Strategic and Critical Materials Stock Piling Revision Act of 1979
PL 96-41 (H.R.2154), enacted 07/30/1979

PUBLIC LAW 96-41—JULY 30, 1979 
93 STAT. 319 
Public Law 96-41 
96th Congress 
An Act 
To revise the Strategic and Critical Materials Stock Piling Act, to require that 
July 30,1979 
appropriations for acquisition of strategic and critical materials be authorized by 
[H.R. 2154] 
law, to establish a National Defense Stockpile Transaction Fund, and for other 
purposes. 
Be it enacted by the Senate and House of Representatives of the 
United States of 
America in Congress assembled, That this Act may be 
cited as the "Strategic and Critical Materials Stock Piling Revision 
Act of 1979". 
SEC. 2. (a) The Strategic and Critical Materials Stock Piling Act is 
amended by striking out the first section and sections 2 through 9 of 
such Act (50 U.S.C. 98-98h) and inserting in lieu thereof the 
following: 
"SHORT TITLE 
"SECTION 1. This Act may be cited as the 'Strategic and Critical 
Materials Stock Piling Act*. 
Strategic and 
Critical 
Materials Stock 
Piling Revision 
Act of 1979. 
50 u s e 98 note. 
50 u s e 98. 
FINDINGS AND PURPOSE 
"SEC. 2. (a) The Congress finds that the natural resources of the 
United States in certain strategic and critical materials are deficient 
or insufficiently developed to supply the military, industrial, and 
essential civilian needs of the United States for national defense. 
"(b) It is the purpose of this Act to provide for the acquisition and 
retention of stocks of certain strategic and critical materials and to 
encourage the conservation and development of sources of such 
materials within the United States and thereby to decrease and to 
preclude, when possible, a dangerous and costly dependence by the 
United States upon foreign sources for suppUes of such materials in 
times of national emergency. 
50 u s e 98a. 
MATERIALS TO BE ACQUIRED! PRESIDENTIAL AUTHORITY AND 
GUIDEUNES 
"SEC. 3. (a) The President shall determine from time to time (1) 50 use 98b. 
which materials are strategic and critical materials for the purposes 
of this Act, and (2) the quality and quantity of each such material to 
be acquired for the purposes of this Act and the form in which each 
such material shall be acquired and stored. Such materials when 
acquired, together with the other materials described in section 4 of 
this Act, shall constitute and be collectively known as the National 
DefensQ Stockpile (hereinafter in this Act referred to as the 
'stockpile'). 
"(b) The President shall make the determinations required to be 
made under subsection (a) on the basis of the following principles: 
"(1) The purpose of the stockpile is to serve the interest of 
national defense only and is not to be used for economic or 
budgetary purposes. 
National 
Defense 
Stockpile. 
93 STAT. 320 
PUBLIC LAW 96-41—JULY 30, 1979 
"(2) The quantities of the materials stockpiled should be 
sufficient to sustain the United States for a period of not less 
than three years in the event of a national emergency. 
Quantity 
"(c) The quantity of any material to be stockpiled under this Act, as 
revision; 
determined under subsection (a), may not be revised unless the 
congressional" 
Committees on Armed Services of the Senate and House of Repre-
committees. 
scntatives are notified in writing of the proposed revision and the 
reasons for such revision at least thirty days before the effective date 
of such revision. 
"MATERIALS CONSTITUTING THE NATIONAL DEFENSE STOCKPILE 
50 use 98c. 
"SEC. 4. (a) The stockpile consists of the following materials: 
"(1) Materials acquired under this Act and contained in the 
national stockpile on the day before the date of the enactment of 
the Strategic and Critical Materials Stock Piling Revision Act of 
Ante, p. 319. 
1979. 
"(2) Materials acquired under this Act on or after the date of 
the enactment of the Strategic and Critical Materials Stock 
Piling Revision Act of 1979. 
"(3) Materials in the supplemental stockpile established by 
section 104(b) of the Agricultural Trade Development and Assist-
7 use 1704. 
ance Act of 1954 (as in effect from September 21, 1959, through 
December 31,1966) on the day before the date of the enactment of 
the Strategic and Critical Materials Stock Piling Revision Act of 
1979. 
"(4) Materials acquired by the United States under the provi-
sions of section 303 of the Defense Production Act of 1950 (50 
U.S.C. App. 2093) and transferred to the stockpile by the Presi-
dent pursuant to subsection (0 of such section. 
"(5) Materials transferred to the United States under section 
663 of the Foreign Assistance Act of 1961 (22 U.S.C. 2423) that 
have been determined to be strategic and critical materials for 
the purposes of this Act and that are allocated by the President 
under subsection (b) of such section for stockpiling in the 
stockpile. 
"(6) Materials acquired by the Commodity Credit Corporation 
and transferred to the stockpile under section 4(h) of the Com-
post, p. 325. 
modity Credit Corporation Charter Act (15 U.S.C. 714b(h)). 
"(7) Materials acquired by the Commodity Credit Corporation 
under paragraph (2) of section 103(a) of the Act entitled 'An Act 
to provide for greater stability in agriculture; to augment the 
marketing and disposal of agricultural products; and for other 
purposes', approved August 28, 1954 (7 U.S.C. 1743(a)), and 
transferred to the stockpile under the third sentence of such 
section. 
"(8) Materials transferred to the stockpile by the President 
under paragraph (4) of section 103(a) of such Act of Au-
gust 28, 1954. 
"(9) Materials transferred to the stockpile under subsection Ot)). 
Excess material, 
"(b) Notwithstanding any other provision of law, any material that 
transfer to 
(1) is under the control of any department or agency of the United 
stockpile. 
States, (2) is determined by the head of such department or agency to 
be excess to its needs and responsibilities, and (3) is required for the 
stockpile shall be transferred to the stockpile. Any such transfer shall 
be made without reimbursement to such department or agency, but 
all costs required to effect such transfer shall be paid or reimbursed 
from funds appropriated to carry out this Act. 
PUBLIC LAW 96-41—JULY 30, 1979 
93 STAT. 321 
AUTHORITY FOR STOCKPILE OPERATIONS 
"SEC. 5. (a) Except for acquisitions made under the authority of 50 USC 98d. 
paragraph (3) or (4) of section 6(a), no funds may be obligated or 
appropriated for acquisition of any material under this Act unless 
funds for such acquisition have been authorized by law. Funds 
appropriated for such acquisition (and for transportation related to 
such acquisition) shall remain available for a period of five fiscal 
years, if so provided in appropriation Acts. 
"(b) Except for disposals made under the authority of paragraph (4) 
or (5) of section 6(a) or under section 7(a), no disposal may be made 
from the stockpile unless such disposal, including the quantity of the 
material to be disposed of, has been specifically authorized by law. 
"(c) There is authorized to be appropriated such sums as may be 
necessary to provide for the transportation, processing, refining, 
storage, security, maintenance, rotation, and disposal of materials 
contained in or acquired for the stockpile. Funds appropriated for 
such purposes shall remain available to carry out the purposes for 
which appropriated for a period of two fiscal years, if so provided in 
appropriation Acts. 
Appropriation 
authorization. 
STOCKPILE MANAGEMENT 
"SEC. 6. (a) The President shall— 
50 USC 98e. 
"(1) acquire the materials determined under section 3(a) to be 
strategic and critical materials; 
"(2) provide for the proper storage, security, and maintenance 
of materials in the stockpile; 
"(3) provide for the refining or processing of any material in 
the stockpile when necessary to convert such material into the 
form most suitable for storage and subsequent disposition; 
"(4) provide for the rotation of any material in the stockpile 
when necessary to prevent deterioration of such material by 
replacement of such material with an equivalent quantity of 
substantially the same material; 
"(5) subject to the notification required by subsection (d)(2), 
provide for the timely disposal of materials in the stockpile that 
(A) are excess to stockpile requirements, and (B) may cause a loss 
to the Government if allowed to deteriorate; and 
"(6) dispose of materials in the stockpile the disposal of which 
is specifically authorized by law. 
"(b) Except as provided in subsections (c) and (d), acquisition of 
strategic and critical materials under this Act shall be made in 
accordance with established Federal procurement practices, and, 
except as provided in subsections (c) and (d) and in section 7(a), 
disposal of materials from the stockpile shall be made by formal 
advertising or competitive negotiation procedures. To the maximum 
extent feasible— 
"(1) competitive procedures shall be used in the acquisition and 
disposal of such materials; 
"(2) efforts shall be made in the acquisition and disposal of such 
materials to avoid undue disruption of the usual markets of 
producers, processors, and consumers of such materials and to 
protect the United States against avoidable loss; and 
"(3) disposal of such materials shall be made for domestic 
consumption. 
"(c)(1) The President shall encourage the use of barter in the Barter, 
acquisition of strategic and critical materials for, and the disposal of 
59-194 0 — 81 
23 : QL3 
93 STAT. 322 
PUBLIC LAW 96-41—JULY 30, 1979 
Stockpile 
materials, 
transference at 
fair market 
value. 
Acquisition or 
disposal, waiver. 
Notification to 
congressional 
committees. 
Proposed 
disposal; 
notification to 
congressional 
committees. 
Leasehold 
interests in 
property, 
acquisition. 
materials from, the stockpile when acquisition or disposal by barter is 
authorized by law and is practical and in the best interest of the 
United States. 
"(2) Materials in the stockpile, the disposition of which is author-
ized by law, shall be available for transfer at fair market value as 
payment for expenses (including transportation and other incidental 
expenses) of acquisition of materials, or of refining, processing, or 
rotating materials, under this Act. 
"(3) To the extent otherwise authorized by law, property owned by 
the United States may be bartered for materials needed for the 
stockpile. 
"(d)(1) The President may waive the applicability of any provision 
of the first sentence of subsection (b) to any acquisition of material 
for, or disposal of materigil from, the stockpile. Whenever the Presi-
dent waives any such provision with respect to any such acquisition 
or disposal, or whenever the President determines that the applica-
tion of paragraph (1), (2), or (3) of such subsection to a particular 
acquisition or disposal is not feasible, the President shall notify the 
Committees on Armed Services of the Senate and House of Repre-
sentatives in writing of the proposed acquisition or disposal at least 
thirty days before any obligation of the United States is incurred in 
connection with such acquisition or disposal and shall include in such 
notification the reasons for not complying with any provision of such 
subsection. 
"(2) Materials in the stockpile may be disposed of under subsection 
(a)(5) only if the Committees on Armed Services of the Senate and 
House of Representatives are notified in writing of the proposed 
disposal at least thirty days before any obligation of the United States 
is incurred in connection with such disposal. 
"(e) The President may acquire leasehold interests in property, for 
periods not in excess of twenty years, for storage, security, and 
maintenance of materials in the stockpile. 
50 u s e 98f 
Report to 
congressional 
committees. 
SPECIAL DISPOSAL AUTHORITY OF THE PRESIDENT 
"SEC. 7. (a) Materials in the stockpile may be released for use, sale, 
or other disposition— 
"(1) on the order of the President, at any time the President 
determines the release of such materials is required for purposes 
of the national defense; and 
"(2) in time of war declared by the Congress or during a 
national emergency, on the order of any officer or employee of 
the United States designated by the President to have authority 
to issue disposal orders under this subsection, if such officer or 
employee determines that the release of such materials is 
required for purposes of the national defense. 
"(b) Any order issued under subsection (a) shall be promptly 
reported by the President, or by the officer or employee issuing such 
order, in writing, to the Committees on Armed Services of the Senate 
and House of Representatives, 
MATERIALS DEVELOPMENT AND RESEARCH 
Investigations. 
"SEC. 8. (a)(1) The President shall make scientific, technologic, and 
50 use 98g. 
economic investigations concerning the development, mining, prepa-
ration, treatment, and utilization of ores and other mineral sub-
stances that (A) are found in the United States, or in its territories or 
possessions, (B) are essential to the national defense, industrial, and 
PUBLIC LAW 96-41—JULY 30, 1979 
93 STAT. 323 
essential civilian needs of the United States, and (C) are found in 
known domestic sources in inadequate quantities or grades. 
"(2) Such investigations shall be carried out in order to— 
"(A) determine and develop new domestic sources of supply of 
such ores and mineral substances; 
"(B) devise new methods for the treatment and utilization of 
lower grade reserves of such ores and mineral substances; and 
"(C) develop substitutes for such essential ores and mineral 
products. 
"(3) Investigations under paragraph (1) may be carried out on 
public lands and, with the consent of the owner, on privately owned 
lands for the purpose of exploring and determining the extent and 
quality of deposits of such minerals, the most suitable methods of 
mining and beneficiating such minerals, and the cost at which the 
minerals or metals may be produced. 
"(b) The President shall make scientific, technologic, and economic 
investigations of the feasibility of developing domestic sources of 
supplies of any agricultural material or for using agricultural com-
modities for the manufacture of any material determined pursuant to 
section 3(a) of this Act to be a strategic and critical material or 
substitutes therefor. 
Purpose. 
Investigations on 
public or private 
lands. 
Domestic sources 
of supplies of 
agricultural 
material or 
commodities, 
development. 
NATIONAL DEFENSE STOCKPILE TRANSACTION FUND 
"SEC. 9. (a) There is established in the Treasury of the United 
States a separate fund to be known as the National Defense Stockpile 
Transaction Fund (hereinafter in this section referred to as the 
'fund'). 
"(b)(1) All moneys received from the sale of materials in the 
stockpile under paragraphs (5) and (6) of section 6(a) shall be covered 
into the fund. Such moneys shall remain in the fund until appropri-
ated or until the end of the third fiscal year following the fiscal year 
in which they are received. Any such moneys remaining in the fund 
after the end of such third fiscal year that have not been appropriated 
shall be transferred to miscellaneous receipts of the Treasury. Any of 
such moneys that are appropriated shall be disbursed from the fund 
in the order in which they were covered into the fund. 
"(2) Moneys covered into the fund under paragraph (1) shall be 
available, when appropriated therefor, only for the acquisition of 
strategic and critical materials under section 6(a)(1) of this Act (and 
for transportation related to such acquisition). 
"(3) If so provided in appropriation Acts, moneys in the fund, when 
appropriated, shall remain available for a period of five fiscal years. 
"(c) All moneys received from the sale of materials being rotated 
under the provisions of section 6(a)(4) or disposed of under section 7(a) 
shall be covered into the fund and shall be available only for the 
acquisition of replacement materials. 
Fund 
establishment. 
50 u s e 98h. 
Presidential 
appointment. 
50 u s e 98h-l. 
ADVISORY COMMITTEES 
"SEC. 10. (a) The President may appoint advisory committees 
composed of individuals with expertise relating to materials in the 
stockpile or with expertise in stockpile management to advise the 
President with respect to the acquisition, transportation, processing, 
refining, storage, security, maintenance, rotation, and disposal of 
such materials under this Act. 
"(b) Each member of an advisory committee established under Travel expenses, 
subsection (a) while serving on the business of the advisory committee 
93 STAT. 324 
PUBLIC LAW 96-41—JULY 30, 1979 
away from such member's home or regular place of business shall be 
allowed travel expenses, including per diem in lieu of subsistence, as 
authorized by section 5703 of title 5, United States Code, for persons 
intermittently employed in the Government service. 
"REPORTS TO CONGRESS 
50 use 98h-2. 
"SEC. 11. The President shall submit to the Congress every six 
months a written report detailing operations under this Act. Each 
such report shall include— 
"(1) information with respect to foreign and domestic pur-
chases of materials during the preceding six-month period; 
"(2) information with respect to the acquisition and disposal of 
materials under this Act by barter, as provided for in section 6(c) 
of 
this Act, during such period; 
"(3) a statement and explanation of the financial status of the 
National Defense Stockpile Transaction Fund and the antici-
pated appropriations to be made from the fund during the next 
fiscal year; and 
"(4) such other pertinent information on the administration of 
this Act as will enable the Congress to evaluate the effectiveness 
of the program provided for under this Act and to determine the 
need for additional legislation. 
"DEFINITIONS 
50 use 98h-3. 
"SEC. 12. For the purposes of 
this Act: 
"(1) The term 'strategic and critical materials' means materi-
als that (A) would be needed to supply the military, industrisil, 
and essential civilian needs of the United States during a 
national emergency, and (B) are not found or produced in the 
United States in sufficient quantities to meet such need. 
"(2) The term 'national emergency* means a general declara-
tion of emergency with respect to the national defense made by 
the President or by the Congress.". 
(bXl) Section 10 of such Act (50 U.S.C, 98h-l) is redesignated as 
section 13. 
(2) Section 11 of 
such Act is repealed. 
SEC. 3. (aXD Section 103(a) of the Act entitled "An Act to provide for 
greater stability in agriculture; to augment the marketing and 
disposal of agricultural products; and for other purposes", approved 
August 28,1954 (7 U.S.C. 1743(a)), is amended— 
(A) by striking out "the national stockpile established pursu-
ant to the Act of June 7, 1939, as amended (50 U.S.C. 98-98h)" 
in paragraph (4) and inserting in lieu thereof "the National 
Defense Stockpile established by the Strategic and Critical Mate-
rials Stock Piling Act (50 U.S.C. 98 et seq.)"; 
(B) by striking out "the national stockpile established pursu-
ant to the Act of June 7, 1939, as amended" in the third 
sentence and inserting in lieu thereof "the National Defense 
Stockpile established by the Strategic and Critical Materials 
50 use 98 note. 
Stock Piling Act"; and 
(C) by striking out "funds appropriated pursuant to section 8 of 
such Act of June 7,1939" in the third sentence and inserting in 
lieu thereof "funds appropriated for the purposes of that Act". 
Computation of 
(2) Section 105 of such Act (7 U.S.C. 1745) is amended by striking 
carry-over. 
©ut "the national stockpile established pursuant to the Act of June 7, 
1939, as amended (50 U.S.C. 98-98h)" and inserting in lieu thereof 
50 use 98h-4. 
Repeal. 
50 use 98 note. 
eommodity 
set-£iside, 
reduction. 
PUBLIC LAW 96-41—JULY 30, 1979 
93 STAT. 325 
"the National Defense Stockpile established by the Strategic and 
Critical Materials Stock Piling Act (50 U.S.C. 98 et seq.)". 
O
b
) Section 4(ti) of the Commodity Credit Corporation Charter Act 
(15 U.S.C. 714b(h)) is amended— 
(1) by striking out "section 2 of the Strategic and Critical 
Materials Stock Piling Act (60 Stat. 596)" and inserting in lieu 
thereof "section 3 of the Strategic and Critical Materials Stock 
Piling Act (50 U.S.C. 98a)"; and 
(2) by striking out "the Munitions Board of the National 
Militaiy Establishment" and inserting in lieu thereof "the 
President'' 
(c) Section 303(f) of the Defense Production Act of 1950 (50 U.S.C. 
App. 2093(f)) is amended— 
(1) by striking out "the national stockpile established pursuant 
to the Act of 
June 7,1939, as amended (50 U.S.C. 98-98h)," in the 
first sentence and inserting in lieu thereof "the National Defense 
Stockpile established by the Strategic and Critical Materials 
Stock Pilmg Act (50 U.S.C. 98 et seq.)"; and 
(2) by striking out "from funds available under such Act of 
June 7, 1939, as amended" and inserting in lieu thereof "from 
funds appropriated for the purposes of 
such Act". 
(d) Section 204(f) of the Federal Property and Administrative 
Services Act of 1949 (40 U.S.C. 485(f)) is amended bv striking out "the 
Munitions Board" and inserting in lieu thereof "the President". 
SEC. 4. Any provision authorizing the enactment of new budget 
authority contained in the amendments made by this Act shall be 
effective on October 1,1979. 
Approved July 30, 1979. 
Commodity 
Credit 
Corporation, 
general powers. 
50 u s e 98a. 
50 u s e 98b. 
Transfer of 
excess materials 
to stockpile. 
Acceptance of 
property in lieu 
of cash. 
Effective date. 
50 u s e 98 note. 
LEGISLATIVE HISTORY: 
HOUSE REPORT No. 96-46 (Comm. on Armed Services). 
SENATE REPORT No. 96-201 (Comm. on Armed Services). 
CONGRESSIONAL RECORD, Vol. 125 (1979): 
Mar. 19, considered and passed House. 
June 13, considered and passed Senate, amended. 
July 13, House concurred in Senate amendment.