HR7037-119

What This Bill Does

The DOMINANCE Act is an international critical-minerals and energy-security bill. It starts from a finding that the United States is too dependent on the People's Republic of China for production, processing, and refining of critical minerals, then directs U.S. foreign policy toward diversified supply chains with allies and partner countries. It authorizes the Secretary of State, through the Under Secretary for Economic Growth, Energy, and the Environment, to lead U.S. participation in the Minerals Security Partnership and support mining, processing, refining, financing, procurement, political-risk insurance, and information-sharing work for critical-mineral projects abroad.

The bill directs the State Department to develop a diplomatic strategy for securing critical-mineral supply chains within 180 days. That strategy must coordinate State Department offices, use U.S. financial, commercial, and development-assistance tools, engage allied countries and mineral-rich partner countries, align trade policy with trusted sourcing, support private-sector entities across supply chains, and coordinate standards for mining, processing, refining, recycling, reclamation, and labor or environmental practices. The bill also directs a project-support mechanism through U.S. embassies, including possible certification that critical-mineral projects uphold labor rights and minimize environmental impacts.

Title II authorizes Energy Security Compacts with partner countries using bilateral economic-assistance funds, including Economic Resilience Initiative funds. It allows transfers into accounts for the Trade and Development Agency, Millennium Challenge Corporation, Development Finance Corporation capital and program accounts, Development Finance Corporate Equity Investment Account, and Export-Import Bank program account after consultation and notification to appropriators and foreign-affairs committees. It creates an Office of Energy Security Compacts, a Director for Energy Security Compacts, a quarterly Energy Security Compacts Council chaired by the Secretary of State, compact constraints analyses, benchmarks, country teams, annual reports, evaluations, and congressional notification 30 days before a compact is entered.

Title III creates an Assistant Secretary for Energy Security and Diplomacy and a Bureau of Energy Security and Diplomacy in the State Department. The Assistant Secretary is responsible for international energy, energy technology, critical minerals, and supply-chain foreign policy, including interagency coordination, international organization engagement, commercial promotion, sanctions-related input, energy-sector investment, and analyses of global energy developments. The bill also creates a Critical Mineral Mining Fellowship Program and Visiting Mining Scholars Program inside the Fulbright exchange framework to send U.S. students to foreign mining institutions and bring foreign mining academics or professionals to U.S. institutions.

Who Benefits and How

U.S. critical-mineral project developers benefit because embassies, the Minerals Security Partnership, and State Department strategy are directed to support overseas project pursuit, financing, risk insurance, procurement, standards, and commercial advocacy. Allied mineral-producing countries benefit because the bill creates diplomatic engagement plans, Energy Security Compacts, financing transfers, and project support for trusted supply chains. Partner-country energy ministries benefit from compact constraints analyses, benchmarks, infrastructure support, and coordinated access to U.S. finance agencies. U.S. energy technology exporters benefit because the Assistant Secretary and compacts are tasked with commercial opportunities, secure energy markets, and energy-sector investment abroad. U.S. mining students benefit from Fulbright mining fellowships for research and study at foreign mining institutions. Foreign mining academics benefit from visiting-scholar placements at U.S. universities.

Who Bears the Burden and How

State Department energy-security officials must write the critical-minerals strategy, manage Minerals Security Partnership participation, stand up the compact office, staff the Energy Security Compacts Council, negotiate compacts, handle proposals, and report annually. Development Finance Corporation, Export-Import Bank, Trade and Development Agency, Millennium Challenge Corporation, Department of Energy, Commerce, USTR, Defense, and Interior officials must coordinate compact financing and implementation. Private critical-mineral project sponsors may need to meet labor-rights and environmental certification expectations to receive U.S. support. Partner-country governments must accept compact benchmarks, constraints analyses, evaluations, and monitoring. The State Department exchange-program bureau and Fulbright Foreign Scholarship Board must administer new mining fellowships and visiting-scholar selection.

Key Provisions

• Authorizes U.S. leadership in the Minerals Security Partnership for critical-mineral mining, processing, refining, financing, procurement, information-sharing, and joint projects.
• Provides for U.S. membership in the International Nickel Study Group and payment of assessed contributions.
• Requires a State Department diplomatic strategy for trusted critical-mineral supply chains within 180 days.
• Directs a mechanism for U.S. embassy support and possible labor-rights or environmental certification for overseas critical-mineral projects.
• Authorizes Energy Security Compacts with partner countries and transfers of economic-assistance funds to DFC, EXIM, TDA, MCC, and related development-finance accounts.
• Creates an Office of Energy Security Compacts, Director for Energy Security Compacts, Energy Security Compacts Council, compact benchmarks, annual reports, evaluations, and 30-day congressional notification.
• Establishes an Assistant Secretary and Bureau of Energy Security and Diplomacy inside the State Department.
• Creates Fulbright-based Critical Mineral Mining Fellowship and Visiting Mining Scholars programs.