EXPANDING THE REACH OF EXISTING AUTHORITIES UNDER TITLE III.

SEC. 121. EXPANDING THE REACH OF EXISTING AUTHORITIES UNDER TITLE III. (a) Guarantee Authority.— Section 301 of the Defense Production Act of 1950 (50 U.S.C. App. 2091) is amended— (1) in subsection (a)(1), by striking “to expedite production and deliveries or services under Government contracts for the procurement of materials or the performance of services for the national defense” and inserting “to expedite or expand production and deliveries or services under Government contracts for the procurement of industrial resources or critical technology items essential to the national defense”; (2) by amending subsection (a)(3)(A) to read as follows: “(A) the guaranteed contract or activity is for industrial resources or a critical technology item which is essential to the national defense;”; (3) in subsection (a)(3)(B)— (A) by striking “Without” and inserting “without”; and (B) by striking “the capability for the needed material or service” and inserting “the needed industrial resources or critical technology item”; (4) by amending subsection (a)(3)(D) to read as follows: “(D) the combination of the United States national defense demand and foreseeable nondefense demand is not less than the output of domestic industrial capability, as determined by the President, including the output to be established through the guarantee.”; (5) in subsection (e)(1)(A), by striking “Except during periods of national emergency declared by the Congress or the President” and inserting “Except as provided in subparagraph (D)”; (6) in subsection (e)(1)(C), by striking “$25,000,000” and inserting “$50,000,000”; and (7) subsection (e)(1), by adding at the end the following new subparagraph: “(D) The requirements of subparagraphs (A), (B), and (C) may be waived— “(i) during periods of national emergency declared by the Congress or the President; or “(ii) upon a determination by the President, on a nondelegable basis, that a specific guarantee is necessary to avert an industrial resource or critical technology shortfall that would severely impair national defense capability.”. 106 STAT. 4204 (b) Loans to Private Business Enterprises.— Section 302 of the Defense Production Act of 1950 (50 U.S.C. App. 2092) is amended— (1) in subsection (a), by striking “for the procurement of materials or the performance of services for the national defense” and inserting “for the procurement of industrial resources or a critical technology item for the national defense”; (2) by amending subsection (b)(2)(D) to read as follows: “(D) the combination of the United States national defense demand and foreseeable nondefense demand is not less than the output of domestic industrial capability, as determined by the President, including the output to be established through the loan.”; (3) in subsection (c)(1), by striking “No such loan may be made under this section, except during periods of national emergency declared by the Congress or the President” and inserting “Except as provided in paragraph (4), no loans may be made under this section”; (4) in subsection (c)(3), by striking “$25,000,000” and inserting “$50,000,000”; or (5) in subsection (c), by adding at the end the following new paragraph: “(4) The requirements of paragraphs (1), (2), and (3) may be waived— “(A) during periods of national emergency declared by the Congress or the President; and “(B) upon a determination by the President, on a nondelegable basis, that a specific guarantee is necessary to avert an industrial resource or critical technology short-fall that would severely impair national defense capability”. (c) Purchases and Purchase Commitments.— (1) In general.— Section 303(a) of the Defense Production Act of 1950 (50 U.S.C. App. 2093(a)) is amended to read as follows: “(a) Presidential Provisions.— “(1) In general.— To assist in carrying out the objectives of this Act, the President may make provision— “(A) for purchases of or commitments to purchase an industrial resource or a critical technology item, for Government use or resale; and “(B) for the encouragement of exploration, development, and mining of critical and strategic materials, and other materials. “(2) Treatment of certain agricultural commodities.— Purchases for resale under this subsection shall not include that part of the supply of an agricultural commodity which is domestically produced, except to the extent that such domestically produced supply may be purchased for resale for industrial use or stockpiling. “(3) Terms of sales.— No commodity purchased under this subsection shall be sold at less than— “(A) the established ceiling price for such commodity, except that minerals, metals, and materials shall not be sold at less than the established ceiling price, or the current domestic market price, whichever is lower; or 106 STAT. 4205 “(B) if no ceiling price has been established, the higher of— “(i) the current domestic market price for such commodity; or “(ii) the minimum sale price established for agricultural commodities owned or controlled by the Commodity Credit Corporation, as provided in section 407 of the Agricultural Act of 1949. “(4) Delivery dates.— No purchase or commitment to purchase any imported agricultural commodity shall specify a delivery date which is more than 1 year after the expiration of this section. “(5) Presidential determinations.— Except as provided in paragraph (7), the President may not execute a contract under this subsection unless the President determines that— “(A) the industrial resource or critical technology item is essential to the national defense; “(B) without Presidential action under the authority provided for in this section, United States industry cannot reasonably be expected to provide the capability for the needed industrial resource or critical technology item in a timely manner; “(C) purchases, purchase commitments, or other action pursuant to this section are the most cost-effective, expedient, and practical alternative method for meeting the need; and “(D) the combination of the United States national defense demand and foreseeable nondefense demand for the industrial resource or critical technology item is not less than the output of domestic industrial capability, as determined by the President, including the output to be established through the purchase, purchase commitment, or other action. “(6) Identification of shortfall.— “(A) In general.— Except as provided in paragraph (7), the President shall take no action under this section unless the industrial resource shortfall which such action is intended to correct has been identified in the Budget of the United States, or amendments thereto, submitted to the Congress and accompanied by a statement from the President demonstrating that the budget submission is in accordance with the provisions of paragraph (5). “(B) Timing of action.— Any such action may be taken only after 60 days have elapsed after such industrial resource shortfall has been identified pursuant to subparagraph (A). “(C) Limitation.— If the taking of any action or actions under this section to correct an industrial resource shortfall would cause the aggregate outstanding amount of all such actions for such industrial resource shortfall to exceed $50,000,000, any such action or actions may be taken only if specifically authorized by law. “(7) Waiver.— The requirements of paragraphs (1) through (6) may be waived— “(A) during periods of national emergency declared by the Congress or the President; or 106 STAT. 4206 “(B) upon a determination by the President, on a nondelegable basis, that a specific guarantee is necessary to avert an industrial resource or critical technology short-fall that would severely impair national defense capability.”. (2) Purchase periods.— Section 303(b) of the Defense Production Act of 1950 (50 U.S.C. 2093(b)) is amended by striking “September 30, 1995” and inserting “a date that is not more than 10 years from the date such purchase, purchase commitment, or sale was initially made”. (d) Developing Substitutes.— Section 303(g) of the Defense Production Act of 1950 (50 U.S.C. App. 2093(g)) is amended by inserting before the period the following: “, critical components, critical technology items, and other industrial resources”.