What This Bill Does
This bill establishes a new office within the Department of Commerce called the Supply Chain Resiliency and Crisis Response Office. The office will work to strengthen U.S. national security and economic security by helping manufacturers and businesses create stronger, more reliable supply chains. It will develop voluntary standards and best practices that companies can use to test and improve their supply chains.
Who It Affects
Domestic manufacturers (businesses that conduct manufacturing research, development, engineering or production in the United States), domestic enterprises (U.S. businesses that purchase critical goods or services), federal agencies, state and local governments, tribal governments, labor organizations, private sector businesses, and international partners and allied nations.
Key Provisions
The bill establishes the Supply Chain Resiliency and Crisis Response Office headed by an Under Secretary appointed by the President with Senate approval for a term of no more than 5 years. (Sec. 2(c)(1))
The office will develop and support voluntary standards, guidelines, best practices and procedures to help companies measure and improve the resilience, diversity, security and strength of their supply chains. (Sec. 2(d))
The Under Secretary must coordinate closely with private sector companies, manufacturing extension centers, Manufacturing USA institutes and other stakeholders to incorporate industry expertise into these standards. (Sec. 2(e)(1))
The Under Secretary must identify flexible, performance-based approaches that companies can voluntarily adopt to identify, assess and manage supply chain risks. (Sec. 2(e)(3))
Funding of $500,000,000 is authorized for fiscal years 2024 through 2028, with no more than 2 percent per year allowed for administrative costs. (Sec. 2(f))
What Changes
If this becomes law, a new office will be created in the Department of Commerce with dedicated staff and budget to work with manufacturers and businesses on supply chain resilience. Companies will have access to voluntary standards and best practices developed specifically to help them measure and strengthen their supply chains. The federal government will coordinate more closely with private industry, state governments and allied nations on supply chain issues.
Important Definitions
Critical good or service: Raw, processed or manufactured materials (including minerals, metals or advanced materials), articles, supplies or products whose absence would significantly affect U.S. national security, economic security or critical infrastructure. (Sec. 2(g)(1))
Domestic manufacturer: A business that conducts research, development, engineering or production activities for manufacturing in the United States, or will do so if it receives federal financial assistance. (Sec. 2(g)(3))
Domestic enterprise: A business that operates in the United States and purchases critical goods or services. (Sec. 2(g)(2))
Supply chain: A supply chain for a critical good or service. (Sec. 2(g)(7))
I
118TH CONGRESS
1ST SESSION
H. R. 826
To establish a National Resilience Center of Excellence in the Department
of Commerce, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 2, 2023
Ms. WILD (for herself, Ms. BLUNT ROCHESTER, Mrs. DINGELL, and Ms.
KELLY of Illinois) introduced the following bill; which was referred to the
Committee on Energy and Commerce
A BILL
To establish a National Resilience Center of Excellence in
the Department of Commerce, and for other purposes.
Be it enacted by the Senate and House of Representa-
1
tives of the United States of America in Congress assembled,
2
SECTION 1. SHORT TITLE.
3
This Act may be cited as the ‘‘Supply Chain Security
4
and Resilience Act’’.
5
SEC. 2. NATIONAL RESILIENCE CENTER OF EXCELLENCE.
6
(a) ESTABLISHMENT.—There is established in the
7
Office of the Secretary of Commerce a Supply Chain Resil-
8
iency and Crisis Response Office to carry out the activities
9
described in subsection (d).
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•HR 826 IH
(b) MISSION.—The mission of the Office shall be the
1
following:
2
(1) Help to promote the leadership of the
3
United States with respect to critical industries and
4
supply chains that—
5
(A) strengthen the national security of the
6
United States; and
7
(B) have a significant effect on the eco-
8
nomic security of the United States.
9
(2) Encourage partnerships and collaboration
10
with the Federal Government and the private sector,
11
labor organizations, the governments of countries
12
that are allies or key international partners of the
13
United States, State governments and political sub-
14
divisions of a State, and Tribal governments in order
15
to—
16
(A) promote the resilience of supply
17
chains; and
18
(B) respond to supply chain shocks to—
19
(i) critical industries; and
20
(ii) supply chains.
21
(3) Monitor the resilience, diversity, security,
22
and strength of supply chains and critical industries,
23
including by—
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•HR 826 IH
(A) monitoring the financial and oper-
1
ational conditions of domestic manufacturers
2
and domestic enterprises;
3
(B) performing stress tests for critical in-
4
dustries, supply chains, domestic enterprises,
5
and domestic manufacturers; and
6
(C) monitoring the demand and supply of
7
critical goods and services, industrial equip-
8
ment, and manufacturing technology.
9
(4) Support the development, maintenance, im-
10
provement, competitiveness, restoration, and expan-
11
sion of the productive capacities, efficiency, and
12
workforce of critical industries and domestic manu-
13
facturers of critical goods and services, industrial
14
equipment, and manufacturing technology.
15
(5) Prepare for and take appropriate steps to
16
minimize the effects of supply chain shocks on crit-
17
ical industries and supply chains.
18
(6) Support the creation of jobs with competi-
19
tive wages in the manufacturing sector.
20
(7) Encourage manufacturing growth and op-
21
portunities in economically distressed areas and
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communities of color.
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•HR 826 IH
(8) Promote the health of the economy of the
1
United States and the competitiveness of manufac-
2
turing in the United States.
3
(9) Coordinate executive branch actions nec-
4
essary to carry out the functions described in para-
5
graphs (1) through (8).
6
(c) UNDER SECRETARY OF THE OFFICE.—
7
(1) APPOINTMENT
AND
TERM.—The head of
8
the Office shall be the Under Secretary of the Office
9
of Supply Chain Resiliency and Crisis Response, ap-
10
pointed by the President, by and with the advice and
11
consent of the Senate, for a term of not more than
12
5 years.
13
(2) PAY.—The Under Secretary shall be com-
14
pensated at the rate in effect for level II of the Ex-
15
ecutive Schedule under section 5313 of title 5,
16
United States Code.
17
(3)
ADMINISTRATIVE
AUTHORITIES.—The
18
Under Secretary may appoint officers and employees
19
in accordance with chapter 51 and subchapter III of
20
chapter 53 of title 5, United States Code.
21
(d) IN GENERAL.—The Under Secretary, in consulta-
22
tion with the Director of the National Institute of Stand-
23
ards and Technology, shall, on an ongoing basis, facilitate
24
and support the development of a voluntary set of stand-
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•HR 826 IH
ards, guidelines, best practices, management strategies,
1
methodologies, procedures, and processes for domestic
2
manufacturers and entities manufacturing, purchasing, or
3
using a critical good or service to—
4
(1) measure the resilience, diversity, security,
5
and strength of supply chains;
6
(2) evaluate the value of the resilience, diver-
7
sity, security, and strength of supply chains; and
8
(3) design organizational processes and incen-
9
tives to reduce the risks of disruption, strain, com-
10
promise, or elimination of a supply chain.
11
(e) REQUIREMENTS.—In carrying out subsection (d),
12
the Under Secretary shall do the following:
13
(1) Coordinate closely and regularly with rel-
14
evant private sector personnel and entities, manufac-
15
turing extension centers established as part of the
16
Hollings
Manufacturing
Extension
Partnership,
17
Manufacturing USA institutes as described in sec-
18
tion 34(d) of the National Institute of Standards
19
and Technology Act (15 U.S.C. 278s(d)), and other
20
relevant stakeholders and incorporate industry ex-
21
pertise.
22
(2) Consult with the head of any relevant Fed-
23
eral agency, including those with jurisdiction over
24
supply chains, State and local governments, Tribal
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•HR 826 IH
governments, the governments of other nations, and
1
international organizations, as necessary.
2
(3) Identify a prioritized, flexible, repeatable,
3
performance-based, and cost-effective approach that
4
may be voluntarily adopted by domestic manufactur-
5
ers and entities purchasing or using a critical good
6
or service to help them—
7
(A) identify, assess, and manage risks to
8
supply chains; and
9
(B) value the resilience, diversity, security,
10
and strength of their supply chain.
11
(4) Design voluntary processes for selecting
12
suppliers that support the resilience, diversity, secu-
13
rity, and strength of supply chains.
14
(5) Include methodologies to identify and miti-
15
gate the effects of a disruption, strain, compromise,
16
or elimination of a supply chain.
17
(6) Disseminate research and information to as-
18
sist domestic manufacturers redesign products, ex-
19
pand manufacturing capacity, and improve capabili-
20
ties to meet domestic needs for critical goods and
21
services and supply chains.
22
(7) Incorporate relevant voluntary standards
23
and industry best practices.
24
(8) Consider small business concerns.
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•HR 826 IH
(9) Any other elements the Under Secretary de-
1
termines to be necessary.
2
(f) AUTHORIZATION OF APPROPRIATIONS.—There is
3
authorized to be appropriated to the Office $500,000,000
4
for fiscal years 2024 through 2028, to remain available
5
until expended, for the Under Secretary to carry out this
6
section, of which not more than 2 percent per fiscal year
7
may be used for administrative costs.
8
(g) DEFINITIONS.—In this section:
9
(1) CRITICAL
GOOD
OR
SERVICE.—The term
10
‘‘critical good or service’’ means any raw, in process,
11
or manufactured material (including any mineral,
12
metal, or advanced processed material), article, com-
13
modity, supply, product, or item of supply the ab-
14
sence of which would have a significant effect on—
15
(A) the national security or economic secu-
16
rity of the United States; and
17
(B) critical infrastructure.
18
(2) DOMESTIC
ENTERPRISE.—The term ‘‘do-
19
mestic enterprise’’ means an enterprise that con-
20
ducts business in the United States and procures a
21
critical good or service.
22
(3) DOMESTIC
MANUFACTURER.—The term
23
‘‘domestic manufacturer’’ means a business that—
24
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•HR 826 IH
(A) conducts in the United States the re-
1
search and development, engineering, or pro-
2
duction activities necessary or incidental to
3
manufacturing; or
4
(B) if provided financial assistance by the
5
Federal Government, will conduct in the United
6
States the research and development, engineer-
7
ing, or production activities necessary or inci-
8
dental to manufacturing.
9
(4) FEDERAL
AGENCY.—The term ‘‘Federal
10
agency’’ has the meaning given the term ‘‘agency’’
11
in section 551 of title 5, United States Code.
12
(5) OFFICE.—The term ‘‘Office’’ means the
13
Supply Chain Resiliency and Crisis Response Office
14
established under subsection (a).
15
(6) SMALL
BUSINESS
CONCERN.—The term
16
‘‘small business concern’’ has the meaning given
17
that term in section 3(a) of the Small Business Act
18
(15 U.S.C. 632(a)).
19
(7) SUPPLY CHAIN.—The term ‘‘supply chain’’
20
means a supply chain for a critical good or service.
21
(8) UNDER
SECRETARY.—The term ‘‘Under
22
Secretary’’ means the Under Secretary of the Office
23
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•HR 826 IH
of Supply Chain Resiliency and Crisis Response ap-
1
pointed pursuant to subsection (c).
2
Æ
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