[House Report 118-473]
[From the U.S. Government Publishing Office]
118th Congress } { Report
HOUSE OF REPRESENTATIVES
2d Session } { 118-473
======================================================================
PROMOTING RESILIENT SUPPLY CHAINS ACT OF 2023
_______
April 26, 2024.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mrs. Rodgers of Washington, from the Committee on Energy and
Commerce, submitted the following
R E P O R T
[To accompany H.R. 6571]
The Committee on Energy and Commerce, to whom was referred
the bill (H.R. 6571) to establish a critical supply chain
resiliency and crisis response program in the Department of
Commerce, and to secure American leadership in deploying
emerging technologies, and for other purposes, having
considered the same, reports favorably thereon with an
amendment and recommends that the bill as amended do pass.
CONTENTS
Page
Purpose and Summary.............................................. 11
Background and Need for Legislation.............................. 11
Committee Action................................................. 12
Committee Votes.................................................. 13
Oversight Findings and Recommendations........................... 15
New Budget Authority, Entitlement Authority, and Tax Expenditures 15
Congressional Budget Office Estimate............................. 15
Federal Mandates Statement....................................... 15
Statement of General Performance Goals and Objectives............ 15
Duplication of Federal Programs.................................. 15
Related Committee and Subcommittee Hearings...................... 15
Committee Cost Estimate.......................................... 16
Earmark, Limited Tax Benefits, and Limited Tariff Benefits....... 16
Advisory Committee Statement..................................... 16
Applicability to Legislative Branch.............................. 16
Section-by-Section Analysis of the Legislation................... 16
Changes in Existing Law Made by the Bill, as Reported............ 19
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Promoting Resilient
Supply Chains Act of 2023''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Additional responsibilities of Assistant Secretary of Commerce
for Industry and Analysis.
Sec. 3. Critical supply chain resiliency and crisis response program.
Sec. 4. Critical supply chain innovation and best practices.
Sec. 5. Department of Commerce capability assessment.
Sec. 6. Definitions.
SEC. 2. ADDITIONAL RESPONSIBILITIES OF ASSISTANT SECRETARY OF COMMERCE
FOR INDUSTRY AND ANALYSIS.
(a) Additional Responsibilities.--In addition to the responsibilities
of the Assistant Secretary on the day before the date of the enactment
of this Act, the Assistant Secretary shall have the following
responsibilities:
(1) Promote the leadership of the United States with respect
to critical industries, critical supply chains, and emerging
technologies that--
(A) strengthen the national security of the United
States; and
(B) have a significant effect on the economic
security of the United States.
(2) Encourage consultation with other agencies, covered
nongovernmental representatives, industry, institutions of
higher education, and State and local governments in order to--
(A) promote resilient critical supply chains; and
(B) identify, prepare for, and respond to supply
chain shocks to--
(i) critical industries;
(ii) critical supply chains; and
(iii) emerging technologies.
(3) Encourage the growth and competitiveness of United States
productive capacities and manufacturing in the United States of
emerging technologies.
(4) Monitor the resilience, diversity, security, and strength
of critical supply chains and critical industries (including
critical industries for emerging technologies).
(5) Support the availability of critical goods from domestic
manufacturers, domestic enterprises, and manufacturing
operations in countries that are an ally or key international
partner nation.
(6) Assist the Federal Government in preparing for and
responding to supply chain shocks to critical supply chains,
including by improving flexible manufacturing capacities and
capabilities in the United States.
(7) Consistent with United States obligations under
international agreements, encourage and incentivize the reduced
reliance of domestic enterprises and domestic manufacturers on
critical goods from countries that are described in clause (i)
or (ii) of section 6(2)(B).
(8) Encourage the relocation of manufacturing facilities that
manufacture critical goods from countries that are described in
clause (i) or (ii) of section 6(2)(B) to the United States and
countries that are an ally or key international partner nation
to strengthen the resilience, diversity, security, and strength
of critical supply chains.
(9) Support the creation of jobs with competitive wages in
the United States manufacturing sector.
(10) Encourage manufacturing growth and opportunities in
rural and underserved communities.
(11) Promote the health of the economy of the United States
and the competitiveness of manufacturing in the United States.
(b) Capabilities and Technical Support.--In carrying out subsection
(a), the Assistant Secretary--
(1) shall establish capabilities to--
(A) assess the state of technology, innovation, and
production capacity in the United States and other
countries; and
(B) conduct other activities that the Assistant
Secretary considers to be critical for the use of
analytic capabilities, statistics, datasets, and
metrics related to critical technologies and
innovation; and
(2) may utilize external organizations to provide independent
and objective technical support.
SEC. 3. CRITICAL SUPPLY CHAIN RESILIENCY AND CRISIS RESPONSE PROGRAM.
(a) Establishment.--Not later than 180 days after the date of the
enactment of this Act, the Assistant Secretary shall establish in the
Department of Commerce a critical supply chain resiliency and crisis
response program to conduct the activities described in subsection (b).
(b) Activities.--In carrying out the program, the Assistant Secretary
shall conduct activities--
(1) in coordination with the unified coordination group
established under subsection (c), to--
(A) map, monitor, and model critical supply chains,
including critical supply chains for emerging
technologies, which may include--
(i) modeling the impact of supply chain
shocks on critical industries (including
critical industries for emerging technologies),
critical supply chains, domestic enterprises,
and domestic manufacturers;
(ii) monitoring the demand for and supply of
critical goods, production equipment, and
manufacturing technology needed for critical
supply chains, including critical goods,
production equipment, and manufacturing
technology obtained by or purchased from a
person outside of the United States or imported
into the United States; and
(iii) monitoring manufacturing, warehousing,
transportation, and distribution related to
critical supply chains;
(B) identify high priority gaps and vulnerabilities,
which may include single points of failure, in critical
supply chains and critical industries (including
critical industries for emerging technologies) that--
(i) exist as of the date of the enactment of
this Act; or
(ii) are anticipated to occur after the date
of the enactment of this Act;
(C) identify potential supply chain shocks to a
critical supply chain that may disrupt, strain,
compromise, or eliminate the critical supply chain
(including supply chains involving emerging
technologies);
(D) evaluate the capability and capacity of domestic
manufacturers or manufacturers located in countries
that are an ally or key international partner nation to
serve as sources for critical goods, production
equipment, or manufacturing technology needed in
critical supply chains (including supply chains
involving emerging technologies);
(E) evaluate the effect on the national security and
economic competitiveness of the United States,
including on consumer prices, job losses, and wages,
that may result from the disruption, strain,
compromise, or elimination of a critical supply chain;
(F) evaluate the state of the manufacturing
workforce, including by--
(i) identifying the needs of domestic
manufacturers; and
(ii) identifying opportunities to create
high-quality manufacturing jobs; and
(G) identify investments in critical goods,
production equipment, and manufacturing technology from
non-Federal sources;
(2) in coordination with State and local governments and the
unified coordination group established under subsection (c),
and, as appropriate, in consultation with countries that are an
ally or key international partner nation, to--
(A) identify opportunities to reduce gaps and
vulnerabilities in critical supply chains and critical
industries (including critical industries for emerging
technologies);
(B) encourage consultation between the Federal
Government, industry, covered nongovernmental
representatives, institutions of higher education, and
State and local governments to--
(i) better respond to supply chain shocks to
critical supply chains and critical industries
(including critical industries for emerging
technologies); and
(ii) coordinate response efforts to supply
chain shocks;
(C) encourage consultation between the Federal
Government and the governments of countries that are an
ally or key international partner nation;
(D) develop or identify opportunities to build the
capacity of the United States in critical supply
chains, critical industries, and emerging technologies;
(E) develop or identify opportunities to build the
capacity of countries that are an ally or key
international partner nation in critical industries
(including critical industries for emerging
technologies) and critical supply chains;
(F) develop contingency plans and coordination
mechanisms to improve the response of critical supply
chains and critical industry (including critical
industries for emerging technologies) to supply chain
shocks; and
(G) support methods and technologies, including
blockchain technology, distributed ledger technology,
and other emerging technologies, as appropriate, for
the authentication and traceability of critical goods;
(3) acting within the authority of the Secretary that exists
as of the date of the enactment of this Act, and in
consultation with the Secretary of State and the United States
Trade Representative, to consult with governments of countries
that are an ally or key international partner nation to promote
resilient critical supply chains that ensure the supply of
critical goods, production equipment, and manufacturing
technology to the United States and companies located in
countries that are an ally or key international partner nation;
(4) in consultation with other offices and divisions of the
Department of Commerce and other agencies, to leverage existing
authorities (as of the date of the enactment of this Act) to
encourage the resilience of supply chains of critical
industries (including critical industries for emerging
technologies); and
(5) to determine which emerging technologies may assist in
conducting the activities described in this subsection and
promote such emerging technologies.
(c) Unified Coordination Group.--In conducting the activities
described in subsection (b), the Assistant Secretary shall--
(1) establish a unified coordination group led by the
Assistant Secretary, which shall include, as appropriate,
private sector partners and covered nongovernmental
representatives, to serve as a body for consultation by
agencies described in subsection (g) to plan for and respond to
supply chain shocks and support the resilience, diversity,
security, and strength of critical supply chains;
(2) establish subgroups of the unified coordination group
established under paragraph (1) that shall be led by the head
of an appropriate agency; and
(3) through the unified coordination group established under
paragraph (1)--
(A) acquire on a voluntary basis technical,
engineering, and operational critical supply chain
information from the private sector, in a manner that
ensures any critical supply chain information provided
by the private sector is kept confidential and is
exempt from disclosure under section 552(b)(3) of title
5, United States Code (commonly known as the ``Freedom
of Information Act'');
(B) study the critical supply chain information
acquired under subparagraph (A) to assess critical
supply chains, including critical supply chains for
emerging technologies, and inform planning for
potential supply chain shocks;
(C) convene with relevant private sector entities to
share best practices, planning, and capabilities to
respond to potential supply chain shocks; and
(D) factor in any relevant findings from the studies
required by the American COMPETE Act (title XV of
division FF of the Consolidated Appropriations Act,
2021; Public Law 116-260; 134 Stat. 3276).
(d) International Cooperation.--The Secretary, in consultation with
other relevant agencies, may consult with governments of countries that
are an ally or key international partner nation relating to enhancing
the security and resilience of critical supply chains in response to
supply chain shocks.
(e) Designations.--The Assistant Secretary shall--
(1) not later than 270 days after the date of the enactment
of this Act, designate--
(A) critical industries;
(B) critical supply chains; and
(C) critical goods;
(2) provide for a period of public comment and review in
carrying out paragraph (1); and
(3) update the designations made under paragraph (1) not less
frequently than once every 4 years, including designations for
technologies not described in section 6(12)(B) that the
Assistant Secretary considers necessary.
(f) National Strategy and Review on Critical Supply Chain Resiliency
and Manufacturing in the United States.--
(1) In general.--Not later than 1 year after the date of the
enactment of this Act, and not less frequently than once every
2 years thereafter, the Assistant Secretary, in consultation
with the head of each relevant agency, covered nongovernmental
representative, industry, institution of higher education, and
State and local government, shall submit to the relevant
committees of Congress and post on the website of the Assistant
Secretary a report that--
(A) identifies--
(i) critical infrastructure that may assist
in fulfilling the responsibilities described in
section 2;
(ii) emerging technologies that may assist in
fulfilling the responsibilities described in
section 2 and carrying out the program,
including such technologies that may be
critical to addressing preparedness,
weaknesses, and vulnerabilities relating to
critical supply chains;
(iii) critical industries, critical supply
chains, and critical goods designated under
subsection (e);
(iv) other supplies and services that are
critical to the crisis preparedness of the
United States;
(v) substitutes for critical goods,
production equipment, and manufacturing
technology;
(vi) methods and technologies, including
blockchain technology, distributed ledger
technology, and other emerging technologies, as
appropriate, for the authentication and
traceability of critical goods; and
(vii) countries that are an ally or key
international partner nation;
(B) describes the matters identified and evaluated
under subsection (b)(1), including--
(i) the manufacturing base, critical supply
chains, and emerging technologies in the United
States, including the manufacturing base and
critical supply chains for--
(I) critical goods;
(II) production equipment; and
(III) manufacturing technology; and
(ii) the ability of the United States to--
(I) maintain readiness with respect
to preparing for and responding to
supply chain shocks; and
(II) in response to a supply chain
shock--
(aa) surge production in
critical industries;
(bb) surge production of
critical goods and production
equipment; and
(cc) maintain access to
critical goods, production
equipment, and manufacturing
technology;
(C) assesses and describes--
(i) the demand and supply of critical goods,
production equipment, and manufacturing
technology;
(ii) the production of critical goods,
production equipment, and manufacturing
technology by domestic manufacturers;
(iii) the capability and capacity of domestic
manufacturers and manufacturers in countries
that are an ally or key international partner
nation to manufacture critical goods,
production equipment, and manufacturing
technology; and
(iv) how supply chain shocks could affect
rural, Tribal, and underserved communities;
(D) identifies threats and supply chain shocks that
may disrupt, strain, compromise, or eliminate critical
supply chains, critical goods, and critical industries
(including critical industries for emerging
technologies);
(E) with regard to any threat identified under
subparagraph (D), lists any threat or supply chain
shock that may originate from a country, or a company
or individual from a country, that is described in
clause (i) or (ii) of section 6(2)(B);
(F) assesses--
(i) the resilience and capacity of the
manufacturing base, critical supply chains, and
workforce of the United States and countries
that are an ally or key international partner
nation that can sustain critical industries
(including critical industries for emerging
technologies) through a supply chain shock;
(ii) the effect innovation has on domestic
manufacturers; and
(iii) any single points of failure in the
critical supply chains described in clause (i);
(G) with respect to countries that are an ally or key
international partner nation, reviews the sourcing of
critical goods, production equipment, and manufacturing
technology associated with critical industries located
in such countries;
(H) assesses the flexible manufacturing capacity and
capability available in the United States in the case
of a supply chain shock; and
(I) develops a strategy for the Department of
Commerce to support the resilience, diversity,
security, and strength of critical supply chains and
emerging technologies to--
(i) support sufficient access to critical
goods by mitigating vulnerabilities in critical
supply chains, including critical supply chains
concentrated in countries that are described in
clause (i) or (ii) of section 6(2)(B);
(ii) consult with other relevant agencies to
assist countries that are an ally or key
international partner nation in building
capacity for manufacturing critical goods;
(iii) recover from supply chain shocks;
(iv) identify, in consultation with other
relevant agencies, actions relating to critical
supply chains or emerging technologies that the
United States may take to--
(I) raise living standards;
(II) increase employment
opportunities; and
(III) improve responses to supply
chain shocks;
(v) protect against supply chain shocks
relating to critical supply chains from
countries that are described in clause (i) or
(ii) of section 6(2)(B);
(vi) support methods and technologies,
including blockchain technology, distributed
ledger technologies, and other emerging
technologies, as appropriate, for the
authentication and traceability of critical
goods; and
(vii) make specific recommendations to
implement the strategy under this section and
improve the security and resiliency of
manufacturing capacity and supply chains for
critical industries (including critical
industries for emerging technologies), by--
(I) developing long-term strategies;
(II) increasing visibility into the
networks and capabilities of domestic
manufacturers and suppliers of domestic
manufacturers;
(III) identifying industry best
practices;
(IV) evaluating how diverse supplier
networks, multi-platform and multi-
region production capabilities and
sources, and integrated global and
regional critical supply chains can
enhance the resilience of--
(aa) critical industries in
the United States;
(bb) emerging technologies in
the United States;
(cc) jobs in the United
States;
(dd) manufacturing
capabilities of the United
States; and
(ee) the access of the United
States to critical goods during
a supply chain shock;
(V) identifying and mitigating risks,
including--
(aa) significant
vulnerabilities to supply chain
shocks; and
(bb) exposure to gaps and
vulnerabilities in domestic
capacity or capabilities and
sources of imports needed to
sustain critical industries
(including critical industries
for emerging technologies) or
critical supply chains;
(VI) identifying enterprise resource
planning systems that are--
(aa) compatible across
critical supply chain tiers;
and
(bb) affordable for all sizes
of business and for startups;
(VII) understanding the total cost of
ownership, total value contribution,
and other best practices that encourage
strategic partnerships throughout
critical supply chains;
(VIII) understanding Federal
procurement opportunities to increase
resilient critical supply chains and
fill gaps in domestic purchasing;
(IX) identifying opportunities to
consult with countries that are an ally
or key international partner nation to
build more resilient critical supply
chains and mitigate risks;
(X) identifying opportunities to
reuse and recycle critical goods,
including raw materials, to increase
resilient critical supply chains;
(XI) consulting with countries that
are an ally or key international
partner nation on--
(aa) sourcing critical goods,
production equipment, and
manufacturing technology; and
(bb) developing, sustaining,
and expanding production and
availability of critical goods,
production equipment, and
manufacturing technology during
a supply chain shock;
(XII) identifying such other services
as the Assistant Secretary determines
necessary; and
(XIII) providing guidance to other
relevant agencies with respect to
critical goods, supply chains, and
critical industries (including critical
industries for emerging technologies)
that should be prioritized to ensure
United States leadership in the
deployment of such technologies.
(2) Prohibition.--The report submitted under paragraph (1)
may not include--
(A) critical supply chain information that is not
aggregated;
(B) confidential business information of a private
sector entity; or
(C) classified information.
(3) Form.--The report submitted under paragraph (1), and any
update submitted thereafter, shall be submitted to the relevant
committees of Congress in unclassified form and may include a
classified annex.
(4) Public comment.--The Assistant Secretary shall provide
for a period of public comment and review in developing the
report submitted under paragraph (1).
(g) Consultation.--Not later than 1 year after the date of the
enactment of this Act, the Assistant Secretary shall enter into an
agreement with the head of any relevant agency to obtain any
information, data, or assistance that the Assistant Secretary
determines necessary to conduct the activities described in subsection
(b).
(h) Rule of Construction.--Nothing in this section may be construed
to require any private entity--
(1) to share information with the Secretary or Assistant
Secretary;
(2) to request assistance from the Secretary or Assistant
Secretary; or
(3) to implement any measure or recommendation suggested by
the Secretary or Assistant Secretary in response to a request
by the private entity.
(i) Protection of Voluntarily Shared Critical Supply Chain
Information.--
(1) Protection.--
(A) In general.--Notwithstanding any other provision
of law, critical supply chain information (including
the identity of the submitting person or entity) that
is voluntarily submitted under this section to the
Department of Commerce for use by the Department for
purposes of this section, when accompanied by an
express statement specified in subparagraph (B)--
(i) shall be exempt from disclosure under
section 552(b)(3) of title 5, United States
Code (commonly referred to as the ``Freedom of
Information Act'');
(ii) is not subject to any agency rules or
judicial doctrine regarding ex parte
communications with a decision making official;
(iii) may not, without the written consent of
the person or entity submitting such
information, be used directly by the Department
of Commerce, any other Federal, State, or local
authority, or any third party, in any civil
action arising under Federal or State law if
such information is submitted in good faith;
(iv) may not, without the written consent of
the person or entity submitting such
information, be used or disclosed by any
officer or employee of the United States for
purposes other than the purposes of this
section, except--
(I) in furtherance of an
investigation or the prosecution of a
criminal act; or
(II) when disclosure of the
information would be--
(aa) to either House of
Congress, or to the extent of
matter within its jurisdiction,
any committee or subcommittee
thereof, any joint committee
thereof, or any subcommittee of
any such joint committee; or
(bb) to the Comptroller
General of the United States,
or any authorized
representative of the
Comptroller General, in the
course of the performance of
the duties of the Government
Accountability Office;
(v) may not, if provided to a State or local
government or government agency--
(I) be made available pursuant to any
State or local law requiring disclosure
of information or records;
(II) otherwise be disclosed or
distributed to any party by such State
or local government or government
agency without the written consent of
the person or entity submitting such
information; or
(III) be used other than for the
purpose of carrying out this section,
or in furtherance of an investigation
or the prosecution of a criminal act;
and
(vi) does not constitute a waiver of any
applicable privilege or protection provided
under law, such as trade secret protection.
(B) Express statement.--The express statement
described in this subparagraph, with respect to
information or records, is--
(i) in the case of written information or
records, a written marking on the information
or records substantially similar to the
following: ``This information is voluntarily
submitted to the Federal Government in
expectation of protection from disclosure as
provided by the provisions of the Promoting
Resilient Supply Chains Act of 2023.''; or
(ii) in the case of oral information, a
written statement similar to the statement
described in clause (i) submitted within a
reasonable period following the oral
communication.
(2) Limitation.--No communication of critical supply chain
information to the Department of Commerce made pursuant to this
section may be considered to be an action subject to the
requirements of chapter 10 of title 5, United States Code.
(3) Independently obtained information.--Nothing in this
subsection may be construed to limit or otherwise affect the
ability of a State, local, or Federal Government entity,
agency, or authority, or any third party, under applicable law,
to obtain critical supply chain information in a manner not
covered by paragraph (1), including any information lawfully
and properly disclosed generally or broadly to the public and
to use such information in any manner permitted by law. For
purposes of this subsection a permissible use of independently
obtained information includes the disclosure of such
information under section 2302(b)(8) of title 5, United States
Code.
(4) Treatment of voluntary submittal of information.--The
voluntary submittal to the Department of Commerce of
information or records that are protected from disclosure by
this section may not be construed to constitute compliance with
any requirement to submit such information to an agency under
any other provision of law.
(5) Inapplicability to semiconductor incentive program.--This
subsection does not apply to the voluntary submission of
critical supply chain information in an application for Federal
financial assistance under section 9902 of the William M. (Mac)
Thornberry National Defense Authorization Act for Fiscal Year
2021 (Public Law 116-283).
(j) Sunset.--The program shall terminate not later than the date that
is 7 years after the date of the enactment of this Act.
SEC. 4. CRITICAL SUPPLY CHAIN INNOVATION AND BEST PRACTICES.
(a) In General.--The Assistant Secretary shall, on an ongoing basis,
facilitate and support the development and dissemination of guidelines,
best practices, management strategies, methodologies, procedures, and
processes for domestic manufacturers, domestic enterprises, and other
entities manufacturing, procuring, or using a critical good to--
(1) measure the resilience, diversity, security, and strength
of the critical supply chains of such manufacturers,
enterprises, and entities;
(2) quantify the value of improved resilience, diversity,
security, and strength of critical supply chains to such
manufacturers, enterprises, and entities;
(3) design and implement measures to reduce the risks of
disruption, strain, compromise, or elimination of critical
supply chains of such manufacturers, enterprises, and entities;
and
(4) support the authentication and traceability of critical
goods using blockchain technology, distributed ledger
technologies, and other emerging technologies as appropriate.
(b) Requirements.--In carrying out subsection (a), the Assistant
Secretary shall do the following:
(1) Consult closely and regularly with relevant private
sector personnel and entities, manufacturing extension centers
established as part of the Hollings Manufacturing Extension
Partnership, Manufacturing USA institutes as described in
section 34(d) of the National Institute of Standards and
Technology Act (15 U.S.C. 278s(d)), and other relevant
stakeholders and incorporate industry expertise.
(2) Consult with the heads of relevant agencies (including
agencies with jurisdiction over critical supply chains),
States, local governments, Tribal Governments, countries that
are an ally or key international partner nation, and
international organizations, as necessary.
(3) Collaborate with private sector stakeholders to identify
prioritized, flexible, repeatable, performance-based, and cost-
effective critical supply chain resilience approaches that may
be voluntarily adopted by domestic manufacturers, domestic
enterprises, and other entities manufacturing, procuring, or
using a critical good to achieve the goals of subsection (a).
(4) Facilitate the design of--
(A) voluntary processes for selecting suppliers that
support the resilience, diversity, security, and
strength of critical supply chains; and
(B) methodologies to identify and mitigate the
effects of a disruption, strain, compromise, or
elimination of a critical supply chain.
(5) Facilitate the identification or application of methods
and technologies, including blockchain technology, distributed
ledger technologies, and other emerging technologies as
appropriate, for the authentication and traceability of
critical goods.
(6) Disseminate research and information to assist domestic
manufacturers redesign products, expand domestic manufacturing
capacity, and improve other capabilities as required to improve
the resilience, diversity, security, and strength of critical
supply chains.
(7) Incorporate relevant industry best practices.
(8) Consider the private sector, including small businesses.
(9) Leverage mechanisms that exist as of the date of the
enactment of this Act for the Federal Government to provide
critical supply chain solutions (including manufacturing
technology, products, tools, and workforce development
solutions related to critical supply chain resilience) to
manufacturers, including small and medium-sized manufacturers.
(c) Rule of Construction.--Nothing in this section may be construed
to--
(1) require any private entity to share information with the
Secretary or Assistant Secretary;
(2) require any private entity to request assistance from the
Secretary or Assistant Secretary;
(3) require any private entity to implement any measure or
recommendation suggested by the Secretary or Assistant
Secretary in response to a request by the private entity; or
(4) require the adoption of any guideline, best practice,
management strategy, methodology, procedure, or process
described in subsection (a).
SEC. 5. DEPARTMENT OF COMMERCE CAPABILITY ASSESSMENT.
(a) Report Required.--The Secretary shall produce a report--
(1) identifying the duties, responsibilities, resources,
programs, and expertise within the offices and bureaus of the
Department of Commerce relevant to critical supply chain
resilience and manufacturing innovation;
(2) identifying and assessing the purpose, legal authority,
effectiveness, efficiency, and limitations of each office or
bureau identified under paragraph (1); and
(3) providing recommendations to enhance the activities
related to critical supply chain resilience and manufacturing
innovation of the Department of Commerce, including--
(A) improving the effectiveness, efficiency, and
impact of the offices and bureaus identified under
paragraph (1);
(B) coordination across offices and bureaus
identified under paragraph (1); and
(C) consultation with agencies implementing similar
activities related to critical supply chain resilience
and manufacturing innovation.
(b) Submission of Report.--Not later than 2 years after the date of
the enactment of this Act, the Secretary shall submit to the relevant
committees of Congress the report required by subsection (a), along
with a strategy to implement, as appropriate and as determined by the
Secretary, the recommendations contained in the report.
SEC. 6. DEFINITIONS.
In this Act:
(1) Agency.--The term ``agency'' has the meaning given that
term in section 551 of title 5, United States Code.
(2) Ally or key international partner nation.--The term
``ally or key international partner nation''--
(A) means a country that is critical to addressing
critical supply chain weaknesses and vulnerabilities;
and
(B) does not include--
(i) a country that poses a significant risk
to the national security or economic security
of the United States; or
(ii) a country that is described in section
503(b) of the RANSOMWARE Act (title V of
division BB of the Consolidated Appropriations
Act, 2023; Public Law 117-328; 136 Stat. 5564).
(3) Assistant secretary.--The term ``Assistant Secretary''
means the Assistant Secretary of Commerce assigned by the
Secretary to direct the office of Industry and Analysis.
(4) Covered nongovernmental representative.--The term
``covered nongovernmental representative'' means a
representative as specified in the second sentence of section
135(b)(1) of the Trade Act of 1974 (19 U.S.C. 2155(b)(1)),
except that such term does not include a representative of a
non-Federal government.
(5) Critical good.--The term ``critical good'' means any raw,
in process, or manufactured material (including any mineral,
metal, or advanced processed material), article, commodity,
supply, product, or item for which an absence of supply would
have a significant effect on--
(A) the national security or economic security of the
United States; and
(B) either--
(i) critical infrastructure; or
(ii) an emerging technology.
(6) Critical industry.--The term ``critical industry'' means
an industry that--
(A) is critical for the national security or economic
security of the United States; and
(B) produces or procures a critical good.
(7) Critical infrastructure.--The term ``critical
infrastructure'' has the meaning given that term in section
1016 of the Critical Infrastructures Protection Act of 2001 (42
U.S.C. 5195c).
(8) Critical supply chain.--The term ``critical supply
chain'' means a supply chain for a critical good.
(9) Critical supply chain information.--The term ``critical
supply chain information'' means information that is not
customarily in the public domain and relates to--
(A) sustaining and adapting a critical supply chain
during a supply chain shock;
(B) critical supply chain risk mitigation and
recovery planning with respect to a supply chain shock,
including any planned or past assessment, projection,
or estimate of a vulnerability within the critical
supply chain, including testing, supplier network
assessments, production flexibility, risk evaluations,
risk management planning, or risk audits; or
(C) operational best practices, planning, and
supplier partnerships that enable enhanced resilience
of a critical supply chain during a supply chain shock,
including response, repair, recovery, reconstruction,
insurance, or continuity.
(10) Domestic enterprise.--The term ``domestic enterprise''
means an enterprise that conducts business in the United States
and procures a critical good.
(11) Domestic manufacturer.--The term ``domestic
manufacturer'' means a business that conducts in the United
States the research and development, engineering, or production
activities necessary for manufacturing a critical good.
(12) Emerging technology.--The term ``emerging technology''
means a technology that is critical for the national security
or economic security of the United States, including the
following:
(A) Technologies included in the American COMPETE Act
(title XV of division FF of the Consolidated
Appropriations Act, 2021; Public Law 116-260; 134 Stat.
3276).
(B) The following technologies:
(i) Artificial intelligence.
(ii) Automated vehicles and unmanned delivery
systems.
(iii) Blockchain and other distributed
ledger, data storage, data management, and
cybersecurity technologies.
(iv) Quantum computing and quantum sensing.
(v) Additive manufacturing.
(vi) Advanced manufacturing and the Internet
of Things.
(vii) Nano technology.
(viii) Robotics.
(ix) Microelectronics, optical fiber ray, and
high performance and advanced computer hardware
and software.
(x) Semiconductors.
(xi) Advanced materials science, including
composition 2D, other next generation
materials, and related manufacturing
technologies.
(13) Institution of higher education.--The term ``institution
of higher education'' has the meaning given that term in
section 101 of the Higher Education Act of 1965 (20 U.S.C.
1001).
(14) Manufacture.--The term ``manufacture'' means any
activity that is necessary for the development, production,
processing, distribution, or delivery of any raw, in process,
or manufactured material (including any mineral, metal, and
advanced processed material), article, commodity, supply,
product, critical good, or item of supply.
(15) Manufacturing technology.--The term ``manufacturing
technology'' means a technology that is necessary for the
manufacturing of a critical good.
(16) Production equipment.--The term ``production equipment''
means any component, subsystem, system, equipment, tooling,
accessory, part, or assembly necessary for the manufacturing of
a critical good.
(17) Program.--The term ``program'' means the critical supply
chain resiliency and crisis response program established under
section 3(a).
(18) Relevant committees of congress.--The term ``relevant
committees of Congress'' means the following:
(A) The Committee on Commerce, Science, and
Transportation of the Senate.
(B) The Committee on Energy and Commerce of the House
of Representatives.
(19) Resilient critical supply chain.--The term ``resilient
critical supply chain'' means a critical supply chain that--
(A) ensures that the United States can sustain
critical industry, including emerging technologies,
production, critical supply chains, services, and
access to critical goods, production equipment, and
manufacturing technology during a supply chain shock;
and
(B) has key components of resilience that include--
(i) effective private sector risk management
and mitigation planning to sustain critical
supply chains and supplier networks during a
supply chain shock; and
(ii) minimized or managed exposure to a
supply chain shock.
(20) Secretary.--The term ``Secretary'' means the Secretary
of Commerce.
(21) State.--The term ``State'' means each of the several
States, the District of Columbia, each commonwealth, territory,
or possession of the United States, and each federally
recognized Indian Tribe.
(22) Supply chain shock.--The term ``supply chain shock''
includes the following:
(A) A natural disaster.
(B) A pandemic.
(C) A biological threat.
(D) A cyber attack.
(E) A great power conflict.
(F) A terrorist or geopolitical attack.
(H) An event for which the President declares a major
disaster or an emergency under section 401 or 501,
respectively, of the Robert T. Stafford Disaster Relief
and Emergency Assistance Act (42 U.S.C. 5170; 42 U.S.C.
5191).
(I) Any other disruption or threat to a critical
supply chain that affects the national security or
economic security of the United States.
PURPOSE AND SUMMARY
H.R. 6571, the ``Promoting Resilient Supply Chains Act of
2023'' was introduced by Representative Bucshon on December 4,
2023, and referred to the Committee on Energy and Commerce.
H.R. 6571 establishes additional responsibilities for the
Assistant Secretary of Commerce for Industry and Analysis
related to promoting emerging technologies and critical supply
chains. H.R. 6571 also requires the Assistant Secretary to
carry out a program with the private sector to better
understand vulnerabilities in our supply chains, including
supply chains for emerging technologies, and provide
recommendations for promoting emerging technologies and making
critical supply chains more resilient.
BACKGROUND AND NEED FOR LEGISLATION
During the COVID-19 pandemic, many Americans were unable to
secure essential goods like personal protective equipment,
cleaning materials, furniture, and appliances. This
inaccessibility to products was exacerbated by supply chain
constraints for critical components, like semiconductors, used
in many consumer products. The pandemic also shined a light on
the vulnerabilities of U.S. supply chains, particularly how
reliant the U.S. is on adversaries, like China, for critical
goods and components of such goods. The U.S. should utilize
private-public partnerships to map and monitor critical supply
chains while protecting information voluntarily provided by the
private sector, and not in any way to force businesses to share
such information, to better understand where exactly
vulnerabilities exist within such supply chains and
subsequently decrease reliance on foreign adversaries like
China for critical goods.
The U.S. should also examine ways to promote the
advancement and deployment of emerging technologies that are
critical to help secure American economic and national security
in the 21st century. Failure to reduce barriers and support and
promote innovation and deployment of emerging technologies will
cause the U.S. to cede leadership to countries like China,
which could have drastic economic and national security
implications. H.R. 6571 builds off important work in the
American COMPETE Act\1\ to increase American competitiveness in
the advancement and deployment of emerging technologies by
having a dedicated official at the Department of Commerce
focused on their promotion.
---------------------------------------------------------------------------
\1\H.R. 8132, American Competitiveness of a More Productive
Emerging Tech Economy Act (116th Congress), https://www.congress.gov/
bill/116th-congress/house-bill/8132?q=%7B%22search
%22%3A%5B%22%22%5D%7D&s=3&r=3.
---------------------------------------------------------------------------
COMMITTEE ACTION
On September 20, 2023, the Subcommittee on Innovation,
Data, and Commerce held a hearing on a discussion draft titled
``to establish a supply chain resiliency and crisis response
program in the Department of Commerce, and for other
purposes.'' The title of the hearing was ``Mapping America's
Supply Chains: Solutions to Unleash Innovation, Boost Economic
Resilience, and Beat China.'' The Subcommittee received
testimony from:
Chris Griswold, Policy Director, American
Compass;
Deena Ghazarian, Founder and Chief Executive
Officer, Austere;
Justin Slaughter, Policy Director, Paradigm;
and
Scott Paul, President, Alliance for American
Manufacturing.
On November 2, 2023, the Subcommittee on Innovation, Data,
and Commerce met in open markup session and forwarded a
discussion draft, ``to establish a supply chain resiliency and
crisis response program in the Department of Commerce, and for
other purposes,'' without amendment, to the full Committee by a
voice vote.
H.R. 6571 was introduced by Representative Bucshon on
December 4, 2023, and referred to the Committee on Energy and
Commerce.
On December 5 and 6, 2023, the full Committee on Energy and
Commerce met in open markup session and ordered H.R. 6571, as
amended, favorably reported to the House by a record vote of 44
yeas and 0 nays.
COMMITTEE VOTES
Clause 3(b) of rule XIII requires the Committee to list the
record votes on the motion to report legislation and amendments
thereto. The following reflects the record votes taken during
the Committee consideration:
OVERSIGHT FINDINGS AND RECOMMENDATIONS
Pursuant to clause 2(b)(1) of rule X and clause 3(c)(1) of
rule XIII, the Committee held hearings and made findings that
are reflected in this report.
NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND TAX EXPENDITURES
Pursuant to clause 3(c)(2) of rule XIII, the Committee
finds that H.R. 6571 would result in no new or increased budget
authority, entitlement authority, or tax expenditures or
revenues.
CONGRESSIONAL BUDGET OFFICE ESTIMATE
Pursuant to clause 3(c)(3) of rule XIII, at the time this
report was filed, the cost estimate prepared by the Director of
the Congressional Budget Office pursuant to section 402 of the
Congressional Budget Act of 1974 was not available.
FEDERAL MANDATES STATEMENT
The Committee adopts as its own the estimate of Federal
mandates prepared by the Director of the Congressional Budget
Office pursuant to section 423 of the Unfunded Mandates Reform
Act.
STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES
Pursuant to clause 3(c)(4) of rule XIII, the general
performance goal or objective of this legislation is to map and
monitor critical supply chains to improve their resiliency and
to promote and secure American leadership in emerging
technologies.
DUPLICATION OF FEDERAL PROGRAMS
Pursuant to clause 3(c)(5) of rule XIII, no provision of
H.R. 6751 is known to be duplicative of another Federal
program, including any program that was included in a report to
Congress pursuant to section 21 of Public Law 111-139 or the
most recent Catalog of Federal Domestic Assistance.
RELATED COMMITTEE AND SUBCOMMITTEE HEARINGS
Pursuant to clause 3(c)(6) of rule XIII, the following
related hearings were used to develop or consider H.R. 6571:
On September 20, 2023, the Subcommittee on
Innovation, Data, and Commerce held a hearing on a
discussion draft titled ``to establish a supply chain
resiliency and crisis response program in the
Department of Commerce, and for other purposes.'' The
title of the hearing was ``Mapping America's Supply
Chains: Solutions to Unleash Innovation, Boost Economic
Resilience, and Beat China.'' The Subcommittee received
testimony from:
Chris Griswold, Policy Director,
American Compass;
Deena Ghazarian, Founder and
Chief Executive Officer, Austere;
Justin Slaughter, Policy
Director, Paradigm; and
Scott Paul, President, Alliance
for American Manufacturing.
On February 1, 2023, the Subcommittee on
Innovation, Data, and Commerce held a hearing titled
``Economic Danger Zone: How America Competes to Win the
Future Versus China.'' The Subcommittee received
testimony from:
Brandon Pugh, Policy Director
and Resident Senior Fellow, R Street Institute;
Jeff Farrah, Executive Director,
Autonomous Vehicle Industry Association (AVIA);
Samm Sacks, Cyber Policy Fellow,
International Security Program, New America;
and
Marc Jarsulic, Senior Fellow and
Chief Economist, Center for American Progress.
COMMITTEE COST ESTIMATE
Pursuant to clause 3(d)(1) of rule XIII, the Committee
adopts as its own the cost estimate prepared by the Director of
the Congressional Budget Office pursuant to section 402 of the
Congressional Budget Act of 1974. At the time this report was
filed, the estimate was not available.
EARMARK, LIMITED TAX BENEFITS, AND LIMITED TARIFF BENEFITS
Pursuant to clause 9(e), 9(f), and 9(g) of rule XXI, the
Committee finds that H.R. 6571 contains no earmarks, limited
tax benefits, or limited tariff benefits.
ADVISORY COMMITTEE STATEMENT
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act were created by this
legislation.
APPLICABILITY TO LEGISLATIVE BRANCH
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act.
SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION
Section 1. Short title; table of contents
Section 1 provides that the Act may be cited as the
``Promoting Resilient Supply Chains Act of 2023.'' Section 1
also provides a table of contents for the legislation.
Section 2. Additional responsibilities of Assistant Secretary of
Commerce for Industry and Analysis
Section 2 establishes additional responsibilities for the
Assistant Secretary of Industry and Analysis within the
Department of Commerce, including but not limited to: promoting
the leadership of the U.S. with respect to emerging
technologies, critical industries, and critical supply chains;
encouraging the growth and competitiveness of U.S. productive
capacities and manufacturing in the U.S. of emerging
technologies; monitoring the resilience, diversity, security,
and strength of critical supply chains and critical industries,
including those for emerging technologies; supporting the
availability of critical goods and manufacturing operations in
the U.S.; assisting the Federal Government in preparing for and
responding to supply chain shocks; reduce reliance on foreign
adversaries for critical goods; supporting and promoting the
health of the U.S. economy and job creation; and encouraging
manufacturing growth and opportunities in rural and underserved
communities. Section 2 also requires the Assistant Secretary to
establish certain analytic capabilities and permits the
Assistant Secretary to utilize external organizations for
technical support.
Section 3. Critical supply chain resiliency and crisis response program
Section 3 requires that, not later than 180 days after the
date of enactment of this Act, the Assistant Secretary
establish a critical supply chain resiliency and crisis
response program, which sunsets after 7 years, to carry out
certain activities to support and promote critical supply
chains, emerging technologies, and critical industries; to
develop ways to strengthen supply chains and critical
industries, including for emerging technologies; and to develop
response plans in the event of future supply chain shocks.
Section 3 requires the Assistant Secretary to coordinate
with private sector partners and nongovernmental
representatives and to cooperate with international partners to
carry out certain responsibilities related to strengthening and
securing supply chains and critical industries, including those
for emerging technologies, and promoting emerging technologies.
Section 3 also requires the program to examine how emerging
technologies, like AI or blockchain may be beneficial in
securing and strengthening supply chains.
Section 3 also requires the Assistant Secretary, in
consultation with the heads of relevant agencies,
nongovernmental representatives, private sector, institutions
of higher education, and State and local governments to submit
a report to Congress that: identifies critical supply chains,
critical goods, services, and critical industries that are
critical to supply chain resilience and U.S. crisis
preparedness; assesses how to secure critical supply chains and
critical industries, including those for emerging technologies,
and how to promote and support emerging technologies; describes
certain matters that the Assistant Secretary must do while
conducting the program; assesses and describes the demand and
supply, production, and productive capacity of critical goods,
production equipment, manufacturing technology and the effect
of supply chain shocks on rural, Tribal, and underserved
communities; identifies threats and supply chain shocks,
including shocks or threats that may originate from a foreign
adversary; assesses the resilience and capacity of the
manufacturing base, single points of failure in critical supply
chains, the effect innovation has on U.S. manufacturers;
develops a strategy for the Department of Commerce to support
the resilience, diversity, security, and strength of critical
supply chains and emerging technologies; among other matters.
Section 3 requires the Assistant Secretary to enter into
agreements with the heads of other relevant agencies to obtain
information that is necessary to conduct the activities of the
program. Section 3 also makes clear that nothing in the section
may be construed to require any private entity to share
information with the Secretary of Commerce or Assistant
Secretary; to request assistance from the Secretary of Commerce
or Assistant Secretary, or to implement any measure or
recommendation suggested by the Secretary of Commerce or
Assistant Secretary in response to a request by the private
entity.
Section 3 ensures that any critical supply chain
information that is voluntarily submitted with an accompanied
express statement under this section is exempt from disclosure
under the Freedom of Information Act; is not subject to any
agency rules or judicial doctrine regarding ex parte
communications with a decision making official; may not,
without the written consent of the person or entity submitting
such information, be used directly by the Department of
Commerce, any other Federal, State, or local authority, or any
third party, in any civil action arising under Federal or State
law if such information is submitted in good faith; may not,
without the written consent of the person or entity submitting
such information, be used or disclosed by any officer or
employee of the U.S. for purposes other than the purpose of
this section, with certain limited exceptions; if provided to a
State or local government, may not be made available pursuant
to State or local law requiring disclosure of information or
records, be used for purposes other than carrying out this
section or in furtherance of an investigation or the
prosecution of a criminal act, or otherwise disclosed by a
State or local government or government agency without the
written consent of the person or entity submitting the
information; and does not constitute a waiver of any applicable
privilege or protection provided under law, such as trade
secret protection. This provision may not be construed to limit
or otherwise affect the ability of persons, under applicable
law, to independently obtain critical supply chain information.
Section 3 also clarifies that the protections for voluntarily
provided critical supply chain information are inapplicable to
the submission of critical supply chain information in an
application for financial assistance under PL 116-283.
Section 4. Supply chain innovation and best practices
Section 4 requires the Assistant Secretary, in consultation
with private sector stakeholders and other heads of Federal
Agencies, to facilitate and support the development and
dissemination of guidelines, best practices, management
strategies, methodologies, procedures, and processes for
domestic manufacturers, domestic enterprises, and other
entities manufacturing, procuring, or using a critical good to
promote supply chain resilience and reduce the risks of strain,
compromise, and disruption of critical supply chains. Section 4
clarifies that no private entity is required to share
information, request assistance, implement any measure or
recommendation, or adopt the guidelines, best practices,
management strategies, methodologies, procedures, and
processes.
Section 5. Department of Commerce capability assessment
Section 5 requires the Secretary of Commerce to submit a
report to Congress identifying the duties, responsibilities,
resources, programs, and expertise at the Department of
Commerce relevant to critical supply chain resilience and
manufacturing innovation. The Secretary must also identify the
legal authorities, purpose, effectiveness, efficiency, and
limitations of offices and bureaus of the Department of
Commerce critical to supply chain resilience and manufacturing
innovation. Section 5 also requires the report to include
recommendations to enhance the activities related to critical
supply chain resilience and manufacturing innovation of the
Department of Commerce.
Section 6. Definitions
Section 6 defines terms used throughout the legislation.
CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED
This legislation does not amend any existing Federal
statute.
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