[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 5251 Introduced in Senate (IS)]
<DOC>
118th CONGRESS
2d Session
S. 5251
To establish a pilot program to support domestic critical material
processing, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
September 25, 2024
Mr. Hickenlooper (for himself, Mr. Graham, Mr. Young, and Mr. Coons)
introduced the following bill; which was read twice and referred to the
Committee on Energy and Natural Resources
_______________________________________________________________________
A BILL
To establish a pilot program to support domestic critical material
processing, 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 ``Critical Materials Future Act of
2024''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Country of risk.--The term ``country of risk'' has the
meaning given the term in section 10114(a) of the Research and
Development, Competition, and Innovation Act (42 U.S.C.
18912(a)).
(2) Critical material.--The term ``critical material'' has
the meaning given the term in section 7002(a) of the Energy Act
of 2020 (30 U.S.C. 1606(a)).
(3) Domestic.--The term ``domestic'' means facilities
operating within the United States or within any territory or
possession of the United States.
(4) Eligible project.--The term ``eligible project'' means
a project that refines and processes or recycles raw critical
materials into purified forms suitable for first-use
applications.
(5) Entity of concern.--
(A) In general.--The term ``entity of concern'' has
the meaning given the term in section 10114(a) of the
Research and Development, Competition, and Innovation
Act (42 U.S.C. 18912(a)); and
(B) Inclusion.--The term ``entity of concern''
includes an entity that the Secretary has determined,
using a risk-based approach, is subject to the control
or influence of a foreign nation whose strategic
interests concerning critical materials does not align
with the strategic interests of the United States.
(6) Innovative financial tools.--The term ``innovative
financial tools'' means financial instruments to support
demand-side economic mechanisms, including--
(A) pricing support mechanisms, such as contracts
for difference and price floors, advanced market
commitments, and forward contracts; and
(B) other transactions that the Secretary may enter
into under section 646 of the Department of Energy
Organization Act (42 U.S.C. 7256).
(7) Pilot program.--The term ``Pilot Program'' means the
Domestic Critical Material Processing Pilot Program established
under section 4(a).
(8) Reliable sources.--
(A) In general.--The term ``reliable source'' has
the meaning given the term in section 12 of the
Strategic and Critical Materials Stock Piling Act (50
U.S.C. 98h-3).
(B) Inclusions.--The term ``reliable source''
includes facilities owned by, controlled by, or subject
to the jurisdiction of any country--
(i) with which the United States has a free
trade agreement in effect; and
(ii) designated a major non-NATO ally under
section 517 of the Foreign Assistance Act of
1961 (22 U.S.C. 2321k).
(9) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
SEC. 3. PURPOSES.
The purposes of this Act are--
(1) to support domestic critical material processing with
innovative financial tools to reduce supply chain
vulnerabilities and enhance energy and national security; and
(2) to evaluate the effectiveness of innovative financial
tools in supporting investment in and expanding domestic
critical materials processing, including the impact of
different support mechanisms on project development for various
critical materials and fostering more liquid, transparent, and
predictable markets for critical materials.
SEC. 4. DOMESTIC CRITICAL MATERIAL PROCESSING PILOT PROGRAM.
(a) Establishment.--Not later than 180 days after the date of
enactment of this Act, the Secretary shall establish a pilot program,
to be known as the ``Domestic Critical Material Processing Pilot
Program'', to support not fewer than 3 domestic critical material
processing projects.
(b) Objectives.--The objectives of the Pilot Program are--
(1) to provide financial stability and attract private
investment in eligible domestic critical material processing
projects;
(2) to analyze how different financial tools influence
critical material market dynamics and projects and the
estimated level of financial support needed to secure reliable
United States supply chains for various critical materials and
support a sufficient domestic critical materials processing
industry; and
(3) to reduce supply chain vulnerabilities and enhance
energy security and national security.
(c) Requirements.--
(1) Implementation.--
(A) Regulations.--Not later than 180 days after the
date of enactment of this Act, the Secretary shall
issue regulations to implement the Pilot Program.
(B) Other transaction authority.--In carrying out
the Pilot Program, the Secretary shall have the
authority to enter into other transactions in the same
manner and subject to the same terms and conditions as
transactions that the Secretary may enter into under
section 646 of the Department of Energy Organization
Act (42 U.S.C. 7256).
(C) Flexible hiring authority.--The Secretary may
appoint and fix the compensation of such temporary
personnel as may be necessary to carry out and
implement the Pilot Program, without regard to the
provisions of subchapter I of chapter 33 of title 5,
United States Code, governing appointments in
competitive service and compensation of personnel.
(D) Consultation.--The Secretary shall consult
outside stakeholders and experts, including mining and
critical material processing industry representatives,
financial experts, and academic researchers, during
development of the Pilot Program for purposes of
improving the effectiveness and efficiency of the Pilot
Program.
(2) Diversity.--The Pilot Program shall provide support for
the processing of not fewer than 3 different types of critical
materials in order to gain insight into the impact of
innovative financial tools on different critical material
markets.
(3) Sunset.--The Pilot Program shall terminate on the date
that is not later than 5 years after the date the Pilot Program
is established under subsection (a).
(d) Applications.--
(1) In general.--Applications under the Pilot Program for
eligible projects shall be submitted to the Secretary at such
time, in such manner, and containing such information as the
Secretary may require.
(2) Selection criteria.--
(A) In general.--The Secretary shall select
applications under the Pilot Program for eligible
projects based on--
(i) the potential of the eligible project
to enhance the energy and national security of
the United States;
(ii) the economic competitiveness of the
eligible project;
(iii) the prioritization requirements
described in subparagraph (B); and
(iv) other factors, as determined by the
Secretary, in coordination with the agencies
described in subsection (e).
(B) Priority.--In selecting applications under the
Pilot Program for eligible projects, the Secretary
shall prioritize eligible projects--
(i) that use feedstock from domestic and
reliable sources, with higher priority given to
eligible projects that have greater use of
feedstock from those sources; and
(ii) the applicants of which have offtake
agreements with domestic and reliable sources
for at least a majority of their processed
products.
(3) Timeline.--The Secretary shall select applications
under the Pilot Program for eligible projects not later than 1
year after the date of enactment of this Act.
(e) Coordination.--
(1) In general.--To ensure the efficient implementation and
operation of the Pilot Program, the Secretary shall coordinate
with--
(A) the Secretary of Commerce;
(B) the Secretary of Defense;
(C) the Secretary of the Interior;
(D) the Secretary of State;
(E) the Director of the United States Geological
Survey;
(F) the United States Trade Representative; and
(G) the heads of other Federal departments and
agencies, as determined by the Secretary.
(2) Security research and development.--When selecting
applications and determining the level of financial support for
each project under the Pilot Program, the Secretary shall
coordinate with the Secretary of Defense to incorporate
insights from the Open Price Exploration for National Security
research and development program of the Defense Advanced
Research Projects Agency.
(f) Study.--
(1) In general.--Not later than 2 years after the date on
which the Pilot Program terminates under subsection (c)(3), the
Secretary shall conduct and publish a study on--
(A) the impact of innovative financial tools on the
critical materials sector and the relative cost-
effectiveness of those tools in supporting domestic
critical materials processing projects and developing
more liquid, transparent, and predictable markets for
critical materials;
(B) the estimated level of financial support needed
to secure reliable United States supply chains for
various critical materials and support a sufficient
domestic critical materials processing industry;
(C) the potential of critical material recycling to
support the domestic critical materials market;
(D) the effectiveness of the Pilot Program,
including an evaluation of each eligible project
supported by the Pilot Program; and
(E) whether the models of the Open Price
Exploration for National Security research and
development program of the Defense Advanced Research
Projects Agency allowed the Pilot Program to better
anticipate market trends, optimize resource allocation,
and provide the appropriate level of support based on
current and future critical material market needs.
(2) Insights.--The study under paragraph (1) shall include
insights into concerns of private investors in different
critical material markets and the impact of innovative
financial tools on catalyzing final investment decisions.
(3) Stakeholder engagement.--The study under paragraph (1)
shall be carried out in consultation with relevant
stakeholders, as determined by the Secretary, including mining
and critical material processing industry representatives,
financial experts, and academic researchers.
(4) DARPA open program.--The Secretary shall share the
results of the study under paragraph (1) with the Open Price
Exploration for National Security research and development
program of the Defense Advanced Research Projects Agency to
inform ongoing research and development of tools to support
transparency in domestic critical materials markets.
(g) Report.--
(1) In general.--The Secretary shall submit to the
Committees on Energy and Natural Resources, Foreign Relations,
and Armed Services of the Senate, and the Committees on Natural
Resources, Energy and Commerce, and Armed Services of the House
of Representatives, an annual report for each year that the
Pilot Program is carried out.
(2) Contents.--The report under paragraph (1) shall
include--
(A) activities, expenditures, and outcomes of the
Pilot Program;
(B) recommendations to Congress on the continuation
or expansion of the Pilot Program; and
(C) recommendations for how the Federal Government
should use innovative financial tools--
(i) to increase domestic critical materials
processing capacity;
(ii) to mitigate market volatility;
(iii) to boost price transparency in
critical materials markets;
(iv) to leverage market indices in
countries other than those designated as
countries of risk;
(v) to ensure long-term adequate supplies
of critical materials for the economy of the
United States; and
(vi) to increase the domestic recycling of
critical materials.
(h) Funding.--
(1) Financial mechanisms.--
(A) In general.--In establishing and carrying out
the Pilot Program, the Secretary shall enter into
agreements, including contracts, grants, and
cooperative agreements, and other transactions, as
determined by the Secretary, to enable the use of
innovative financial tools to support domestic critical
material processing projects.
(B) Authority.--In carrying out subparagraph (A),
the Secretary may use innovative financial tools,
including price support such as contracts for
differences, and leverage functions to develop and
drive critical materials processing to entities that
are not entities of concern, under such terms and
conditions as the Secretary determines to be necessary
or appropriate.
(2) Reinvestment of revenue.--
(A) Establishment.--There is established in the
Treasury of the United States a fund, to be known as
the ``Critical Materials Revolving Fund'' (referred to
in this paragraph as the ``Fund'').
(B) Purposes.--The Fund shall be available to the
Secretary as a revolving fund--
(i) to reinvest amounts generated from
eligible projects into new critical materials
processing projects under the Pilot Program;
and
(ii) to further enhance the objectives of
the Pilot Program.
(3) Authorization of appropriations.--There is authorized
to be appropriated to the Secretary to carry out this Act
$750,000,000, to remain available until expended.
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