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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

(a) Report Required.--The Secretary of Defense shall submit to the Committees on Armed Services of the Senate and the House of Representatives an appendix to the annual report required in section 2504 of title 10, United States Code, due on March 1, 2021, describing strategic and critical materials, including the gaps and vulnerabilities in supply chains of such materials.

(b) Elements.--The Secretary of Defense shall include in the appendix required in subsection (a) the following:

(1) An identification of the strategic and critical materials that are currently used by the Department of Defense.

(2) To the extent practicable, an identification of the overall annual tonnage of each strategic or critical material identified pursuant to paragraph (1) that was used by the Department during the 10-year period ending on December 31, 2020.

(3) An identification of domestic and international sources for the strategic and critical materials identified pursuant to paragraph (1).

(4) An identification of risks relating to access to the strategic and critical materials identified pursuant to paragraph (1) from supply chain disruptions due to geopolitical, economic, and other vulnerabilities.

(5) An evaluation of the benefits of a robust domestic supply chain for providing strategic and critical materials, as needed, to manufacturers in the defense industrial base.

(6) An evaluation of the effects of the use of waivers by the Strategic Materials Protection Board established under section 187 of title 10, United States Code, on the domestic supply of strategic and critical materials.

(7) Recommendations for policies and procedures to ensure a capability within the Department of Defense to secure strategic and critical materials necessary for emerging technologies, as well as antimicrobial products, minerals, and metals for use in medical equipment and other technologies.

(8) An identification of improvements required to the National Defense Stockpile in order to ensure the Secretary of Defense has access to the strategic and critical materials identified pursuant to paragraph (1).

(9) An evaluation of the domestic processing and manufacturing capacity needed to supply the strategic and critical materials identified pursuant to paragraph (1) to the Secretary of Defense in an economic and secure manner.

(10) In consultation with the Director of the United States Geological Survey, an identification of domestic locations with existing commercial manufacturing interest that are already verified to contain large supplies of the strategic and critical materials identified pursuant to paragraph (1).

(11) An assessment of the feasibility of partnerships with institutions of higher education (as defined in section 101 of the Higher Education Act of 1965 (20 U.S.C. 1001)) that receive grants for the purpose of enhancing the security and stability of the supply chain for strategic and critical materials for the National Defense Stockpile, including an identification of barriers to such partnerships and recommendations for improving such partnerships.

(12) Any other matter relating to strategic and critical materials that the Secretary considers appropriate.

(c) Form.--The appendix required in subsection (a) shall be submitted in unclassified form, but may include a classified annex.

(d) Strategic and Critical Materials Defined.--In this section, the term ``strategic and critical materials'' means materials, including rare earth elements, that are necessary to meet national defense and national security requirements, including requirements relating to supply chain resiliency, and for the economic security of the United States.

The House bill contained a provision (sec. 830D) that would require the Secretary of Defense to submit to the Congress a report on partnerships for rare earth material supply chain security not later than 180 days after the date of the enactment of this Act.

The Senate amendment contained a similar provision (sec. 810) that would require the Secretary of Defense to submit a report on strategic and critical minerals and metals and vulnerabilities in the supply chains of such minerals and metals to the Committees on Armed Services of the Senate and the House of Representatives not later than June 30, 2021.

The House recedes with an amendment that incorporates the requirement pertaining to the ability to facilitate partnerships with institutes of higher education; situates the reporting requirement in the annual industrial capabilities report required by section 2504 of title 10, United States Code; and makes other technical corrections.

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.)

Senate Committee Report 116-236 to Accompanying S. 4049

Report on strategic and critical minerals and metals (sec. 810)

The committee recommends a provision that would require the Secretary of Defense to submit a report on strategic and critical minerals and metals and vulnerabilities in the supply chains of such minerals and metals to the Committees on Armed Services of the Senate and the House of Representatives not later than June 30, 2021.