minerals, and products 
        required to meet the needs of the Armed Forces and the defense 
        industrial and technology sectors.
    (b) Statement of Policy.--It is the policy of the United States to 
expand and maintain a strategic reserve of rare earth elements, covered 
critical minerals, and rare earth or covered critical mineral products.
    (c) Declaration of Purposes.--Section 2 of the Strategic and 
Critical Materials Stock Piling Act (50 U.S.C. 98a) is amended by 
adding at the end the following:
    ``(d) The quantities of rare earth elements, covered critical 
minerals, and rare earth or covered critical mineral products 
stockpiled under this Act should be sufficient to sustain the United 
States Armed Forces and the defense industrial and technology sectors 
of the United States for a period of not less than 3 years during a 
national emergency situation that would necessitate total mobilization 
of the economy of the United States for a sustained conventional global 
war of indefinite duration.''.
    (d) National Emergency Planning Assumptions for Rare Earth Elements 
and Covered Critical Minerals.--Section 14 of the Strategic and 
Critical Materials Stock Piling Act (50 U.S.C. 98h-5) is amended--
            (1) in subsection (b), in the second sentence, by striking 
        ``The Secretary shall base'' and inserting ``Except as provided 
        in subsection (c), the Secretary shall base'';
            (2) by redesignating subsections (c), (d), and (e) as 
        subsections (d), (e), and (f), respectively; and
            (3) by inserting after subsection (b) the following:
    ``(c) The Secretary shall base the Secretary's recommendations 
under subsection (a)(1) with respect to stockpile requirements for rare 
earth elements, covered critical minerals, and rare earth or covered 
critical mineral products on a national emergency situation that would 
last for a period of not less than 3 years and necessitate total 
mobilization of the economy of the United States for a sustained 
conventional global war of indefinite duration.''.
    (e) Limited Acquisition Authority.--The Strategic and Critical 
Materials Stock Piling Act (50 U.S.C. 98 et seq.) is amended--
            (1) in section 3(c)(2) (50 U.S.C. 98b(c)(2)), by striking 
        ``The President'' and inserting ``In the case of acquisitions 
        of materials the cost of which exceeds the amount specified in 
        section 5(a)(3), the President'';
            (2) in section 5(a) (50 U.S.C. 98d(a))--
                    (A) in paragraph (1), in the first sentence, by 
                inserting ``under the authority of paragraph (3) or'' 
                after ``Except for acquisitions made''; and
                    (B) by adding at the end the following:
    ``(3) The Secretary of Defense may acquire materials determined to 
be strategic and critical under section 3(a), including rare earth 
elements, covered critical minerals, and rare earth or covered critical 
mineral products, without regard to the requirement of the first 
sentence of subsection (a) if the cost of the materials does not exceed 
$10,000,000.'';
            (3) in section 10(c) (50 U.S.C. 98h-1(c))--
                    (A) in paragraph (2), by striking ``all 
                acquisitions and disposals'' inserting ``acquisitions 
                of materials the cost of which exceeds the amount 
                specified in section 5(a)(3) and all disposals''; and
                    (B) in paragraph (3)(A), by striking ``all 
                acquisitions and disposals'' and inserting 
                ``acquisitions described in paragraph (2) and all 
                disposals''; and
            (4) in section 11(b)(3) (50 U.S.C. 98h-2(b)(3))--
                    (A) by inserting ``(A)'' before ``Any proposed 
                expenditure''; and
                    (B) by adding at the end the following:
    ``(B) Subparagraph (A) does not apply with respect to acquisitions 
of materials the cost of which does not exceed the amount specified in 
section 5(a)(3).''.
    (f) Definitions.--Section 12 of the Strategic and Critical 
Materials Stock Piling Act (50 U.S.C. 98h-3) is amended by adding at 
the end the following:
            ``(4) The term `covered critical mineral' means--
                    ``(A) antimony;
                    ``(B) beryllium;
                    ``(C) cobalt;
                    ``(D) graphite;
                    ``(E) lithium;
                    ``(F) manganese;
                    ``(G) nickel;
                    ``(H) tantalum;
                    ``(I) tungsten; or
                    ``(J) vanadium.
            ``(5) The term `rare earth element' means--
                    ``(A) cerium;
                    ``(B) dysprosium;
                    ``(C) erbium;
                    ``(D) europium;
                    ``(E) gadolinium;
                    ``(F) holmium;
                    ``(G) lanthanum;
                    ``(H) lutetium;
                    ``(I) neodymium;
                    ``(J) praseodymium;
                    ``(K) promethium;
                    ``(L) samarium;
                    ``(M) scandium;
                    ``(N) terbium;
                    ``(O) thulium;
                    ``(P) ytterbium; or
                    ``(Q) yttrium.
            ``(6) The term `rare earth or covered critical mineral 
        product' means a finished, semi-finished, or other intermediate 
        good or component, including a battery or permanent magnet, 
        that contains a rare earth element or covered critical 
        mineral.''.
    (g) Authorization of Appropriations.--
            (1) In general.--There are authorized to be appropriated 
        for the National Defense Stockpile Transaction Fund under 
        section 9 of the Strategic and Critical Materials Stock Piling 
        Act (50 U.S.C. 98h)--
                    (A) for fiscal year 2023, $253,500,000;
                    (B) for fiscal year 2024, $266,175,000;
                    (C) for fiscal year 2025, $279,484,000;
                    (D) for fiscal year 2026, $293,458,000; and
                    (E) for fiscal year 2027, $308,131,000.
            (2) Supplement not supplant.--The amounts authorized to be 
        appropriated by paragraph (1) shall supplement and not supplant 
        other amounts authorized to be appropriated for the National 
        Defense Stockpile Transaction Fund.

SEC. 4. DISCLOSURES CONCERNING RARE EARTH ELEMENTS AND COVERED CRITICAL 
              MINERALS BY CONTRACTORS OF DEPARTMENT OF DEFENSE.

    (a) Requirement.--Beginning on the date that is 30 months after the 
date of the enactment of this Act, the Secretary of Defense shall 
require that any contractor that provides to the Department of Defense 
a system with a permanent magnet that contains rare earth elements or 
covered critical minerals disclose, along with delivery of the system, 
the provenance of the magnet.
    (b) Elements.--A disclosure under subsection (a) shall include an 
identification of the country or countries in which--
            (1) any rare earth elements and covered critical minerals 
        used in the magnet were mined;
            (2) such elements and minerals were refined into oxides;
            (3) such elements and minerals were made into metals and 
        alloys; and
            (4) the magnet was sintered or bonded and magnetized.
    (c) Implementation of Supply Chain Tracking System.--If a 
contractor cannot make the disclosure required by subsection (a) with 
respect to a system described in that subsection, the Secretary shall 
require the contractor to establish and implement a supply chain 
tracking system in order to make the disclosure not later than 180 days 
after providing the system to the Department of Defense.
    (d) Waivers.--
            (1) In general.--The Secretary may waive a requirement 
        under subsection (a) or (c) with respect to a system described 
        in subsection (a) for a period of not more than 180 days if the 
        Secretary certifies to the appropriate congressional committees 
        that--
                    (A) the continued procurement of the system is 
                necessary to meet the demands of a national emergency 
                declared under section 201 of the National Emergencies 
                Act (50 U.S.C. 1621); or
                    (B) the contractor cannot currently make the 
                disclosure required by subsection (a) but is making 
                significant efforts to comply with the requirements of 
                that subsection.
            (2) Waiver renewals.--The Secretary--
                    (A) may renew a waiver under paragraph (1)(A) as 
                many times as the Secretary considers appropriate; and
                    (B) may not renew a waiver under paragraph (1)(B) 
                more than twice.
    (e) Briefing Required.--Not later than 30 days after the submission 
of each report required by section 6(c), the Secretary of Defense shall 
provide to the appropriate congressional committees a briefing that 
includes--
            (1) a summary of the disclosures made under this section;
            (2) an assessment of the extent of reliance by the United 
        States on foreign countries, and especially countries that are 
        not allies of the United States, for rare earth elements and 
        covered critical minerals;
            (3) a determination with respect to which systems described 
        in subsection (a) are of the greatest concern for interruptions 
        of supply chains with respect to rare earth elements and 
        covered critical minerals; and
            (4) any suggestions for legislation or funding that would 
        mitigate security gaps in such supply chains.

SEC. 5. EXPANSION OF RESTRICTIONS ON PROCUREMENT OF MILITARY AND DUAL-
              USE TECHNOLOGIES BY CHINESE MILITARY COMPANIES.

    Section 1211 of the National Defense Authorization Act for Fiscal 
Year 2006 (Public Law 109-163; 119 Stat. 3461), as most recently 
amended by section 1296 of the National Defense Authorization Act for 
Fiscal Year 2017 (Public Law 114-328; 130 Stat. 2562), is further 
amended--
            (1) in the section heading, by striking ``communist chinese 
        military companies'' and inserting ``chinese military 
        companies'';
            (2) in subsection (a), by inserting after ``military 
        company'' the following: ``, any Chinese military company, or 
        any Non-SDN Chinese military-industrial complex company'';
            (3) by amending subsection (b) to read as follows:
    ``(b) Goods and Services Covered.--
            ``(1) In general.--For purposes of subsection (a), and 
        except as provided in paragraph (2), the goods and services 
        described in this subsection are goods and services--
                    ``(A) on the munitions list of the International 
                Traffic in Arms Regulations; or
                    ``(B) on the Commerce Control List that--
                            ``(i) are classified in the 600 series; or
                            ``(ii) contain rare earth elements or 
                        covered critical minerals.
            ``(2) Exceptions.--Goods and services described in this 
        subsection do not include goods or services procured--
                    ``(A) in connection with a visit by a vessel or an 
                aircraft of the United States Armed Forces to the 
                People's Republic of China;
                    ``(B) for testing purposes; or
                    ``(C) for purposes of gathering intelligence.''; 
                and
            (4) in subsection (e)--
                    (A) by striking paragraph (3);
                    (B) by redesignating paragraphs (1) and (2) as 
                paragraphs (3) and (6), respectively;
                    (C) by inserting before paragraph (3), as 
                redesignated by subparagraph (B), the following:
            ``(1) The term `Chinese military company' has the meaning 
        given that term by section 1260H(d)(1) of the William M. (Mac) 
        Thornberry National Defense Authorization Act for Fiscal Year 
        2021 (Public Law 116-283; 10 U.S.C. 113 note).
            ``(2) The term `Commerce Control List' means the list 
        maintained by the Bureau of Industry and Security and set forth 
        in Supplement No. 1 to part 774 of the Export Administration 
        Regulations.'';
                    (D) by inserting after paragraph (3), as so 
                redesignated, the following:
            ``(4) The term `covered critical mineral' means--
                    ``(A) antimony;
                    ``(B) beryllium;
                    ``(C) cobalt;
                    ``(D) graphite;
                    ``(E) lithium;
                    ``(F) manganese;
                    ``(G) nickel;
                    ``(H) tantalum;
                    ``(I) tungsten; or
                    ``(J) vanadium.
            ``(5) The term `Export Administration Regulations' has the 
        meaning given that term in section 1742 of the Export Control 
        Reform Act of 2018 (50 U.S.C. 4801).''; and
                    (E) by adding at the end the following:
            ``(7) The term `Non-SDN Chinese military-industrial complex 
        company' means any entity on the Non-SDN Chinese Military-
        Industrial Complex Companies List--
                    ``(A) established pursuant to Executive Order 13959 
                (50 U.S.C. 1701 note; relating to addressing the threat 
                from securities investments that finance Communist 
                Chinese military companies), as amended before, on, or 
                after the date of the enactment of the Restoring 
                Essential Energy and Security Holdings Onshore for Rare 
                Earths Act of 2022; and
                    ``(B) maintained by the Office of Foreign Assets 
                Control of the Department of the Treasury.
            ``(8) The term `rare earth element' means--
                    ``(A) cerium;
                    ``(B) dysprosium;
                    ``(C) erbium;
                    ``(D) europium;
                    ``(E) gadolinium;
                    ``(F) holmium;
                    ``(G) lanthanum;
                    ``(H) lutetium;
                    ``(I) neodymium;
                    ``(J) praseodymium;
                    ``(K) promethium;
                    ``(L) samarium;
                    ``(M) scandium;
                    ``(N) terbium;
                    ``(O) thulium;
                    ``(P) ytterbium; or
                    ``(Q) yttrium.''.

SEC. 6. REVIEW OF COMPLIANCE WITH CONTRACTING REQUIREMENTS.

    (a) In General.--Not later than one year after the date of the 
enactment of this Act, and periodically thereafter until the 
termination date specified in subsection (e), the Comptroller General 
of the United States shall assess the extent of the efforts of the 
Department of Defense to comply with the requirements of--
            (1) section 4;
            (2) section 1211 of the National Defense Authorization Act 
        for Fiscal Year 2006, as amended by section 5 of this Act; and
            (3) section 4872 of title 10, United States Code.
    (b) Briefing Required.--The Comptroller General shall periodically, 
until the termination date specified in subsection (e), provide to the 
appropriate congressional committees a briefing on the results of the 
assessments conducted under subsection (a) that includes an assessment 
of--
            (1) the inclusion by the Department of Defense of necessary 
        contracting clauses in relevant contracts to meet the 
        requirements described in paragraphs (1), (2), and (3) of 
        subsection (a); and
            (2) the efforts of the Department of Defense to assess the 
        compliance of contractors with such clauses.
    (c) Report Required.--The Comptroller General shall, not less 
frequently than every 2 years until the termination date specified in 
subsection (e), submit to the appropriate congressional committees a 
report on the results of the assessments conducted under subsection (a) 
that includes an assessment of--
            (1) the inclusion by the Department of Defense of necessary 
        contracting clauses in relevant contracts to meet the 
        requirements described in paragraphs (1), (2), and (3) of 
        subsection (a); and
            (2) the efforts of the Department of Defense to assess the 
        compliance of contractors with such clauses.
    (d) Referral.--If, in conducting an assessment under subsection 
(a), the Comptroller General determines that a contractor has failed to 
comply with any of the requirements described in paragraphs (1), (2), 
and (3) of subsection (a), the Comptroller General shall refer the 
matter to the Department of Justice, relevant Inspectors General, or 
other enforcement agencies, as appropriate, for further examination and 
possible enforcement actions.
    (e) Termination.--The requirements of this section shall terminate 
on the date that is 10 years after the date of the enactment of this 
Act.

SEC. 7. SUPPORT FOR DOMESTIC RARE EARTH ELEMENT AND COVERED CRITICAL 
              MINERAL PRODUCERS AND PROCESSORS.

    (a) Authorization of Appropriations.--
            (1) In general.--There are authorized to be appropriated to 
        the Defense Production Act Fund under section 304 of the 
        Defense Production Act of 1950 (50 U.S.C. 4534) for each of 
        fiscal years 2023 through 2027, $750,000,000 for activities of 
        the Department of Defense pursuant to section 108 and title III 
        of the Defense Production Act of 1950 (50 U.S.C. 4518 and 4531 
        et seq.).
            (2) Rare earth elements and covered critical minerals.--Of 
        the amount authorized to be appropriated by paragraph (1) for a 
        fiscal year, not less than $250,000,000 shall be available to 
        meet the requirements of the Department of Defense for rare 
        earth elements and covered critical minerals.
    (b) Increase in Limitation on Cost of Defense Production Act 
Projects for Rare Earth Elements and Covered Critical Minerals.--
Section 303(a)(6) of the Defense Production Act is amended--
            (1) in subparagraph (B)--
                    (A) by striking ``If the taking'' and inserting the 
                following:
                            ``(i) In general.--If the taking'';
                    (B) by inserting ``(except as provided in clause 
                (ii))'' after ``$50,000,000''; and
                    (C) by adding at the end the following:
                            ``(ii) Exception for rare earth elements 
                        and covered critical minerals.--If the taking 
                        of any action under this subsection to correct 
                        a domestic industrial base shortfall in rare 
                        earth elements, covered critical minerals, or 
                        rare earth or covered critical mineral products 
                        (as those terms are defined in section 2 of the 
                        REEShore Act of 2022) would cause the aggregate 
                        outstanding amount of all such actions for such 
                        shortfall to exceed $100,000,000, the action or 
                        actions may be taken only after the 30-day 
                        period following the date on which the 
                        Committee on Banking, Housing, and Urban 
                        Affairs of the Senate and the Committee on 
                        Financial Services of the House of 
                        Representatives have been notified in writing 
                        of the proposed action.''; and
            (2) in subparagraph (C)--
                    (A) by striking ``If the taking'' and inserting the 
                following:
                            ``(i) In general.--If the taking'';
                    (B) by inserting ``(except as provided in clause 
                (ii))'' after ``$50,000,000''; and
                    (C) by adding at the end the following:
                            ``(ii) Exception for rare earth elements 
                        and covered critical minerals.--If the taking 
                        of any action or actions under this section to 
                        correct an industrial resource shortfall in 
                        rare earth elements, covered critical minerals, 
                        or rare earth or covered critical mineral 
                        products (as those terms are defined in section 
                        2 of the REEShore Act of 2022) would cause the 
                        aggregate outstanding amount of all such 
                        actions for such industrial resource shortfall 
                        to exceed $100,000,000, no such action or 
                        actions may be taken, unless such action or 
                        actions are authorized to exceed such amount by 
                        an Act of Congress.''.
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