SECURE Minerals Act of 2024

Bill: 118-hr-10378
Sponsor: full_name: Rep. Wittman, Robert J. [R-VA-1]
Introduced: 2024-12-11
Policy area: Energy
Latest action: action_date: 2024-12-11
text: Referred to the Committee on Natural Resources, and in addition to the Committee on Foreign Affairs, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

Summaries:

tv_txt: I 118th CONGRESS 2d Session H. R. 10378 IN THE HOUSE OF REPRESENTATIVES December 11, 2024 Mr. Wittman (for himself, Mr. Gimenez , and Mr. Moolenaar ) introduced the following bill; which was referred to the Committee on Natural Resources , and in addition to the Committee on Foreign Affairs , for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To establish the Critical Mineral Reserve of the United States, and for other purposes.

1. Short title This Act may be cited as the Securing Essential and Critical U.S. Resources and Elements Minerals Act of 2024 or SECURE Minerals Act of 2024 . 2. Findings Congress finds the following: (1) Critical minerals and materials are essential to the ongoing economic and national security of the United States, playing a vital role in manufacturing, transportation, medical, technology, defense, and energy sectors. The global demand for critical minerals and materials has been rapidly increasing due to advancements in technology—whether defense, dual-use, or commercial—and the increasing adoption of renewable energy sources and next-generation automative systems, all of which rely heavily on these minerals and materials for the production of batteries, solar panels, wind turbines, high-speed computing, advanced magnetic systems, and other high-tech applications. (2) The People’s Republic of China currently controls a significant portion of the global supply chain for critical minerals and materials, including rare earth elements, through extensive mining, integrated midstream operations, significant domestic subsidies and incentives, and strategic investments in resource-rich countries. The PRC centrally controls its dominant market share across multiple critical mineral verticals. The PRC predatorily leverages its position as sponsor or consumer, as applicable, over mining projects globally, resulting in a dearth of feedstocks to the great detriment of downstream industries, regions, and countries, including the United States. The PRC’s integrated operations, subservient to the Chinese state, are calibrated to weaponize its influence over prices and volumes in the contest for access to critical minerals and materials, as well as the end-use components and applications produced from these minerals and materials. The PRC also acts to undercut efforts in the United States and allied nations to develop alternative sources of supply. (3) The United States is heavily reliant on imports for many of the most critical minerals and materials, including rare earth elements, making the nation vulnerable to supply disruptions, geopolitical tensions, and economic manipulation by countries that dominate the market, specifically the PRC. The vulnerabilities to the nation’s defense industrial base posed by this reliance cannot be overstated. Given the long lead times in the mining sector as well as the adjacent processing of critical minerals, domestic critical minerals extraction projects are particularly susceptible to China-induced price shocks which can depress critical mineral prices for an extended period. (4) Increasing domestic primary feedstock production, processing, conversion, recycling, reuse, and repurposing to advanced materials and products, as well as increasing alternative allied supply, is imperative to reduce the impact of market manipulation by foreign state actors, such as the PRC. The United States must ensure that a stable and secure supply chain of these essential resources is available to our domestic innovation and manufacturing ecosystems. (5) Sustainable and responsible corporate behavior in companies’ operations and across their global value chains is important to ensuring a resilient domestic minerals supply. (6) Investments in domestic extraction processing infrastructure, as well as reuse, repurposing, and recycling, are necessary to build a resilient and diversified supply chain for critical minerals and materials, supporting the economic growth and national security interests of the United States. (7) Government support to develop and ensure the integrity of Western and allied markets for these critical minerals and materials as a countermeasure against the anti-competitive tactics of the PRC and their supply chain co-collaborators will fill the most acute strategic gap which cannot be otherwise achieved by private industry participants acting alone. To this end, we recommend establishing the Critical Mineral Reserve of the United States , also referred to herein as the Reserve. 3. Establishment of Reserve (a) Establishment (1) In general There is established a trust with the name Critical Mineral Reserve of the United States , which shall— (A) not be an agency or establishment of the United States Government; (B) manage its assets in the manner set forth in this Act; and (C) be a trust domiciled in the District of Columbia and, to the extent not inconsistent with this Act, be subject to the laws of the District of Columbia applicable to such trusts. (2) Purpose The purposes of the Reserve are— (A) to support domestic and allied extraction, production, reuse, repurposing, and recycling of and capabilities and infrastructure with respect to critical minerals and materials; (B) to stabilize, support, and protect sustainable prices of critical minerals and materials; (C) to assist in maintaining balanced and adequate supplies of critical minerals and materials to the United States, as determined by the Board; (D) to sustain access to and the supply of critical minerals and materials for the United States and any allied country; and (E) to facilitate the orderly distribution of critical minerals and materials. (3) Annual independent audit (A) In general Not later than 1 year after the date of the enactment of this Act and annually thereafter, an independent qualified public accountant selected by the Board shall audit the financial statements of the Reserve, the results of which shall be made publicly available. (B) Requirements Each independent qualified public accountant selected by the Board to perform an audit under subparagraph (A) shall be— (i) certified and licensed by a State board of accountancy; (ii) independent of the Reserve and each authorized market maker in accordance with section 210.2–01 of title 17, Code of Federal Regulations; and (iii) registered with the Public Company Accounting and Oversight Board. (4) Civil action (A) In general The Reserve may bring a civil action in any court of competent jurisdiction against any person that— (i) fails to comply with any contractual obligation or agreement made with the Reserve; (ii) violates any provision of this Act; or (iii) engages in any practice or activity that unlawfully impairs or interferes with the operations of the Reserve, including fraud, misrepresentation, or breach of contract. (B) Award In a civil action under this paragraph, the Reserve may seek— (i) economic relief, including compensatory damages, restitution, interest, costs, and reasonable attorney’s fees; (ii) temporary or permanent injunctive relief, including specific performance; and (iii) such other equitable relief as a court determines appropriate. (C) Statute of limitations A civil action under this paragraph may not be brought later than 5 years after the date on which the cause of action accrues. (5) Initial capitalization There is appropriated, out of any amounts in the Treasury not otherwise appropriated, $2,500,000,000 to the Reserve for fiscal year 2025. (b) Mandate of Reserve (1) In general The Reserve shall, with respect to each critical mineral and material— (A) support domestic and allied production, including sourcing from domestic and allied reuse, repurposing, and recycling; and (B) to the maximum extent practicable, ensure that— (i) at each stage of the supply chain, the production rate is equal to or greater than 40 percent; and (ii) at each stage of the supply chain, the dependence rate is equal to or less than 60 percent; and (C) prioritize— (i) domestic projects and supply chains; and (ii) projects where the dependence is 100 percent. (2) Determination of production rates and dependence rates (A) In general The Board shall determine the production rate and dependence rate with respect to each critical mineral and material. (B) Use of data In determining the production rate and dependence rate with respect to each critical mineral and material under subparagraph (A), the Board— (i) shall use the proprietary dataset developed under section 5(a)(1); (ii) may use— (I) the Mineral Commodity Summaries published by the United States Geological Service; and (II) data from any other source the Board determines to be of value under similar circumstances, including commercial data, whether such data is public or proprietary in nature; and (iii) may solicit private industry for data and market information. (3) Adjustment of production rate and dependence rate The Board may annually adjust the production rate and the dependence rate with respect to each critical mineral and material, as initially established under paragraph (2)(A), by not more than 5 percent. (c) Review The Comptroller General of the United States shall carry out a biennial review the Reserve, including a review of— (1) the most recent annual report submitted to the Speaker of the House of Representatives and the President of the Senate by the Reserve under section 7; (2) the operations and functions of the Reserve as managed by the Board; and (3) the performance of the Board in fulfilling the purposes and mandate of the Reserve. (d) Identification of critical minerals and materials (1) In general The Reserve, in collaboration with the heads of Federal agencies in accordance with section 5(a)(7), shall establish a list of critical minerals and materials informed by the following: (A) The list of critical minerals published by the United States Geological Survey pursuant to section 7002(c) of the Energy Act of 2020 ( 30 U.S.C. 1606(c) ). (B) The list of critical materials published by the Department of Energy pursuant to section 7002(a) of the Energy Act of 2020 ( 30 U.S.C. 1606(a) ). (C) The materials of interest designated as such by the Defense Logistics Agency. (D) Each material with respect to which the President has made a determination under section 303(a)(5) of the Defense Production Act of 1950 ( 50 U.S.C. 4533(a)(5) ). (E) Each material that is, or in the preceding 5 years was, a strategic or critical material for the purposes of the Strategic and Critical Materials Stock Piling Act ( 50 U.S.C. 98 et seq. ) pursuant to a determination by the President under section 3(a) of such Act ( 50 U.S.C. 98b(a) ). (2) Requirements A mineral or material may only be included in the list of critical minerals and materials established by the Reserve under paragraph (1) if the mineral or material— (A) is a non-fuel mineral or material; (B) is essential to the economic and national security of the United States; (C) has a high-risk supply chain; and (D) is necessary— (i) for the national defense and national security requirements; (ii) for the energy infrastructure of the United States, including— (I) pipelines; (II) refining capacity; (III) electrical power generation and transmission; and (IV) renewable energy production; (iii) to support domestic manufacturing, agriculture, housing, telecommunications, healthcare, or transportation infrastructure; or (iv) for the economic security of, and balance of trade in, the United States. (3) Exclusions A mineral or material may not be included in the list of critical minerals and materials established by the Reserve under paragraph (1) if the mineral or material is— (A) oil, oil shale, natural gas, coal, or uranium; (B) water, ice, or snow; or (C) a common variety of sand, gravel, stone, pumice, cinders, or clay. (4) Annual update The Reserve shall publish and annually update the list of critical minerals and materials established under paragraph (1). (e) Sunset The Reserve shall terminate on the date that is 10 years after the date of the enactment of this Act. 4. Board of Governors of Reserve (a) Membership (1) Appointment (A) In general Except as provided in paragraph (3)(D), the Board of Governors of the Reserve shall be composed of 7 members appointed by the President, by and with the advice and consent of the Senate. (B) Initial appointments Not later than 180 days after the date of the enactment of this Act, the President shall appoint each of the 7 members of the Board, including the Chairman, and the Board shall elect a Vice-Chairman from the members of the Board. (2) Qualifications To be eligible to be appointed as a member of the Board under paragraph (1), an individual— (A) shall have substantial experience, training, and expertise in— (i) the business and industry of a mineral or material described in section 3(d)(1); and (ii) the oversight, management, or administration of financial instruments; and (B) may not— (i) have a direct or indirect financial interest in an authorized market maker or at-risk CMM; or (ii) be closely related to someone with a direct financial interest in an authorized market maker or at-risk CMM. (3) Terms (A) Chairman (i) In general An individual who is appointed as the Chairman under paragraph (1) shall serve for a single 5-year term. (ii) Restriction An individual who is appointed to serve a term as the Chairman of the Board under paragraph (1) may not serve any additional term on the Board after such term ends. (B) Vice-Chairman (i) In general The Board shall elect a Vice-Chairman from the members of the Board who are not the Chairman for a single 2-year term. (ii) Completion of term An individual who is appointed to serve a term as the Vice-Chairman under clause (i) shall, after such term ends, serve as a member of the Board for the remainder of the term of such individual in accordance with subparagraph (C). (iii) Substitute The Vice-Chairman, subject to the supervision of the Board, shall serve as Interim Chairman in the absence of the Chairman. (C) Other Board members (i) In general Each member of the Board who is not the Chairman shall be appointed to a staggered single 6-year term. (ii) Restriction An individual who is appointed to serve a term as a member of the Board may only serve an additional term on the Board if the individual is appointed to serve as Chairman, regardless of whether the individual completes the term to which the individual is initially appointed. (iii) Term length cap An individual may not serve on the Board for more than 6 years except in accordance with subparagraph (E)(i). (D) Vacancies Not later than 6 months after the date on which a vacancy occurs on the Board, the President, by and with the advice and consent of the Senate, shall appoint a new member of the Board to fill such vacancy. (E) Completion of term (i) In general Upon the expiration of the term of a member of the Board, such member shall continue to serve as a member of the Board until the successor to such member is appointed and is confirmed. (ii) Replacement order Successors to members of the Board shall be appointed and confirmed in the order in which the members of the Board were appointed and confirmed. (4) Tribal representation At least 1 member of the Board shall be a member of a Tribe. (b) Compensation (1) In general No individual who is a member of the Board may engage in any business, vocation, or employment other than that of serving as a member of the Board while such individual is a member of the Board. (2) Rate of pay The rate of basic pay for— (A) the Chairman shall be equal to the rate of basic pay payable for level I of the Executive Schedule; and (B) each member of the Board other than the Chairman may be set and adjusted by the Chairman. (4) Benefits The Chairman may provide additional compensation and benefits to employees of the Board in the same manner as compensation and benefits are provided under section 4802 of title 5, United States Code. (c) Duties The Board shall— (1) manage the lending authority, contracts, operations, due diligence, and duties of the Reserve; (2) oversee all authorized market makers and at-risk CMMs under this Act; and (3) determine and prescribe the manner in which— (A) the obligations of the Reserve shall be incurred; and (B) the disbursements and expenses of the Reserve shall be allowed and paid. (d) Meetings (1) In general The Chairman of the Board, the Vice-Chairman, acting as Interim Chairman in the absence of the Chairman in accordance with subsection (a)(3)(B)(iii), or a Chairman pro tempore elected by the members of the Board present at the meeting, in the absence of the Chairman and the Vice-Chairman, shall preside at each meeting of the Board. (2) Quorum 4 of the members of the Board shall constitute a quorum. (3) Closed meetings The Board may close any meeting, or portion thereof, that concerns matters or information that pertains to national security. (4) Minutes Unless closed in accordance with paragraph (3), the minutes of each meeting of the Board shall be made publicly available. (e) Restriction on employment (1) In general During the period beginning on the date on which the term of a member of the Board begins and ending on the date that is 2 years after the date on which the term of such member ends, such member may not hold any ownership, office, position, including an advisory or consultant position, or other employment in or with an authorized market maker or with respect to an at-risk CMM. (2) Opportunity to cure violation (A) In general If the Comptroller General of the United States finds that an individual described in paragraph (1) is in violation of that paragraph, such individual shall cure such violation not later than 30 days after the date on which such violation is found. (B) Requirements to cure To cure a violation of paragraph (1) as required under subparagraph (A), an individual shall, at a minimum— (i) renounce any pecuniary gain associated with such violation; and (ii) terminate each relationship that is the subject of such violation. (3) Penalty for uncured violation If the Comptroller General of the United States finds that an individual described in paragraph (1) is in violation of that paragraph and such individual does not cure such violation in accordance with paragraph (2) by the date described in subparagraph (A) of that paragraph or, as applicable, established by the Board under paragraph (4), such individual shall be deemed to have violated section 207(a)(2) of title 18, United States Code, and shall immediately be removed from the Board. (4) Extension of cure period The Board may extend the time provided under paragraph (2) for an individual described in paragraph (1) to cure a violation of that paragraph. (f) Principal office The principal office of the Board shall be located in the District of Columbia. 5. Duties and authorities of Reserve (a) In general In carrying out the purposes and mandate of the Reserve, the Reserve shall carry out the following activities: (1) Develop and maintain a proprietary dataset sufficient to ensure the thorough analysis of global critical minerals and materials markets. (2) Collect and maintain sufficient datasets, including data comprising global, domestic, and allied markets and, to the extent possible, data derived from individual critical mineral and material projects, to inform and estimate— (A) production, extraction, infrastructure, repurposing, and recycling costs for critical minerals and materials supply chains; and (B) the forecast of supply and demand of critical minerals and materials within domestic and allied markets. (3) Collect and maintain— (A) actual transaction price data for critical minerals and materials in the global market, including geographic data; and (B) any other datasets necessary to effectuate such purposes and mandate, including datasets produced by or derivative of datasets produced by the PRC. (4) Using the most current data collected under paragraphs (2) and (3)— (A) identify market conditions that require intervention according to such purposes and mandate; and (B) determine specific critical minerals and materials that are at-risk CMMs. (5) Provide loans to authorized market makers in accordance with subsection (b). (6) Maintain an operational team and organization sufficient to fulfill such mandate. (7) Consult with the heads of other Federal agencies, including— (A) the Department of Commerce; (B) the Department of Defense; (C) the Department of Energy; (D) the Department of the Interior; (E) the Department of State; (F) the Department of the Treasury; (G) the Department of Agriculture; (H) the United States Geological Survey; and (I) the Export-Import Bank of the United States. (8) To the extent possible, mitigate the risk of loss of capital to United States taxpayers. (9) Seek to mobilize private capital that furthers the purposes and mandate of the Reserve. (10) Act as a partner to authorized market makers, ensuring they can fulfill their role of attracting private sector resources into the critical minerals and materials market and carrying out the purposes and mandate of the Reserve in the marketplace on an on-going basis. (b) Loans to authorized market makers (1) Loan program authorized The Reserve may make loans to authorized market makers to enter into financing and purchasing agreements with producers of at-risk CMMs under which such an authorized market maker shall use the loan funds to— (A) provide to a producer of at-risk CMMs an amount equal to or greater than, with respect to the at-risk CMMs, the difference between the all-in sustaining cost and the prevailing market price of the at-risk CMMs, on the condition that the authorized market maker will receive a mutually-agreed-to percent of the profits when such at-risk CMMs are sold; or (B) agree to purchase the at-risk CMMs produced by the producer at an amount equal to or greater than the all-in sustaining cost. (2) Loan conditions (A) In general In making loans under the paragraph (1), the Reserve shall— (i) for each such loan, specify the at-risk CMMs for which the loan funds may be used; and (ii) in accordance with this Act, establish such terms and conditions as the Reserve determines appropriate. (B) Adjustment of loan terms The Reserve and authorized market maker may adjust loan terms under a loan under paragraph (1) if the Reserve and authorized market maker agree to the adjustment. (C) Preferential terms for certain loans In making loans under paragraph (1), the Reserve— (i) shall provide preferential loan terms, which may include an interest rate equal to the Federal funds rate, to authorized market makers that will use the loan to enter into financing and purchasing agreements with producers of at-risk CMMs; (ii) may— (I) provide preferential loan terms to authorized market makers that will use the loan to enter into financing and purchasing agreements with producers of at-risk CMMs in allied countries described in subparagraph (A), (B), or (C) of section 8(2), in such manner as the Reserve determines appropriate; and (II) consult in with the Federal agencies specified in subsection (a)(7) with respect to the loan terms described in subclause (I); and (iii) shall ensure that, under the terms of such loans, authorized market makers shall, to the maximum extent practicable, give priority to United States suppliers of critical minerals and preference to the United States supply chain. (3) Proposal solicitation To be eligible to receive a loan under paragraph (1), an authorized market maker shall submit to the Reserve an application at such time, in such manner, and containing such information as the Reserve may require, including the proposed financing or purchasing agreements described in such paragraph for which the loan will be used. (4) Uncured default (A) In general If an authorized market maker fails to make a required repayment on a loan under paragraph (1) for a 90-day period, the Reserve— (i) shall— (I) recoup the amount of such loan by taking possession of the critical mineral and material inventories of the authorized market maker and any other contractual rights of the authorized market maker to receive critical minerals or materials from suppliers; and (II) revoke the license of the authorized market maker under section 6; and (ii) subject to subparagraph (B), may appoint itself as conservator or receiver of the authorized market maker. (B) Authorities under conservator or receivership If the Reserve appoints itself a conservator or receiver of an authorized market maker under subparagraph (A)(ii), the Reserve shall have the same authorities with respect to the authorized market maker that the Federal Deposit Insurance Corporation has with respect to an institution for which the Corporation has appointed itself as conservator or receiver under the Federal Deposit Insurance Act. (C) Treatment of bankruptcy An authorized market maker for which the Reserve has appointed itself a conservator or a receiver may not be placed into bankruptcy under title 11, United States Code, during such conservatorship or receivership and any bankruptcy process under title 11, United States Code, that is in effect when such an appointment occurs shall be terminated. (5) Allied co-investment (A) In general An allied country described in subparagraph (A), (B), or (C) of section 8(2) may, if approved by the Reserve, make capital contributions of at least $100,000,000 to the Reserve for purposes of making loans under paragraph (1). (B) Minimum amount The Reserve shall annually adjust the amount in subparagraph (A) by the percentage increase in the Consumer Price Index for all urban consumers published by the Department of Labor. (C) Treatment of capital contributions The Reserve— (i) shall maintain separate accounts for the capital contributions of each allied country that provides such contributions under subparagraph (A); (ii) shall not commingle the capital contributions of any allied country with any other allied country or the funds of the Reserve; (iii) may return such capital contributions to the allied country at any time, without obligation or penalty, or under such other terms and conditions as agreed to by the Reserve and the allied country; and (iv) may not guarantee the repayment of such capital contributions to an allied country. (D) Loans made with allied co-investment funds Loans made under paragraph (1) with capital contributions under subparagraph (A) shall be made in the same manner as loans made under paragraph (1) with funds of the Reserve. (E) International Advisory Council (i) In general The Reserve may establish an International Advisory Council of Allies comprised of— (I) the Vice-Chairman of the Board, who shall be the head of the Council; and (II) one representative from each allied country that makes a capital contribution under subparagraph (A). (ii) Consultation The International Advisory Council shall, at the request of the Reserve, advise the Reserve on loans made with capital contributions under subparagraph (A). (6) Applicability of Federal Credit Reform Act of 1990 Loans made under paragraph (1) shall be subject to the requirements of the Federal Credit Reform Act of 1990 ( 2 U.S.C. 661 , et seq.). 6. Authorized market makers (a) In general Authorized market makers shall act on critical minerals and materials purchase directives issued by the Reserve and provide critical minerals and materials market data and insights back to the Reserve. (b) Licensing of authorized market makers (1) In general The Board shall license authorized market makers in accordance with this section. (2) Initial licensing Not later than 270 days after the date of the enactment of this Act, the Board shall license not fewer than 5 authorized market makers, of which at least 2 shall be small businesses. (3) Maximum number of licensed authorized market makers There may not be more than 5 authorized market makers at a given time. (4) Small business requirement Not less than 2 of the first 4 authorized market makers licensed under this section shall be small businesses with appropriate experience trading and operating in critical mineral and material markets. (5) Duration of license (A) In general Except as provided for in subparagraph (C), an authorized market maker licensed under this section shall be licensed for 5 years. (B) Renewal An authorized market maker may submit to the Board an application for renewal of the license of the authorized market maker. (C) Rescission The Board shall have sole authority to revoke the license of an authorized market maker if the Board determines that the authorized market maker— (i) is not eligible to be licensed as an authorized market maker under subsection (c); or (ii) is not in compliance with this Act. (c) Eligibility; application To be eligible to be licensed as an authorized market maker under this section, an entity shall— (1) be a private company that is a domestically domiciled corporation; (2) submit to the Board an application in such form, at such time, and containing such information as the Board determines appropriate; (3) have demonstrated experience and expertise amongst the ownership and active leadership of such private company sufficient to accomplish the authorized market maker role, including— (A) commitment to the national security of the United States; (B) expertise with respect to more than 1 critical mineral or material; (C) expertise with respect to capital management, commodities trading, or finance; and (D) commitment to due diligence; and (4) not have any ownership or management influenced by a foreign entity of concern or a citizen of a foreign entity of concern, including any entities affiliated with the private company or the ownership of the private company. (d) Clarification of receipt of Federal funds Whether an authorized market maker receives Federal funds pursuant to another provision of law shall not be used to determine whether the authorized market maker is eligible to receive funds from the Reserve. 7. Report (a) In general The Board shall annually submit to the President, the Comptroller General of the United States, the Director of the United States Office of Management and Budget, the Speaker of the House of Representatives and the President of the Senate, and the Speaker of the House of Representatives and the President of the Senate shall distribute to Congress, a report regarding the operations of the Reserve during the preceding year. (b) Contents Each report required under subsection (a)— (1) shall include— (A) information regarding the administration of the functions of the Board, including recommendations the Board determines appropriate; (B) the assessment of the Board of the extent to which compliance with the requirements of this Act has been achieved; (C) any changes to the maximum number of licensed authorized market makers under section 6(b)(3) that the Board recommends; and (D) a summary of the loans made by the Board to authorized market makers during the preceding year; and (2) may not be made publicly available. 8. Definitions In this Act: (1) All-in sustaining cost The term all-in sustaining cost means the cost to keep a producer of a critical mineral or material in business, expressed in terms of the cost per unit of payable production that can be readily compared to the relevant commodity price. (2) Allied The term allied , with respect to the markets or producers of a country, means the market or any producer of— (A) a country with which the United States has entered into a mutual defense treaty or other mutual defense agreement; (B) a country that is recognized by the Secretary of State and the Secretary of Defense as a strategic partner due to an established bilateral agreement that emphasizes mutual interests in security, defense, and critical mineral supply chains, including countries designated under United States strategic frameworks and agreements; (C) a country with which the United States has entered into a comprehensive economic and trade agreement that includes provisions for the collaboration on critical mineral resources and to safeguard supply chains critical to national security and economic stability; (D) a country with which the United States Geologic Survey has a memorandum of understanding concerning scientific and technical cooperation in earth sciences; or (E) a country with which the United States Department of State is working to advance a critical mineral project under a partnership for global infrastructure and investment. (3) At-risk CMM The term at-risk CMM means a critical mineral or material that requires, according to the purposes and mandate of the Reserve, support within domestic and allied markets. (4) Authorized market maker The term authorized market maker means an entity that is licensed by the Reserve under section 6 to fulfill the purposes and mandate of the Reserve in the marketplace. (5) Board The term Board means the Board of Governors of the Reserve. (6) Chairman The term Chairman means the Chairman of the Board. (7) Covered nation The term covered nation has the meaning given the term in section 2533c(d) of title 10, United States Code. (8) Critical mineral and material; critical mineral or material The terms critical mineral and material and critical mineral or material mean a mineral and material or mineral or material, as applicable, included in the list of critical minerals and materials established by the Reserve under section 3(d). (9) Dependence rate The term dependence rate means the portion of domestic end-use consumption of a critical mineral or material that is supplied by production by a foreign entity of concern, in aggregate. (10) Due diligence The term due diligence means the degree of attention, continuous directed effort, and timeliness as may reasonably be expected from, and is ordinarily exercised by, a person during a regulatory review period. (11) Foreign entity of concern The term foreign entity of concern has the meaning given the term in section 40207(a)(5) of the Infrastructure Investment and Jobs Act ( 42 U.S.C. 18741(a)(5) ), except that subparagraph (C) of such section shall be applied for purposes of this paragraph as if it read as follows: (C) (i) owned, controlled, directed, financed, or otherwise influenced, directly or indirectly, in whole or in any part greater than 25 percent, by the government of a foreign country that is a covered nation (as defined in section 2533c of title 10, United States Code); or (ii) otherwise subject to the jurisdiction or direction of a government of a foreign country that is a covered nation. . (12) PRC The term PRC means the People’s Republic of China. (13) Production rate The term production rate means the portion of domestic end-use consumption of a critical mineral or material that is supplied by domestic and allied production, in aggregate. (14) Purposes and mandate of the Reserve The term purposes and mandate of the Reserve means the purposes of the Reserve described in section 3(a)(2) and the mandate of the Reserve described in section 3(b)(1). (15) Recycling The term recycling means an action or process to convert a critical mineral or material contained within a finished or semi-finished product into a form suitable for repurposing or reuse of such critical mineral or material. (16) Repurposing The term repurposing means any operation that results, in whole or in part, in a critical mineral or material being used for a different purpose or application than the one for which the critical mineral or material, or the product the critical mineral or material is manufactured into, was originally intended. (17) Reserve The term Reserve means the Critical Mineral Reserve of the United States established by section 3(a). (18) Reuse The term reuse means the complete or partial direct reuse of a critical mineral or material for the original purpose for which it was intended. (19) Small business The term small business has the meaning given the term small business concern under section 3 of the Small Business Act ( 15 U.S.C. 632 ). (20) Tribe The term Tribe has the meaning given the term Indian Tribe in section 4(e) of the Indian Self-Determination and Education Assistance Act ( 25 U.S.C. 5304(e) ). (21) Vice-Chairman The term Vice-Chairman means the Vice-Chairman of the Board.