II 117th CONGRESS 2d Session S. 5195 IN THE SENATE OF THE UNITED STATES December 7, 2022 Mr. Romney (for himself and Mr. Sullivan ) introduced the following bill; which was read twice and referred to the Committee on Armed Services A BILL To strengthen the national security of the United States by decreasing the reliance of the Department of Defense on critical minerals from the People’s Republic of China, and for other purposes.

1. Short title This Act may be cited as the Critical Mineral Independence Act of 2022 . 2. Definitions In this Act: (1) Allied country The term allied country means— (A) a country of the national technology and industrial base, as defined in section 4801 of title 10, United States Code; or (B) another country that is an ally of the United States and is identified by the Secretary of Defense for purposes of this Act. (2) Appropriate committees of congress The term appropriate committees of Congress means— (A) the Committee on Energy and Natural Resources, the Committee on Armed Services, the Committee on Foreign Relations, and the Committee on Banking, Housing, and Urban Affairs of the Senate; and (B) the Committee on Natural Resources, the Committee on Armed Services, the Committee on Foreign Affairs, and the Committee on Financial Services of the House of Representatives. (3) Critical mineral The term critical mineral has the meaning given that term in section 7002(a) of the Energy Act of 2020 ( 30 U.S.C. 1606(a) ). 3. Statement of policy It is the policy of the United States— (1) to expand mining and processing of critical minerals, including rare earth elements, in the United States and in allied countries to meet the needs of the United States defense sector so that the Department of Defense will achieve critical mineral supply chain independence by 2027; (2) that the Department of Defense will procure critical minerals processed by the United States and allied countries to replenish and expand the National Defense Stockpile to meet growing geopolitical threats by 2027; and (3) to develop critical mineral supply chains for the Department of Defense that are not dependent on mining or processing of critical minerals in countries that are geostrategic competitors or adversaries of the United States. 4. Report on United States and allied processing of critical minerals required to achieve defense supply chain independence (a) In general Not later than 90 days after the date of the enactment of this Act, the Under Secretary of Defense for Acquisition and Sustainment shall submit to the appropriate committees of Congress a report on the processing by the United States and allied countries of critical minerals, including rare earth elements, required to achieve supply chain independence for the United States Armed Forces and allied countries by 2027. (b) Elements The report required by subsection (a) shall include the following: (1) An estimate of the annual demand for processed critical minerals for the United States Armed Forces and allied countries. (2) An outline of the necessary processed critical minerals value chain required to support the needs of the Department of Defense. (3) An assessment of any gaps in the outline described in paragraph (2), indicating where sufficient United States processing capacity exists and where such capacity does not exist. (4) An identification of any Federal funds, including any funds made available under title III of the Defense Production Act of 1950 ( 50 U.S.C. 4531 et seq. ), being deployed, as of the date of the report, to support development of United States capacity to address those gaps. (5) An estimate of the additional capital investment required to grow and operate sufficient United States capacity to address those gaps. (6) An estimate of the annual funding necessary for the Department of Defense to procure critical minerals processed in the United States sufficient to meet the annual needs of the Department, including consideration of increased investments from private sector capital. (7) An estimate of the cost difference between the Department of Defense— (A) sourcing critical minerals processed by the United States; (B) sourcing critical minerals processed by allied countries; and (C) sourcing critical minerals on the open market. (8) An assessment of what changes, if any, are necessary to the acquisition policies of the Department of Defense to ensure weapon suppliers use critical minerals processed by the United States or allied countries. (9) An assessment of what changes, if any, to authorities under title III of the Defense Production Act of 1950 are necessary to enter into a long-term offtake agreement with respect to critical minerals processed by the United States or allied countries. (10) An assessment of the duration of potential contracts necessary to prevent the collapse of United States processing of critical minerals in the event of price fluctuations resulting from increases in the export quota of the People’s Republic of China. (11) Recommendations for international cooperation with allied countries to jointly reduce dependence on critical minerals processed in or by the People’s Republic of China. 5. Strategy to transition the supply chain for the National Defense Stockpile to United States and allied-processed critical minerals by 2027 (a) In general Not later than 90 days after the report required by section 4 is submitted, the Director of the Defense Logistics Agency, in coordination with the Under Secretary of Defense for Acquisition and Sustainment, shall develop, and submit to the appropriate committees of Congress, a strategy to transition the supply chain for critical minerals, including rare earths elements, in the National Defense Stockpile away from reliance on geostrategic competitors and adversaries of the United States by 2027, through acquisition of critical minerals processed by— (1) the United States, with a preference given to critical minerals processed in the United States; or (2) allied countries (excluding critical minerals processed in a country that is a geostrategic competitor or adversary of the United States), with preference given to critical minerals processed in such countries. (b) Forecasted need of critical minerals The strategy required by subsection (a) shall be designed to meet the forecasted need for critical minerals of the Department of Defense through calendar year 2027 for— (1) planned procurements; (2) anticipated adoption of emerging technology; and (3) potential increases in the National Defense Stockpile that would be needed if the Department implements the guidance included in the Climate Adaptation Action Plan of the Department of Defense, dated September 2021. (c) Elements The strategy required by subsection (a) shall include the following: (1) A list of critical minerals in the National Defense Stockpile. (2) A priority ranking for transitioning the critical minerals on the list required by paragraph (1), developed using, for each such mineral— (A) the percentage of the mineral processed by foreign sources (excluding allied countries); (B) the percentage of operational processing facilities for the mineral located in the United States and in allied countries, compared to foreign sources of the mineral (excluding allied countries); (C) the quantity of the mineral required to fulfill the purposes set forth in section 2 of the Strategic and Critical Materials Stock Piling Act ( 50 U.S.C. 98a ); and (D) any other metric, as determined by the Director and the Under Secretary, that may be an indicator of reliance on foreign sources (excluding allied countries) for the mineral. (3) A process to replenish 50 percent of each mineral on the list required by paragraph (1) with the mineral processed by United States or allied country processors during the 1-year period after implementation of the strategy. (4) A process to replenish 95 percent of each mineral on the list required by paragraph (1) with the mineral processed by United States or allied country processors during the 3-year period after implementation of the strategy. (5) Recommendations to Congress with respect to any authorities needed to implement the strategy. (6) Any other matters related to implementing the strategy as the Director and the Under Secretary consider appropriate. (d) Implementation The Director and the Under Secretary shall— (1) coordinate the implementation of the processes required by paragraphs (3) and (4) of subsection (c) with the Department of Defense and activities carried out by the Department under title III of the Defense Production Act of 1950 ( 50 U.S.C. 4531 et seq. ); and (2) to the greatest extent practicable, implement the strategy required by subsection (a) with respect to acquisition of critical minerals for the National Defense Stockpile with funds authorized to be appropriated under section 7. (e) Briefings required Not later than 180 days after the submission of the strategy required by subsection (a), and every 180 days thereafter, the Director and the Under Secretary shall brief the appropriate committees of Congress on implementation of the strategy. 6. Form of report and strategy The report required by section 4 and the strategy required by section 5 shall be submitted in classified form but shall include an unclassified summary. 7. Authorization of appropriations There is authorized to be appropriated to the National Defense Stockpile Transaction Fund $1,003,500 for the acquisition of strategic and critical minerals under section 6(a) of the Strategic and Critical Minerals Stock Piling Act ( 50 U.S.C. 98e(a) ).