50 USC 98 - Short title

§ 98. Short title
§ 98a. Congressional findings and declaration of purpose
§ 98b. National Defense Stockpile
§ 98c. Materials constituting the National Defense Stockpile
§ 98d. Authority for stockpile operations
§ 98e. Stockpile management
§ 98e-1. Transferred
§ 98e-2. Multiyear procurement authority for domestically processed critical minerals
§ 98f. Special Presidential disposal authority
§ 98g. Materials development and research
§ 98h. National Defense Stockpile Transaction Fund
§ 98h-1. Strategic and Critical Materials Board of Directors
§ 98h-2. Reports
§ 98h-3. Definitions
§ 98h-4. Importation of strategic and critical materials
§ 98h-5. Biennial report on stockpile requirements
§ 98h-6. Development and conservation of reliable sources
§ 98h-7. National Defense Stockpile Manager
§ 98i. Repealed.
§ 99. Transferred
§ 100. Nitrate plants
§ 100a. Omitted

§ 98. Short title

This subchapter may be cited as the “Strategic and Critical Materials Stock Piling Act”.

(June 7, 1939, ch. 190, § 1, as added Pub. L. 96–41, § 2(a), July 30, 1979, 93 Stat. 319.)

§ 98a. Congressional findings and declaration of purpose

(a) The Congress finds that the natural resources of the United States in certain strategic and critical materials are deficient or insufficiently developed to supply the military, industrial, and essential civilian needs of the United States for national defense.

(b) It is the purpose of this subchapter to provide for the acquisition and retention of stocks of certain strategic and critical materials and to encourage the conservation and development of sources of such materials within the United States and thereby to decrease and to preclude, when possible, a dangerous and costly dependence by the United States upon foreign sources or a single point of failure for supplies of such materials in times of national emergency.

(c) The purpose of the National Defense Stockpile is to serve the interest of national defense only. The National Defense Stockpile is not to be used for economic or budgetary purposes.

(d) To the maximum extent practicable and to reduce the reliance of the National Defense Stockpile program on appropriated funds, the National Defense Stockpile Manager shall seek to achieve positive cash flows from the recovery of strategic and critical materials pursuant to section 98e(a)(5) of this title.

(June 7, 1939, ch. 190, § 2, as added Pub. L. 96–41, § 2(a), July 30, 1979, 93 Stat. 319; amended Pub. L. 100–180, div. C, title II, § 3202(b), Dec. 4, 1987, 101 Stat. 1245; Pub. L. 103–160, div. C, title XXXIII, § 3311, Nov. 30, 1993, 107 Stat. 1961; Pub. L. 104–201, div. C, title XXXIII, § 3311(b), Sept. 23, 1996, 110 Stat. 2857; Pub. L. 112–239, div. A, title XIV, § 1412, Jan. 2, 2013, 126 Stat. 2048; Pub. L. 118–31, div. A, title XIV, § 1411(a), Dec. 22, 2023, 137 Stat. 523.)

§ 98b. National Defense Stockpile

(a) Determination of materials; quantities

Subject to subsection (c), the President shall determine from time to time (1) which materials are strategic and critical materials for the purposes of this subchapter, and (2) the quality and quantity of each such material to be acquired for the purposes of this subchapter and the form in which each such material shall be acquired and stored. Such materials when acquired, together with the other materials described in section 98c of this title, shall constitute and be collectively known as the National Defense Stockpile (hereinafter in this subchapter referred to as the “stockpile”).

(b) Guidelines for exercise of Presidential authority

The President shall make the determinations required to be made under subsection (a) on the basis of the principles stated in section 98a(c) of this title.

(1) The quantity of any material to be stockpiled under this subchapter, as in effect on September 30, 1987, may be changed only as provided in this subsection or as otherwise provided by law enacted after December 4, 1987.

(2) The President shall notify Congress in writing of any increase proposed to be made in the quantity of any material to be stockpiled that involves the acquisition of additional materials for the stockpile. The President may make the increase after the end of the 30-day period beginning on the date of the notification. The President shall include a full explanation and justification for the proposed increase with the notification.

(June 7, 1939, ch. 190, § 3, as added Pub. L. 96–41, § 2(a), July 30, 1979, 93 Stat. 319; amended Pub. L. 100–180, div. C, title II, § 3202(a), Dec. 4, 1987, 101 Stat. 1245; Pub. L. 100–456, div. A, title XII, § 1233(b)(2), Sept. 29, 1988, 102 Stat. 2057; Pub. L. 102–484, div. C, title XXXIII, § 3311, Oct. 23, 1992, 106 Stat. 2653; Pub. L. 104–201, div. C, title XXXIII, § 3312(a), Sept. 23, 1996, 110 Stat. 2857; Pub. L. 117–263, div. A, title XIV, § 1412(b), Dec. 23, 2022, 136 Stat. 2872.)

§ 98c. Materials constituting the National Defense Stockpile

(a) Contents

The stockpile consists of the following materials:

(1) Materials acquired under this subchapter and contained in the national stockpile on July 29, 1979.

(2) Materials acquired under this subchapter after July 29, 1979.

(3) Materials in the supplemental stockpile established by section 1704(b) of title 7 (as in effect from September 21, 1959, through December 31, 1966) on July 29, 1979.

(4) Materials acquired by the United States under the provisions of section 4533 of this title and transferred to the stockpile by the President pursuant to subsection (f) of such section.

(5) Materials transferred to the United States under section 2423 of title 22 that have been determined to be strategic and critical materials for the purposes of this subchapter and that are allocated by the President under subsection (b) of such section for stockpiling in the stockpile.

(6) Materials acquired by the Commodity Credit Corporation and transferred to the stockpile under section 714b(h) of title 15.

(7) Materials acquired by the Commodity Credit Corporation under paragraph (2) of section 1743(a) of title 7, and transferred to the stockpile under the third sentence of such section.

(8) Materials transferred to the stockpile by the President under paragraph (4) of section 1743(a) of title 7.

(9) Materials transferred to the stockpile under subsection (b).

(10) Materials transferred to the stockpile under subsection (c).

(b) Transfer and reimbursement

Notwithstanding any other provision of law, any material that (1) is under the control of any department or agency of the United States, (2) is determined by the head of such department or agency to be excess to its needs and responsibilities, and (3) is suitable for transfer or disposal through the stockpile shall be transferred to the stockpile. Any such transfer shall be made without reimbursement to such department or agency, but all costs required to effect such transfer shall be paid or reimbursed from funds appropriated to carry out this subchapter.

The Secretary of Defense shall determine whether materials are suitable for transfer to the stockpile under subsection (b), are suitable for disposal through the stockpile, and are uncontaminated.

(June 7, 1939, ch. 190, § 4, as added Pub. L. 96–41, § 2(a), July 30, 1979, 93 Stat. 320; amended Pub. L. 99–661, div. C, title II, § 3207(a)(1), Nov. 14, 1986, 100 Stat. 4069; Pub. L. 104–106, div. C, title XXXIII, § 3311, Feb. 10, 1996, 110 Stat. 630; Pub. L. 110–246, title III, § 3001(b)(1)(A), (2)(Z), June 18, 2008, 122 Stat. 1820, 1821; Pub. L. 114–328, div. A, title XIV, § 1412(a), Dec. 23, 2016, 130 Stat. 2570.)

§ 98d. Authority for stockpile operations

(a) Funds appropriated for acquisitions; proposed stockpile transactions; significant changes therein

(1) Except for acquisitions made under the authority of paragraph (3) of this section 1

1 So in original. Probably should be “subsection”.

or under the authority of paragraph (3) or (4) of section 98e(a) of this title, no funds may be obligated or appropriated for acquisition of any material under this subchapter unless funds for such acquisition have been authorized by law. Funds appropriated for any acquisition of materials under this subchapter (and for transportation and other incidental expenses related to such acquisition) shall remain available until expended, unless otherwise provided in appropriation Acts.

(2) If for any fiscal year the President proposes (or Congress requires) a significant change in any stockpile transactions proposed in the Annual Materials and Operations Plan for such fiscal year after the National Defense Stockpile Manager submits the report under section 98h–2(b)(2) of this title containing such plan, or a significant transaction not included in such plan, no amount may be obligated or expended for such transaction during such year until the President has submitted a full statement of the proposed transaction to the appropriate committees of Congress and a period of 45 days has passed from the date of the receipt of such statement by such committees.

(3) Using funds appropriated for acquisition of materials under this subchapter, the National Defense Stockpile Manager may acquire materials determined to be strategic and critical under section 98b(a) of this title without regard to the requirement of the first sentence of paragraph (1) if the Stockpile Manager determines there is a shortfall of such materials in the stockpile.

(b) Disposal

Except for disposals made under the authority of paragraph (3), (4), or (5) 2

2 See References in Text note below.

of section 98e(a) of this title or under section 98f(a) of this title, no disposal may be made from the stockpile unless such disposal, including the quantity of the material to be disposed of, has been specifically authorized by law.

There is authorized to be appropriated such sums as may be necessary to provide for the transportation, processing, refining, storage, security, maintenance, rotation, and disposal of materials contained in or acquired for the stockpile. Funds appropriated for such purposes shall remain available until expended, unless otherwise provided in appropriations Acts.

(June 7, 1939, ch. 190, § 5, as added Pub. L. 96–41, § 2(a), July 30, 1979, 93 Stat. 321; amended Pub. L. 97–35, title II, § 203(a), (b), Aug. 13, 1981, 95 Stat. 381, 382; Pub. L. 98–525, title IX, § 903, Oct. 19, 1984, 98 Stat. 2573; Pub. L. 99–661, div. C, title II, § 3207(a)(2), Nov. 14, 1986, 100 Stat. 4069; Pub. L. 100–180, div. C, title II, § 3206(a), Dec. 4, 1987, 101 Stat. 1247; Pub. L. 102–484, div. C, title XXXIII, § 3312, Oct. 23, 1992, 106 Stat. 2653; Pub. L. 103–160, div. C, title XXXIII, § 3312, Nov. 30, 1993, 107 Stat. 1962; Pub. L. 117–263, div. A, title XIV, §§ 1411(d)(1)(A), 1412(a), Dec. 23, 2022, 136 Stat. 2871, 2872; Pub. L. 118–31, div. A, title XIV, § 1411(e)(2)(A), Dec. 22, 2023, 137 Stat. 527.)

§ 98e. Stockpile management

(a) Presidential powersThe President shall—

(1) acquire the materials determined under section 98b(a) of this title to be strategic and critical materials;

(2) provide for the proper storage, security, and maintenance of materials in the stockpile;

(3) provide for the upgrading, refining, or processing of any material in the stockpile (notwithstanding any intermediate stockpile quantity established for such material) when necessary to convert such material into a form more suitable for storage, subsequent disposition, and immediate use in a national emergency;

(4) provide for the rotation of any material in the stockpile when necessary to prevent deterioration or technological obsolescence of such material by replacement of such material with an equivalent quantity of substantially the same material or better material;

(5) provide for the appropriate recovery of any strategic and critical materials under section 98b(a) of this title that may be available from other Federal agencies, either directly as materials or embedded in excess-to-need, end-of-life items, or waste streams;

(6) subject to the notification required by subsection (d)(2), provide for the timely disposal of materials in the stockpile that (A) are excess to stockpile requirements, and (B) may cause a loss to the Government if allowed to deteriorate; and

(7) subject to the provisions of section 98d(b) of this title, dispose of materials in the stockpile the disposal of which is specifically authorized by law.

(b) Federal procurement practicesExcept as provided in subsections (c) and (d), acquisition of strategic and critical materials under this subchapter shall be made in accordance with established Federal procurement practices, and, except as provided in subsections (c) and (d) and in section 98f(a) of this title, disposal of strategic and critical materials from the stockpile shall be made in accordance with the next sentence. To the maximum extent feasible—

(1) competitive procedures shall be used in the acquisition and disposal of such materials; and

(2) efforts shall be made in the acquisition and disposal of such materials to consult with producers and processors of such materials to avoid undue disruption of the usual markets of producers, processors, and consumers of such materials and to protect the United States against avoidable loss.

(1) The President shall encourage the use of barter in the acquisition under subsection (a)(1) of strategic and critical materials for, and the disposal under subsection (a)(6) or (a)(7) of materials from, the stockpile when acquisition or disposal by barter is authorized by law and is practical and in the best interest of the United States.

(2) Materials in the stockpile (the disposition of which is authorized by paragraph (3) to finance the upgrading, refining, or processing of a material in the stockpile, or is otherwise authorized by law) shall be available for transfer at fair market value as payment for expenses (including transportation and other incidental expenses) of acquisition of materials, or of upgrading, refining, processing, or rotating materials, under this subchapter.

(3) Notwithstanding section 98b(c) of this title or any other provision of law, whenever the President provides under subsection (a)(3) for the upgrading, refining, or processing of a material in the stockpile to convert that material into a form more suitable for storage, subsequent disposition, and immediate use in a national emergency, the President may barter a portion of the same material (or any other material in the stockpile that is authorized for disposal) to finance that upgrading, refining, or processing.

(4) To the extent otherwise authorized by law, property owned by the United States may be bartered for materials needed for the stockpile.

(d) Waiver; notification of proposed disposal of materials

(1) The President may waive the applicability of any provision of the first sentence of subsection (b) to any acquisition of material for, or disposal of material from, the stockpile. Whenever the President waives any such provision with respect to any such acquisition or disposal, or whenever the President determines that the application of paragraph (1) or (2) of such subsection to a particular acquisition or disposal is not feasible, the President shall notify the Committee on Armed Services of the Senate and the Committee on Armed Services of the House of Representatives in writing of the proposed acquisition or disposal at least 45 days before any obligation of the United States is incurred in connection with such acquisition or disposal and shall include in such notification the reasons for not complying with any provision of such subsection.

(2) Materials in the stockpile may be disposed of under subsection (a)(6) only if such congressional committees are notified in writing of the proposed disposal at least 45 days before any obligation of the United States is incurred in connection with such disposal.

(e) Leasehold interests in property

The President may acquire leasehold interests in property, for periods not in excess of twenty years, for storage, security, and maintenance of materials in the stockpile.

(f) Loan of stockpile materialsThe President may loan stockpile materials to the Department of Energy or the military departments if the President—

(1) has a reasonable assurance that stockpile materials of a similar or superior quantity and quality to the materials loaned will be returned to the stockpile or paid for;

(2) notifies the congressional defense committees (as defined in section 101(a) of title 10), in writing, not less than 30 days before making any such loan; and

(3) includes in the written notification under paragraph (2) sufficient support for the assurance described in paragraph (1).

(g) Pilot program to use commercial best practices in acquiring and disposing of strategic and critical materials

(1) The National Defense Stockpile Manager shall establish a pilot program to use, to the maximum extent practicable, commercial best practices in the acquisition and disposal of strategic and critical materials for the stockpile.

(2)

(A) The Stockpile Manager shall brief the congressional defense committees (as defined in section 101(a) of title 10)—

(i) as soon as practicable after the establishment of the pilot program under paragraph (1); and

(ii) annually thereafter until the termination of the pilot program under paragraph (3).

(B) The briefing required by subparagraph (A)(i) shall address—

(i) the commercial best practices selected for use under the pilot program;

(ii) how the Stockpile Manager determined which commercial best practices to select; and

(iii) the plan of the Stockpile Manager for using such practices.

(i) how the Stockpile Manager has used commercial best practices under the pilot program during the year preceding the briefing;

(ii) how many times the Stockpile Manager has used such practices;

(iii) the outcome of each use of such practices; and

(iv) any savings achieved or lessons learned as a result of the use of such practices.

(3) The pilot program established under paragraph (1) shall terminate effective on the date that is 5 years after December 22, 2023.

(h) Ensuring programs achieve positive cash flow

Except to the extent necessary for the national defense, the National Defense Stockpile Manager shall ensure that each program for the recovery of strategic and critical materials implemented under subsection (a)(5) operates in a manner designed to achieve positive cash flow.

(June 7, 1939, ch. 190, § 6, as added Pub. L. 96–41, § 2(a), July 30, 1979, 93 Stat. 321; amended Pub. L. 97–35, title II, § 203(c), Aug. 13, 1981, 95 Stat. 382; Pub. L. 99–661, div. C, title II, § 3207(b), Nov. 14, 1986, 100 Stat. 4069; Pub. L. 101–189, div. C, title XXXIII, § 3314, Nov. 29, 1989, 103 Stat. 1688; Pub. L. 101–510, div. C, title XXXIII, § 3301(a), (b), Nov. 5, 1990, 104 Stat. 1844; Pub. L. 102–190, div. C, title XXXIII, § 3312, Dec. 5, 1991, 105 Stat. 1584; Pub. L. 103–337, div. C, title XXXIII, § 3302, Oct. 5, 1994, 108 Stat. 3098; Pub. L. 104–106, div. A, title XV, § 1502(e)(1), Feb. 10, 1996, 110 Stat. 509; Pub. L. 104–201, div. C, title XXXIII, § 3312(b), (c), Sept. 23, 1996, 110 Stat. 2857; Pub. L. 105–85, div. C, title XXXIII, § 3306, Nov. 18, 1997, 111 Stat. 2058; Pub. L. 106–65, div. A, title X, § 1067(13),

§ 98e–1. Transferred

§ 98e–2. Multiyear procurement authority for domestically processed critical minerals

(a) Authority for multiyear procurement

Subject to section 3501 of title 10 and from amounts made available by discretionary appropriations Acts from the National Defense Stockpile Transaction Fund (as established under section 9(a) of the Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98h(a))) after December 22, 2023, the Secretary of Defense may enter into one or more multiyear contracts for the procurement of critical minerals that are processed in the United States by domestic sources.

(b) Application of Strategic and Critical Materials Stock Piling Act

A multiyear contract entered into under this section shall be deemed to be an acquisition under the Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98 et seq.).

The Secretary of Defense may enter into one or more contracts, beginning in fiscal year 2024, for advance procurement associated with the domestically processed critical minerals for which authorization to enter into a multiyear procurement contract is provided under subsection (a).

(d) Condition for out-year contract payments

A contract entered into under subsection (a) shall provide that any obligation of the United States to make a payment under the contract for a fiscal year after fiscal year 2024 is subject to the availability of appropriations or funds for that purpose for such later fiscal year.

(e) Definitions

In this section:

(1) The term “critical mineral” means a mineral determined to be a strategic and critical material under section 3(a) of the Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98b(a)).

(2) The term “processed” means the processing or recycling of a critical mineral or magnet, including the separation, reduction, metallization, alloying, milling, pressing, strip casting, and sintering of a critical mineral.

(3) The term “domestic source” has the meaning given that term in section 4552 of this title.

(Pub. L. 118–31, div. A, title I, § 152, Dec. 22, 2023, 137 Stat. 180.)

§ 98f. Special Presidential disposal authority

(a) Materials in the stockpile may be released for use, sale, or other disposition—

(1) on the order of the President, at any time the President determines the release of such materials is required for purposes of the national defense;

(2) in time of war declared by the Congress or during a national emergency, on the order of any officer or employee of the United States designated by the President to have authority to issue disposal orders under this subsection, if such officer or employee determines that the release of such materials is required for purposes of the national defense; and

(3) on the order of the Under Secretary of Defense for Acquisition and Sustainment, if the President has designated the Under Secretary to have authority to issue release orders under this subsection and, in the case of any such order, if the Under Secretary determines that the release of such materials is required for use, manufacture, or production for purposes of national defense.

(b) Any order issued under subsection (a) shall be promptly reported by the President, or by the officer or employee issuing such order, in writing, to the Committee on Armed Services of the Senate and the Committee on Armed Services of the House of Representatives.

(June 7, 1939, ch. 190, § 7, as added Pub. L. 96–41, § 2(a), July 30, 1979, 93 Stat. 322; amended Pub. L. 104–106, div. A, title XV, § 1502(e)(2), Feb. 10, 1996, 110 Stat. 509; Pub. L. 106–65, div. A, title X, § 1067(13), Oct. 5, 1999, 113 Stat. 775; Pub. L. 112–239, div. A, title XIV, § 1413(a), Jan. 2, 2013, 126 Stat. 2048; Pub. L. 116–92, div. A, title IX, § 902(90), Dec. 20, 2019, 133 Stat. 1554.)

§ 98g. Materials development and research

(a) Development, mining, preparation, treatment, and utilization of ores and other mineral substances

(1) The President shall make scientific, technologic, and economic investigations concerning the development, mining, preparation, treatment, and utilization of ores and other mineral substances that (A) are found in the United States, its territories or possessions, or in a reliable source 1

1 So in original. Probably should be followed by a comma.

(B) are essential to the national defense, industrial, and essential civilian needs of the United States, and (C) are found in known domestic sources in inadequate quantities or grades.

(2) Such investigations shall be carried out in order to develop new sources of strategic and critical materials, develop substitutes, or conserve domestic sources and reliable sources of supply for such strategic and critical materials.

(3) Investigations under paragraph (1) may be carried out on public lands and, with the consent of the owner, on privately owned lands for the purpose of exploring and determining the extent and quality of deposits of such minerals, the most suitable methods of mining and beneficiating such minerals, and the cost at which the minerals or metals may be produced.

(b) Development of sources of supplies of agricultural materials; use of agricultural commodities for manufacture of materials

The President shall make scientific, technologic, and economic investigations of the feasibility of developing domestic sources of supplies of any agricultural material or for using agricultural commodities for the manufacture of any material determined pursuant to section 98b(a) of this title to be a strategic and critical material or substitutes therefor.

(c) Development of sources of supply of other materials; development or use of alternative methods for refining or processing materials in stockpile

The President shall make scientific, technologic, and economic investigations concerning the feasibility of—

(1) developing domestic sources of supply of materials (other than materials referred to in subsections (a) and (b)) determined pursuant to section 98b(a) of this title to be strategic and critical materials; and

(2) developing or using alternative methods for the refining or processing of a material in the stockpile so as to convert such material into a form more suitable for use during an emergency or for storage.

(d) Grants and contracts to encourage conservation of strategic and critical materials

The President shall encourage the conservation of domestic sources of any material determined pursuant to section 98b(a) of this title to be a strategic and critical material by making grants or awarding contracts for research regarding the development of—

(1) substitutes for such material; or

(2) more efficient methods of production or use of such material.

(June 7, 1939, ch. 190, § 8, as added Pub. L. 96–41, § 2(a), July 30, 1979, 93 Stat. 322; amended Pub. L. 101–189, div. C, title XXXIII, § 3311, Nov. 29, 1989, 103 Stat. 1686; Pub. L. 118–31, div. A, title XIV, § 1411(e)(2)(B), Dec. 22, 2023, 137 Stat. 527.)

§ 98h. National Defense Stockpile Transaction Fund

(a) Establishment

There is established in the Treasury of the United States a separate fund to be known as the National Defense Stockpile Transaction Fund (hereinafter in this section referred to as the “fund”).

(b) Fund operations

(1) All moneys received from the sale of materials in the stockpile under paragraphs (5) and (6) of section 98e(a) of this title 1

1 See References in Text note below.

shall be covered into the fund.

(2) Subject to section 98d(a)(1) of this title, moneys covered into the fund under paragraph (1) are hereby made available (subject to such limitations as may be provided in appropriation Acts) for the following purposes:

(A) The acquisition, maintenance, and disposal of strategic and critical materials under section 98e(a) of this title.

(B) Transportation, storage, and other incidental expenses related to such acquisition, maintenance, and disposal.

(C) Development of current specifications of stockpile materials and the upgrading of existing stockpile materials to meet current specifications (including transportation, when economical, related to such upgrading).

(D) Encouraging the appropriate conservation of strategic and critical materials.

(E) Testing and quality studies of stockpile materials.

(F) Studying future material and mobilization requirements for the stockpile.

(G) Activities authorized under section 98h–6 of this title.

(H) Contracting under competitive procedures for materials development and research to—

(i) improve the quality and availability of materials stockpiled from time to time in the stockpile; and

(ii) develop new materials for the stockpile.

(I) Improvement or rehabilitation of facilities, structures, and infrastructure needed to maintain the integrity of stockpile materials.

(J) Disposal of hazardous materials that are stored in the stockpile and authorized for disposal by law.

(K) Performance of environmental remediation, restoration, waste management, or compliance activities at locations of the stockpile that are required under a Federal law or are undertaken by the Government under an administrative decision or negotiated agreement.

(L) Pay of employees of the National Defense Stockpile program.

(M) Other expenses of the National Defense Stockpile program.

(3) Moneys in the fund shall remain available until expended.

All moneys received from the sale of materials being rotated under the provisions of section 98e(a)(4) of this title or disposed of under section 98f(a) of this title shall be covered into the fund and shall be available only for the acquisition of replacement materials.

(d) Effect of barteringIf, during a fiscal year, the National Defense Stockpile Manager barters materials in the stockpile for the purpose of acquiring, upgrading, refining, or processing other materials (or for services directly related to that purpose), the contract value of the materials so bartered shall—

(1) be applied toward the total value of materials that are authorized to be disposed of from the stockpile during that fiscal year;

(2) be treated as an acquisition for purposes of satisfying any requirement imposed on the National Defense Stockpile Manager to enter into obligations during that fiscal year under subsection (b)(2); and

(3) not increase or decrease the balance in the fund.

(June 7, 1939, ch. 190, § 9, as added Pub. L. 96–41, § 2(a), July 30, 1979, 93 Stat. 323; amended Pub. L. 97–35, title II, § 203(d), Aug. 13, 1981, 95 Stat. 382; Pub. L. 99–661, div. C, title II, § 3203(a), Nov. 14, 1986, 100 Stat. 4067; Pub. L. 100–180, div. C, title II, § 3204, Dec. 4, 1987, 101 Stat. 1247; Pub. L. 101–189, div. C, title XXXIII, § 3312(b), Nov. 29, 1989, 103 Stat. 1688; Pub. L. 101–510, div. C, title XXXIII, § 3301(c), Nov. 5, 1990, 104 Stat. 1845; Pub. L. 102–190, div. C, title XXXIII, § 3311(a), Dec. 5, 1991, 105 Stat. 1584; Pub. L. 102–484, div. C, title XXXIII, § 3313, Oct. 23, 1992, 106 Stat. 2653; Pub. L. 103–160, div. C, title XXXIII, § 3313, Nov. 30, 1993, 107 Stat. 1962; Pub. L. 105–261, div. C, title XXXIII, § 3304, Oct. 17, 1998, 112 Stat. 2264; Pub. L. 113–66, div. A, title XIV, § 1411(b), Dec. 26, 2013, 127 Stat. 934.)

§ 98h–1. Strategic and Critical Materials Board of Directors

(a) Establishment

There is established a Strategic and Critical Materials Board of Directors (in this subchapter referred to as the “Board”).

(b) MembersThe Board shall be composed, at a minimum, of the following:

(1) The Assistant Secretary of Defense for Industrial Base Policy, who shall serve as chairman of the Board.

(2) One designee of each of the Secretary of Commerce, the Secretary of State, the Secretary of Energy, and the Secretary of the Interior.

(3) One designee of each of the Chairman and Ranking Member of the Readiness Subcommittee of the House Committee on Armed Services.

(4) One designee of each of the Chairman and Ranking Member of the Readiness Subcommittee of the Senate Committee on Armed Services.

(5) Four designees of the chairman of the Board, who shall have expertise relating to military affairs, defense procurement, production of strategic and critical materials, finance, or any other disciplines deemed necessary by the chairman to conduct the business of the Board.

(c) Duties of the BoardIn addition to other matters assigned to it by the chairman, the Board shall conduct the following, without power of delegation:

(1) Adopt by-laws that ensure sufficient oversight, governance, and effectiveness of the National Defense Stockpile program.

(2) Elect or remove Board members.

(3) Advise the National Defense Stockpile Manager.

(4) Establish performance metrics and conduct an annual performance review of the management and operations of the National Defense Stockpile program.

(5) Review and approve the annual budget of the National Defense Stockpile program and conduct appropriate reviews of annual financial statements.

(6) Re-allocate budget resources within the annual budget of the National Defense Stockpile program.

(7) Review and approve the Annual Materials and Operations Plan required by section 98h–2(a) of this title. The report required by section 98h–2(b)(2) of this title shall include the views and recommendations of the Board on the projected domestic and foreign economic effects of all acquisition of materials for and disposals of materials from the stockpile.

(8) Complete and submit the annual Board Report, in accordance with section 98h–2(b)(2) of this title.

(9) Recommend to the Secretary of Defense—

(A) a strategy to ensure a secure supply of materials designated as critical to national security; and

(B) such other strategies as the Board considers appropriate to strengthen the industrial base with respect to materials critical to national security.

(d) Board meetings

The Board shall meet as determined necessary by the chairman but not less frequently than once every year to fulfill the duties described in subsection (c).

(e) Application of provisions relating to Federal advisory committees

Section 1013(a) of title 5 shall not apply to the Board.

(f) DefinitionsIn this section:

(1) Materials critical to national securityThe term “materials critical to national security” means materials—

(A) upon which the production or sustainment of military equipment is dependent; and

(B) the supply of which could be restricted by actions or events outside the control of the Government of the United States.

(2) Military equipment

The term “military equipment” means equipment used directly by the Armed Forces to carry out military operations.

(3) Secure supply

The term “secure supply”, with respect to a material, means the availability of a source or sources for the material, including the full supply chain for the material and components containing the material.

(June 7, 1939, ch. 190, § 10, as added Pub. L. 96–41, § 2(a), July 30, 1979, 93 Stat. 323; amended Pub. L. 102–484, div. C, title XXXIII, § 3314, Oct. 23, 1992, 106 Stat. 2654; Pub. L. 117–263, div. A, title XIV, § 1411(b), Dec. 23, 2022, 136 Stat. 2869; Pub. L. 118–31, div. A, title XIV, § 1411(c), Dec. 22, 2023, 137 Stat. 524.)

§ 98h–2. Reports

(a) Reports to the Board

The National Defense Stockpile Manager shall submit to the Board an Annual Materials and Operations Plan for the forthcoming year.

(b) Reports to Congress

(1) Report by National Defense Stockpile ManagerNot later than February 15 of each fiscal year, the National Defense Stockpile Manager shall submit to the congressional defense committees (as defined in section 101(a) of title 10) an Annual Operations and Materials Plan that shall include—

(A) information with respect to foreign and domestic purchases of materials for the stockpile during the preceding fiscal year;

(B) information with respect to the acquisition and disposal of materials under this subchapter by barter, during such fiscal year;

(C) information with respect to the activities by the National Defense Stockpile Manager to encourage the conservation, substitution, and development of strategic and critical materials;

(D) information with respect to the research and development activities conducted under section 98g of this title;

(E) a statement and explanation of the financial status of the National Defense Stockpile Transaction Fund and anticipated appropriations to be made to the Fund, and obligations to be made from the fund, during the current fiscal year;

(F) other pertinent information on the administration of this subchapter as will enable the Congress to evaluate the effectiveness of the program;

(G) an annual materials plan for the operation of the stockpile during the next fiscal year and the succeeding four fiscal years and planned expenditures from the National Defense Stockpile Transaction Fund and anticipated receipts from disposal of stockpile materials, which shall include—

(i) details of all planned expenditures from the National Defense Stockpile Transaction Fund during such period and of anticipated receipts from the proposed disposals of stockpile materials during such period;

(ii) details regarding materials development and research projects to be conducted during the fiscal years covered by the report using moneys in the National Defense Stockpile Transaction Fund pursuant to section 98h(b)(2)(G) of this title; and

(iii) with respect to each development and research project described in clause (ii), the report shall specify the amount planned to be expended from the National Defense Stockpile Transaction Fund, the material intended to be developed, the potential military or defense industrial applications for that material, and the development and research methodologies to be used;

(H) any proposed expenditure or disposal detailed in the annual materials plan for any such fiscal year, and any expenditure or disposal proposed in connection with any transaction submitted for such fiscal year to the appropriate committees of Congress pursuant to section 98d(a)(2) of this title that is not obligated or executed in that fiscal year may not be obligated or executed until such proposed expenditure or disposal is resubmitted in a subsequent annual materials plan or is resubmitted to the appropriate committees of Congress in accordance with section 98d(a)(2) of this title, as appropriate; and

(I) a summary of the implementation and findings of the pilot program established under section 98e(g)(1) of this title, including—

(i) the commercial best practices selected for use under the pilot program;

(ii) how the National Defense Stockpile Manager determined which commercial best practices to select;

(iii) how the National Defense Stockpile Manager has used commercial best practices under the pilot program during the year preceding the briefing;

(iv) the outcome of each use of such practices; and

(v) any savings achieved or lessons learned as a result of the use of such practices.

(2) Report by the Board

The Board shall prepare a written report to accompany the report required by paragraph (1) which shall include the activities of the Board to carry out the duties listed in section 98h–1(c) of this title 1

1 So in original. Probably should be followed by a period.

(June 7, 1939, ch. 190, § 11, as added Pub. L. 96–41, § 2(a), July 30, 1979, 93 Stat. 324; amended Pub. L. 97–35, title II, § 203(e), Aug. 13, 1981, 95 Stat. 382; Pub. L. 99–661, div. C, title II, § 3207(a)(3), Nov. 14, 1986, 100 Stat. 4069; Pub. L. 100–180, div. C, title II, § 3205, Dec. 4, 1987, 101 Stat. 1247; Pub. L. 100–456, div. A, title XV, § 1503, Sept. 29, 1988, 102 Stat. 2086; Pub. L. 101–189, div. C, title XXXIII, § 3315, Nov. 29, 1989, 103 Stat. 1688; Pub. L. 102–190, div. C, title XXXIII, §§ 3311(b), 3313(a), Dec. 5, 1991, 105 Stat. 1584; Pub. L. 103–35, title II, § 204(d), May 31, 1993, 107 Stat. 103; Pub. L. 113–291, div. A, title X, § 1071(j), Dec. 19, 2014, 128 Stat. 3512; Pub. L. 115–232, div. A, title XIV, § 1423, Aug. 13, 2018, 132 Stat. 2093; Pub. L. 117–263, div. A, title XIV, § 1411(c), Dec. 23, 2022, 136 Stat. 2870; Pub. L. 118–31, div. A, title XIV, § 1411(d), Dec. 22, 2023, 137 Stat. 524.)

§ 98h–3. DefinitionsFor the purposes of this subchapter:

(1) The term “strategic and critical materials” means materials that (A) would be needed to supply the military, industrial, and essential civilian needs of the United States during a national emergency, and (B) are not found or produced in the United States in sufficient quantities to meet such need.

(2) The term “national emergency” means a general declaration of emergency with respect to the national defense made by the President or by the Congress.

(3) The term “reliable source” mean a citizen or business entity organized under the laws of—

(A) the United States or any territory or possession of the United States;

(B) a country of the national technology and industrial base, as such term is defined in section 4801 of title 10; or

(C) a qualifying country, as defined in section 225.003 of the Defense Federal Acquisition Regulation Supplement or any successor document.

(June 7, 1939, ch. 190, § 12, as added Pub. L. 96–41, § 2(a), July 30, 1979, 93 Stat. 324; amended Pub. L. 117–81, div. A, title XIV, § 1411(2), Dec. 27, 2021, 135 Stat. 2018; Pub. L. 118–31, div. A, title XIV, § 1411(e)(2)(C), Dec. 22, 2023, 137 Stat. 528.)

§ 98h–4. Importation of strategic and critical materials

The President may not prohibit or regulate the importation into the United States of any material determined to be strategic and critical pursuant to the provisions of this subchapter, if such material is the product of any foreign country or area not listed in general note 3(b) of the Harmonized Tariff Schedule of the United States (19 U.S.C. 1202), for so long as the importation into the United States of material of that kind which is the product of a country or area listed in such general note is not prohibited by any provision of law.

(June 7, 1939, ch. 190, § 13, formerly § 10, as added Pub. L. 92–156, title V, § 503(2), Nov. 17, 1971, 85 Stat. 427; renumbered § 13, Pub. L. 96–41, § 2(b)(1), July 30, 1979, 93 Stat. 324; amended Pub. L. 100–180, div. C, title II, § 3206(b), (c), Dec. 4, 1987, 101 Stat. 1247; Pub. L. 100–418, title I, § 1214(o), Aug. 23, 1988, 102 Stat. 1159; Pub. L. 104–201, div. C, title XXXIII, § 3313, Sept. 23, 1996, 110 Stat. 2857.)

§ 98h–5. Biennial report on stockpile requirements

(a) In generalNot later than January 15 of every other year, the Secretary of Defense shall submit to Congress a report on stockpile requirements. Each such report shall include—

(1) the Secretary’s recommendations with respect to stockpile requirements; and

(2) the matters required under subsection (b).

(b) National emergency planning assumptionsEach report under this section shall set forth the national emergency planning assumptions used by the Secretary in making the Secretary’s recommendations under subsection (a)(1) with respect to stockpile requirements. The Secretary shall base the national emergency planning assumptions on a military conflict scenario consistent with the scenario used by the Secretary in budgeting and defense planning purposes. The assumptions to be set forth include assumptions relating to each of the following:

(1) The length and intensity of the assumed military conflict.

(2) The military force structure to be mobilized.

(3) The losses anticipated from enemy action.

(4) The military, industrial, and essential civilian requirements to support the national emergency.

(5) The availability of supplies of strategic and critical materials from foreign sources during the mobilization period, the military conflict, and the subsequent period of replenishment, taking into consideration possible shipping losses.

(6) The domestic production of strategic and critical materials during the mobilization period, the military conflict, and the subsequent period of replenishment, taking into consideration possible shipping losses.

(7) Civilian austerity measures required during the mobilization period and military conflict.

The stockpile requirements shall be based on those strategic and critical materials necessary for the United States to replenish or replace, within three years of the end of the military conflict scenario required under subsection (b), all munitions, combat support items, and weapons systems that would be required after such a military conflict.

(d) Effect of alternative mobilization periods

The Secretary shall also include in each report under this section an examination of the effect that alternative mobilization periods under the military conflict scenario required under subsection (b), as well as a range of other military conflict scenarios addressing potentially more serious threats to national security, would have on the Secretary’s recommendations under subsection (a)(1) with respect to stockpile requirements.

(e) Plans of President

The President shall submit with each report under this section a statement of the plans of the President for meeting the recommendations of the Secretary set forth in the report.

(f) Briefings on shortfalls in stockpile

(1) Not later than March 1 each year, the National Defense Stockpile Manager shall provide to the congressional defense committees a briefing on strategic and critical materials that—

(A) are determined to be in shortfall in the most recent report on stockpile requirements submitted under subsection (a); and

(B) the acquisition or disposal of which is included in the Annual Materials and Operations Plan for the operation of the stockpile during the next fiscal year submitted under section 98h–2(b) of this title.

(2) Each briefing required by paragraph (1) shall include—

(A) a description of each material described in that paragraph, including the objective to be achieved if funding is provided, in whole or in part, for the acquisition of the material to remedy the shortfall;

(B) an estimate of additional amounts required to provide such funding, if any; and

(C) an assessment of the supply chain for each such material, including any assessment of any relevant risk in any such supply chain.

(June 7, 1939, ch. 190, § 14, as added Pub. L. 100–180, div. C, title II, § 3202(c), Dec. 4, 1987, 101 Stat. 1246; amended Pub. L. 102–190, div. C, title XXXIII, § 3313(b)(1), (2), Dec. 5, 1991, 105 Stat. 1585; Pub. L. 103–160, div. C, title XXXIII, § 3314, Nov. 30, 1993, 107 Stat. 1962; Pub. L. 104–201, div. C, title XXXIII, § 3311(a), Sept. 23, 1996, 110 Stat. 2856; Pub. L. 117–263, div. A, title XIV, § 1413, Dec. 23, 2022, 136 Stat. 2872.)

§ 98h–6. Development and conservation of reliable sources

(a) DutiesSubject to subsection (d), the National Defense Stockpile Manager shall encourage the development and appropriate conservation of reliable sources of strategic and critical materials—

(1) by purchasing, or making a commitment to purchase, strategic and critical materials from reliable sources when such materials are needed for the stockpile;

(2) by contracting with facilities located in and owned and controlled by reliable sources, or making a commitment to contract with such facilities, for the processing or refining of strategic and critical materials in the stockpile when processing or refining is necessary to convert such materials into a form more suitable for storage or disposition or meeting stockpile requirements;

(3) by qualifying facilities located in and owned and controlled by reliable sources, or qualifying strategic and critical materials produced by such facilities, to meet stockpile requirements;

(4) by contracting with facilities located in and owned and controlled by reliable sources to recycle strategic and critical materials to meet stockpile requirements or increase the balance of the National Defense Stockpile Transaction Fund under section 98h of this title; and

(5) by entering into an agreement to co-fund a bankable feasibility study for a project for the development of strategic and critical materials located in and owned and controlled by a reliable source, if the agreement—

(A) limits the liability of the stockpile to not more than the total funding provided by the Federal Government;

(B) limits the funding contribution of the Federal Government to not more than 50 percent of the cost of the bankable feasibility study; and

(b) Additional authorities

(1) Extended contracting authority

(A) In general

The term of a contract or commitment made under subsection (a) may not exceed ten years.

(B) Preexisting contracts

A contract entered into before December 22, 2023, for a term of more than ten years may be extended, on or after December 22, 2023, for a total of not more than an additional ten years pursuant to any option or options set forth in the contract.

(2) Matters relating to co-funding of bankable feasibility studies

To the extent authorized by Congress pursuant to the Defense Production Act of 1950 (50 U.S.C. 4501 et seq.) and determined to be required by the President pursuant to that Act, the National Defense Stockpile Manager may provide for loans or procure debt issued by other entities to carry out a project for the development of strategic and critical materials with respect to which a study was carried out under subsection (a)(5).

Descriptions of proposed transactions under subsection (a) shall be included in the Annual Materials and Operations Plan. Changes to any such transaction, or the addition of a transaction not included in such plan, shall be made in accordance with section 98d(a)(2) of this title.

(d) Availability of funds

The authority of the National Defense Stockpile Manager to enter into obligations under this section is effective for any fiscal year only to the extent that funds in the National Defense Stockpile Transaction Fund under section 98h of this title are adequate to meet such obligations.

(e) Bankable feasibility study definedIn this section, the term “bankable feasibility study” means a comprehensive technical and economic study—

(1) of the selected option for a strategic and critical materials development project that includes appropriately detailed assessments of realistically assumed extraction, processing, metallurgical, economic, marketing, legal, environmental, social, and governmental considerations and any other relevant operational factors and detailed financial analysis, that are necessary to demonstrate at the time of reporting that production is reasonably justified; and

(2) that may reasonably serve as the basis for a final decision by a proponent of a project or financial institution to proceed with, or finance, the development of the project.

(June 7, 1939, ch. 190, § 15, as added Pub. L. 101–189, div. C, title XXXIII, § 3312(a), Nov. 29, 1989, 103 Stat. 1687; amended Pub. L. 113–66, div. A, title XIV, § 1411(c), Dec. 26, 2013, 127 Stat. 934; Pub. L. 114–328, div. A, title XIV, § 1412(b), Dec. 23, 2016, 130 Stat. 2570; Pub. L. 117–81, div. A, title XIV, § 1411(3), Dec. 27, 2021, 135 Stat. 2018; Pub. L. 117–263, div. A, title XIV, § 1411(d)(1)(B), Dec. 23, 2022, 136 Stat. 2871; Pub. L. 118–31, div. A, title XIV, § 1411(e)(1), Dec. 22, 2023, 137 Stat. 526.)

§ 98h–7. National Defense Stockpile Manager

(a) Appointment

The President shall designate a single Federal office to have responsibility for performing the functions of the President under this subchapter, other than under sections 98f(a)(1) and 98h–4 of this title. The office designated shall be one to which appointment is made by the President, by and with the advice and consent of the Senate.

(b) Title of designated officer

The individual holding the office designated by the President under subsection (a) shall be known for purposes of functions under this subchapter as the “National Defense Stockpile Manager”.

The President may delegate functions of the President under this subchapter (other than under sections 98f(a)(1) and 98h–4 of this title) only to the National Defense Stockpile Manager. Any such delegation made by the President shall remain in effect until specifically revoked by law or Executive order. The President may not delegate functions of the President under sections 98f(a)(1) and 98h–4 of this title.

(June 7, 1939, ch. 190, § 16, formerly § 6A, as added Pub. L. 99–661, div. C, title II, § 3202(a), Nov. 14, 1986, 100 Stat. 4067; amended Pub. L. 100–180, div. C, title II, § 3203(a), Dec. 4, 1987, 101 Stat. 1246; renumbered § 16 and amended Pub. L. 101–189, div. C, title XXXIII, § 3313, Nov. 29, 1989, 103 Stat. 1688; Pub. L. 102–190, div. C, title XXXIII, § 3314, Dec. 5, 1991, 105 Stat. 1585; Pub. L. 112–239, div. A, title XIV, § 1413(b), Jan. 2, 2013, 126 Stat. 2049.)

§ 98i. Repealed. Pub. L. 85–861, § 36A, Sept. 2, 1958, 72 Stat. 1570

§ 99. Transferred

§ 100. Nitrate plants

(a) Investigations; designation of sites; construction and operation of dams, locks, improvements to navigation, etc.

The President of the United States may make, or cause to be made, such investigation as in his judgment is necessary to determine the best, cheapest, and most available means for the production of nitrates and other products for munitions of war and useful in the manufacture of fertilizers and other useful products by water power or any other power as in his judgment is the best and cheapest to use; and is also authorized to designate for the exclusive use of the United States, if in his judgment such means is best and cheapest, such site or sites, upon any navigable or nonnavigable river or rivers or upon the public lands, as in his opinion will be necessary for national defense; and is further authorized to construct, maintain, and operate, at or on any site or sites so designated, dams, locks, improvements to navigation, power houses, and other plants and equipment or other means than water power as in his judgment is the best and cheapest, necessary or convenient for the generation of electrical or other power and for the production of nitrates or other products needed for munitions of war and useful in the manufacture of fertilizers and other useful products.

(b) Lease, purchase, or acquisition of lands and rights of way; purchase or acquisition of materials, minerals, and processes

The President is authorized to lease, buy, or acquire, by condemnation, gift, grant, or devise, such lands and rights of way as may be necessary for the construction and operation of such plants and to take from any lands of the United States, or to buy or acquire by condemnation materials, minerals, and processes, patented or otherwise, necessary for the construction and operation of such plants and for the manufacture of such products.

The products of such plants shall be used by the President for military and naval purposes to the extent that he may deem necessary, and any surplus which he shall determine is not required shall be sold and disposed of by him under such regulations as he may prescribe.

(d) Employment of officers, agents, or agencies

The President is authorized to employ such officers, agents, or agencies as may in his discretion be necessary to enable him to carry out the purposes herein specified, and to authorize and require such officers, agents, or agencies to perform any and all of the duties imposed upon him by the provisions hereof.

(e) Government construction and operation

The plant or plants provided for under this section shall be constructed and operated solely by the Government and not in conjunction with any other industry or enterprise carried on by private capital.

(Aug. 10, 1956, ch. 1041, § 37, 70A Stat. 634.)

§ 100a. Omitted