HR4350-119

103. Loan program for resilient critical material supply chains Not later than 1 year after the date of the enactment of this Act and subject to the availability of appropriations, the Secretary of Commerce, acting through the head of the Center and in consultation with the Secretary of State and in collaboration with the heads of the Federal agencies and departments described in section 104(a), shall establish a program to make or guarantee loans made to covered entities to acquire, establish, or enhance facilities related to developing domestic and foreign critical material manufacturing capabilities for the national, energy, and economic security of the United States. A covered entity shall be eligible for a loan made or guaranteed under this section if the covered entity meets each of the following criteria: The covered entity has a specific plan to use such loan for constructing, expanding, modernizing, or repurposing a facility, including the acquisition of relevant specialized equipment or a facility manufacturing such relevant specialized equipment, in the United States or in a foreign country of interest, for critical material manufacturing. The covered entity has an executable plan that supports resilient supply chains for the national, energy, and economic security of the United States, including by identifying— the type of critical material, including qualified substitute and byproducts, the covered entity will produce at the facility described in paragraph (1); the customers or categories of customers, to which the covered entity plans to sell the critical materials so produced; the benefit of such planned sales to the security and resilience of the critical material supply chain within the United States, including consideration of any secondary effects strengthening a relevant supply chain with an allied country; and the risks to the supply chains of critical materials for the facility described in paragraph (1) with respect to which the covered entity is seeking a loan or loan guarantee under this section that the covered entity must mitigate, including risks associated with access, availability, confidentiality, integrity, transparency, and any lack of geographic diversification in such critical material supply chains. The covered entity and the operation of the proposed facility will support and expand existing actions taken by the United States Government, including through the Department of Defense and the Department of Energy, to strengthen the resiliency of the critical material supply chain. The covered entity— can operate the facility on an ongoing basis, in accordance with subparagraphs (A), (B), and (C) of paragraph (2), without depending on additional Federal assistance; can reasonably repay such loan; and meets such other standards for financial health as determined appropriate by the Secretary. The covered entity— will not use funds received under such loan with respect to activities or operations located in a foreign country of concern or a nonmarket economy country; is not organized under the laws of a foreign country of concern or a nonmarket economy country or of any jurisdiction within such a country; is not owned, controlled, or operated by a foreign entity of concern; is not otherwise in a partnership or association with a foreign entity of concern; and is not engaged in any joint research or technology licensing effort for any innovative technology, material, or technique for the critical material supply chain with a foreign entity of concern or a foreign country of concern. The covered entity has a specific plan to follow existing procurement policies as implemented by the core jobs mandate in section 2(a)(1) of the Export-Import Bank Act of 1945 (12 U.S.C. 635(a)(1)). In determining whether to make or guarantee a loan to a covered entity under this section with respect to a facility described in subsection (b)(1), the Secretary shall consider— whether the covered entity has an executable plan with respect to such facility to carry out— development of the local workforce by creating and expanding educational and workforce pathways, including pathways developed through engagement with relevant local entities in the community in which such facility is or will be located; and to the greatest extent possible, environmental sustainability initiatives, including the use of a relevant industrial decarbonization practice or environmentally benign mining practices, as appropriate to such facility; and with respect to a covered entity seeking a loan made or guaranteed for a facility located in a foreign country of interest, such additional factors as the Secretary, in consultation with the Secretary of State and the United States Trade Representative, may determine necessary to ensure that— the covered entity will not use forced or child labor or use other practices that create unduly dangerous workplace conditions that are not consistent with the laws of the United States; the covered entity will meet or exceed United States permissible air and water quality standards as defined under section 101 of the Clean Air Act (42 U.S.C. 7401) and section 101 of the Federal Water Pollution Control Act (33 U.S.C. 1251), and, to the greatest extent possible, prevent environmental degradation related to the construction and operation of the facility, including through the use of relevant industrial decarbonization practices and environmentally benign mining practices; the covered entity is not subject to covered trade action; and the facility will not be located in a foreign country of concern or a nonmarket economy country or be associated with a foreign entity of concern, including through existing or future partnerships between the covered entity and any foreign entity of concern or an associated subsidiary. The Secretary may waive subsection (c) with respect to a loan guarantee under this section for a loan with respect to a facility described in subsection (b)(1) if such facility is located within the United States. In making or guaranteeing loans under this section, the Secretary shall prioritize loans with respect to facilities that— expand the domestic supply of critical materials that the Secretary determines necessary to the— the national security and defense of the United States; the energy security and independence of the United States; and the economic competitiveness of the United States; have not been supported by prior direct investment (excluding research, development, or demonstration support) by the Department of Defense, the Department of Energy, or any other Federal department or agency, unless the Secretary determines that making or guaranteeing such loan is in the best interest of carrying out the purposes described in paragraph (1), including a loan to a covered entity with respect to a facility or activity to expand the domestic supply of such critical minerals that was supported by a prior Federal award; and purchase United States-made goods and services, including mining equipment, machinery, iron, steel, and other goods required to for critical material manufacturing. Not later than 15 days before making or guaranteeing a loan under this section that exceeds $100,000,000, the Secretary shall notify the appropriate committees of Congress of such loan. A covered entity seeking a loan made or guaranteed under this section shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary determines appropriate, including such records and other information the Secretary determines appropriate to determine the eligibility of a covered entity and whether the facility with respect to which such covered entity is seeking such loan is in the interest of the United States. In addition to the information required to be included in the application under subparagraph (A) and subject to subsection (d), a covered entity seeking a loan guaranteed under this section shall include in such application such information as the Secretary determines appropriate to determine whether the loan with respect to which such covered entity is seeking such guarantee is eligible to be guaranteed under this section, including the lender making such loan and the terms and conditions of such loan. A loan made or guaranteed under this section shall— be disbursed in installments pursuant to a schedule determined by the Secretary; have an interest rate that does not exceed a level that the Secretary determines appropriate, taking into account, as of the date on which the loan is made, the cost of funds to the Department of the Treasury for obligations of comparable maturity; and have a term of not more than 25 years. No loan may be guaranteed under this section unless the Secretary determines that— the lender that made such loan is responsible; and such loan provides adequate provisions to protect the interest of the United States. A loan made or guaranteed under this section may not exceed the following amounts unless the President certifies to the appropriate committees of Congress that a loan exceeding such amounts is necessary to significantly increase the supply of critical materials relevant to the national, energy, and economic security of the United States: For a loan with respect to a facility located within the United States, the lesser of— $1,000,000,000 or 50 percent of the total cost of the construction, expansion, modernization, or repurposing of such facility for which the covered entity is seeking such loan in the case of a loan made under this section; or $1,000,000,000 or 75 percent of the total cost of the construction, expansion, modernization, or repurposing of such facility for which the covered entity is seeking such loan in the case of a loan guaranteed under this section. For a loan with respect to a facility located outside of the United States, the lesser of $250,000,000 or 25 percent of the total cost of the construction, expansion, modernization, or repurposing of such facility for which the covered entity is seeking such loan. Notwithstanding subparagraph (A), a loan made or guaranteed under this section may not exceed the following amounts: For a loan with respect to a facility located within the United States, the lesser of— $2,000,000,000 or 50 percent of the total cost of the construction, expansion, modernization, or repurposing of such facility for which the covered entity is seeking such loan in the case of a loan made under this section; or $2,000,000,000 or 75 percent of the total cost of the construction, expansion, modernization, or repurposing of such facility for which the covered entity is seeking such loan in the case of a loan guaranteed under this section. For a loan with respect to a facility located outside of the United States, the lesser of $500,000,000 or 25 percent of the total cost of the construction, expansion, modernization, or repurposing of such facility for which the covered entity is seeking such loan. A loan made or guaranteed under this section may include any other terms and conditions that the Secretary determines to be appropriate. For the purposes of determining whether to make or guarantee a loan under this section, the Secretary shall determine whether a covered entity has a reasonable prospect of repaying such loan based on the following: The protection of the financial interests of the United States provided by contractual terms of the project the covered entity plans to perform. The expected financial strength of the covered entity— at the time the loan or guarantee would be approved; and throughout the loan term after the project is completed. The financial strength of the investors and strategic partners of the covered entity, if applicable. Other financial metrics, analyses, or criteria relied upon by the private lending community and other nationally recognized credit rating agencies that the Secretary determines relevant to the evaluation of the financial strength of the covered entity. A covered entity that receives a loan made or guaranteed under this section may only use the awarded amounts for the following purposes of supporting activities described in subsection (a), as documented in the application submitted by the covered entity under subsection (g)(1), to— finance the construction, expansion, modernization, or repurposing of a facility, including through the acquisition of relevant equipment and site development, for critical material manufacturing; finance the construction, expansion, modernization, or repurposing of a facility to manufacture relevant specialized equipment described in subsection (b)(1), including site development; finance the construction, expansion, modernization, or repurposing of a facility, including through the acquisition of relevant specialized equipment, for the research, development, and demonstration within the United States of innovative technologies, materials, or techniques related to establishing resilient critical material supply chain; support the expansion or creation of educational and workforce pathways, including engagement with the community and relevant local entities through innovative partnerships, including apprenticeship programs; support activities related to environmental protection and other sustainability practices, including the implementation of industrial decarbonization practices; or pay reasonable costs related to the operating expenses for a facility described in paragraph (1), (2), or (3), including hiring a specialized workforce, acquiring essential materials, and performing complex equipment maintenance, as determined appropriate by the Secretary. As a condition to receive a loan made or guaranteed under this section, the covered entity receiving such loan shall enter into an agreement with the Secretary under which, during the 10-year period beginning on the date of the first disbursement of such loan, the covered entity— will not engage in any significant transaction, as defined in the agreement, involving the expansion of existing critical materials capabilities of a foreign entity of concern or a foreign entity in a foreign country of concern or a nonmarket economy country; will notify the Secretary of any planned transactions involving the covered entity relating to the expansion of existing critical materials capabilities by a foreign entity of concern, a foreign country of concern, or a nonmarket economy country; will provide records and other necessary information at the request of the Secretary to review the compliance of the covered entity to terms of the agreement; and will return the full amount of such loan that has been disbursed if— the Secretary determines that such covered entity violated the agreement; such covered entity does not remedy such violation or the Secretary determines that such violation cannot be remedied; and the Secretary determines that the return of such amounts is necessary. If the Secretary determines that a covered entity violated the agreement such covered entity entered into under paragraph (1) with respect to a loan made or guaranteed under this section or failed to provide proof required pursuant to paragraph (3)(A)(iii) with respect to a planned transaction in accordance with such paragraph the Secretary— shall— in the case of a loan that is made under this section, revoke the undisbursed amount of such loan and, if the Secretary determines necessary under paragraph (1)(D)(iii), recover the full amount of such loan that has been disbursed; and in the case of a loan guaranteed under this section, revoke the guarantee of such loan; and if the Secretary determines that such planned transaction would harm the national, energy, and economic security of the United States, may take other corrective action, including recommending corrective action to the heads of such other Federal departments or agencies, as may be appropriate to the duties of such departments or agencies. Not later than 90 days after the date of receipt of a notification described in subparagraph (B) of paragraph (1) from a covered entity pursuant to an agreement between such covered entity and the Secretary entered into under such paragraph, the Secretary shall— determine whether the planned transaction described in such notification would violate such agreement; notify the covered entity of the determination; and if the Secretary determines that such planned transaction would violate such agreement, require such covered entity to provide to the Secretary proof that such covered entity will not proceed with such planned transaction not later than 45 days after the Secretary provides the notification under clause (ii) with respect to such determination. If the Secretary requires a covered entity to provide proof under subparagraph (A)(iii) with respect to a planned transaction, not later than 90 days after the earlier of the date on which the Secretary receives such proof or the date on which the Secretary takes action under subparagraph (2) pursuant to the failure of such covered entity to provide such proof, the Secretary shall submit to the appropriate committees of Congress— a notification of the planned transaction; a brief description of how the Secretary determined that the planned transaction would be a violation; and a summary of any actions or planned actions in response to such planned transaction. The Secretary may make a determination described in paragraphs (1)(D)(i), (1)(D)(ii), (2), or (3)(A) with respect to a covered entity only after such covered entity has had an opportunity for a hearing on the record with respect to such determination. As a condition of making or guaranteeing loans under this section, the Secretary shall establish target dates by which the construction, expansion, modernization, or repurposing, as applicable, of the facility with respect to which such loan was made shall commence and complete. If the construction, expansion, modernization, or repurposing, as applicable, of the facility does not commence and complete within the target dates established under paragraph (1) or the revised target dates established under subparagraph (B)(ii), the Secretary shall progressively recover or disburse up to the full amount of the loan made or guaranteed under this section. The Secretary may waive subparagraph (A) with respect to a failure of a covered entity to commence the construction, expansion, modernization, or repurposing, as applicable, of a facility in accordance with the commencement date for such facility established under paragraph (1) if the Secretary makes a formal determination that such covered entity could not foresee or control the circumstances causing such failure, including a failure due to supply chain disruptions, other than such a failure resulting from the failure of the covered entity to cooperate with any relevant regulatory agencies for permit approval. If the Secretary waives subparagraph (A) with respect to the failure of a covered entity to commence the construction, expansion, modernization, or repurposing, as applicable, of a facility in accordance with the commencement date for such facility established under paragraph (1)— the Secretary shall establish revised target dates by which the construction, expansion, modernization, or repurposing, as applicable, of the facility with respect to which such loan was made shall commence and complete; and the relevant agreement under subsection (i)(1) shall be amended to reflect such revised target dates. The Secretary shall notify appropriate committees of Congress— of the target dates determined with respect to each loan made or guaranteed under this section that exceeds $100,000,000; and not later than 15 days after the provision of a waiver under paragraph (2)(B), of the terms of such waiver. Notwithstanding any other provision of law, including the National Labor Relations Act (29 U.S.C. 151 et seq.), this subsection shall apply to any recipient of a loan under this section who is an employer and any labor organization who represents or seeks to represent any employees or only those employees who perform or will perform work funded by a loan provided under this section. Any employer receiving a loan under this section shall recognize for purposes of collective bargaining a labor organization that demonstrates that a majority of the employees in a unit appropriate for such purposes and who perform or will perform work funded by a loan provided under this section have signed valid authorizations designating the labor organization as their collective bargaining representative and that no other labor organization is certified or recognized pursuant to section 9 of the National Labor Relations Act (29 U.S.C. 159) as the exclusive representative of any of the employees in the unit who perform or will perform such work. Upon such showing of majority status, the employer shall notify the labor organization and the National Labor Relations Board that the employer— has determined that the labor organization represents a majority of the employees in such unit who perform or will perform such work; and is recognizing the labor organization as the exclusive representative of the employees in such unit who perform or will perform such work for the purposes of collective bargaining pursuant to that section. If a dispute over majority status or the appropriateness of the unit described in paragraph (2) arises between the employer and the labor organization, either party may request that the National Labor Relations Board investigate and resolve the dispute. If the Board finds that a majority of the employees in a unit appropriate for purposes of collective bargaining who perform or will perform work funded by a loan provided under this section have signed valid authorizations designating the labor organization as their representative for such purposes and that no other individual or labor organization is certified or recognized as the exclusive representative of any of the employees in the unit who perform or will perform such work for such purposes, the Board shall not direct an election but shall certify the labor organization as the representative described in section 9(a) of the National Labor Relations Act (29 U.S.C. 159(a)). Not later than 10 days after an employer receiving funding under this section receives a written request for collective bargaining from a recognized or certified labor organization representing employees who perform or will perform work funded by a loan provided under this section, or within such period as the parties agree upon, the labor organization and employer shall meet and commence to bargain collectively and shall make every reasonable effort to conclude such bargaining and sign a collective bargaining agreement. If, after the expiration of the 90-day period beginning on the date on which collective bargaining under paragraph (4) began, or such additional period as the parties may agree upon, the parties have failed to reach an agreement, either party may notify the Federal Mediation and Conciliation Service (referred to in this subsection as the Service) of the existence of a dispute and request mediation. Whenever such a request is received, it shall be the duty of the Service promptly to put itself in communication with the parties and to use its best efforts, by mediation and conciliation, to bring them to agreement. If, after the expiration of the 30-day period beginning on the date on which the request for mediation is made under paragraph (5), or such additional period as the parties may agree upon, the Service is not able to bring the parties to agreement by mediation and conciliation, the Service shall refer the dispute to a tripartite arbitration panel established in accordance with such regulations as may be prescribed by the Service. A tripartite arbitration panel established under this clause with respect to a dispute shall be composed of 1 member selected by the labor organization, 1 member selected by the employer, and 1 neutral member mutually agreed to by the labor organization and the employer. Each such member shall be selected not later than 14 days after the expiration of the 30-day period described in subparagraph (A) with respect to such dispute. Any member not so selected by the date that is 14 days after the expiration of such period shall be selected by the Service. A majority of a tripartite arbitration panel established under this clause with respect to a dispute shall render a decision settling the dispute as soon as practicable, and (absent extraordinary circumstances or by agreement or permission of the parties) not later than 120 days after the establishment of such panel. Such a decision shall be binding upon the parties for a period of 2 years, unless amended during such period by written consent of the parties. Such decision shall be based on— the financial status and prospects of the employer; the size and type of the operations and business of the employer; the cost of living of the employees; the ability of the employees to sustain themselves, their families, and their dependents on the wages and benefits they earn from the employer; and the wages and benefits other employers in the same business provide their employees. Any employer receiving funds under this section to procure goods or services shall require a contractor or subcontractor, whose employees perform or will perform work funded by a loan provided under this section, that contracts or subcontracts with the employer to comply with the requirements set forth in paragraphs (1) through (6). In this subsection, the terms employee, employer, and labor organization have the meanings given the terms in section 2 of the National Labor Relations Act (29 U.S.C. 152). Funds appropriated to carry out this Act may not be used to assist, promote, or deter organizing of labor organizations. All laborers and mechanics employed by the covered entity receiving funding under this section, or employed by contractors or subcontractors related to a covered project, shall be paid wages at rates not less than those prevailing on similar projects in the locality, as determined by the Secretary of Labor in accordance with subchapter IV of chapter 31 of title 40, United States Code (commonly referred to as the Davis-Bacon Act). The Secretary of Labor shall have, with respect to the labor standards specified in this subsection, the authority and functions set forth in Reorganization Plan Numbered 14 of 1950 (5 U.S.C. App.; relating to coordination of administration and consistency of enforcement of certain labor standards for Federal employees) and section 3145 of title 40, United States Code. Not later than four years after the first disbursement of the first loan made or guaranteed under this section, the Inspector General of the Department of Commerce, in consultation with the Inspector General of the Department of State, shall audit the program and submit to the appropriate committees of Congress a report containing the results of such audit under this subsection to assess— whether the national center has been established and operated in accordance with section 102; and whether the loan program has been established and operated in accordance with this section, including— whether the Secretary is making or guaranteeing loans under this section only to covered entities that meet the requirements in subsection (b); whether the covered entities receiving loans made or guaranteed under this section are using the amounts of such loans in accordance with subsection (h); whether the Secretary has complied with the limitations under subsection (g)(4) and under section 106(c); and whether the Secretary is carrying out the agreements required under subsection (i), including any congressional notifications required by such subsection.

105. Material supply chain public-private partnership Not later than 1 year after the date of enactment of this section, the Secretary, acting through the head of the Center, in consultation with the Secretary of State, and through the collaboration required under section 104, shall establish a public-private partnership to— support the development of a resilient supply chain; bolster the national, energy, and economic security of the United States; and support the development of supply chain characteristics in the interests of the United States, including— transparency and traceability; environmental sustainability; workforce security and safety; and innovation. The public-private partnership shall— engage with stakeholders from across the critical material supply chain, prioritizing domestic stakeholders, including through— convening such stakeholders for regular meetings to inform the activities of the public-private partnership; and accepting membership from industry, nonprofit organizations, trade associations, academia, labor organizations, and equivalent international partners; advise the Center on creating a robust understanding of a critical material supply chain, including through advancing the understanding of, with respect to such supply chain— market dynamics including market manipulation by foreign countries of concern; pricing and availability dynamics; transparency and traceability; environmental sustainability; education and workforce development; labor law compliance; and barriers to adopting innovative technologies, materials, and techniques; establish partnerships with international partners, excluding foreign entities of concern or a foreign entity in a foreign country of concern, to advance the national, energy, and economic security of the United States; operate the Investment Fund established under subsection (b); and not later than one year after the public-private partnership is established, and annually thereafter, publish at least one report on the internet website of the Department of Commerce summarizing the activities undertaken by the public-private partnership during the most recent fiscal year prior to publication of such report, and such report shall include— a summary of the advice provided to the Center established in section 102(a); a summary of the membership of the public-private partnership; a summary of the activities carried out by the Investment Fund established in subsection (b); and a summary of any international collaborations carried out by the public-private partnership. Subject to the availability of appropriations, out of the funds authorized to be appropriated pursuant to section 106(a), the Secretary shall allocate up to the following amounts to carry out this subsection: $15,000,000 for fiscal year 2026. $30,000,000 for fiscal year 2027. $45,000,000 for fiscal year 2028. $60,000,000 for fiscal year 2029. $75,000,000 for the period of fiscal year 2030 and each fiscal year thereafter prior to the expiration of the program. Not later than one year after the establishment of the public-private partnership under subsection (a), the public-private partnership shall establish an investment fund (in this section referred to as the Investment Fund) to support existing Federal and private investments to acquire, establish, or enhance facilities related to developing domestic and foreign critical material manufacturing capabilities for the national, energy, and economic security of the United States. The Investment Fund shall— accept and solicit funds from entities described in subsection (a)(2)(A)(ii) to invest and support facilities to expand domestic and foreign capabilities to manufacture critical materials for the national, energy, and economic security of the United States, in accordance with the eligibility requirements described in section 103(b); buy and sell critical materials from the global marketplace, prioritizing domestic producers, to support the transition to resilient supply chains with stable market prices and store such purchased critical materials within the United States; invest in innovative partnerships with critical material supply chain stakeholders with a prioritization for starts-ups, small and medium-sized enterprises, and other entities supporting innovative technologies, materials, or techniques; provide innovative financial tools and other risk mitigation mechanisms, such as insurance products, that follow existing procurement policies as implemented pursuant to section 2(a)(1) of the Export-Import Bank Act of 1945 (12 U.S.C. 625(a)(1)), directly or in partnership with entities currently providing such tools and mechanisms, to stabilize market prices and support domestic capabilities; support demonstration, deployment, and adoption activities related to innovative technologies, materials, including qualified substitutes, or techniques to promote sustainability and increased resiliency, with sufficient research collaboration safeguards to protect domestic proprietary information; invest acquired profit from activities in subparagraphs (A) and (B) to further the mission of the Investment Fund; and consult regularly with Federal agencies and departments identified in section 104, including the Export-Import Bank of the United States and the United States International Development Finance Corporation, to ensure alignment with existing Federal efforts designed to promote, fund, resource critical material manufacturing domestically or in a foreign country of interest. The Investment Fund shall— be eligible to receive a loan under the loan program established in section 103(a) after submission of the application under subparagraph (B) of this paragraph; and not be eligible to apply for or receive a loan guarantee under the loan program in section 103(a). To receive a Federal loan under the loan program established in section 103(a), the Investment Fund shall submit to the Secretary an application that includes— a list of projects, in accordance with the eligibility requirements described in section 103(b)(2), that the fund will support through the receipt of a Federal loan under such program; and any other information the Secretary determines appropriate to evaluate the eligibility of the projects submitted under clause (i) for such loan program. Each award made to the Investment Fund under the loan program established in section 103(a) shall— be in an amount the Secretary determines appropriate; and not exceed 25 percent of the available loan authority of such loan program for a given fiscal year. Subject to the agreement requirements under subparagraph (G) and to the extent the Investment Fund maintains good standing, as determined by the Secretary, such Secretary may forgive all or part of a loan awarded to the Investment Fund under this paragraph in an eligible fiscal year, in accordance with the authorities of the agency. For purposes of the Internal Revenue Code of 1986— no amount shall be included in the gross income of the Investment Fund by reason of forgiveness of indebtedness described in subparagraph (D); no deduction shall be denied, no tax attribute shall be reduced, and no basis increase shall be denied, by reason of the exclusion from gross income provided by clause (i); and in the case that the Investment Fund is a partnership or S corporation— any amount excluded from income by reason of clause (i) shall be treated as tax exempt income for purposes of sections 705 and 1366 of the Internal Revenue Code of 1986; and except as provided by the Secretary of the Treasury, or a delegate of such Secretary, any increase in the adjusted basis of an interest of a partner in a partnership under section 705 of the Internal Revenue Code of 1986, with respect to any amount described in subclause (I), shall equal the distributive share of deductions of such partner resulting from costs giving rise to forgiveness described in subclause (I). The provisions made by subparagraph (E) shall apply to taxable years beginning after December 31, 2025. Pursuant to section 103(i)— the Secretary shall enter into the required agreement with the Investment Fund; and the Investment Fund shall take on full responsibility for the required agreement and the actions of the projects that use funds awarded by the loan program established in section 103(a) to the Investment Fund. Not later than one year after date on which the Investment Fund is established under paragraph (1), and annually thereafter, the Investment Fund shall provide an annual report to the Secretary which shall— include all actions taken by the Investment Fund upon receipt of each award; include any additional information the Secretary determines appropriate to ensure robust oversight of the use of each loan awarded to the Investment Fund; and be published on the internet website of the Department of Commerce. Pursuant to section 103(j), the Secretary shall have the authority to recover, or dispense of, up to the full amount of each loan awarded by the loan program established in section 103(a) for a given fiscal year if— the Investment Fund fails to comply with the required agreement in subparagraph (G); or the Secretary is notified of the inability of the Investment Fund to use such an award in accordance with section 103(h). If the Secretary is not satisfied with the actions taken by the Investment Fund, including failure by the Investment Fund to comply with the eligibility requirements for the loan program established under section 103(a) or the improper use of funds awarded by such loan program to the Investment Fund, the Investment Fund shall— be ineligible for future awards by such loan program; and remain ineligible until— the Investment Fund presents an executable plan that the Secretary determines appropriate to satisfy the requirements of section 103(b) or section 103(h); the Secretary shall submit to Congress a report outlining the corrective actions the Investment Fund has taken to be eligible to apply for such loan program again; and the Secretary determines that the Investment Fund is eligible to apply for such loan program again. Notwithstanding any other provision of law, including the National Labor Relations Act (29 U.S.C. 151 et seq.), any recipient of a loan under this section who is an employer, and any labor organization who represents or seeks to represent any employees or only those employees who perform or will perform work funded by a loan provided under this section, shall be subject to the provisions of section 103(k) of this title. All laborers and mechanics employed by the covered entity receiving funding under this section or employed by contractors or subcontractors related to a covered project, shall be paid wages at rates not less than those prevailing on similar projects in the locality, as determined by the Secretary of Labor in accordance with subchapter IV of chapter 31 of title 40, United States Code (commonly referred to as the Davis-Bacon Act). The Secretary of Labor shall have, with respect to the labor standards specified in this subparagraph, the authority and functions set forth in Reorganization Plan Numbered 14 of 1950 (5 U.S.C. App.; relating to coordination of administration and consistency of enforcement of certain labor standards for Federal employees) and section 3145 of title 40, United States Code. Not later than 2 years after the first loan is awarded to the Investment Fund under the loan program established in section 103(a), the Inspector General of the Department of Commerce shall audit the Investment Fund and submit to Congress a report— that assesses whether the Investment Fund has complied with the requirements of this title, including— the requirements under section 103(b) for maintaining eligibility for the joint loan program; the requirements under section 103(h) regarding the proper use of awarded or guaranteed funds; the exclusion of foreign entities of concern or foreign countries of concern; and any additional requirements that the Investment Fund must meet as determined appropriate by the Secretary; and that proposes a course of action for the Secretary to— remedy each violation by the Investment Fund found, if any; and monitor the progress of the Investment Fund towards remedying each violation found by the Secretary. The Investment Fund under subsection (b) may not accept funds from, allow membership to, create research collaborations with, or partner with a foreign entity of concern or a foreign entity within a foreign country of concern or a nonmarket economy country.

106. Authorization of appropriations There is authorized to be appropriated to the Department of Commerce for the national center established in section 102 the following amounts for the applicable fiscal year: $30,000,000 for fiscal year 2026. $45,000,000 for fiscal year 2027. $70,000,000 for fiscal year 2028. $85,000,000 for fiscal year 2029. $100,000,000 for each of fiscal years 2030 and any fiscal year thereafter before the date described in section 107. There is authorized to be appropriated to the Department of Commerce for the loan and loan guarantee program established in section 103 the following amounts for the applicable fiscal year: $1,000,000,000 for fiscal year 2026. $2,500,000,000 for fiscal year 2027. $5,000,000,000 for fiscal year 2028. $7,500,000,000 for fiscal year 2029. $10,000,000,000 for fiscal year 2030 and any fiscal year thereafter before the date described in section 107. Of the amounts appropriated pursuant to the authorization under subsection (b) for any fiscal year, other than amounts provided to the Investment Fund established under section 105(b)(1), the Secretary shall ensure to the greatest extent practicable that— a maximum of 30 percent of the available amounts are provided with respect to investments into facilities in foreign countries of interest that— relate to the extraction of critical materials significantly unavailable for domestic extraction; and prioritize secondary impacts to the United States, including through purchase agreements with domestic manufacturers; a maximum of 20 percent of the available amounts are provided with respect to investment into facilities within the United States relating to the extraction of domestically available critical materials in the United States; a minimum of 5 percent of the available amounts are provided with respect to investment into facilities related to the manufacturing of necessary equipment for the manufacturing of critical materials; and a minimum of 10 percent of the available amounts are provided with respect to facilities located within the United States related to— the reclamation of critical materials from spent and damaged end-use components through recycling processes; or the demonstration, deployment, or commercialization of innovative technologies such as qualified substitutes.

305. Critical materials demonstration Subsection (d) of section 40210 of the Infrastructure Investment and Jobs Act (42 U.S.C. 18743) is amended to read as follows: The Secretary shall establish a grant program to finance pilot projects to promote domestic capacity, reduce reliance on supply chains subject to disruptions, and support innovation in the critical material supply chain. Pilot projects under paragraph (1) may include any of the following to increase the domestic capabilities of the United States to manufacture critical materials across the entire cycle of the critical material supply chain: Innovative technologies, including applications for manufacturing equipment and industrial decarbonization. Innovative and emerging materials for improved or new uses with the supply chain, including qualified substitutes, byproducts, or recycled or reclaimed critical materials. Innovative and emerging downstream applications to reduce reliance on critical materials subject to supply chain disruptions. Any other technology, material, or technique to promote circularity and sustainability, including through environmentally benign processes, within the critical material supply chain. A grant awarded under paragraph (1) may not exceed $25,000,000. In awarding grants under paragraph (1), the Secretary shall give priority to projects that the Secretary determines are likely to be economically viable over the long term. In awarding grants under paragraph (1), the Secretary shall seek to award not less than 40 percent of the total amount of grants awarded during the fiscal year for projects relating to the following: Qualified substitute. Secondary recovery. Recycling. In awarding grants under paragraph (1), the Secretary shall ensure that pilot projects do not export for any manufacturing process of a critical material to a foreign country of concern. In carrying out this subsection, the Secretary shall collaborate with the Secretary of Commerce, the Secretary of Defense, the Secretary of the Interior, the Director of the National Science Foundation, the Director of the National Institute of Standards and Technology, the Director of the Office of Science and Technology Policy, and the heads of other relevant Federal departments and agencies, including facilities such as the National Laboratories, Manufacturing USA institutes, and other federally funded research and development centers, academia, industry, nonprofit organizations, labor organizations, and international partners, as appropriate, to carry out the purposes described in paragraph (1). The Secretary shall ensure awards made under paragraph (1) are complementary and not duplicative of existing programs across the Department of Energy and the Federal Government. There is authorized to be appropriated to the Secretary to carry out this subsection $150,000,000 for each of fiscal years 2026 through 2030. In this subsection: The term conversion means the process to alter a refined or purified critical material to a secondary compound that is subject to supply chain disruptions relevant to the national, energy, and economic security of the United States, including the manufacturing of magnets, alloys, or multicompound chemistries, including such chemistries at solid, liquid, or gaseous states. The term critical material supply chain means the lifecycle of a critical material, including the extraction, processing or refining, conversion, and recycling of a critical material. The term foreign country of concern has the meaning given such term in section 9901 of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 (15 U.S.C. 4651). The term qualified substitute means any verifiable alternative to a critical material, including converted critical material compounds, able to carry out an essential function (as such term is used in section 7002(a)(2)(ii) of the Energy Act of 2020 (30 U.S.C. 1606(a)(2)(ii))) of a critical material. The term refined or purified critical material means a critical material that has undergone any relevant manufacturing process to remove impurities and to meet industry standards of purity or concentration for downstream use cases post-extraction or recycling. (d)Grant program for pilot projects To expand domestic capacity of critical materials (1)EstablishmentThe Secretary shall establish a grant program to finance pilot projects to promote domestic capacity, reduce reliance on supply chains subject to disruptions, and support innovation in the critical material supply chain. (2)Use of fundsPilot projects under paragraph (1) may include any of the following to increase the domestic capabilities of the United States to manufacture critical materials across the entire cycle of the critical material supply chain: (A)Innovative technologies, including applications for manufacturing equipment and industrial decarbonization. (B)Innovative and emerging materials for improved or new uses with the supply chain, including qualified substitutes, byproducts, or recycled or reclaimed critical materials. (C)Innovative and emerging downstream applications to reduce reliance on critical materials subject to supply chain disruptions. (D)Any other technology, material, or technique to promote circularity and sustainability, including through environmentally benign processes, within the critical material supply chain. (3)Limitations (A)Limitation on grant awardsA grant awarded under paragraph (1) may not exceed $25,000,000. (B)Economic viabilityIn awarding grants under paragraph (1), the Secretary shall give priority to projects that the Secretary determines are likely to be economically viable over the long term. (C)PriorityIn awarding grants under paragraph (1), the Secretary shall seek to award not less than 40 percent of the total amount of grants awarded during the fiscal year for projects relating to the following: (i)Qualified substitute. (ii)Secondary recovery. (iii)Recycling. (D)Prohibition on awards to foreign countries of concernIn awarding grants under paragraph (1), the Secretary shall ensure that pilot projects do not export for any manufacturing process of a critical material to a foreign country of concern. (4)CollaborationIn carrying out this subsection, the Secretary shall collaborate with the Secretary of Commerce, the Secretary of Defense, the Secretary of the Interior, the Director of the National Science Foundation, the Director of the National Institute of Standards and Technology, the Director of the Office of Science and Technology Policy, and the heads of other relevant Federal departments and agencies, including facilities such as the National Laboratories, Manufacturing USA institutes, and other federally funded research and development centers, academia, industry, nonprofit organizations, labor organizations, and international partners, as appropriate, to carry out the purposes described in paragraph (1). (5)Existing programsThe Secretary shall ensure awards made under paragraph (1) are complementary and not duplicative of existing programs across the Department of Energy and the Federal Government. (6)Authorization of appropriationsThere is authorized to be appropriated to the Secretary to carry out this subsection $150,000,000 for each of fiscal years 2026 through 2030. (7)DefinitionsIn this subsection: (A)ConversionThe term conversion means the process to alter a refined or purified critical material to a secondary compound that is subject to supply chain disruptions relevant to the national, energy, and economic security of the United States, including the manufacturing of magnets, alloys, or multicompound chemistries, including such chemistries at solid, liquid, or gaseous states. (B)Critical material supply chainThe term critical material supply chain means the lifecycle of a critical material, including the extraction, processing or refining, conversion, and recycling of a critical material. (C)Foreign country of concernThe term foreign country of concern has the meaning given such term in section 9901 of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 (15 U.S.C. 4651). (D)Qualified substituteThe term qualified substitute means any verifiable alternative to a critical material, including converted critical material compounds, able to carry out an essential function (as such term is used in section 7002(a)(2)(ii) of the Energy Act of 2020 (30 U.S.C. 1606(a)(2)(ii))) of a critical material. (E)Refined or purified critical materialThe term refined or purified critical material means a critical material that has undergone any relevant manufacturing process to remove impurities and to meet industry standards of purity or concentration for downstream use cases post-extraction or recycling..