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TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED MATTERS

Subtitle D--Industrial Base Matters

P. L. 116-

House Conference Report   116-617

(1) From sources located within the United States.

(2) From sources located within the national technology and industrial base (as defined in section 2500 of title 10, United States Code).

(3) From other sources as appropriate.

(b) Statement of Policy.--

(1) In general.--The Secretary of Defense shall pursue the following goals:

(A) Not later than January 1, 2035, ensuring access to secure sources of supply for strategic and critical materials that will--

(i) fully meet the demands of the domestic defense industrial base;

(ii) eliminate the dependence of the United States on potentially vulnerable sources of supply for strategic and critical materials; and

(iii) ensure that the Department of Defense is not reliant upon potentially vulnerable sources of supply for the processing or manufacturing of any strategic and critical materials deemed essential to national security by the Secretary of Defense.

(B) Provide incentives for the defense industrial base to develop robust processing and manufacturing capabilities in the United States to refine strategic and critical materials for Department of Defense purposes.

(C) Maintain secure sources of supply for strategic and critical materials required to maintain current military requirements in the
event that international supply chains are disrupted.

(2) Methods.--The Secretary of Defense shall achieve the goals described in paragraph (1) through--

(A) the development of guidance in consultation with appropriate officials of the Department of State, the Joint Staff, and the Secretaries of the military departments;

(B) the continued and expanded use of existing programs, such as the National Defense Stockpile;

(C) the continued use of authorities under title III of the Defense Production Act of 1950 (50 U.S.C. 4531 et seq.); and

(D) other methods, as the Secretary of Defense deems appropriate.

The House bill contained a provision (sec. 824) that would require the Secretary of Defense, to the maximum extent practicable, to acquire materials that are determined to be strategic and critical materials required to meet the defense industrial, and essential civilian needs of the United States first from sources located within the United States and then from sources located in the national technology and industrial base, as defined in section 2500 of title 10, United States Code, or from other sources as appropriate.

The Senate amendment contained a similar provision (sec. 809).

The Senate recedes with an amendment to establish preferences and policy regarding the supply of strategic and critical materials for Department of Defense purposes.

The conferees note that section 846 of the National Defense Authorization Act for Fiscal Year 2020 (Public Law 116-92) added a requirement that the Department account for executive orders in preparing the annual report required by section 2504 of title 10, United States Code. The conferees further note the issuance of Executive Order 13953, ``Addressing the Threat to the Domestic Supply Chain from Reliance on Critical Minerals from Foreign Adversaries and Supporting the Domestic Mining and Processing Industries,'' which implicates some of the same materials addressed by this section. The conferees expect the Department to consider the impacts of Executive Order 13953, as appropriate, in preparing the annual report.

The conferees urge the Department, in carrying out this section, to complete appropriate Tribal consultation as soon as practicable in accordance with section 106 of the National Historic Preservation Act (16 U.S.C. 470f) and further complete local, environmental and clean water assessments in accordance with the National Environmental Policy Act (42 U.S.C. 4321 et seq.).

House Committee Report 116-442 Accompanying H. R. 6395

Section 824--Preference for Sourcing Rare Earth Materials from the National Technology and Industrial Base

This section would require the Secretary of Defense, to the maximum extent possible, to acquire materials that are determined to be strategic and critical materials required to meet the defense industrial, and essential civilian needs of the United States first from sources located within the United States and then from sources located in the national technology and industrial base, as defined in section 2500 of title 10, United States Code.

Senate Committee Report 116-236 to Accompanying S. 4049

Statement of policy with respect to supply of strategic minerals and metals for Department of Defense purposes (sec. 809)

The committee recommends a provision that would state the policy of the United States regarding the supply of strategic minerals and metals for the purposes of the Department of Defense.