SB 112-34: Domestic Rare Earth Metals Act (Passed)

[Mr. Reactionary]

DOMESTIC RARE EARTH METALS ACT

TITLE I: DEFINITIONS

1. In this Act:

A. Concentrated rare earth element means a rare earth element that has been extracted or separated from raw materials and concentrated.

B. Covered entity means a private entity, a consortium of private entities, or a consortium of public and private entities with a demonstrated ability to substantially finance, construct, expand, or technologically upgrade a covered facility.

C. Covered facility means a facility located in a State that carries out the metallurgy of rare earth elements for the production of finished rare earth products.

D. Covered incentive means an incentive offered by a Federal, Regional, State, local, or Tribal governmental entity to a covered entity for the purposes of constructing within the jurisdiction of the governmental entity a covered facility; or expanding or technologically upgrading an existing facility within that jurisdiction to be a covered facility; and a workforce-related incentive, including a grant agreement relating to workforce training or vocational education, any concession with respect to real property, funding for research and development with respect to rare earth elements and finished rare earth products, and any other incentive determined appropriate by the Secretary of State.

E. Finished rare earth product means a product composed of metal powders, such as rare earth oxides and rare earth salts, including chlorides and nitrates;  metals containing rare earth elements; alloys; or magnets; and any other value-added product that is composed fully or partially of rare earth elements.

F. Foreign entity means a government of a foreign country and a foreign political party; a natural person who is not a lawful permanent resident of Atlasia; a citizen or national of Atlasia; or any other protected individual (as defined in section 274B(a)(3) of the Immigration and Nationality Act (8 U.S.C. 1324b(a)(3))); and a partnership, association, corporation, organization, or other combination of persons organized under the laws of or having its principal place of business in a foreign country. The term foreign entity includes: any person owned by, controlled by, or subject to the jurisdiction or direction of a foreign entity; any person, wherever located, who acts as an agent, representative, or employee of a foreign entity; any person who acts in any other capacity at the order, request, or under the influence, direction, or control, of a foreign entity; or a person the activities of which are directly or indirectly supervised, directed, controlled, financed, or subsidized in whole or in majority part by a foreign entity; any person who directly or indirectly through any contract, arrangement, understanding, relationship, or otherwise, owns 25 percent (25%) or more of the equity interests of a foreign entity; any person with significant responsibility to control, manage, or direct a foreign entity; any person, wherever located, who is a citizen or resident of a country controlled by a foreign entity; and any corporation, partnership, association, or other organization organized under the laws of a country controlled by a foreign entity.

G. Foreign entity of concern means any foreign entity that is designated as a foreign terrorist organization by the Secretary of State under section 219 of the Immigration and Nationality Act (8 U.S.C. 1189); included on the list of specially designated nationals and blocked persons maintained by the Office of Foreign Assets Control of the Department of the Interior; owned by, controlled by, or subject to the jurisdiction, direction, or otherwise under the undue influence of a government of a covered nation (as defined in section 2533c(d) of title 10, U.S.C.); alleged by the Attorney General to have been involved in activities for which a conviction was obtained under 18 U.S.C. 37 (commonly known as the ``Espionage Act''); 18 U.S.C. 951 or 1030; (iii) 18 U.S.C. 90 (commonly known as the ``Economic Espionage Act of 1996''); the Arms Export Control Act (22 U.S.C. 2751 et seq.); sections 224, 225, 226, 227, or 236 of the Atomic Energy Act of 1954 (42 U.S.C. 2274- 2278; 2284); or the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.); or  determined by the Secretary if State, to be engaged in unauthorized conduct that is detrimental to the national security or foreign policy of Atlasia under this Act.  

H. Metallurgy means the process of producing finished rare earth products from concentrated rare earth elements.

I. Processed or refined means any process by which raw rare earth metals are changed, mixed, or otherwise manipulated to render the metal usable for manufacturing everyday items, including computer chips or circuit boards.

J. Rare earth element means a natural element associated with the metallic element scandium, with atomic number 21; the metallic element yttrium, with atomic number 39; or any of the series of 15 metallic elements between lanthanum, with atomic number 57, and lutetium, with atomic number 71, on the periodic table.

K. Rare earth metals means beryllium, cerium, cobalt, dysprosium, erbium, europium, gadolinium, graphite, holmium, lanthanum, lithium, lutetium, manganese, neodymium, praseodymium, promethium, samarium, scandium, tantalum, terbium, thulium, tungsten, ytterbium, and yttrium.

TITLE II: STRATEGIC RESERVE

1. It is the policy of Atlasia to provide for the establishment of a strategic rare earth metals and rare earth metal products reserve.

2. Not later than 270 days after the date of the enactment of this Act, the Secretary of the Interior and the Secretary of State shall determine the strategic requirements of Atlasia regarding stockpiles of rare earth metals and processed and refined rare earth metal products; and the requirements for such metals and products to support Atlasia for one (1) year in the event of a supply disruption. In determining this need, they shall take into consideration the needs of the Armed Forces, the defense industrial and technology sectors, and any places, organizations, physical infrastructure, or digital infrastructure designated as critical to the national security of Atlasia.

2. Not later than two (2) years after the determination is made, the government shall take such actions as are necessary to procure all types of rare earth metals and processed and refined rare earth metal products in appropriate quantities to support the strategic requirements described in the determination.

3. $10 billion is hereby appropriated for such purposes. Any unneeded funds shall be deposited bavk into the treasury after two (2) years.

TITLE III: COUNTRY OF ORIGIN LABELING

1. The Secretary of State shall require that any contractor that provides to the Department of State a system with a rare earth metal permanent magnet disclose, along with delivery of the system, the provenance of the magnet.

2. A disclosure under this title shall include an identification of the country or countries in which the rare earth metals used in the magnet were mined; the rare earth metals were refined into oxides; the rare earth metals were made into metals and alloys; and the magnet was sintered or bonded and magnetized.

3. If a contractor cannot make the disclosure required by this title with respect to a magnet, the Secretary shall require the contractor to establish and implement a supply chain tracking system in order to make the disclosure not later than 180 days after providing the magnet to the Department of State.

TITLE IV: NO CHINESE METALS IN MILITARY SYSTEMS

1. The Secretary of State shall require that, for any contract entered into or renewed on or after December 31, 2025, for the procurement of a system the export of which is restricted or controlled under the Arms Export Control Act (22 U.S.C. 2751 et seq.), no rare earth metals processed or refined in the People's Republic of China may be included in the system.

2. The Secretary may waive the restriction under this title upon a determination that rare earth metals of sufficient quantity and quality are not available at reasonable prices from sources outside of the People's Republic of China; and such a waiver is in the interests of national security.

TITLE V: UNFAIR TRADE PRACTICES

1. Not later than ninety (90) days after the date of the enactment of this Act, the Secretary of State, shall initiate an investigation under title III of the Trade Act of 1974 (19 U.S.C. 2411 et seq.) to determine whether acts, policies, and practices of the Government of the People's Republic of China related to technology transfer, intellectual property, or innovation with respect to rare earth metal mining, separation, metallization, alloying, or magnet manufacturing, or related processes, are acts, policies, and practices described in subsection (a) or (b) of section 301 of that Act (19 U.S.C. 2411).
 

TITLE VI: DOMESTIC PRODUCTION

1. The Secretary of the Interior shall establish a program to provide Federal financial assistance to covered entities to incentivize investment in covered facilities, subject to the availability of appropriations for that purpose.

2. In order for a covered entity to qualify for financial assistance under this title, the covered entity shall demonstrate to the Secretary that the covered entity has a documented interest in constructing a covered facility; or expanding or technologically upgrading a facility owned by the covered entity to be a covered facility; and with respect to the project for which the covered entity is seeking financial assistance, the covered entity has been offered a covered incentive; made commitments to worker and community investment, including through training and education benefits paid by the covered entity; and programs to expand employment opportunity for economically disadvantaged individuals; secured commitments from regional educational and training entities and institutions of higher education to provide workforce training, including programming for training and job placement of economically disadvantaged individuals; and an executable plan to sustain a covered facility without additional Federal financial assistance under this subsection for facility support.

3. The Secretary may not approve an application submitted by a covered entity unless the Secretary confirms that the covered entity has satisfied the eligibility criteria; determines that the project for which the covered entity is seeking financial assistance is in the interest of Atlasia; and has notified the President before making any commitment to provide an award of financial assistance to any covered entity in an amount that exceeds $10,000,000; or if the Secretary determines, in consultation with the Secretary of State, that the covered entity is a foreign entity of concern, or is substantially controlled thereby.

4. In reviewing an application submitted under this title the Secretary may consider whether the covered entity has previously received financial assistance under this subsection; the governmental entity offering the applicable covered incentive has benefitted from financial assistance previously provided under this subsection; the covered entity has demonstrated that the covered entity is responsive to the national security needs or requirements; if practicable, a consortium that is considered a covered entity includes a small business concern, notwithstanding 13 CFR 121.103; and the covered entity intends to produce finished products for use by the government of Atlasia, the defense industry, or critical energy infrastructure.

5. To the maximum extent practicable, the Secretary shall prioritize awarding financial assistance under this title to a covered entity that utilizes raw material feedstock sourced from one (1) or more offtake agreements with entities that are not foreign entities of concern; utilizes raw material feedstock sourced from two (2) or more entities; offtake agreements; or geographic locations; utilizes concentrated rare earth elements sourced from two (2) or more entities; offtake agreements; or geographic locations; and intends to produce finished products for use by the government of Atlasia, the defense industry, or critical energy infrastructure.

6. The Secretary may request records and information from a covered entity that submitted an application under this title to review the status of a covered entity. The covered entity shall provide the records and information requested by the Secretary.

7. The Secretary shall determine the appropriate amount and funding type for each financial assistance award provided to a covered entity under this title. The total Federal investment in any individual project receiving a financial assistance award under this subsection shall not exceed $500,000,000, unless the Secretary, in consultation with the Secretary of State, recommends to the President, and the President agrees, that a larger investment is necessary to significantly increase the proportion of reliable domestic supply of finished rare earth products relevant for national security and economic competitiveness that can be met through domestic production; and to meet the needs of national security.

8. A covered entity that receives a financial assistance award under this title may only use the financial assistance award amounts to finance:

A. the construction of a covered facility (including equipment) or the expansion or technological upgrade of a facility (including equipment) of the covered entity to be a covered facility, as documented in the application, as determined necessary by the Secretary for purposes relating to the national security and economic competitiveness of Atlasia;

B. to support workforce development for a covered facility;

C. to support site development and technological upgrade for a covered facility; and

D. to pay reasonable costs relating to the operating expenses for a covered facility, including specialized workforce, essential materials, and complex equipment maintenance.

9. For all financial assistance awards of more than $10,000,000 provided to covered entities, the Secretary shall, at the time of making the award, determine the target dates by which a covered entity shall commence and complete the applicable project. If the covered entity receiving a financial assistance award of more than $10,000,000 does not complete the applicable project by the applicable target date, the Secretary shall progressively recover up to the full amount of the award. In the case of projects that do not meet the applicable target date, the Secretary may waive the requirement to recover the financial award provided for the project after making a formal determination that circumstances beyond the ability of the covered entity to foresee or control are responsible for the delay.

10. Before entering into an agreement with a foreign entity to conduct joint research or technology licensing, or to share intellectual property, a covered entity that has received a financial assistance award shall notify the Secretary of the intent to enter into such an agreement; and may only enter into such an agreement if the Secretary determines the foreign entity is not a foreign entity of concern. The Secretary shall recover the full amount of a financial assistance award provided to a covered entity if, during the applicable term of the award, the covered entity knowingly engages in any joint research, technology licensing, or intellectual property sharing effort with a foreign entity of concern that relates to a technology or product that raises national security concerns, as determined by the Secretary, on the condition that the determination of the Secretary shall have been communicated to the covered entity before the covered entity engaged in the joint research, technology licensing, or intellectual property sharing.

11. A covered entity to which the Secretary awards Federal financial assistance under this subsection shall enter into an agreement that specifies that, during the 5-year period immediately following the award of the Federal financial assistance, the covered entity will not make shareholder distributions in excess of profits.

12. Funding awarded under this act shall be divided as equally as is practicable between each of the three (3) Regions.

13. Any recipient of funds under this Title shall adopt and implement a Cybersecurity Plan approved by the President that is capable of adequately protecting the facility funded by this act as well as any other property owned, controlled, or managed by the recipient.

14. Any recipient of funds under this act shall be considered contractors for purposes of the Stopping Sino-Espionage Act.

15. Funding for this title is hereby authorized to be appropriated in the following amounts: $1.5 Billion for fiscal year 2023; and $200 Million for each of fiscal years 2024 through 2027.

Part 1

[Mr. Reactionary]

TITLE VII: PROMOTING SAFER FOREIGN SUPPLY CHAINS

1. It shall be the policy of Atlasia to encourage countries that are allies of Atlasia to eliminate their dependence on non-allied countries for rare earth metals to the maximum extent practicable.

2. To assist in this title, the Secretary of State shall provide funding through a common funding mechanism to support the development and adoption of secure rare earth supply chains. The Rare Earth Sourcing Trust Fund (RESTF) is hereby created for such purpose.

3. Amounts in the RESTF shall be available to the Secretary of State, on and after the date on which the Secretary enters into an arrangement or agreement with the governments of countries that are partners of Atlasia, as determined by the Secretary of State, to participate in the common funding mechanism. Before entering into an arrangement or agreement, the Secretary of State, in consultation with the Secretary of Interior, shall ensure that any government that will participate in the arrangement or agreement maintains export control licensing policies with respect to exports of finished rare earth products substantively equivalent to Atlasia with respect to restrictions on such exports to the People's Republic of China.

4. The Secretary of State may establish a common funding mechanism, in coordination with the governments of countries that are partners of Atlasia, that uses amounts from the RESTF to support the development and adoption of secure rare earth supply chains, including for research and development collaborations among countries participating in the mechanism; and supplementing bids by foreign entities that are not foreign entities of concern to secure offtake agreements with entities that mine rare earth elements.

5. In establishing and sustaining a common funding mechanism, the Secretary of State shall seek to leverage amounts from the RESTF to secure contributions to the mechanism from the governments of countries participating in the mechanism, including with respect to cost sharing and other cooperative measures leading to the development and adoption of secure rare earth supply chains. The Secretary shall promote efforts among countries participating in the mechanism to establish transparency requirements for any subsidies or other financial benefits (including revenue foregone) provided to rare earth firms located in or outside such countries; to establish processes similar to the process of the Committee on Foreign Investment in Atlasia under section 721 of the Defense Production Act of 1950 (50 U.S.C. 4565) for intervening to preempt foreign entities of concern from investing in, purchasing, or assuming control of entities, intellectual property, and equipment that are created by or benefit from investments by the mechanism;  to establish consistent policies with respect to countries that are not participating in the mechanism; and do not meet established transparency requirements; to promote harmonized treatment of finished rare earth products and verification processes for raw materials or products being exported to a country considered a national security risk by the government of a country participating in the mechanism; to establish consistent policies among the governments of countries participating in the mechanism and common policies among countries that are not participating to address nonmarket economy countries as the behavior of such countries pertains to rare earth elements; to align policies with respect to supply chain integrity and security, including with respect to protection and enforcement of intellectual property rights; and to promote harmonized foreign direct investment screening measures and export control policies with respect to rare earth elements to align with national, multilateral, and plurilateral security priorities.

6. None of the funds authorized to be appropriated to carry out this title may be provided to a foreign entity of concern.

7. $10 billion is hereby appropriated for such purposes.

TITLE VIII: DOMESTIC MINING AND WORKFORCE

1. The Secretary of Interior through the Geologic Survey shall conduct and compile an inventory of domestic supplies of rare earth elements and metals that could be mined.

2. Any environmental impact statement (EIS) for the mining of domestic rare earth elements and metals shall be made within 45 days of request and any federal permit for the mining of domestic rare earth elements and metals shall be approved or denied within 90 days of submission. The person requesting the EIS or permit may pay a reasonable expedited processing fee to ensure such reviews are timely made.

3. As soon as practicable after the date of enactment of this Act, the Secretary of Interior shall establish an initiative under which the Secretary shall work with the Director of the National Science Foundation, the Critical Minerals Subcommittee of the National Science and Technology Council, the private sector, institutions of higher education, and workforce training entities to incentivize and expand participation in graduate and undergraduate programs, and to develop workforce training programs and apprenticeships, relating to advanced rare earth element mining, separation, processing, metallurgy, and advanced equipment maintenance capabilities.

4. The Director of the National Science Foundation shall award grants, on a competitive basis, to institutions of higher education or nonprofit organizations (or consortium of such institutions or organizations) to support basic research that will accelerate innovation to advance critical minerals mining strategies and technologies for the purpose of making better use of domestic resources and eliminating national reliance on minerals and mineral materials that are subject to supply disruptions.

5. $1 Billion is hereby appropriated for such purposes.

TITLE IX: ENACTMENT

1. Unless otherwise specified herein, this act shall take effect immediately.

Part 2

Sponsor: Reactionary
Debate is now open on this bill.

[Mr. Reactionary]

This bill is designed to protect our national security by promoting domestic rare earth metal mining, sourcing, refining, and processing. China has cornered the global REM market and for our strategic interests we should strive to be independent of them. This bill includes:

Funding to promote domestic REM processing and job training

Creation of a strategic reserve of REM

Foreign source documentation requirements and a phase out of REM sourced from China in military contracts

Protocols to help allies become independent of chinese sourcing

Inventorying of domestic REM sources

Expedited permit review for domestic REM mining

Am investigation into unfair chibese REM practices.

[Southern Senator North Carolina Yankee]

Like I said in the other thread and other threads for that matter, we need to be cognizant that in the modern age, the geopolitical conflict will occur not against the global market, but within it aiming to undermine our national sovereignty and security thus making sure we are in a weaker position in terms of diplomatic actions as such, not to mention the risk of being extorted by a hostile foreign power for critical resources.

It is therefore essential that we put aside the "theoretical" benefits of efficiencies garnered from unfettered market liberalism and instead operate from a position of national interest with a practical eye towards ensuring that we have secure sources for these key resources both internally and within our network of friend allies and neighbors as well.

This bill has my support thus.

[Deep Dixieland Senator, Muad'dib (OSR MSR)]

Just waiting for 'two minute' WD, and the follower of orders, S019, to motion to table this important bill.

[West_Midlander]

Just waiting for 'two minute' WD, and the follower of orders, S019, to motion to table this important bill.

Their campaign slogan should be "Vote to table."

[Utah Neolib]

DOMESTIC RARE EARTH METALS ACT

TITLE I: DEFINITIONS

1. In this Act:

A. Concentrated rare earth element means a rare earth element that has been extracted or separated from raw materials and concentrated.

B. Covered entity means a private entity, a consortium of private entities, or a consortium of public and private entities with a demonstrated ability to substantially finance, construct, expand, or technologically upgrade a covered facility.

C. Covered facility means a facility located in a State that carries out the metallurgy of rare earth elements for the production of finished rare earth products.

D. Covered incentive means an incentive offered by a Federal, Regional, State, local, or Tribal governmental entity to a covered entity for the purposes of constructing within the jurisdiction of the governmental entity a covered facility; or expanding or technologically upgrading an existing facility within that jurisdiction to be a covered facility; and a workforce-related incentive, including a grant agreement relating to workforce training or vocational education, any concession with respect to real property, funding for research and development with respect to rare earth elements and finished rare earth products, and any other incentive determined appropriate by the Secretary of State.

E. Finished rare earth product means a product composed of metal powders, such as rare earth oxides and rare earth salts, including chlorides and nitrates;  metals containing rare earth elements; alloys; or magnets; and any other value-added product that is composed fully or partially of rare earth elements.

F. Foreign entity means a government of a foreign country and a foreign political party; a natural person who is not a lawful permanent resident of Atlasia; a citizen or national of Atlasia; or any other protected individual (as defined in section 274B(a)(3) of the Immigration and Nationality Act (8 U.S.C. 1324b(a)(3))); and a partnership, association, corporation, organization, or other combination of persons organized under the laws of or having its principal place of business in a foreign country. The term foreign entity includes: any person owned by, controlled by, or subject to the jurisdiction or direction of a foreign entity; any person, wherever located, who acts as an agent, representative, or employee of a foreign entity; any person who acts in any other capacity at the order, request, or under the influence, direction, or control, of a foreign entity; or a person the activities of which are directly or indirectly supervised, directed, controlled, financed, or subsidized in whole or in majority part by a foreign entity; any person who directly or indirectly through any contract, arrangement, understanding, relationship, or otherwise, owns 25 percent (25%) or more of the equity interests of a foreign entity; any person with significant responsibility to control, manage, or direct a foreign entity; any person, wherever located, who is a citizen or resident of a country controlled by a foreign entity; and any corporation, partnership, association, or other organization organized under the laws of a country controlled by a foreign entity.

G. Foreign entity of concern means any foreign entity that is designated as a foreign terrorist organization by the Secretary of State under section 219 of the Immigration and Nationality Act (8 U.S.C. 1189); included on the list of specially designated nationals and blocked persons maintained by the Office of Foreign Assets Control of the Department of the Interior; owned by, controlled by, or subject to the jurisdiction, direction, or otherwise under the undue influence of a government of a covered nation (as defined in section 2533c(d) of title 10, U.S.C.); alleged by the Attorney General to have been involved in activities for which a conviction was obtained under 18 U.S.C. 37 (commonly known as the ``Espionage Act''); 18 U.S.C. 951 or 1030; (iii) 18 U.S.C. 90 (commonly known as the ``Economic Espionage Act of 1996''); the Arms Export Control Act (22 U.S.C. 2751 et seq.); sections 224, 225, 226, 227, or 236 of the Atomic Energy Act of 1954 (42 U.S.C. 2274- 2278; 2284); or the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.); or  determined by the Secretary if State, to be engaged in unauthorized conduct that is detrimental to the national security or foreign policy of Atlasia under this Act.  

H. Metallurgy means the process of producing finished rare earth products from concentrated rare earth elements.

I. Processed or refined means any process by which raw rare earth metals are changed, mixed, or otherwise manipulated to render the metal usable for manufacturing everyday items, including computer chips or circuit boards.

J. Rare earth element means a natural element associated with the metallic element scandium, with atomic number 21; the metallic element yttrium, with atomic number 39; or any of the series of 15 metallic elements between lanthanum, with atomic number 57, and lutetium, with atomic number 71, on the periodic table.

K. Rare earth metals means beryllium, cerium, cobalt, dysprosium, erbium, europium, gadolinium, graphite, holmium, lanthanum, lithium, lutetium, manganese, neodymium, praseodymium, promethium, samarium, scandium, tantalum, terbium, thulium, tungsten, ytterbium, and yttrium.

TITLE II: STRATEGIC RESERVE

1. It is the policy of Atlasia to provide for the establishment of a strategic rare earth metals and rare earth metal products reserve.

2. Not later than 270 days after the date of the enactment of this Act, the Secretary of Internal Affairs and the Secretary of State shall determine the strategic requirements of Atlasia regarding stockpiles of rare earth metals and processed and refined rare earth metal products; and the requirements for such metals and products to support Atlasia for one (1) year in the event of a supply disruption. In determining this need, they shall take into consideration the needs of the Armed Forces, the defense industrial and technology sectors, and any places, organizations, physical infrastructure, or digital infrastructure designated as critical to the national security of Atlasia.

2. Not later than two (2) years after the determination is made, the government shall take such actions as are necessary to procure all types of rare earth metals and processed and refined rare earth metal products in appropriate quantities to support the strategic requirements described in the determination.

3. $10 billion is hereby appropriated for such purposes. Any unneeded funds shall be deposited back into the treasury after two (2) years.

TITLE III: COUNTRY OF ORIGIN LABELING

1. The Secretary of State shall require that any contractor that provides to the Department of State a system with a rare earth metal permanent magnet disclose, along with delivery of the system, the provenance of the magnet.

2. A disclosure under this title shall include an identification of the country or countries in which the rare earth metals used in the magnet were mined; the rare earth metals were refined into oxides; the rare earth metals were made into metals and alloys; and the magnet was sintered or bonded and magnetized.

3. If a contractor cannot make the disclosure required by this title with respect to a magnet, the Secretary shall require the contractor to establish and implement a supply chain tracking system in order to make the disclosure not later than 180 days after providing the magnet to the Department of State.

TITLE IV: NO CHINESE METALS IN MILITARY SYSTEMS

1. The Secretary of State shall require that, for any contract entered into or renewed on or after December 31, 2025, for the procurement of a system the export of which is restricted or controlled under the Arms Export Control Act (22 U.S.C. 2751 et seq.), no rare earth metals processed or refined in the People's Republic of China may be included in the system.

2. The Secretary may waive the restriction under this title upon a determination that rare earth metals of sufficient quantity and quality are not available at reasonable prices from sources outside of the People's Republic of China; and such a waiver is in the interests of national security.

TITLE V: UNFAIR TRADE PRACTICES

1. Not later than ninety (90) days after the date of the enactment of this Act, the Secretary of State, shall initiate an investigation under title III of the Trade Act of 1974 (19 U.S.C. 2411 et seq.) to determine whether acts, policies, and practices of the Government of the People's Republic of China related to technology transfer, intellectual property, or innovation with respect to rare earth metal mining, separation, metallization, alloying, or magnet manufacturing, or related processes, are acts, policies, and practices described in subsection (a) or (b) of section 301 of that Act (19 U.S.C. 2411).
 

TITLE VI: DOMESTIC PRODUCTION

1. The Secretary of the Interior shall establish a program to provide Federal financial assistance to covered entities to incentivize investment in covered facilities, subject to the availability of appropriations for that purpose.

2. In order for a covered entity to qualify for financial assistance under this title, the covered entity shall demonstrate to the Secretary that the covered entity has a documented interest in constructing a covered facility; or expanding or technologically upgrading a facility owned by the covered entity to be a covered facility; and with respect to the project for which the covered entity is seeking financial assistance, the covered entity has been offered a covered incentive; made commitments to worker and community investment, including through training and education benefits paid by the covered entity; and programs to expand employment opportunity for economically disadvantaged individuals; secured commitments from regional educational and training entities and institutions of higher education to provide workforce training, including programming for training and job placement of economically disadvantaged individuals; and an executable plan to sustain a covered facility without additional Federal financial assistance under this subsection for facility support.

3. The Secretary may not approve an application submitted by a covered entity unless the Secretary confirms that the covered entity has satisfied the eligibility criteria; determines that the project for which the covered entity is seeking financial assistance is in the interest of Atlasia; and has notified the President before making any commitment to provide an award of financial assistance to any covered entity in an amount that exceeds $10,000,000; or if the Secretary determines, in consultation with the Secretary of State, that the covered entity is a foreign entity of concern, or is substantially controlled thereby.

4. In reviewing an application submitted under this title the Secretary may consider whether the covered entity has previously received financial assistance under this subsection; the governmental entity offering the applicable covered incentive has benefitted from financial assistance previously provided under this subsection; the covered entity has demonstrated that the covered entity is responsive to the national security needs or requirements; if practicable, a consortium that is considered a covered entity includes a small business concern, notwithstanding 13 CFR 121.103; and the covered entity intends to produce finished products for use by the government of Atlasia, the defense industry, or critical energy infrastructure.

5. To the maximum extent practicable, the Secretary shall prioritize awarding financial assistance under this title to a covered entity that utilizes raw material feedstock sourced from one (1) or more offtake agreements with entities that are not foreign entities of concern; utilizes raw material feedstock sourced from two (2) or more entities; offtake agreements; or geographic locations; utilizes concentrated rare earth elements sourced from two (2) or more entities; offtake agreements; or geographic locations; and intends to produce finished products for use by the government of Atlasia, the defense industry, or critical energy infrastructure.

6. The Secretary may request records and information from a covered entity that submitted an application under this title to review the status of a covered entity. The covered entity shall provide the records and information requested by the Secretary.

7. The Secretary shall determine the appropriate amount and funding type for each financial assistance award provided to a covered entity under this title. The total Federal investment in any individual project receiving a financial assistance award under this subsection shall not exceed $500,000,000, unless the Secretary, in consultation with the Secretary of State, recommends to the President, and the President agrees, that a larger investment is necessary to significantly increase the proportion of reliable domestic supply of finished rare earth products relevant for national security and economic competitiveness that can be met through domestic production; and to meet the needs of national security.

8. A covered entity that receives a financial assistance award under this title may only use the financial assistance award amounts to finance:

A. the construction of a covered facility (including equipment) or the expansion or technological upgrade of a facility (including equipment) of the covered entity to be a covered facility, as documented in the application, as determined necessary by the Secretary for purposes relating to the national security and economic competitiveness of Atlasia;

B. to support workforce development for a covered facility;

C. to support site development and technological upgrade for a covered facility; and

D. to pay reasonable costs relating to the operating expenses for a covered facility, including specialized workforce, essential materials, and complex equipment maintenance.

9. For all financial assistance awards of more than $10,000,000 provided to covered entities, the Secretary shall, at the time of making the award, determine the target dates by which a covered entity shall commence and complete the applicable project. If the covered entity receiving a financial assistance award of more than $10,000,000 does not complete the applicable project by the applicable target date, the Secretary shall progressively recover up to the full amount of the award. In the case of projects that do not meet the applicable target date, the Secretary may waive the requirement to recover the financial award provided for the project after making a formal determination that circumstances beyond the ability of the covered entity to foresee or control are responsible for the delay.

10. Before entering into an agreement with a foreign entity to conduct joint research or technology licensing, or to share intellectual property, a covered entity that has received a financial assistance award shall notify the Secretary of the intent to enter into such an agreement; and may only enter into such an agreement if the Secretary determines the foreign entity is not a foreign entity of concern. The Secretary shall recover the full amount of a financial assistance award provided to a covered entity if, during the applicable term of the award, the covered entity knowingly engages in any joint research, technology licensing, or intellectual property sharing effort with a foreign entity of concern that relates to a technology or product that raises national security concerns, as determined by the Secretary, on the condition that the determination of the Secretary shall have been communicated to the covered entity before the covered entity engaged in the joint research, technology licensing, or intellectual property sharing.

11. A covered entity to which the Secretary awards Federal financial assistance under this subsection shall enter into an agreement that specifies that, during the 5-year period immediately following the award of the Federal financial assistance, the covered entity will not make shareholder distributions in excess of profits.

12. Funding awarded under this act shall be divided as equally as is practicable between each of the three (3) Regions.

13. Any recipient of funds under this Title shall adopt and implement a Cybersecurity Plan approved by the President that is capable of adequately protecting the facility funded by this act as well as any other property owned, controlled, or managed by the recipient.

14. Any recipient of funds under this act shall be considered contractors for purposes of the Stopping Sino-Espionage Act.

15. Funding for this title is hereby authorized to be appropriated in the following amounts: $1.5 Billion for fiscal year 2023; and $200 Million for each of fiscal years 2024 through 2027.

[/quote]

[Mr. Reactionary]

23 hours to object to the amendment.

[Mr. Reactionary]

Amendment is adopted.

I move for a final vote. 24 hours to object.

[Mr. Reactionary]

A final vote is now open until 9 PM Eastern on Friday (like 77.5 hours) or until everyone votes whichever occurs soonest. Please vote aye, nay, or abstain.

DOMESTIC RARE EARTH METALS ACT

TITLE I: DEFINITIONS

1. In this Act:

A. Concentrated rare earth element means a rare earth element that has been extracted or separated from raw materials and concentrated.

B. Covered entity means a private entity, a consortium of private entities, or a consortium of public and private entities with a demonstrated ability to substantially finance, construct, expand, or technologically upgrade a covered facility.

C. Covered facility means a facility located in a State that carries out the metallurgy of rare earth elements for the production of finished rare earth products.

D. Covered incentive means an incentive offered by a Federal, Regional, State, local, or Tribal governmental entity to a covered entity for the purposes of constructing within the jurisdiction of the governmental entity a covered facility; or expanding or technologically upgrading an existing facility within that jurisdiction to be a covered facility; and a workforce-related incentive, including a grant agreement relating to workforce training or vocational education, any concession with respect to real property, funding for research and development with respect to rare earth elements and finished rare earth products, and any other incentive determined appropriate by the Secretary of State.

E. Finished rare earth product means a product composed of metal powders, such as rare earth oxides and rare earth salts, including chlorides and nitrates;  metals containing rare earth elements; alloys; or magnets; and any other value-added product that is composed fully or partially of rare earth elements.

F. Foreign entity means a government of a foreign country and a foreign political party; a natural person who is not a lawful permanent resident of Atlasia; a citizen or national of Atlasia; or any other protected individual (as defined in section 274B(a)(3) of the Immigration and Nationality Act (8 U.S.C. 1324b(a)(3))); and a partnership, association, corporation, organization, or other combination of persons organized under the laws of or having its principal place of business in a foreign country. The term foreign entity includes: any person owned by, controlled by, or subject to the jurisdiction or direction of a foreign entity; any person, wherever located, who acts as an agent, representative, or employee of a foreign entity; any person who acts in any other capacity at the order, request, or under the influence, direction, or control, of a foreign entity; or a person the activities of which are directly or indirectly supervised, directed, controlled, financed, or subsidized in whole or in majority part by a foreign entity; any person who directly or indirectly through any contract, arrangement, understanding, relationship, or otherwise, owns 25 percent (25%) or more of the equity interests of a foreign entity; any person with significant responsibility to control, manage, or direct a foreign entity; any person, wherever located, who is a citizen or resident of a country controlled by a foreign entity; and any corporation, partnership, association, or other organization organized under the laws of a country controlled by a foreign entity.

G. Foreign entity of concern means any foreign entity that is designated as a foreign terrorist organization by the Secretary of State under section 219 of the Immigration and Nationality Act (8 U.S.C. 1189); included on the list of specially designated nationals and blocked persons maintained by the Office of Foreign Assets Control of the Department of the Interior; owned by, controlled by, or subject to the jurisdiction, direction, or otherwise under the undue influence of a government of a covered nation (as defined in section 2533c(d) of title 10, U.S.C.); alleged by the Attorney General to have been involved in activities for which a conviction was obtained under 18 U.S.C. 37 (commonly known as the ``Espionage Act''); 18 U.S.C. 951 or 1030; (iii) 18 U.S.C. 90 (commonly known as the ``Economic Espionage Act of 1996''); the Arms Export Control Act (22 U.S.C. 2751 et seq.); sections 224, 225, 226, 227, or 236 of the Atomic Energy Act of 1954 (42 U.S.C. 2274- 2278; 2284); or the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.); or  determined by the Secretary if State, to be engaged in unauthorized conduct that is detrimental to the national security or foreign policy of Atlasia under this Act.  

H. Metallurgy means the process of producing finished rare earth products from concentrated rare earth elements.

I. Processed or refined means any process by which raw rare earth metals are changed, mixed, or otherwise manipulated to render the metal usable for manufacturing everyday items, including computer chips or circuit boards.

J. Rare earth element means a natural element associated with the metallic element scandium, with atomic number 21; the metallic element yttrium, with atomic number 39; or any of the series of 15 metallic elements between lanthanum, with atomic number 57, and lutetium, with atomic number 71, on the periodic table.

K. Rare earth metals means beryllium, cerium, cobalt, dysprosium, erbium, europium, gadolinium, graphite, holmium, lanthanum, lithium, lutetium, manganese, neodymium, praseodymium, promethium, samarium, scandium, tantalum, terbium, thulium, tungsten, ytterbium, and yttrium.

TITLE II: STRATEGIC RESERVE

1. It is the policy of Atlasia to provide for the establishment of a strategic rare earth metals and rare earth metal products reserve.

2. Not later than 270 days after the date of the enactment of this Act, the Secretary of Internal Affairs and the Secretary of State shall determine the strategic requirements of Atlasia regarding stockpiles of rare earth metals and processed and refined rare earth metal products; and the requirements for such metals and products to support Atlasia for one (1) year in the event of a supply disruption. In determining this need, they shall take into consideration the needs of the Armed Forces, the defense industrial and technology sectors, and any places, organizations, physical infrastructure, or digital infrastructure designated as critical to the national security of Atlasia.

2. Not later than two (2) years after the determination is made, the government shall take such actions as are necessary to procure all types of rare earth metals and processed and refined rare earth metal products in appropriate quantities to support the strategic requirements described in the determination.

3. $10 billion is hereby appropriated for such purposes. Any unneeded funds shall be deposited back into the treasury after two (2) years.

TITLE III: COUNTRY OF ORIGIN LABELING

1. The Secretary of State shall require that any contractor that provides to the Department of State a system with a rare earth metal permanent magnet disclose, along with delivery of the system, the provenance of the magnet.

2. A disclosure under this title shall include an identification of the country or countries in which the rare earth metals used in the magnet were mined; the rare earth metals were refined into oxides; the rare earth metals were made into metals and alloys; and the magnet was sintered or bonded and magnetized.

3. If a contractor cannot make the disclosure required by this title with respect to a magnet, the Secretary shall require the contractor to establish and implement a supply chain tracking system in order to make the disclosure not later than 180 days after providing the magnet to the Department of State.

TITLE IV: NO CHINESE METALS IN MILITARY SYSTEMS

1. The Secretary of State shall require that, for any contract entered into or renewed on or after December 31, 2025, for the procurement of a system the export of which is restricted or controlled under the Arms Export Control Act (22 U.S.C. 2751 et seq.), no rare earth metals processed or refined in the People's Republic of China may be included in the system.

2. The Secretary may waive the restriction under this title upon a determination that rare earth metals of sufficient quantity and quality are not available at reasonable prices from sources outside of the People's Republic of China; and such a waiver is in the interests of national security.

TITLE V: UNFAIR TRADE PRACTICES

1. Not later than ninety (90) days after the date of the enactment of this Act, the Secretary of State, shall initiate an investigation under title III of the Trade Act of 1974 (19 U.S.C. 2411 et seq.) to determine whether acts, policies, and practices of the Government of the People's Republic of China related to technology transfer, intellectual property, or innovation with respect to rare earth metal mining, separation, metallization, alloying, or magnet manufacturing, or related processes, are acts, policies, and practices described in subsection (a) or (b) of section 301 of that Act (19 U.S.C. 2411).
 

TITLE VI: DOMESTIC PRODUCTION

1. The Secretary of the Interior shall establish a program to provide Federal financial assistance to covered entities to incentivize investment in covered facilities, subject to the availability of appropriations for that purpose.

2. In order for a covered entity to qualify for financial assistance under this title, the covered entity shall demonstrate to the Secretary that the covered entity has a documented interest in constructing a covered facility; or expanding or technologically upgrading a facility owned by the covered entity to be a covered facility; and with respect to the project for which the covered entity is seeking financial assistance, the covered entity has been offered a covered incentive; made commitments to worker and community investment, including through training and education benefits paid by the covered entity; and programs to expand employment opportunity for economically disadvantaged individuals; secured commitments from regional educational and training entities and institutions of higher education to provide workforce training, including programming for training and job placement of economically disadvantaged individuals; and an executable plan to sustain a covered facility without additional Federal financial assistance under this subsection for facility support.

3. The Secretary may not approve an application submitted by a covered entity unless the Secretary confirms that the covered entity has satisfied the eligibility criteria; determines that the project for which the covered entity is seeking financial assistance is in the interest of Atlasia; and has notified the President before making any commitment to provide an award of financial assistance to any covered entity in an amount that exceeds $10,000,000; or if the Secretary determines, in consultation with the Secretary of State, that the covered entity is a foreign entity of concern, or is substantially controlled thereby.

4. In reviewing an application submitted under this title the Secretary may consider whether the covered entity has previously received financial assistance under this subsection; the governmental entity offering the applicable covered incentive has benefitted from financial assistance previously provided under this subsection; the covered entity has demonstrated that the covered entity is responsive to the national security needs or requirements; if practicable, a consortium that is considered a covered entity includes a small business concern, notwithstanding 13 CFR 121.103; and the covered entity intends to produce finished products for use by the government of Atlasia, the defense industry, or critical energy infrastructure.

5. To the maximum extent practicable, the Secretary shall prioritize awarding financial assistance under this title to a covered entity that utilizes raw material feedstock sourced from one (1) or more offtake agreements with entities that are not foreign entities of concern; utilizes raw material feedstock sourced from two (2) or more entities; offtake agreements; or geographic locations; utilizes concentrated rare earth elements sourced from two (2) or more entities; offtake agreements; or geographic locations; and intends to produce finished products for use by the government of Atlasia, the defense industry, or critical energy infrastructure.

6. The Secretary may request records and information from a covered entity that submitted an application under this title to review the status of a covered entity. The covered entity shall provide the records and information requested by the Secretary.

7. The Secretary shall determine the appropriate amount and funding type for each financial assistance award provided to a covered entity under this title. The total Federal investment in any individual project receiving a financial assistance award under this subsection shall not exceed $500,000,000, unless the Secretary, in consultation with the Secretary of State, recommends to the President, and the President agrees, that a larger investment is necessary to significantly increase the proportion of reliable domestic supply of finished rare earth products relevant for national security and economic competitiveness that can be met through domestic production; and to meet the needs of national security.

8. A covered entity that receives a financial assistance award under this title may only use the financial assistance award amounts to finance:

A. the construction of a covered facility (including equipment) or the expansion or technological upgrade of a facility (including equipment) of the covered entity to be a covered facility, as documented in the application, as determined necessary by the Secretary for purposes relating to the national security and economic competitiveness of Atlasia;

B. to support workforce development for a covered facility;

C. to support site development and technological upgrade for a covered facility; and

D. to pay reasonable costs relating to the operating expenses for a covered facility, including specialized workforce and essential materials.

9. For all financial assistance awards of more than $10,000,000 provided to covered entities, the Secretary shall, at the time of making the award, determine the target dates by which a covered entity shall commence and complete the applicable project. If the covered entity receiving a financial assistance award of more than $10,000,000 does not complete the applicable project by the applicable target date, the Secretary shall progressively recover up to the full amount of the award. In the case of projects that do not meet the applicable target date, the Secretary may waive the requirement to recover the financial award provided for the project after making a formal determination that circumstances beyond the ability of the covered entity to foresee or control are responsible for the delay.

10. Before entering into an agreement with a foreign entity to conduct joint research or technology licensing, or to share intellectual property, a covered entity that has received a financial assistance award shall notify the Secretary of the intent to enter into such an agreement; and may only enter into such an agreement if the Secretary determines the foreign entity is not a foreign entity of concern. The Secretary shall recover the full amount of a financial assistance award provided to a covered entity if, during the applicable term of the award, the covered entity knowingly engages in any joint research, technology licensing, or intellectual property sharing effort with a foreign entity of concern that relates to a technology or product that raises national security concerns, as determined by the Secretary, on the condition that the determination of the Secretary shall have been communicated to the covered entity before the covered entity engaged in the joint research, technology licensing, or intellectual property sharing.

11. A covered entity to which the Secretary awards Federal financial assistance under this subsection shall enter into an agreement that specifies that, during the 5-year period immediately following the award of the Federal financial assistance, the covered entity will not make shareholder distributions in excess of profits.

12. Funding awarded under this act shall be divided as equally as is practicable between each of the three (3) Regions.

13. Any recipient of funds under this Title shall adopt and implement a Cybersecurity Plan approved by the President that is capable of adequately protecting the facility funded by this act as well as any other property owned, controlled, or managed by the recipient.

14. Any recipient of funds under this act shall be considered contractors for purposes of the Stopping Sino-Espionage Act.

15. Funding for this title is hereby authorized to be appropriated in the following amounts: $1.5 Billion for fiscal year 2023; and $200 Million for each of fiscal years 2024 through 2027.

[Mr. Reactionary]

Aye

[KoopaDaQuick 🇵🇸]

Aye

[West_Midlander]

aye

[Saint Milei]

Aye

[Deep Dixieland Senator, Muad'dib (OSR MSR)]

Aye

[PPT Spiral]

Aye

[Southern Senator North Carolina Yankee]

Aye

[Devout Centrist]

Nay

[Utah Neolib]

Aye

[OSR stands with Israel]

Aye

[SevenEleven]

Abstain.

[Mr. Reactionary]

Bill passes 9-1-1-7.

[Mr. Reactionary]

DOMESTIC RARE EARTH METALS ACT

TITLE I: DEFINITIONS

1. In this Act:

A. Concentrated rare earth element means a rare earth element that has been extracted or separated from raw materials and concentrated.

B. Covered entity means a private entity, a consortium of private entities, or a consortium of public and private entities with a demonstrated ability to substantially finance, construct, expand, or technologically upgrade a covered facility.

C. Covered facility means a facility located in a State that carries out the metallurgy of rare earth elements for the production of finished rare earth products.

D. Covered incentive means an incentive offered by a Federal, Regional, State, local, or Tribal governmental entity to a covered entity for the purposes of constructing within the jurisdiction of the governmental entity a covered facility; or expanding or technologically upgrading an existing facility within that jurisdiction to be a covered facility; and a workforce-related incentive, including a grant agreement relating to workforce training or vocational education, any concession with respect to real property, funding for research and development with respect to rare earth elements and finished rare earth products, and any other incentive determined appropriate by the Secretary of State.

E. Finished rare earth product means a product composed of metal powders, such as rare earth oxides and rare earth salts, including chlorides and nitrates;  metals containing rare earth elements; alloys; or magnets; and any other value-added product that is composed fully or partially of rare earth elements.

F. Foreign entity means a government of a foreign country and a foreign political party; a natural person who is not a lawful permanent resident of Atlasia; a citizen or national of Atlasia; or any other protected individual (as defined in section 274B(a)(3) of the Immigration and Nationality Act (8 U.S.C. 1324b(a)(3))); and a partnership, association, corporation, organization, or other combination of persons organized under the laws of or having its principal place of business in a foreign country. The term foreign entity includes: any person owned by, controlled by, or subject to the jurisdiction or direction of a foreign entity; any person, wherever located, who acts as an agent, representative, or employee of a foreign entity; any person who acts in any other capacity at the order, request, or under the influence, direction, or control, of a foreign entity; or a person the activities of which are directly or indirectly supervised, directed, controlled, financed, or subsidized in whole or in majority part by a foreign entity; any person who directly or indirectly through any contract, arrangement, understanding, relationship, or otherwise, owns 25 percent (25%) or more of the equity interests of a foreign entity; any person with significant responsibility to control, manage, or direct a foreign entity; any person, wherever located, who is a citizen or resident of a country controlled by a foreign entity; and any corporation, partnership, association, or other organization organized under the laws of a country controlled by a foreign entity.

G. Foreign entity of concern means any foreign entity that is designated as a foreign terrorist organization by the Secretary of State under section 219 of the Immigration and Nationality Act (8 U.S.C. 1189); included on the list of specially designated nationals and blocked persons maintained by the Office of Foreign Assets Control of the Department of the Interior; owned by, controlled by, or subject to the jurisdiction, direction, or otherwise under the undue influence of a government of a covered nation (as defined in section 2533c(d) of title 10, U.S.C.); alleged by the Attorney General to have been involved in activities for which a conviction was obtained under 18 U.S.C. 37 (commonly known as the ``Espionage Act''); 18 U.S.C. 951 or 1030; (iii) 18 U.S.C. 90 (commonly known as the ``Economic Espionage Act of 1996''); the Arms Export Control Act (22 U.S.C. 2751 et seq.); sections 224, 225, 226, 227, or 236 of the Atomic Energy Act of 1954 (42 U.S.C. 2274- 2278; 2284); or the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.); or  determined by the Secretary if State, to be engaged in unauthorized conduct that is detrimental to the national security or foreign policy of Atlasia under this Act.  

H. Metallurgy means the process of producing finished rare earth products from concentrated rare earth elements.

I. Processed or refined means any process by which raw rare earth metals are changed, mixed, or otherwise manipulated to render the metal usable for manufacturing everyday items, including computer chips or circuit boards.

J. Rare earth element means a natural element associated with the metallic element scandium, with atomic number 21; the metallic element yttrium, with atomic number 39; or any of the series of 15 metallic elements between lanthanum, with atomic number 57, and lutetium, with atomic number 71, on the periodic table.

K. Rare earth metals means beryllium, cerium, cobalt, dysprosium, erbium, europium, gadolinium, graphite, holmium, lanthanum, lithium, lutetium, manganese, neodymium, praseodymium, promethium, samarium, scandium, tantalum, terbium, thulium, tungsten, ytterbium, and yttrium.

TITLE II: STRATEGIC RESERVE

1. It is the policy of Atlasia to provide for the establishment of a strategic rare earth metals and rare earth metal products reserve.

2. Not later than 270 days after the date of the enactment of this Act, the Secretary of Internal Affairs and the Secretary of State shall determine the strategic requirements of Atlasia regarding stockpiles of rare earth metals and processed and refined rare earth metal products; and the requirements for such metals and products to support Atlasia for one (1) year in the event of a supply disruption. In determining this need, they shall take into consideration the needs of the Armed Forces, the defense industrial and technology sectors, and any places, organizations, physical infrastructure, or digital infrastructure designated as critical to the national security of Atlasia.

2. Not later than two (2) years after the determination is made, the government shall take such actions as are necessary to procure all types of rare earth metals and processed and refined rare earth metal products in appropriate quantities to support the strategic requirements described in the determination.

3. $10 billion is hereby appropriated for such purposes. Any unneeded funds shall be deposited back into the treasury after two (2) years.

TITLE III: COUNTRY OF ORIGIN LABELING

1. The Secretary of State shall require that any contractor that provides to the Department of State a system with a rare earth metal permanent magnet disclose, along with delivery of the system, the provenance of the magnet.

2. A disclosure under this title shall include an identification of the country or countries in which the rare earth metals used in the magnet were mined; the rare earth metals were refined into oxides; the rare earth metals were made into metals and alloys; and the magnet was sintered or bonded and magnetized.

3. If a contractor cannot make the disclosure required by this title with respect to a magnet, the Secretary shall require the contractor to establish and implement a supply chain tracking system in order to make the disclosure not later than 180 days after providing the magnet to the Department of State.

TITLE IV: NO CHINESE METALS IN MILITARY SYSTEMS

1. The Secretary of State shall require that, for any contract entered into or renewed on or after December 31, 2025, for the procurement of a system the export of which is restricted or controlled under the Arms Export Control Act (22 U.S.C. 2751 et seq.), no rare earth metals processed or refined in the People's Republic of China may be included in the system.

2. The Secretary may waive the restriction under this title upon a determination that rare earth metals of sufficient quantity and quality are not available at reasonable prices from sources outside of the People's Republic of China; and such a waiver is in the interests of national security.

TITLE V: UNFAIR TRADE PRACTICES

1. Not later than ninety (90) days after the date of the enactment of this Act, the Secretary of State, shall initiate an investigation under title III of the Trade Act of 1974 (19 U.S.C. 2411 et seq.) to determine whether acts, policies, and practices of the Government of the People's Republic of China related to technology transfer, intellectual property, or innovation with respect to rare earth metal mining, separation, metallization, alloying, or magnet manufacturing, or related processes, are acts, policies, and practices described in subsection (a) or (b) of section 301 of that Act (19 U.S.C. 2411).
 

TITLE VI: DOMESTIC PRODUCTION

1. The Secretary of the Interior shall establish a program to provide Federal financial assistance to covered entities to incentivize investment in covered facilities, subject to the availability of appropriations for that purpose.

2. In order for a covered entity to qualify for financial assistance under this title, the covered entity shall demonstrate to the Secretary that the covered entity has a documented interest in constructing a covered facility; or expanding or technologically upgrading a facility owned by the covered entity to be a covered facility; and with respect to the project for which the covered entity is seeking financial assistance, the covered entity has been offered a covered incentive; made commitments to worker and community investment, including through training and education benefits paid by the covered entity; and programs to expand employment opportunity for economically disadvantaged individuals; secured commitments from regional educational and training entities and institutions of higher education to provide workforce training, including programming for training and job placement of economically disadvantaged individuals; and an executable plan to sustain a covered facility without additional Federal financial assistance under this subsection for facility support.

3. The Secretary may not approve an application submitted by a covered entity unless the Secretary confirms that the covered entity has satisfied the eligibility criteria; determines that the project for which the covered entity is seeking financial assistance is in the interest of Atlasia; and has notified the President before making any commitment to provide an award of financial assistance to any covered entity in an amount that exceeds $10,000,000; or if the Secretary determines, in consultation with the Secretary of State, that the covered entity is a foreign entity of concern, or is substantially controlled thereby.

4. In reviewing an application submitted under this title the Secretary may consider whether the covered entity has previously received financial assistance under this subsection; the governmental entity offering the applicable covered incentive has benefitted from financial assistance previously provided under this subsection; the covered entity has demonstrated that the covered entity is responsive to the national security needs or requirements; if practicable, a consortium that is considered a covered entity includes a small business concern, notwithstanding 13 CFR 121.103; and the covered entity intends to produce finished products for use by the government of Atlasia, the defense industry, or critical energy infrastructure.

5. To the maximum extent practicable, the Secretary shall prioritize awarding financial assistance under this title to a covered entity that utilizes raw material feedstock sourced from one (1) or more offtake agreements with entities that are not foreign entities of concern; utilizes raw material feedstock sourced from two (2) or more entities; offtake agreements; or geographic locations; utilizes concentrated rare earth elements sourced from two (2) or more entities; offtake agreements; or geographic locations; and intends to produce finished products for use by the government of Atlasia, the defense industry, or critical energy infrastructure.

6. The Secretary may request records and information from a covered entity that submitted an application under this title to review the status of a covered entity. The covered entity shall provide the records and information requested by the Secretary.

7. The Secretary shall determine the appropriate amount and funding type for each financial assistance award provided to a covered entity under this title. The total Federal investment in any individual project receiving a financial assistance award under this subsection shall not exceed $500,000,000, unless the Secretary, in consultation with the Secretary of State, recommends to the President, and the President agrees, that a larger investment is necessary to significantly increase the proportion of reliable domestic supply of finished rare earth products relevant for national security and economic competitiveness that can be met through domestic production; and to meet the needs of national security.

8. A covered entity that receives a financial assistance award under this title may only use the financial assistance award amounts to finance:

A. the construction of a covered facility (including equipment) or the expansion or technological upgrade of a facility (including equipment) of the covered entity to be a covered facility, as documented in the application, as determined necessary by the Secretary for purposes relating to the national security and economic competitiveness of Atlasia;

B. to support workforce development for a covered facility;

C. to support site development and technological upgrade for a covered facility; and

D. to pay reasonable costs relating to the operating expenses for a covered facility, including specialized workforce and essential materials.

9. For all financial assistance awards of more than $10,000,000 provided to covered entities, the Secretary shall, at the time of making the award, determine the target dates by which a covered entity shall commence and complete the applicable project. If the covered entity receiving a financial assistance award of more than $10,000,000 does not complete the applicable project by the applicable target date, the Secretary shall progressively recover up to the full amount of the award. In the case of projects that do not meet the applicable target date, the Secretary may waive the requirement to recover the financial award provided for the project after making a formal determination that circumstances beyond the ability of the covered entity to foresee or control are responsible for the delay.

10. Before entering into an agreement with a foreign entity to conduct joint research or technology licensing, or to share intellectual property, a covered entity that has received a financial assistance award shall notify the Secretary of the intent to enter into such an agreement; and may only enter into such an agreement if the Secretary determines the foreign entity is not a foreign entity of concern. The Secretary shall recover the full amount of a financial assistance award provided to a covered entity if, during the applicable term of the award, the covered entity knowingly engages in any joint research, technology licensing, or intellectual property sharing effort with a foreign entity of concern that relates to a technology or product that raises national security concerns, as determined by the Secretary, on the condition that the determination of the Secretary shall have been communicated to the covered entity before the covered entity engaged in the joint research, technology licensing, or intellectual property sharing.

11. A covered entity to which the Secretary awards Federal financial assistance under this subsection shall enter into an agreement that specifies that, during the 5-year period immediately following the award of the Federal financial assistance, the covered entity will not make shareholder distributions in excess of profits.

12. Funding awarded under this act shall be divided as equally as is practicable between each of the three (3) Regions.

13. Any recipient of funds under this Title shall adopt and implement a Cybersecurity Plan approved by the President that is capable of adequately protecting the facility funded by this act as well as any other property owned, controlled, or managed by the recipient.

14. Any recipient of funds under this act shall be considered contractors for purposes of the Stopping Sino-Espionage Act.

15. Funding for this title is hereby authorized to be appropriated in the following amounts: $1.5 Billion for fiscal year 2023; and $200 Million for each of fiscal years 2024 through 2027.

Passed 9-1-1-7 in the Atlasian Senate Assembled.

- R, PPT