H.R. 7688 — what changed

removed Title I of the Defense Production Act of 1950 (50 U.S.C. 4511 et seq.) is amended—

removed “(A) the President finds that—

removed “(i) such”

removed “(I) that”

removed “(B) the powers are used to address—

removed “(i) a national emergency declared by the President;

removed “(ii) a natural disaster declared by the President pursuant to the Robert T. Stafford Disaster Relief and Emergency Assistance Act; or

removed “(iii) a public health emergency, as determined by the Secretary of Health and Human Services pursuant to section 319 of the Public Health Service Act.

removed “(2) The powers described in this section may not be used to control the general distribution of any material in the civilian market for a period exceeding 1 year, except that the President may extend such 1-year period for up to 180 days upon reporting to Congress, on a non-delegable basis, that the extension is essential to meet national defense requirements.”

removed “(1) shall—

removed “(A) issue and”

removed “(2) may waive or revise relevant regulations for the purpose of expediting the procurement of critical technologies (as defined under section 316(a)) or critical minerals subject to the priorities and allocations.”

changed The Title I of the Defense Production Act of 1950 (50 U.S.C. 4501 4511 et seq.) is amended—

added “(A) the President finds that—

added “(i) such”

added “(ii) that”

added “(B) the powers are used to address—

added “(i) a national emergency declared by the President;

added “(ii) a natural disaster declared by the President pursuant to the Robert T. Stafford Disaster Relief and Emergency Assistance Act; or

added “(iii) a public health emergency, as determined by the Secretary of Health and Human Services pursuant to section 319 of the Public Health Service Act.

added “(2) The powers described in this section may not be used to control the general distribution of any material in the civilian market for a period exceeding 1 year, except that the President may extend such 1-year period for up to 180 days upon reporting to Congress, on a non-delegable basis, that the extension is essential to meet national defense requirements.”

removed “(3) any such loan shall be secured by a first-priority lien on such collateral as the Fund manager of the Defense Production Act Fund may require, and such lien shall—

removed “(A) attach upon disbursement of funds;

removed “(B) be senior to all other liens and claims; and

removed “(C) be deemed perfected upon attachment; and

removed “(4) in the event that the loan recipient defaults on the repayment of the loan, any portion of such repayment that is not satisfied from the collateral described in paragraph (3) shall have priority in payment over all other unsecured claims.”

added “(1) shall—

added “(A) issue and, whenever appropriate, revise”

removed “(7) Limitations on equity investments—The equity shares of an entity may not be acquired under this section if such acquisition would result in the Government holding, in the aggregate, 15 percent or more of the equity shares of the entity.

removed “(8) Acquisition and liquidation—A member of the Defense Production Act Committee described under section 317(b)(1)(A)—

removed “(A) may make an equity investment in an entity under this section only after the Fund manager of the Defense Production Act Fund finds that the entity is unable to obtain additional equity investment from private sources on commercially reasonable terms; and

removed “(B) shall seek to sell and liquidate any equity support for an entity provided under this section as soon as commercially feasible, commensurate with other similar investors in the entity, taking into consideration the national security interests of the United States.”

removed “(b) Critical minerals resilience

removed “(1) Critical Minerals Resilience Initiative—There is established the Critical Minerals Resilience Initiative, under which a member of the Defense Production Act Committee described under section 317(b)(1)(A), in consultation with the Executive Director of the Defense Production Act Committee and the Fund manager of the Defense Production Act Fund, may make grants, purchases, and commitments to purchase involving an entity in the United States, a member country of the North Atlantic Treasury Organization, or a major non-NATO ally, to—

removed “(A) ensure that the mining or processing of critical and strategic materials is not dominated by a foreign adversary; and

removed “(B) provide for offtake agreements, price floors, or incentives in order to ensure the viability of mines or processing facilities for critical and strategic materials outside the control of a foreign adversary.

removed “(2) Cooperation among entities—To the extent practicable, the Defense Production Act Committee shall develop a process to encourage cooperation among, and manage potential conflicts between—

removed “(A) entities that are domestic sources, and the countries where they are located; and

removed “(B) for the purpose of carrying out the Critical Minerals Resilience Initiative, countries involved in the Initiative.”

removed “(3) Renewal of subsidy—The President may renew subsidy payments authorized under paragraph (2) for up to 180 days after submitting a report to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate that—

removed “(A) certifies that the subsidy payment is the most efficient means to ensure objectives described under paragraph (2); and

removed “(B) explains why market conditions do not allow for the achievement of the objectives.”

removed “(i) Waiver To expedite procurement—In exercising the authorities under section 201, section 202, or this section, the President may waive or revise relevant regulations for the purpose of expediting—

removed “(1) the procurement of critical technologies (as defined under section 316(a)) or critical minerals; or

removed “(2) the permitting of critical infrastructure required to produce or refine the critical technologies or critical minerals described in paragraph (1).

removed “(j) Additional requirements

removed “(1) Use of commercially available software—Software procured using funds appropriated pursuant to this Act shall be commercially available off-the-shelf software, unless no commercially available off-the-shelf software that meets the applicable requirements is available, more cost-effective, or is practicable to procure.

removed “(2) Use of funds for skilled labor

removed “(A) Identification of workforce and skills gaps—Each Federal agency to which the President has delegated authority under this Act shall identify any workforce gaps or skills gaps that affect the ability of the domestic industrial base to supply the materials and services necessary to satisfy the objectives set forth in section 2(b).

removed “(B) Use of funds—With respect to an entity receiving financial assistance under title I or this title, the agency making such financial assistance may direct that a portion of the financial assistance be used to recruit, train, place, or retain workers in defense-critical occupations directly related to the activities funded by the assistance, if such entity keeps records of performance standards for workers recruited, trained, placed, or retained using such assistance.

removed “(C) Information included in annual report—Each Federal agency to which the President has delegated authority under this Act shall include in the annual report of the Defense Production Act Committee—

removed “(i) a discussion of the identification required under subparagraph (A) and the authority provided under subparagraph (B);

removed “(ii) short-term and long-term recommendations for administrative or legislative action to reduce any workforce gaps or skills gaps identified by the agency, especially through the simulation required under section 206(c), including recommendations on workforce training programs to recruit, train, place, and retain workers in occupations critical to the national defense, including any apprenticeships.

removed “(k) Special hiring authority for subject matter experts—Each agency represented on the Defense Production Act Committee may appoint, without regard to the provisions of sections 3309 through 3318 of title 5, subject matter experts directly to positions in the competitive service (as defined in section 2102 of that title) in the agency for the sole purpose of identifying, soliciting, evaluating, or approving activities that may receive financial assistance under this title.”

removed “(c) Waiver To expedite procurement—The President may waive or revise relevant regulations for the purpose of expediting—

removed “(1) the procurement of critical technologies (as defined under section 316(a)) or critical minerals subject to the incentives described in subsection (a); or

removed “(2) the permitting of critical infrastructure required to produce or refine the critical technologies or critical minerals described in paragraph (1).”

removed “(2) all moneys appropriated for activities pursuant to this title; and”

removed “(f) Waiver—The Executive Director of the Defense Production Act Committee may waive the requirement described under subsection (e) for up to 1 year at a time upon notifying the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate in writing that the waiver is in the national security interests of the United States.”

removed “(4) designating financial institutions as financial agents of the Federal Government, as appropriate, for the purposes of this title;

removed “(5) delegating authorities, as the Fund manager finds appropriate, to members of the Defense Production Act Committee; and

removed “(6) issuing rules and guidance regarding financing activities authorized by this title.”

removed “(i) Deferral—The Executive Director of the Defense Production Act Committee shall defer budget authority involving the Fund for an agency that has repeatedly failed to submit complete reports described under section 101(e) and 206(a).”

removed “(a) In general—Not later than 180 days after the effective date of this subsection, and annually thereafter, the head of each agency to which the President has delegated authorities under title I or this title shall submit the report described under subsection (b) to the Executive Director of the Defense Production Act Committee and the Fund manager of the Defense Production Act Fund.

removed “(b) DPA strategy—A report described under this subsection is a report that includes—

removed “(1) an assessment, in consultation with the Defense Production Act Committee and the private sector, of industrial base needs required by the head of the agency to meet the highest priorities arising from national defense requirements, as determined by the President;

removed “(2) a detailed strategy, timeline, and spending plan, in consultation with the Defense Production Act Committee, to deploy the authorities under title I and this title to address the needs identified under paragraph (1);

removed “(3) the results of the most recent simulation described in subsection (c);

removed “(4) a comprehensive list of actions (including all priority ratings, the exercise or non-exercise of such ratings and any allocations or financing) taken by the agency pursuant to the authorities since the previous report, and an explanation of how the actions support the strategy described under paragraph (2);

removed “(5) any use of authorities under section 308 or section 310 in support of the strategy described under paragraph (2);

removed “(6) a description of any waivers exercised pursuant to section 101(d)(2), section 107(c), or section 203(h); and

removed “(7) in the case of an action taken pursuant to title I or this title involving a business concern in Canada, the United Kingdom, or Australia, a justification of the necessity of the use of authorities under the applicable title.

removed “(c) Strategy simulation—At least once every 5 years, the Defense Production Act Committee shall conduct a discussion-based simulation (commonly known as a “table-top exercise”) to determine the resources needed and the best use of the authorities under title I and this title to implement the strategy described in subsection (b)(2) contained in the most recent report required under subsection (a).”

removed “(d) Strategy on securing supply chains essential to national defense—The head of any relevant agency, as determined by the President, shall, in the first report submitted under subsection (a) after the date of enactment of this subsection, include in such report the following:

removed “(1) A detailed plan to ensure the supply of the following, to the extent necessary for national defense:

removed “(A) Medical materials (including drugs, devices, and biological products (as that term is defined in section 351 of the Public Health Service Act (42 U.S.C. 262)) to diagnose, cure, mitigate, treat, or prevent disease).

removed “(B) Critical minerals.

removed “(C) Naval shipbuilding capacity, materials, and components.

removed “(2) An analysis of vulnerabilities to existing supply chains for the materials, minerals, and capacity described in paragraph (1).

removed “(3) Any authorities provided by this Act to be used by the agency to ensure that essential components of such supply chains are not under the control of a foreign adversary.”

added “(2) may waive or revise relevant regulations for the purpose of expediting the procurement of critical technologies (as defined under section 316(a)) or critical minerals subject to the priorities and allocations.”

removed “208. Prohibition on discrimination based on energy source

removed “In using the authorities under this title, the President may not deny financial support pursuant to sections 201, 202, 203, or 204, other than for the production of energy, based on the energy source involved in the exploration, development, production, utilization, transportation, or sale of energy.

removed “209. Limitation on eligibility for assistance

removed “(a) In general—A covered entity is not eligible for assistance authorized under this title.

removed “(b) Definitions—In this section:

removed “(1) Covered entity—The term “covered entity” means an entity in which a covered individual directly or indirectly holds a significant interest. For the purpose of determining whether an entity is a covered entity, if securities of the entity are owned, controlled, or held by 2 or more individuals who are related as described in paragraph (2), such securities shall be aggregated.

removed “(2) Covered individual—The term “covered individual” means—

removed “(A) the President, the Vice President, or a member of the Defense Production Act Committee; and

removed “(B) the spouse, child, son-in-law, or daughter-in-law of an individual described in subparagraph (A).

removed “(3) Equity interest—The term “equity interest” means—

removed “(A) a share in an entity, without regard to whether the share is—

removed “(i) transferable; or

removed “(ii) classified as stock or anything similar;

removed “(B) a capital or profit interest in a limited liability company or partnership; and

removed “(C) a warrant or right (other than a right to convert) to purchase, sell, or subscribe to a share or interest described in subparagraph (A) or (B), respectively.

removed “(4) Significant interest—The term “significant interest” means owning, controlling, or holding not less than 20 percent, by vote or value, of the outstanding amount of any class of equity interest in an entity.”

The Defense Production Act of 1950 (50 U.S.C. 4501 et seq.) is amended—

removed “(a) In general—Any officer”

added “(3) any such loan shall be secured by a first-priority lien on such collateral as the Fund manager of the Defense Production Act Fund may require, and such lien shall—

added “(A) attach upon disbursement of funds;

added “(B) be senior to all other liens and claims; and

added “(C) be deemed perfected upon attachment; and

added “(4) in the event that the loan recipient defaults on the repayment of the loan, any portion of such repayment that is not satisfied from the collateral described in paragraph (3) shall have priority in payment over all other unsecured claims.”

removed “(b) Outreach representative during a public health emergency

removed “(1) In general—Consistent with the authorities in this title, the Administrator of the Federal Emergency Management Agency, in consultation with the Secretary of Health and Human Services, may designate or appoint, pursuant to subsection (a), an individual to be known as the “Outreach Representative” for the period of a public health emergency. Such individual shall—

removed “(A) be appointed from among individuals with substantial experience in the production or distribution of medical supplies or equipment; and

removed “(B) act as the Government-wide single point of contact during the public health emergency for outreach to manufacturing companies and their suppliers who may be interested in producing medical supplies or equipment.

removed “(2) Encouraging partnerships—During the period of a public health emergency, the Outreach Representative shall seek to develop partnerships between companies, in coordination with any overall coordinator appointed by the President to oversee the response to the public health emergency, including through the exercise of the authorities delegated by the President under section 308.”

added “(7) Limitations on equity investments—The equity shares of an entity may not be acquired under this section if such acquisition would result in the Government holding, in the aggregate, 15 percent or more of the equity shares of the entity.

added “(8) Report on equity investments—The Defense Production Act Committee shall include, in each annual report of the Committee required under section 317(d)—

added “(A) a description of any equity held by the Government pursuant to the authorities of this Act;

added “(B) the rationale for, and valuation of, any such holding, including—

added “(i) the expected contribution of the holding to the objectives of this Act; and

added “(ii) the estimated gain or loss in value of the holding since the preceding report.

added “(9) Acquisition and liquidation—A member of the Defense Production Act Committee described under section 317(b)(1)(A)—

added “(A) may make an equity investment in an entity under this section only after the Fund manager of the Defense Production Act Fund reports to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives that the entity is unable to obtain additional equity investment from private sources on commercially reasonable terms;

added “(B) shall, with respect to each equity investment made in an entity by the member under this section, transmit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives—

added “(i) not later than 10 days after making the equity investment, copies of all relevant documents concerning the terms of the investment, including any governance rights or contractual obligations; and

added “(ii) a certification that the equity investment advances the objectives of this Act, with a detailed explanation of the reasons therefor; and

added “(C) shall seek to sell and liquidate any equity support for an entity provided under this section as soon as commercially feasible, commensurate with other similar investors in the entity, taking into consideration the national security interests of the United States.”

added “(b) Critical minerals resilience

added “(1) Critical Minerals Resilience Initiative—There is established the Critical Minerals Resilience Initiative, under which a member of the Defense Production Act Committee described under section 317(b)(1)(A), in consultation with the Executive Director of the Defense Production Act Committee and the Fund manager of the Defense Production Act Fund, may make grants, purchases, and commitments to purchase involving an entity in the United States, a member country of the North Atlantic Treaty Organization, or a major non-NATO ally, to—

added “(A) ensure that the mining or processing of critical and strategic materials is not dominated by a foreign adversary; and

added “(B) provide for offtake agreements, price floors, or incentives in order to ensure the viability of mines or processing facilities for critical and strategic materials outside the control of a foreign adversary.

added “(2) Cooperation among entities—To the extent practicable, the Defense Production Act Committee shall develop a process to encourage cooperation among, and manage potential conflicts between—

added “(A) entities that are domestic sources, and the countries where they are located; and

added “(B) for the purpose of carrying out the Critical Minerals Resilience Initiative, countries involved in the Initiative.”

added “(3) Renewal of subsidy—The President may renew subsidy payments authorized under paragraph (2) for up to 180 days after submitting a report to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate that—

added “(A) certifies that the subsidy payment is the most efficient means to ensure objectives described under paragraph (2); and

added “(B) explains why market conditions do not allow for the achievement of the objectives.”

removed “(f) The authority of the President under this section may not be used to obtain sensitive personally identifiable information. In this subsection, the term “sensitive personally identifiable information” means personally identifiable information which, if lost, compromised, or disclosed without authorization, could result in substantial harm, embarrassment, inconvenience, or unfairness to an individual.”

added “(i) Waiver to expedite procurement—In exercising the authorities under section 201, section 202, or this section, the President may waive or revise relevant regulations for the purpose of expediting—

added “(1) the procurement of critical technologies (as defined under section 316(a)) or critical minerals; or

added “(2) the permitting of critical infrastructure required to produce or refine the critical technologies or critical minerals described in paragraph (1).

added “(j) Additional requirements

added “(1) Use of commercially available software—Software procured using funds appropriated pursuant to this Act shall be commercially available off-the-shelf software, unless no commercially available off-the-shelf software that meets the applicable requirements is available, more cost-effective, or is practicable to procure.

added “(2) Use of funds for skilled labor

added “(A) Identification of workforce and skills gaps—Each Federal agency to which the President has delegated authority under this Act shall identify any workforce gaps or skills gaps that affect the ability of the domestic industrial base to supply the materials and services necessary to satisfy the objectives set forth in section 2(b).

added “(B) Use of funds—With respect to an entity receiving financial assistance under title I or this title, the agency making such financial assistance may direct that a portion of the financial assistance be used to recruit, train, place, or retain workers in defense-critical occupations directly related to the activities funded by the assistance, if such entity keeps records of performance standards for workers recruited, trained, placed, or retained using such assistance.

added “(C) Information included in annual report—Each Federal agency to which the President has delegated authority under this Act shall include in the annual report of the Defense Production Act Committee—

added “(i) a discussion of the identification required under subparagraph (A) and the authority provided under subparagraph (B); and

added “(ii) short-term and long-term recommendations for administrative or legislative action to reduce any workforce gaps or skills gaps identified by the agency, especially through the simulation required under section 206(c), including recommendations on workforce training programs to recruit, train, place, and retain workers in occupations critical to the national defense, including any apprenticeships.”

removed “(c) Civil actions—A civil action challenging an action taken under this Act may be brought only in the United States Court of Appeals for the District of Columbia Circuit.”

added “(c) Waiver to expedite procurement—The President may waive or revise relevant regulations for the purpose of expediting—

added “(1) the procurement of critical technologies (as defined under section 316(a)) or critical minerals subject to the incentives described in subsection (a); or

added “(2) the permitting of critical infrastructure required to produce or refine the critical technologies or critical minerals described in paragraph (1).”

added “(2) all moneys appropriated for activities pursuant to this title; and”

added “(f) Waiver—The Executive Director of the Defense Production Act Committee may waive the requirement described under subsection (e) for up to 1 year at a time upon notifying the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate in writing that the waiver is in the national security interests of the United States.”

added “(4) designating financial institutions as financial agents of the Federal Government, as appropriate, for the purposes of this title;

added “(5) delegating authorities, as the Fund manager finds appropriate, to members of the Defense Production Act Committee; and

added “(6) issuing rules and guidance regarding financing activities authorized by this title.”

removed “(C) the Fund manager of the Defense Production Act Fund; and

removed “(D) the Director of the Office of Management and Budget.”

removed “(2) Chairperson—The Assistant to the President for National Security Affairs shall serve as the non-voting Chairperson of the Committee.

removed “(3) Executive Director—The Director of the Office of Management and Budget shall serve as the Executive Director of the Committee, who shall oversee interagency planning, coordination, and implementation of this Act.”

removed “(1) the most recent reports submitted pursuant to section 206;”

removed “(4) an evaluation of the effectiveness of each relevant Federal agency in deploying the authorities under title I and title II to address the needs described under section 206(b)(2);

removed “(5) a summary of any steps taken to reduce fraud in transactions under this Act and a fraud risk assessment for all activities under undertaken under this Act; and”

removed “(e) Defense Production Act Dashboard—The Executive Director of the Committee shall maintain a database that—

removed “(1) compiles and categorizes the actions reported under section 206(b)(3);

removed “(2) is available to all members of the Committee, for the purpose of more effective coordination of actions authorized this Act;

removed “(3) allows for real-time updates by the members of the Committee; and

removed “(4) is subject to appropriate information security, confidentiality, and classification requirements.

removed “(f) Toolkit and online resources site

removed “(1) In general—Not later than 365 days after the date of the enactment of this subsection, the Committee shall develop a toolkit and an online “one-stop shop” that allows Federal agencies to share information and resources with interested persons regarding the use of authorities under this Act (other than authorities under section 316 or title IV), including the following:

removed “(A) The process for solicitations under such authorities, including information on submitting offers and receiving assistance.

removed “(B) Opportunities under such authorities for business concerns, including small business concerns (as defined under section 3 of the Small Business Act (15 U.S.C. 632)), to participate in contracts and other funding mechanisms allowed such authorities.

removed “(C) A searchable description of awards, including an identification of the awardee and any priority rating for such award, made using such authorities.

removed “(D) A description of any voluntary agreements and executive reserves established, consistent with such authorities, including an identification of the parties engaged in each activity and the goals and terms of such activity, as the Committee determines appropriate.

removed “(E) The contact information for an individual at each Federal agency to which the President may delegate such authorities.

removed “(2) Outreach—Not later than 365 days after the development of the toolkit required in paragraph (1), and every 6 months thereafter, the Committee shall develop a plan for each Federal agency to which the President has delegated authorities under this Act (other than authorities under section 316 or title IV) to conduct outreach activities to educate the private sector about the commercial opportunities available under such authorities.

removed “(g) Meetings—The Committee shall meet at least twice per year. The Chairperson of the Committee may convene such other meetings as the Chairperson determines necessary.

removed “(h) Subcommittees

removed “(1) Emerging technology subcommittee

removed “(A) Establishment—There is established within the Committee a Subcommittee on Emerging Technology.

removed “(B) Activities—The Subcommittee on Emerging Technology shall analyze—

removed “(i) the effects or potential benefits of covered technology on activities determined essential to the national defense; and

removed “(ii) how covered technology can be used within a single industry or Federal agency, or across industries and Federal agencies, to improve efficiencies, encourage innovation, and address supply chain gaps;

removed “(C) Report elements—The Subcommittee on Emerging Technology shall include, in the annual report of the Defense Production Act Committee, the analysis required under subparagraph (B)(ii), including a description of how covered technology can be used within a single industry or Federal agency, or across industries and Federal agencies, to improve efficiencies, conserve resources, and address supply chain gaps, in support of national defense priorities.

removed “(D) Covered technology—For purposes of this paragraph, the Subcommittee shall establish a definition for the term “covered technology” and, in establishing such definition, shall consider including technologies in the fields of—

removed “(i) artificial intelligence and robotics;

removed “(ii) biotechnology;

removed “(iii) cryptography and quantum computing;

removed “(iv) materials science;

removed “(v) semiconductors; and

removed “(vi) space.

removed “(2) General subcommittee authority—The Executive Director may establish and convene such additional subcommittees of the Committee as the Executive Director determines appropriate to improve coordination among member agencies of the Committee regarding particular activities authorized under this Act.”

added “(i) Deferral—The Executive Director of the Defense Production Act Committee shall defer budget authority involving the Fund for an agency that has repeatedly failed to submit complete reports described under section 206(a).”

added “(a) In general—Not later than 180 days after the effective date of this subsection, and annually thereafter, the head of each agency to which the President has delegated authorities under title I or this title shall submit the report described under subsection (b) to the Executive Director of the Defense Production Act Committee and the Fund manager of the Defense Production Act Fund.

added “(b) DPA strategy—A report described under this subsection is a report that includes—

added “(1) an assessment, in consultation with the Defense Production Act Committee and the private sector, of industrial base needs required by the head of the agency to meet the highest priorities arising from national defense requirements, as determined by the President;

added “(2) a detailed strategy, timeline, and spending plan, in consultation with the Defense Production Act Committee, to deploy the authorities under title I and this title to address the needs identified under paragraph (1);

added “(3) the results of the most recent simulation described in subsection (c);

added “(4) a comprehensive list of actions (including all priority ratings, the exercise or non-exercise of such ratings and any allocations or financing) taken by the agency pursuant to the authorities since the previous report, and an explanation of how the actions support the strategy described under paragraph (2);

added “(5) any use of authorities under section 308 or section 310 in support of the strategy described under paragraph (2);

added “(6) a description of any waivers exercised pursuant to section 101(d)(2), section 107(c), or section 203(h); and

added “(7) in the case of an action taken pursuant to title I or this title involving a business concern in Canada, the United Kingdom, or Australia, a justification of the necessity of the use of authorities under the applicable title.

added “(c) Strategy simulation—At least once every 5 years, the Defense Production Act Committee shall conduct a discussion-based simulation (commonly known as a “table-top exercise”) to determine the resources needed and the best use of the authorities under title I and this title to implement the strategy described in subsection (b)(2) contained in the most recent report required under subsection (a).

added “(d) Strategy on securing supply chains essential to national defense—The head of any relevant agency, as determined by the President, shall, in the first report submitted under subsection (a) after the date of enactment of this subsection, include in such report the following:

added “(1) A detailed plan to ensure the supply of the following, to the extent necessary for national defense:

added “(A) Medical materials (including drugs, devices, and biological products (as that term is defined in section 351 of the Public Health Service Act (42 U.S.C. 262)) to diagnose, cure, mitigate, treat, or prevent disease).

added “(B) Critical minerals.

added “(C) Naval shipbuilding capacity, materials, and components.

added “(2) An analysis of vulnerabilities to existing supply chains for the materials, minerals, and capacity described in paragraph (1).

added “(3) Any authorities provided by this Act to be used by the agency to ensure that essential components of such supply chains are not under the control of a foreign adversary.”

added “208. Prohibition on discrimination based on energy source

added “In using the authorities under this title, the President may not deny financial support pursuant to sections 201, 202, 203, or 204, other than for the production of energy, based on the energy source involved in the exploration, development, production, utilization, transportation, or sale of energy.

added “209. Limitation on eligibility for assistance

added “(a) In general—Notwithstanding any other provision of this Act or any other Act, a covered entity is not eligible for assistance authorized under this title.

added “(b) Definitions—In this section:

added “(1) Covered entity—The term “covered entity” means an entity in which a covered individual directly or indirectly holds a significant interest. For the purpose of determining whether an entity is a covered entity, if securities of the entity are owned, controlled, or held by 2 or more individuals who are related as described in paragraph (2), such securities shall be aggregated.

added “(2) Covered individual—The term “covered individual” means—

added “(A) the President, the Vice President, or a member of the Defense Production Act Committee; and

added “(B) the spouse, child, son-in-law, or daughter-in-law of an individual described in subparagraph (A).

added “(3) Equity interest—The term “equity interest” means—

added “(A) a share in an entity, without regard to whether the share is—

added “(i) transferable; or

added “(ii) classified as stock or anything similar;

added “(B) a capital or profit interest in a limited liability company or partnership; and

added “(C) a warrant or right (other than a right to convert) to purchase, sell, or subscribe to a share or interest described in subparagraph (A) or (B), respectively.

added “(4) Significant interest—The term “significant interest” means owning, controlling, or holding not less than 20 percent, by vote or value, of the outstanding amount of any class of equity interest in an entity.”

removed “(g) Fraud risk management in transactions under this Act—Not later than 1 year after the date of the enactment of this subsection, the Defense Production Act Committee shall—

removed “(1) establish and implement processes and procedures consistent with leading practices in the Fraud Risk Framework established by the Government Accountability Office to combat fraud in transactions undertaken under this Act;

removed “(2) train personnel about the standards and practices established and implemented under paragraph (1); and

removed “(3) designate a point of contact within the Defense Production Act Committee to be responsible for managing issues relating to fraud, including coordinating with agencies to review fraud-related issues.”

The Defense Production Act of 1950 (50 U.S.C. 4501 et seq.) is amended—

added “(a) In general—Any officer”

added “(b) Outreach representative during a public health emergency

added “(1) In general—Consistent with the authorities in this title, the Administrator of the Federal Emergency Management Agency, in consultation with the Secretary of Health and Human Services, may designate or appoint, pursuant to subsection (a), an individual to be known as the “Outreach Representative” for the period of a public health emergency. Such individual shall—

added “(A) be appointed from among individuals with substantial experience in the production or distribution of medical supplies or equipment; and

added “(B) act as the Government-wide single point of contact during the public health emergency for outreach to manufacturing companies and their suppliers who may be interested in producing medical supplies or equipment.

added “(2) Encouraging partnerships—During the period of a public health emergency, the Outreach Representative shall seek to develop partnerships between companies, in coordination with any overall coordinator appointed by the President to oversee the response to the public health emergency, including through the exercise of the authorities delegated by the President under section 308.”

added “(f) The authority of the President under this section may not be used to obtain sensitive personally identifiable information. In this subsection, the term “sensitive personally identifiable information” means personally identifiable information which, if lost, compromised, or disclosed without authorization, could result in substantial harm, embarrassment, inconvenience, or unfairness to an individual.”

added “(c) Civil actions—A civil action challenging an action taken under this Act may be brought only in the United States Court of Appeals for the District of Columbia Circuit.”

added “314. National Defense Executive Reserve

added “(a) Establishment—The President shall establish a National Defense Executive Reserve (in this section referred to as the “Reserve”).

added “(b) Purpose—The purpose of the Reserve shall be to improve the preparedness of the Federal Government for national defense emergencies by allowing private persons with unique expertise to volunteer, be trained for, and be temporarily employed in Federal positions within any of the Federal agencies that has established a Reserve unit under subsection (c) that may be necessary during periods of national defense emergency, as determined by the President.

added “(c) Reserve units

added “(1) In general—The President shall require the heads of each of the following agencies to establish a unit of the Reserve within the applicable agency:

added “(A) The Department of Commerce.

added “(B) The Department of Defense.

added “(C) The Department of Homeland Security.

added “(D) Such other agencies as the President determines appropriate.

added “(2) Activities of Reserve units—Activities of such Reserve units within each agency shall be aligned with the contents of the reports required under—

added “(A) section 203(j)(2)(C), related to workforce and skills gaps;

added “(B) section 206(b), related to overall strategy;

added “(C) section 206(d), related to the strategy on securing supply chains essential to national defense; and

added “(D) section 317(h)(1), the report from the Subcommittee on Emerging Technology.

added “(3) Deadline—The units of the Reserve within the agencies described under subparagraphs (A), (B), and (C) shall be established not later than 180 days after the issuance of the final rules required under subsection (f).

added “(d) Training—The President may, without activating the Reserve, allow for periodic training and exercises to prepare the Reserve for duty during an activation.

added “(e) Rulemaking—Not later than 360 days after the date of enactment of this section, the Director of the Office of Personnel Management, in consultation with the Secretary of Commerce, the Secretary of Defense, and the Secretary of Homeland Security, shall issue rules, in accordance with section 553 of title 5, United States Code, to provide—

added “(1) criteria for determining the number of positions in and organization of Reserve units;

added “(2) criteria for determining the appropriate level of seniority and job classifications of Reserve positions;

added “(3) the advertisement of the Reserve to the public to generate interest in volunteers;

added “(4) the selection of individuals for the Reserve and the job assignment process;

added “(5) the appointment authorities to be used by the head of an agency during an activation of the applicable Reserve unit;

added “(6) the appropriate levels of compensation for private individuals for service in the Reserve, dependent on the qualifications and expected roles of the individuals;

added “(7) the appropriate levels of compensation for private individuals for service in the Reserve for additional expenses, such as travel and accommodation, to fulfill the responsibilities in the Reserve, including during training and exercise;

added “(8) additional incentives to be provided to private individuals to encourage participation in the Reserve;

added “(9) whether and how to issue security clearances to individuals selected to serve in the Reserve, both prior to and during activation;

added “(10) the frequency and content of training and exercises for the Reserve;

added “(11) the appropriate interaction between permanent Government employees and individuals in the Reserve during training, exercises, and activations of the Reserve;

added “(12) the appointment of permanent Government employees to manage the Reserve for each agency with a Reserve unit, both prior to and during activation;

added “(13) practices to ensure that ethics and conflict-of-interest standards are implemented and maintained throughout the activities of the Reserve; and

added “(14) all other matters necessary to effectively manage the Reserve, as determined by the Director of the Office of Personnel Management.

added “(f) Additional guidance—The Director of the Office of Personnel Management may issue any additional internal guidance as the Director of the Office of Personnel determines is necessary to supplement the rules issued under subsection (e).

added “(g) Employment protection—For purposes of chapter 43 of title 38, United States Code, an individual absent from a position of employment due to an appointment into service in the Reserve shall be subject to the same employment and reemployment protections as are provided under such chapter for an individual absent from a position of employment due to an appointment into service in the Federal Emergency Management Agency as intermittent personnel under section 306(b)(1) of the Robert T. Stafford Disaster Relief and Emergency Assistance Act.”

added “(I) Consideration of certain agricultural land transactions

added “(i) In general—After receiving notification from the Secretary of Agriculture of a reportable agricultural land transaction, the Committee shall determine—

added “(I) whether the transaction is a covered transaction; and

added “(II) if the Committee determines that the transaction is a covered transaction, whether the Committee should initiate a review pursuant to subparagraph (D), or take another action authorized under this section, with respect to the reportable agricultural land transaction.

added “(ii) Reportable agricultural land transaction. In this subparagraph, the term “reportable agricultural land transaction” means a transaction—

added “(I) that the Secretary of Agriculture has reason to believe is a covered transaction, based on information from or in cooperation with the intelligence community;

added “(II) that involves the acquisition of an interest in agricultural land by a foreign person of the People’s Republic of China, the Democratic People’s Republic of Korea, the Russian Federation, or the Islamic Republic of Iran; and

added “(III) with respect to which a person is required to submit a report to the Secretary of Agriculture under section 2(a) of the Agricultural Foreign Investment Disclosure Act of 1978.

added “(iii) Sunset—The requirements under this subparagraph shall terminate, with respect to a foreign person of the respective foreign country, on the date that the People’s Republic of China, the Democratic People’s Republic of Korea, the Russian Federation, or the Islamic Republic of Iran, as the case may be, is removed from the list of foreign adversaries in section 791.4 of title 15, Code of Federal Regulations.”

added “(III) the date on which the transaction was accepted by the Committee and the date on which transaction parties were notified of the completion by the Committee of the Committee’s review of the transaction pursuant to subsection (b)(6); and”

added “(8) Inclusion of the Secretary of Agriculture—The Secretary of Agriculture shall be a member of the Committee with respect to a covered transaction that involves—

added “(A) agricultural land;

added “(B) agriculture biotechnology; or

added “(C) the agriculture industry, including agricultural transportation, storage, and processing.”

added “(C) the Fund manager of the Defense Production Act Fund; and

added “(D) the Director of the Office of Management and Budget.”

added “(2) Chairperson—The Assistant to the President for National Security Affairs shall serve as the non-voting Chairperson of the Committee.

added “(3) Executive Director—The Director of the Office of Management and Budget shall serve as the Executive Director of the Committee, who shall oversee interagency planning, coordination, and implementation of this Act.”

added “(1) the most recent reports submitted pursuant to section 206;”

added “(4) an evaluation of the effectiveness of each relevant Federal agency in deploying the authorities under title I and title II to address the needs described under section 206(b)(2);

added “(5) a summary of any steps taken to reduce fraud in transactions under this Act and a fraud risk assessment for all activities undertaken under this Act;

added “(6) a summary of activities by the National Defense Executive Reserve, along with any recommendations for regulatory and legislative improvements to support the National Defense Executive Reserve; and”

added “(e) Defense Production Act Dashboard—The Executive Director of the Committee shall maintain a database that—

added “(1) compiles and categorizes the actions reported under section 206(b)(4);

added “(2) is available to all members of the Committee, for the purpose of more effective coordination of actions authorized by this Act;

added “(3) allows for real-time updates by the members of the Committee; and

added “(4) is subject to appropriate information security, confidentiality, and classification requirements.

added “(f) Toolkit and online resources site

added “(1) In general—Not later than 365 days after the date of the enactment of this subsection, the Committee shall develop a toolkit and an online “one-stop shop” that allows Federal agencies to share information and resources with interested persons regarding the use of authorities under this Act (other than authorities under section 316 or title IV), including the following:

added “(A) The process for solicitations under such authorities, including information on submitting offers and receiving assistance.

added “(B) Opportunities under such authorities for business concerns, including small business concerns (as defined under section 3 of the Small Business Act (15 U.S.C. 632)), to participate in contracts and other funding mechanisms allowed such authorities.

added “(C) A searchable description of awards, including an identification of the awardee and any priority rating for such award, made using such authorities.

added “(D) A description of any voluntary agreements and executive reserves established, consistent with such authorities, including an identification of the parties engaged in each activity and the goals and terms of such activity, as the Committee determines appropriate.

added “(E) The contact information for an individual at each Federal agency to which the President may delegate such authorities.

added “(2) Outreach—Not later than 365 days after the development of the toolkit required in paragraph (1), and every 6 months thereafter, the Committee shall develop a plan for each Federal agency to which the President has delegated authorities under this Act (other than authorities under section 316 or title IV) to conduct outreach activities to educate the private sector about the commercial opportunities available under such authorities.

added “(g) Meetings—The Committee shall meet at least twice per year. The Chairperson of the Committee may convene such other meetings as the Chairperson determines necessary.

added “(h) Subcommittees

added “(1) Emerging technology subcommittee

added “(A) Establishment—There is established within the Committee a Subcommittee on Emerging Technology.

added “(B) Activities—The Subcommittee on Emerging Technology shall analyze—

added “(i) the effects or potential benefits of covered technology on activities determined essential to the national defense; and

added “(ii) how covered technology can be used within a single industry or Federal agency, or across industries and Federal agencies, to improve efficiencies, encourage innovation, and address supply chain gaps

added “(C) Report elements—The Subcommittee on Emerging Technology shall include, in the annual report of the Defense Production Act Committee, the analysis required under subparagraph (B)(ii), including a description of how covered technology can be used within a single industry or Federal agency, or across industries and Federal agencies, to improve efficiencies, conserve resources, and address supply chain gaps, in support of national defense priorities.

added “(D) Covered technology—For purposes of this paragraph, the Subcommittee shall establish a definition for the term “covered technology” and, in establishing such definition, shall consider including technologies in the fields of—

added “(i) artificial intelligence and robotics;

added “(ii) biotechnology;

added “(iii) cryptography and quantum computing;

added “(iv) materials science;

added “(v) semiconductors; and

added “(vi) space.

added “(2) General subcommittee authority—The Executive Director may establish and convene such additional subcommittees of the Committee as the Executive Director determines appropriate to improve coordination among member agencies of the Committee regarding particular activities authorized under this Act.

added “(i) Fraud risk management in transactions under this Act—Not later than 1 year after the date of the enactment of this subsection, the Defense Production Act Committee shall—

added “(1) establish and implement processes and procedures consistent with leading practices in the Fraud Risk Framework established by the Government Accountability Office to combat fraud in transactions undertaken under this Act;

added “(2) train personnel about the standards and practices established and implemented under paragraph (1); and

added “(3) designate a point of contact within the Defense Production Act Committee to be responsible for managing issues relating to fraud, including coordinating with agencies to review fraud-related issues.

added “(j) Testimony—The following persons, or their designees, shall provide testimony to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate not later than 90 days following submission of the report described under subsection (d):

added “(1) The Executive Director.

added “(2) Upon request of either such committee, the head of any Federal agency to which the President has delegated authority under this Act.”

added The Defense Production Act of 1950 (50 U.S.C. 4501 et seq.) is amended—