Title: Securing Americas Rare Earths Supply Act of 2019
Policy area: Armed Forces and National Security

Summary:
Securing Americas Rare Earths Supply Act of 2019
This bill revises requirements related to the acquisition and disposal of certain rare earth materials, such as those that contain scandium.
The Department of Defense must establish guidance for the acquisition of items containing rare earth materials and establish a secure supply chain from appropriate sources.
The bill requires the disposal of 3 million pounds of tungsten ores and concentrates stored in the National Defense Stockpile. The bill also authorizes the acquisition of specified materials determined to be strategically and critically required to meet the defense, industrial, and essential civilian needs of the United States.
In addition, the bill expands the prohibition on the exchange of sensitive materials with non-allied foreign nations to include additional materials.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3567 Introduced in House (IH)]

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116th CONGRESS
  1st Session
                                H. R. 3567

To modify the requirements relating to the acquisition and disposal of 
         certain rare earth materials, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 27, 2019

Ms. Houlahan (for herself and Mr. Cook) introduced the following bill; 
         which was referred to the Committee on Armed Services

_______________________________________________________________________

                                 A BILL


 
To modify the requirements relating to the acquisition and disposal of 
         certain rare earth materials, 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 ``Securing Americas Rare Earths Supply 
Act of 2019''.

SEC. 2. ACQUISITION AND DISPOSAL OF CERTAIN RARE EARTH MATERIALS.

    (a) Guidance on Streamlined Acquisition of Rare Earth Materials.--
            (1) In general.--Not later than 180 days after the date of 
        the enactment of this Act, the Under Secretary of Defense for 
        Acquisition and Sustainment, in consultation with the Under 
        Secretary of Defense (Comptroller), the Vice Chairman of the 
        Joint Chiefs of Staff, and the appropriate Under Secretary of 
        State designated by the Secretary of State shall establish 
        guidance to--
                    (A) enable the acquisition of items containing rare 
                earth materials; and
                    (B) establish a secure supply chain for rare earth 
                materials from sources within the United States and 
                covered foreign sources.
            (2) Contents.--The guidance required by paragraph (1) shall 
        encourage the use of rare earth materials mined, refined, 
        processed, melted, or sintered in the United States and 
        include--
                    (A) a determination of when best value contracting 
                methods should be used to ensure the viability of a 
                rare earth material supplier;
                    (B) a guide to the applicability of relevant 
                statutes, including sections 2533b and 2533c of title 
                10, United States Code, and other statutory or 
                regulatory restrictions to defense contracts and 
                subcontracts;
                    (C) information on current sources within the 
                United States and covered foreign sources of rare earth 
                materials along with commonly used commercial 
                documentation and review processes;
                    (D) directives on budgeting and expending funds for 
                the qualification and certification of suppliers of 
                rare earth materials within the United States to meet 
                national security needs; and
                    (E) any exceptions to the Joint Capabilities 
                Integration and Development System Manual and 
                Department of Defense Directive 5000.01.
            (3) Report.--Not later than 180 days after the date of the 
        enactment of this Act, the Under Secretary of Defense for 
        Acquisition and Sustainment, in consultation with the 
        appropriate Under Secretary of State designated by the 
        Secretary of State, shall submit to the congressional defense 
        committees, the Committee on Foreign Affairs of the House of 
        Representatives, and the Committee on Foreign Relations of the 
        Senate a report on--
                    (A) the guidance required by paragraph (1); and
                    (B) the efforts of the Secretary of Defense to 
                create and maintain secure supply chain for rare earth 
                materials from sources within the United States and 
                covered foreign sources.
            (4) Definitions.--In this subsection:
                    (A) Covered foreign source.--The term ``covered 
                foreign source'' means a source located in a foreign 
                country that is not an adversary of the United States, 
                as determined by the Secretary of Defense.
                    (B) Rare earth material.--The term ``rare earth 
                material'' means a concentrate, oxide, carbonate, 
                fluoride, metal, alloy, magnet, or finished product 
                whose chemical, magnetic, or nuclear properties are 
                largely defined by the presence of--
                            (i) yttrium;
                            (ii) scandium; or
                            (iii) any lanthanide series element.
    (b) Authority To Dispose of and Acquire Materials for the National 
Defense Stockpile.--
            (1) Disposal authority.--Pursuant to section 5(b) of the 
        Strategic and Critical Materials Stock Piling Act (50 U.S.C. 
        98d(b)), the National Defense Stockpile Manager shall dispose 
        of 3,000,000 pounds of tungsten ores and concentrates contained 
        in the National Defense Stockpile (in addition to any amount 
        previously authorized for disposal).
            (2) Acquisition authority.--
                    (A) Authority.--Using funds available in the 
                National Defense Stockpile Transaction Fund, the 
                National Defense Stockpile Manager may acquire the 
                following materials determined to be strategic and 
                critical materials required to meet the defense, 
                industrial, and essential civilian needs of the United 
                States:
                            (i) Aerospace-grade rayon.
                            (ii) Electrolytic manganese metal.
                            (iii) Pitch-based carbon fiber.
                            (iv) Rare earth cerium compounds.
                            (v) Rare earth lanthanum compounds.
                    (B) Amount of authority.--The National Defense 
                Stockpile Manager may use up to $37,420,000 in the 
                National Defense Stockpile Transaction Fund for 
                acquisition of the materials specified in subsection 
                (b).
                    (C) Fiscal year limitation.--The authority under 
                subsection (b) is available for purchases during fiscal 
                year 2020 through fiscal year 2024.
    (c) National Defense Stockpile Sales.--
            (1) Sense of congress.--It is the sense of Congress that 
        tantalum should be designated as a strategic and critical 
        material under the Strategic and Critical Materials Stock 
        Piling Act (50 U.S.C. 98 et seq.) required to meet the defense, 
        industrial, and essential civilian needs of the United States.
            (2) National defense stockpile sales of tantalum.--Section 
        2533c(d)(1) of title 10, United States code, is amended--
                    (A) in subparagraph (C), by striking ``and'' at the 
                end;
                    (B) in subparagraph (D), by striking the period at 
                the end and inserting ``; and''; and
                    (C) adding at the end the following new 
                subparagraph:
                    ``(E) tantalum.''.
            (3) Prohibition on sales of materials.--Section 2533c(a)(2) 
        of title 10, United States Code, is amended by striking 
        ``covered'' before ``material''.
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