,,ii #aaith ,,congress #ast ,session ,s4 #eif ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,february #ac1 #bjbe,mr4 ,hickenlooper 7for himself1 ,mr4 ,graham1 ,mr4 ,coons1 and ,mr4 ,young7 introduced the following bill2 which was read twice and referred to the ,committee on ,energy and ,natural ,resources ,a ,,bill ,to establish a pilot program to support domestic critical material processing1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,critical ,materials ,future ,act of #bjbe4 #b4 ,definitions ,in this ,act3 7#a7 ,country of risk ,the term country of risk has the meaning given the term in section #ajaad7;a7 of the ,research and ,development1 ,competition1 and ,innovation ,act 7#db ,u4,s4,c4 #ahiab7;a774 7#b7 ,critical material ,the term critical material has the meaning given the term in section #gjjb7;a7 of the ,energy ,act of #bjbj 7#cj ,u4,s4,c4 #afjf7;a774 7#c7 ,domestic ,the term domestic means facilities operating within the ,united ,states or within any territory or possession of the ,united ,states4 7#d7 ,eligible project ,the term eligible project means a project that refines and processes or recycles raw critical materials into purified forms suitable for first-use applications4 7#e7 ,entity of concern 7,a7 ,in general ,the term entity of concern has the meaning given the term in section #ajaad7;a7 of the ,research and ,development1 ,competition1 and ,innovation ,act 7#db ,u4,s4,c4 #ahiab7;a772 and 7,b7 ,inclusion ,the term entity of concern includes an entity that the ,secretary has determined1 using a risk-based approach1 is subject to the control or influence of a foreign nation whose strategic interests concerning critical materials does not align with the strategic interests of the ,united ,states4 7#f7 ,innovative financial tools ,the term innovative financial tools means financial instruments to support demand-side economic mechanisms1 including-- 7,a7 pricing support mechanisms1 such as contracts for difference and price floors1 advanced market commitments1 and forward contracts2 and 7,b7 other transactions that the ,secretary may enter into under section #fdf of the ,department of ,energy ,organization ,act 7#db ,u4,s4,c4 #gbef74 7#g7 ,pilot program ,the term ,pilot ,program means the ,domestic ,critical ,material ,processing ,pilot ,program established under section #d7;a74 7#h7 ,reliable sources 7,a7 ,in general ,the term reliable source has the meaning given the term in section #ab of the ,strategic and ,critical ,materials ,stock ,piling ,act 7#ej ,u4,s4,c4 #ih;h-#c74 7,b7 ,inclusions ,the term reliable source includes facilities owned by1 controlled by1 or subject to the jurisdiction of any country-- 7i7 with which the ,united ,states has a free trade agreement in effect2 and 7ii7 designated a major non-,,nato ally under section #eag of the ,foreign ,assistance ,act of #aifa 7#bb ,u4,s4,c4 #bcbak74 7#i7 ,secretary ,the term ,secretary means the ,secretary of ,energy4 #c4 ,purposes ,the purposes of this ,act are-- 7#a7 to support domestic critical material processing with innovative financial tools to reduce supply chain vulnerabilities and enhance energy and national security2 and 7#b7 to evaluate the effectiveness of innovative financial tools in supporting investment in and expanding domestic critical materials processing1 including the impact of different support mechanisms on project development for various critical materials and fostering more liquid1 transparent1 and predictable markets for critical materials4 #d4 ,domestic critical material processing pilot program 7a7 ,establishment ,not later than #ahj days after the date of enactment of this ,act1 the ,secretary shall establish a pilot program1 to be known as the ,domestic ,critical ,material ,processing ,pilot ,program1 to support not fewer than #c domestic critical material processing projects4 7b7 ,objectives ,the objectives of the ,pilot ,program are-- 7#a7 to provide financial stability and attract private investment in eligible domestic critical material processing projects2 7#b7 to analyze how different financial tools influence critical material market dynamics and projects and the estimated level of financial support needed to secure reliable ,united ,states supply chains for various critical materials and support a sufficient domestic critical materials processing industry2 and 7#c7 to reduce supply chain vulnerabilities and enhance energy security and national security4 7c7 ,requirements 7#a7 ,implementation 7,a7 ,regulations ,not later than #ahj days after the date of enactment of this ,act1 the ,secretary shall issue regulations to implement the ,pilot ,program4 7,b7 ,other transaction authority ,in carrying out the ,pilot ,program1 the ,secretary shall have the authority to enter into other transactions in the same manner and subject to the same terms and conditions as transactions that the ,secretary may enter into under section #fdf of the ,department of ,energy ,organization ,act 7#db ,u4,s4,c4 #gbef74 7,c7 ,flexible hiring authority ,the ,secretary may appoint and fix the compensation of such temporary personnel as may be necessary to carry out and implement the ,pilot ,program1 without regard to the provisions of subchapter ,i of chapter #cc of title #e1 ,united ,states ,code1 governing appointments in competitive service and compensation of personnel4 7,d7 ,consultation ,the ,secretary shall consult outside stakeholders and experts1 including mining and critical material processing industry representatives1 financial experts1 and academic researchers1 during development of the ,pilot ,program for purposes of improving the effectiveness and efficiency of the ,pilot ,program4 7#b7 ,diversity 7,a7 ,in general ,subject to subparagraph 7,b71 the ,pilot ,program shall provide support for the processing of not fewer than #c different critical materials in order to gain insight into the impact of innovative financial tools on different critical material markets4 7,b7 ,limitation ,support provided under subparagraph 7,a7 to a single critical material shall not exceed #ej percent of any funding provided to the ,pilot ,program under subsection 7h74 7#c7 ,sunset ,the ,pilot ,program shall terminate on the date that is not later than #e years after the date the ,pilot ,program is established under subsection 7a74 7d7 ,applications 7#a7 ,in general ,applications under the ,pilot ,program for eligible projects shall be submitted to the ,secretary at such time1 in such manner1 and containing such information as the ,secretary may require4 7#b7 ,eligibility criteria 7,a7 ,in general ,the ,secretary shall review and select applications under the ,pilot ,program for eligible projects based on-- 7i7 the potential of the eligible project to enhance the economic1 energy1 and national security of the ,united ,states2 7ii7 the economic competitiveness of the eligible project2 7iii7 the economic and financial sustainability of the eligible project1 using information such as-- 7,i7 the potential for the applicant of the eligible project to secure an offtake agreement if the eligible project is selected2 and 7,,ii7 an analysis of the estimated production costs of the eligible project and prevailing or anticipated market prices2 7iv7 the potential of the eligible project to mitigate risks associated with importing critical materials from entities of concern2 7v7 the prioritization requirements described in subparagraph 7,b72 and 7vi7 other factors1 as determined by the ,secretary1 in coordination with the agencies described in subsection 7e74 7,b7 ,priority ,in selecting applications under the ,pilot ,program for eligible projects1 the ,secretary shall prioritize eligible projects-- 7i7 that use feedstock from domestic or reliable sources1 with higher priority given to eligible projects that have greater use of feedstock from domestic sources2 7ii7 the selection of which would support the ability of the applicant to secure an offtake agreement with domestic or reliable sources2 and 7iii7 that are the most economically competitive1 as determined by the ,secretary1 based on factors including-- 7,i7 the potential for the applicant of the eligible project to secure an offtake agreement if selected2 and 7,,ii7 the difference between the estimated production costs of the eligible project and prevailing or anticipated market prices4 7#c7 ,timeline ,the ,secretary shall select applications under the ,pilot ,program for eligible projects not later than #a year after the date of enactment of this ,act4 7e7 ,coordination 7#a7 ,in general ,to ensure the efficient implementation and operation of the ,pilot ,program1 the ,secretary shall coordinate with-- 7,a7 the ,secretary of ,commerce2 7,b7 the ,secretary of ,defense2 7,c7 the ,secretary of the ,interior2 7,d7 the ,secretary of ,state2 7,e7 the ,director of the ,united ,states ,geological ,survey2 7,f7 the ,united ,states ,trade ,representative2 and 7,g7 the heads of other ,federal departments and agencies1 as determined by the ,secretary4 7#b7 ,security research and development ,when selecting applications and determining the level of financial support for each project under the ,pilot ,program1 the ,secretary shall coordinate with the ,secretary of ,defense to incorporate insights from the ,open ,price ,exploration for ,national ,security research and development program of the ,defense ,advanced ,research ,projects ,agency4 7f7 ,study 7#a7 ,in general ,not later than #b years after the date on which the ,pilot ,program terminates under subsection 7c77#c71 the ,secretary shall conduct and publish a study on-- 7,a7 the impact of innovative financial tools on the critical materials sector and the relative cost-effectiveness of those tools in supporting domestic critical materials processing projects and developing more liquid1 transparent1 and predictable markets for critical materials2 7,b7 the estimated level of financial support needed to secure reliable ,united ,states supply chains for various critical materials and support a sufficient domestic critical materials processing industry2 7,c7 the potential of critical material recycling to support the domestic critical materials market2 7,d7 the effectiveness of the ,pilot ,program1 including an evaluation of each eligible project supported by the ,pilot ,program2 and 7,e7 whether the models of the ,open ,price ,exploration for ,national ,security research and development program of the ,defense ,advanced ,research ,projects ,agency allowed the ,pilot ,program to better anticipate market trends1 optimize resource allocation1 and provide the appropriate level of support based on current and future critical material market needs4 7#b7 ,insights ,the study under paragraph 7#a7 shall include insights into concerns of private investors in different critical material markets and the impact of innovative financial tools on catalyzing final investment decisions4 7#c7 ,stakeholder engagement ,the study under paragraph 7#a7 shall be carried out in consultation with relevant stakeholders1 as determined by the ,secretary1 including mining and critical material processing industry representatives1 financial experts1 local governments hosting critical material processing projects1 and academic researchers4 7#d7 ,,darpa ,,open program ,the ,secretary shall share the results of the study under paragraph 7#a7 with the ,open ,price ,exploration for ,national ,security research and development program of the ,defense ,advanced ,research ,projects ,agency to inform ongoing research and development of tools to support transparency in domestic critical materials markets4 7g7 ,report 7#a7 ,in general ,the ,secretary shall submit to the ,committees on ,energy and ,natural ,resources1 ,foreign ,relations1 and ,armed ,services of the ,senate1 and the ,committees on ,natural ,resources1 ,energy and ,commerce1 and ,armed ,services of the ,house of ,representatives1 an annual report for each year that the ,pilot ,program is carried out4 7#b7 ,contents ,the report under paragraph 7#a7 shall include-- 7,a7 activities1 expenditures1 and outcomes of the ,pilot ,program2 7,b7 recommendations to ,congress on the continuation or expansion of the ,pilot ,program2 and 7,c7 recommendations for how the ,federal ,government should use innovative financial tools-- 7i7 to increase domestic critical materials processing capacity2 7ii7 to strengthen domestic critical material supply chains by increasing ,united ,states processing capacity using domestic feedstock2 7iii7 to mitigate market volatility2 7iv7 to boost price transparency in critical materials markets2 7v7 to leverage market indices in countries other than those designated as countries of risk2 7vi7 to ensure long-term adequate supplies of critical materials for the economy of the ,united ,states2 and 7vii7 to increase the domestic recycling of critical materials4 7h7 ,funding 7#a7 ,financial mechanisms 7,a7 ,in general ,in establishing and carrying out the ,pilot ,program1 the ,secretary shall enter into agreements1 including contracts1 grants1 and cooperative agreements1 and other transactions1 as determined by the ,secretary1 to enable the use of innovative financial tools to support domestic critical material processing projects4 7,b7 ,authority ,in carrying out subparagraph 7,a71 the ,secretary may use innovative financial tools1 including price support such as contracts for differences1 and leverage functions to develop and drive critical materials processing to entities that are not entities of concern1 under such terms and conditions as the ,secretary determines to be necessary or appropriate4 7#b7 ,reinvestment of revenue 7,a7 ,establishment ,there is established in the ,treasury of the ,united ,states a fund1 to be known as the ,critical ,materials ,revolving ,fund 7referred to in this paragraph as the ,fund74 7,b7 ,purposes ,the ,fund shall be available to the ,secretary as a revolving fund-- 7i7 to reinvest amounts generated from eligible projects into new critical materials processing projects under the ,pilot ,program2 and 7ii7 to further enhance the objectives of the ,pilot ,program4 7#c7 ,authorization of appropriations ,there is authorized to be appropriated to the ,secretary to carry out this ,act #gej1jjj1jjj1 to remain available until expended4