119-s429

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 429 Introduced in Senate

    (IS) ]

<DOC>

119th CONGRESS
 1st Session
 S. 429

 To enhance the economic and national security of the United States by 
securing a reliable supply of critical minerals and rare earth elements 
 through trade agreements and strategic partnerships.

_______________________________________________________________________

 IN THE SENATE OF THE UNITED STATES

 February 5, 2025

 Mr. Young (for himself, Mr. Coons, Mr. Cornyn, and Mr. Hickenlooper) 
introduced the following bill; which was read twice and referred to the 
 Committee on Finance

_______________________________________________________________________

 A BILL

 To enhance the economic and national security of the United States by 
securing a reliable supply of critical minerals and rare earth elements 
 through trade agreements and strategic partnerships.

 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 ``Securing Trade and Resources for 
Advanced Technology, Economic Growth, and International Commerce in 
Minerals Act'' or ``STRATEGIC Minerals Act''.

SEC. 2. DEFINITIONS.

 In this Act:

    (1) Appropriate congressional committees.--The term 
 ``appropriate congressional committees'' means--
        (A) the Committee on Finance of the Senate; and
        (B) the Committee on Ways and Means of the House of 
 Representatives.

    (2) Country.--The term ``country'' means--
        (A) any foreign country or territory, including any 
 overseas dependent territory or possession of a foreign 
 country; and
        (B) the Trust Territory of the Pacific Islands.

    (3) Covered free trade agreement.--The term ``covered free 
 trade agreement'' means an agreement with one or more countries 
 that--
        (A) exclusively focuses on the critical minerals 
 and rare earth elements sector;
        (B) reduces barriers to trade among the parties to 
 the agreement;
            (C) includes enforceable provisions to prevent any 
 foreign entity of concern from gaining any benefit from 
 the agreement; and
            (D) is approved by Congress.

    (4) Critical mineral.--The term ``critical mineral'' has 
 the meaning given that term in 

section 7002

    (a) of the Energy 
 Act of 2020 (30 U.S.C. 1606

    (a) ).

    (5) Foreign entity of concern.--The term ``foreign entity 
 of concern'' has the meaning given that term in 

section 40207 
 of the Infrastructure Investment and Jobs Act (42 U.S.C. 
 18741).

    (6) Rare earth element.--The term ``rare earth element'' 
 means cerium, dysprosium, erbium, europium, gadolinium, 
 holmium, lanthanum, lutetium, neodymium, praseodymium, 
 promethium, samarium, scandium, terbium, thulium, ytterbium, or 
 yttrium.

    (7) Trade representative.--The term ``Trade 
 Representative'' means the United States Trade Representative.

SEC. 3. BRIEFING ON COVERED FREE TRADE AGREEMENTS.

    (a) In General.--Not later than 120 days after the date of the 
enactment of this Act, the Trade Representative, in consultation with 
the Secretary of State, the Secretary of Defense, the Secretary of 
Energy, and the Secretary of the Interior, as appropriate, shall 
provide to the appropriate congressional committees a classified 
briefing on the feasibility and advisability of pursuing and adopting 
covered free trade agreements.

    (b) Elements.--The briefing required by subsection

    (a) shall 
include--

    (1) an analysis of the most appropriate types of agreements 
 (bilateral, plurilateral, or multilateral) for achieving the 
 negotiating objectives set forth in 

section 4
            (d) , including 
 considerations of economic impact, strategic partnerships, 
 negotiation feasibility, and national security implications;

    (2) recommendations for which type or types of agreements 
 are most needed to effectively secure critical minerals and 
 rare earth elements supply chains in alignment with the 
 national security and economic interests of the United States; 
 and

    (3) an assessment of potential challenges and proposed 
 solutions in pursuing the recommended type or types of 
 agreement, including legal, regulatory, and geopolitical 
 considerations.

SEC. 4. NEGOTIATING AND TRADE AGREEMENTS AUTHORITY FOR COVERED FREE 
 TRADE AGREEMENTS.

    (a) Authority To Negotiate and Enter Into Agreements.--

    (1) In general.--In order to enhance the economic well-
 being, national security, and economic competitiveness of the 
 United States, the President, acting through the Trade 
 Representative, may negotiate, enter into, and enforce a 
 covered free trade agreement when the President determines that 
 it is in the national interest to do so.

    (2) Limitation.--The President may not initiate 
 negotiations for a covered free trade agreement under paragraph

    (1) until the date on which the Trade Representative provides 
 the briefing required by 

section 3

    (a) to the appropriate 
 congressional committees.

    (b) Modifications Permitted.--The President may proclaim such 
modification or continuance of any existing duty, or such continuance 
of existing duty-free or excise treatment, as the President determines 
to be required or appropriate to carry out a covered free trade 
agreement entered into under subsection

    (a)

    (1) .
            (c) Negotiating Objectives.--

    (1) Overall negotiating objectives.--The negotiating 
 objectives of the United States for a covered free trade 
 agreement are--
        (A) to strengthen supply chains of critical 
 minerals and rare earth elements;
        (B) to reduce or eliminate barriers and distortions 
 that inhibit to trade and investment in critical 
 minerals and rare earth elements;
            (C) to strengthen international trade and 
 investment disciplines and procedures specific to 
 critical minerals and rare earth elements, including 
 effective dispute settlement mechanisms;
            (D) to foster economic growth, raise living 
 standards, enhance the competitiveness of the United 
 States, promote full employment, and contribute to the 
 global economy through the development and trade of 
 critical minerals and rare earth elements;
        (E) to promote policies that advance sustainable 
 practices and circularity in the production and 
 processing of critical minerals and rare earth 
 elements;
        (F) to encourage the development and adoption of 
 innovative technologies and practices that optimize the 
 use of critical resources;
        (G) to promote respect for worker rights and the 
 rights of children consistent with core labor standards 
 only as stated in the International Labour Organization 
 Declaration on Fundamental Principles and Rights at 
 Work and its Follow-Up

    (1998) and an understanding of 
 the relationship between trade and worker rights;
        (H) to seek provisions in the agreement under which 
 parties ensure they do not weaken or reduce the 
 protections afforded in domestic environmental and 
 labor laws as an encouragement for trade;
            (I) to afford small businesses equitable trade 
 benefits and to reduce or eliminate trade and 
 investment barriers that disproportionately impact 
 small businesses;
        (J) to promote universal ratification and full 
 compliance with the International Labour Organization 
 Convention (ILO No. 182) concerning the Prohibition and 
 Immediate Action for the Elimination of the Worst Forms 
 of Child Labor, adopted at Geneva, June 17, 1999;
        (K) to promote universal ratification and full 
 compliance with the International Labour Organization 
 Convention (ILO No. 176) concerning Safety and Health 
 in Mines, adopted at Geneva, June 22, 1995;
            (L) to encourage ownership transparency throughout 
 the critical minerals and rare earth elements supply 
 chain to prevent undue influence from foreign entities 
 of concern;
            (M) to protect legitimate health, safety, essential 
 security, and consumer interests, ensuring that the 
 agreement does not require changes to United States 
 laws relating to those interests unless expressly 
 agreed upon; and
        (N) to ensure that the agreement does not require 
 changes to United States statutes or regulations.

    (2) Consideration of existing negotiating objectives.--In 
 conducting negotiations under this section, the President shall 
 take into account the principal trade negotiating objectives 
 set forth in paragraphs

    (5) ,

    (7) , and

    (10) of 

section 102

    (b) of 
 the Bipartisan Congressional Trade Priorities and 
 Accountability Act of 2015 (19 U.S.C. 4201

    (b) ), to the extent 
 that those objectives are pertinent to the objectives described 
 in paragraph

    (1) .
            (d) Consultation With and Notification to Congress Before 
Initiating Negotiations.--Before initiating negotiations under 
subsection

    (a)

    (1) , or issuing a proclamation under subsection

    (b) , the 
President shall--

    (1) consult with the appropriate congressional committees 
 regarding the intention to enter into the negotiations or issue 
 the proclamation, as the case may be; and

    (2) notify the appropriate congressional committees in 
 writing at least 30 days before the initiation of the 
 negotiations or the issuance of the proclamation, as the case 
 may be, that includes--
        (A) a statement of the intention to initiate the 
 negotiations or issue the proclamation;
        (B) in the case of negotiations--
            (i) an identification of the country or 
 countries with which the President intends to 
 initiate negotiations; and
            (ii) a description of the specific 
 objectives for the negotiations; and
            (C) an assessment of the potential impact of the 
 negotiations or proclamation, as the case may be, on 
 the economic and strategic interests of the United 
 States.

    (e) Participating Countries.--

    (1) In general.--Subject to paragraph

    (2) , the President 
 may--
        (A) determine which countries to negotiate with 
 toward a covered free trade agreement; and
        (B) after the implementation of any such agreement 
 and as conditions warrant, identify and engage in 
 negotiations with additional countries that wish to 
 accede to the agreement.

    (2) Exclusive benefits.--
        (A) In general.--Any covered free trade agreement 
 entered into under subsection

    (a)

    (1) shall provide 
 trade benefits, including tariff reductions, 
 preferential treatment, or other trade advantages 
 related to critical minerals and rare earth elements, 
 exclusively to countries that are parties to the 
 agreement.
        (B) Status of non-participants.--Countries that are 
 not parties to a covered free trade agreement may not 
 receive the trade benefits provided under the 
 agreement, but nothing in this Act shall be construed 
 to impose additional restrictions or penalties on such 
 countries.

    (3) Treatment of nonmarket economy countries.--
        (A) In general.--The President may not negotiate a 
 covered free trade agreement with a country determined 
 to be a nonmarket economy country pursuant to 

section 771

    (18) of the Tariff Act of 1930 (19 U.S.C. 1677

    (18) ).
        (B) After entry into force.--A country described in 
 subparagraph
        (A) that is not designated as a foreign 
 country of concern (as defined in 

section 231.102 of 
 title 15, Code of Federal Regulations) may accede to a 
 covered free trade agreement after entry into force of 
 the agreement if a joint resolution is enacted into law 
 approving the accession of that country to the 
 agreement.

    (f) Bills Qualifying for Trade Authorities Procedures.--

    (1) In general.--The provisions of 

section 151 of the Trade 
 Act of 1974 (19 U.S.C. 2191) (in this section referred to as 
 ``trade authorities procedures'') apply to a bill of either 
 House of Congress which contains provisions described in 
 paragraph

    (2) to the same extent as such 

section 151 applies to 
 implementing bills under that section. A bill to which this 
 subsection applies shall hereafter in this section be referred 
 to as an ``implementing bill''.

    (2) Provisions specified.--The provisions described in this 
 paragraph are--
        (A) a provision approving a covered free trade 
 agreement and approving the statement of administrative 
 action, if any, proposed to implement that agreement; 
 and
        (B) if changes in existing laws or new statutory 
 authority are required to implement that agreement, 
 only such provisions as are strictly necessary or 
 appropriate to implement the agreement, either 
 repealing or amending existing laws or providing new 
 statutory authority.

    (g) Relationship to Bipartisan Congressional Trade Priorities and 
Accountability Act of 2015.--A covered free trade agreement, including 
such an agreement that does not require changes to United States law, 
shall not enter into force with respect to the United States and an 
implementing bill that relates to such an agreement shall not qualify 
for trade authorities procedures unless the following requirements of 
the Bipartisan Congressional Trade Priorities and Accountability Act of 
2015 (19 U.S.C. 4201 et seq.) are carried out with respect to that 
agreement, to the same extent as would be required with respect to an 
agreement entered into under 

section 103

    (b) of that Act (19 U.S.C. 
4202

    (b) ), notwithstanding the expiration of authority to enter into an 
agreement under such 

section 103

    (b) :

    (1) The congressional oversight and consultation 
 requirements under 

section 104 of that Act (19 U.S.C. 4203).

    (2) The notification, consultation, and reporting 
 requirements under 

section 105 of that Act (19 U.S.C. 4204).

    (3) The implementation procedures under 

section 106 of that 
 Act (19 U.S.C. 4205).

    (h) Termination of Authority.--

    (1) Negotiation and agreements.--
        (A) In general.--The authority of the President 
 under subsection

    (a)

    (1) to negotiate and enter into 
 covered free trade agreements terminates on July 1, 
 2035.
        (B) Treatment of modifications.--Substantial 
 modifications to, or substantial additional provisions 
 of, a covered free trade agreement that are entered 
 into after July 1, 2035, are not covered by the 
 authority under subsection

    (a)

    (1) .

    (2) Trade authorities procedures.--The trade authorities 
 procedures apply to an implementing bill with respect to a 
 covered free trade agreement entered into under subsection

    (a)

    (1) if--
        (A) the agreement is entered into on or before July 
 1, 2035; and
        (B) the implementing bill is submitted to Congress 
 not later than one year after the agreement is entered 
 into.

    (3) Enforcement.--The authority under subsection

    (a)

    (1) to 
 enforce a covered free trade agreement remains in effect after 
 July 1, 2035, notwithstanding the termination under paragraph

    (1) of the authority to negotiate and enter into such 
 agreements.

SEC. 5. INCLUSION OF BUSINESSES OF PARTIES TO COVERED FREE TRADE 
 AGREEMENTS IN DEFINITION OF DOMESTIC SOURCE FOR TITLE III 
 OF DEFENSE PRODUCTION ACT OF 1950.

 

Section 702

    (7)
        (B) of the Defense Production Act of 1950 (50 U.S.C. 
4552

    (7)
        (B) ) is amended--

    (1) in clause
            (i) 
            (I) --
        (A) in item

    (aa) , by striking ``; or'' and 
 inserting a semicolon;
        (B) in item

    (bb) , by striking ``; and'' and 
 inserting ``; or''; and
            (C) by adding at the end the following:
 ``
            (cc) subject to clause
            (iii) , the territory of a party 
 to a covered free trade 
 agreement (as defined in 
 

section 2 of the Securing Trade 
 and Resources for Advanced 
 Technology, Economic Growth, 
 and International Commerce in 
 Minerals Act); and''; and

    (2) by adding at the end the following:
 ``
            (iii) Additional requirements for parties 
 to covered free trade agreements.--
 ``
            (I) In general.--A business 
 concern described in clause
            (i) 
            (I) 
            (cc) may be treated as a domestic source--
 ``

    (aa) only for purposes of 
 the exercise of authorities 
 under 

section 303

    (a)

    (1) relating to minerals activities 
 related to minerals the supply 
 of which in the United States 
 and Canada is deficient; and
 ``

    (bb) only if, for 
 minerals activities carried out 
 pursuant to such exercise of 
 authorities--

 ``

    (AA) the minerals 
 are processed, 
 beneficiated, or 
 recycled only by 
 entities owned by 
 entities organized 
 under the laws of the 
 United States and not 
 more than 10 percent or 
 more of the equity 
 interests of which are 
 owned or controlled, 
 directly or indirectly, 
 by any foreign entity 
 of concern, through any 
 contract, arrangement, 
 understanding, 
 relationship, or 
 otherwise;

 ``

    (BB) the business 
 concern does not sell 
 or transfer any of the 
 minerals extracted, 
 processed, 
 beneficiated, refined, 
 recycled, or otherwise 
 transformed, or any 
 revenues derived from 
 those minerals, to 
 entities located in the 
 People's Republic of 
 China or to entities 
 owned, directly or 
 indirectly, held, or 
 controlled by any 
 foreign entity of 
 concern; and

 ``
            (CC) no mine used 
 for the mining of such 
 minerals is owned, 
 directly or indirectly, 
 held, or controlled by 
 any foreign entity of 
 concern.

 ``
            (II) Determination of 
 deficiency.--For purposes of subclause
            (I) (aa) , in determining if the supply 
 in the United States and Canada of a 
 critical mineral or rare earth element 
 is deficient, the Secretary of Defense, 
 in consultation with the Secretary of 
 the Interior and the Secretary of 
 Energy, shall consider factors 
 including--
 ``

    (aa) current domestic 
 production levels;
 ``

    (bb) projected demand for 
 national defense and critical 
 infrastructure;
 ``
            (cc) dependence on 
 foreign sources, especially 
 from foreign entities of 
 concern; and
 ``
            (dd) potential for supply 
 chain disruptions.
 ``
            (III) Compliance and 
 verification.--
 ``

    (aa) Guidance.--The 
 Secretary of Defense shall 
 provide guidance to business 
 concerns on compliance with 
 this clause.
 ``

    (bb) Notice of and 
 penalties for noncompliance.--
 If a business concern is found 
 to be in violation of this 
 clause--

 ``

    (AA) the 
 Secretary of Defense 
 shall provide written 
 notice to the business 
 concern detailing the 
 nature of the violation 
 and the penalties to be 
 imposed;

 ``

    (BB) the business 
 concern may be required 
 to repay any funds 
 received under 

section 303

    (a)

    (1) ;

 ``
            (CC) the business 
 concern may be 
 disqualified from 
 future contracts or 
 financial assistance 
 under this Act;

 ``
            (DD) the business 
 concern may be subject 
 to civil penalties 
 under 

section 705; and

 ``

    (EE) the matter 
 may be referred to the 
 Attorney General for 
 criminal prosecution 
 under applicable laws.

 ``
            (IV) === Definitions. ===
-In this 
 clause:
 ``

    (aa) Beneficiate; 
 beneficiation.--The terms 
 `beneficiate' and 
 `beneficiation' mean the 
 crushing and grinding of 
 hardrock mineral ore and such 
 processes as are employed to 
 free the mineral from other 
 constituents, including 
 physical and chemical 
 separation techniques.
 ``

    (bb) Control.--The term 
 `control' means having the 
 ability, directly or 
 indirectly, to determine 
 (without regard to whether 
 exercised through 1 or more 
 corporate structures) the 
 manner in which an entity 
 conducts mineral activities, 
 through any means, including--

 ``

    (AA) ownership 
 interest;

 ``

    (BB) authority to 
 commit the real or 
 financial assets of the 
 entity;

 ``
            (CC) position as 
 a director, officer, or 
 partner of the entity; 
 or

 ``
            (DD) contractual 
 arrangement.

 ``
            (cc) Critical mineral.--
 The term `critical mineral' has 
 the meaning given that term in 
 

section 7002

    (a) of the Energy 
 Act of 2020 (30 U.S.C. 
 1606

    (a) ).
 ``
            (dd) Deficient.--The term 
 `deficient', with respect to 
 the supply in the United States 
 and Canada of a critical 
 mineral or rare earth element, 
 means that supply is 
 insufficient to meet national 
 defense and essential civilian 
 industrial requirements, as 
 determined by the Secretary of 
 Defense, in consultation with 
 the Secretary of the Interior 
 and the Secretary of Energy.
 ``

    (ee) Foreign entity of 
 concern.--The term `foreign 
 entity of concern' has the 
 meaning given that term in 
 

section 40207 of the 
 Infrastructure Investment and 
 Jobs Act (42 U.S.C. 18741).
 ``

    (ff) Mineral 
 activities.--The term `mineral 
 activities' means any activity 
 carried out on a mining claim, 
 millsite, or tunnel site, for, 
 related to, or incidental to, 
 mining, beneficiation, 
 processing, refining, alloying, 
 or recycling activities for any 
 critical mineral or rare earth 
 element.
 ``

    (gg) Processing.--The 
 term `processing' has the 
 meaning given that term in 
 Treasury Regulation 

section 1.30D-2

    (b)

    (37) (or a successor 
 regulation).
 ``

    (hh) Rare earth 
 element.--The term `rare earth 
 element' has the meaning given 
 that term in 

section 2 of the 
 Securing Trade and Resources 
 for Advanced Technology, 
 Economic Growth, and 
 International Commerce in 
 Minerals Act.
 ``
            (ii) Recycling.--The term 
 `recycling' has the meaning 
 given that term in Treasury 
 Regulation 

section 1.30D-
 2

    (b)

    (43) (or a successor 
 regulation).
 ``

    (jj) Revenues.--The term 
 `revenues' includes any income, 
 profits, dividends, royalties, 
 or other financial benefits 
 obtained from the sale, 
 transfer, or other disposition 
 of the minerals produced.
 ``

    (kk) Sell or transfer.--
 The term `sell or transfer' 
 includes any transaction that 
 conveys ownership, possession, 
 or control of minerals 
 produced, or any interest 
 therein, including sales, 
 leases, exchanges, or gifts.''.
 <all>