“A bill to establish a pilot program to support domestic critical material processing, and for other purposes.”
No CRS summary available for this bill.
This section defines nine terms for purposes of the Act: (1) country of risk, as defined in section 10114(a) of the Research and Development, Competition, and Innovation Act (42 U.S.C. 18912(a)); (2) critical material, as defined in section 7002(a) of the Energy Act of 2020 (30 U.S.C. 1606(a)); (3) domestic, meaning facilities operating within the United States or its territories or possessions; (4) eligible project, meaning a project that refines, processes, or recycles raw critical materials into purified forms suitable for first-use applications; (5) entity of concern, as defined in section 10114(a) of the Research and Development, Competition, and Innovation Act (42 U.S.C. 18912(a)), including entities determined by the Secretary of Energy (using a risk-based approach) to be subject to the control or influence of a foreign nation whose strategic interests concerning critical materials do not align with those of the United States; (6) innovative financial tools, meaning financial instruments to support demand-side economic mechanisms such as contracts for difference, price floors, advanced market commitments, forward contracts, and other transactions authorized under section 646 of the Department of Energy Organization Act (42 U.S.C. 7256); (7) pilot program, meaning the Domestic Critical Material Processing Pilot Program established under section 4(a); (8) reliable sources, as defined in section 12 of the Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98h-3), including facilities owned by, controlled by, or subject to the jurisdiction of countries with which the United States has a free trade agreement or that are designated as major non-NATO allies under section 517 of the Foreign Assistance Act of 1961 (22 U.S.C. 2321k); and (9) Secretary, meaning the Secretary of Energy.
This section states the purposes of the Act as (1) supporting domestic critical material processing with innovative financial tools to reduce supply chain vulnerabilities and enhance energy and national security; and (2) evaluating the effectiveness of such 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.
This section establishes the Domestic Critical Material Processing Pilot Program to support not fewer than three domestic critical material processing projects. The program aims to provide financial stability and attract private investment; analyze financial tools' effects on critical material markets and required support levels for U.S. supply chains; and reduce supply chain vulnerabilities to enhance energy and national security. The Secretary of Energy must issue implementing regulations and select projects within specified timelines—not later than 180 days and one year after enactment, respectively—with the program terminating five years after establishment. In implementing the program, the Secretary may use other transaction authority under section 646 of the Department of Energy Organization Act (42 U.S.C. 7256) (i.e., flexible agreements with public and private entities beyond standard procurement); appoint temporary personnel without competitive service restrictions; consult stakeholders; support processing of not fewer than three different critical materials (with no single material exceeding 50% of funding); prioritize projects using domestic feedstock, enabling offtake agreements, and demonstrating economic competitiveness; and coordinate with specified federal agencies, including incorporating Defense Department security research insights. Not later than two years after program termination, the Secretary must conduct and publish a study on the impact and cost-effectiveness of innovative financial tools in the critical materials sector.