What This Bill Does
This bill creates a new Supply Chain Resiliency and Crisis Response Office within the Department of Commerce. The office will award grants, loans, and loan guarantees to help strengthen American manufacturing and protect critical supply chains that affect national security and economic strength.
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Who It Affects
Domestic manufacturers and businesses that make or buy critical goods and services; state and local governments; Tribal governments; colleges and universities; nonprofit organizations; manufacturing extension centers; and the Department of Commerce.
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Key Provisions
- The bill establishes an Under Secretary position to lead the new office, appointed by the President and confirmed by the Senate for up to 5 years (Sec. 2(c)).
- The office can provide grants, loans, and loan guarantees to eligible entities for activities like building manufacturing facilities, purchasing equipment, developing new technologies, or creating backup sources for critical goods (Sec. 2(d) and (e)).
- The federal government can pay up to 80 percent of grant costs, though this requirement can be waived during national emergencies or if a supply chain disruption would severely harm national security (Sec. 2(i)).
- Loans cannot exceed 80 percent of reasonably expected activity costs, with similar emergency waivers available (Sec. 2(j)).
- Companies with 100 or more employees must certify they will not cancel union contracts and will remain neutral during union organizing efforts while receiving funding (Sec. 2(u)).
- The bill creates a fund with $41 billion available from fiscal years 2024 through 2028, with up to $31 billion for loans and guarantees, $10 billion for grants, and 2 percent yearly for administrative costs (Sec. 2(s)).
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What Changes
If enacted, a new federal office dedicated to supply chain resilience will begin operations. The federal government will have new authority to directly fund manufacturing projects and businesses that strengthen critical supply chains. Companies applying for this funding must make workforce protection commitments. An Inspector General audit will occur within 4 years and every 4 years thereafter to evaluate program effectiveness (Sec. 2(q)).
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Important Definitions
The bill explicitly defines:
- **Critical goods or services**: Raw materials, manufactured items, or supplies whose absence would significantly harm national security, economic security, or critical infrastructure
- **Critical industry**: Industries important to national or economic security
- **Domestic manufacturer**: A business conducting research, development, engineering, or production in the United States
- **Key technology focus areas**: Nine categories including artificial intelligence, semiconductors, quantum technology, robotics, advanced materials, biotechnology, cybersecurity, and advanced energy technologies
- **Manufacturing facility**: Any building or property needed for manufacturing critical goods
- **Supply chain**: A supply chain for a critical good or service
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I
118TH CONGRESS
1ST SESSION
H. R. 762
To establish the Supply Chain Resiliency and Crisis Response Office in
the Department of Commerce, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 2, 2023
Ms. BLUNT ROCHESTER (for herself, Mrs. DINGELL, Ms. KELLY of Illinois,
and Ms. WILD) introduced the following bill; which was referred to the
Committee on Energy and Commerce
A BILL
To establish the Supply Chain Resiliency and Crisis Response
Office 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 ‘‘Building Resilient Sup-
4
ply Chains Act’’.
5
SEC. 2. CRITICAL SUPPLY CHAIN RESILIENCE PROGRAM.
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 Critical
9
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•HR 762 IH
Supply Chain Resilience Program described in subsection
1
(d).
2
(b) MISSION.—The mission of the Office shall be the
3
following:
4
(1) Help to promote the leadership of the
5
United States with respect to critical industries and
6
supply chains that—
7
(A) strengthen the national security of the
8
United States; and
9
(B) have a significant effect on the eco-
10
nomic security of the United States.
11
(2) Encourage partnerships and collaboration
12
with the Federal Government and the private sector,
13
labor organizations, the governments of countries
14
that are allies or key international partners of the
15
United States, State governments and other political
16
subdivisions of a State, and Tribal governments in
17
order to—
18
(A) promote the resilience of supply
19
chains; and
20
(B) respond to supply chain shocks to—
21
(i) critical industries; and
22
(ii) supply chains.
23
(3) Support the development, maintenance, im-
24
provement, competitiveness, restoration, and expan-
25
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•HR 762 IH
sion of the productive capacities, efficiency, and
1
workforce of critical industries and domestic manu-
2
facturers of critical goods and services, industrial
3
equipment, and manufacturing technology.
4
(4) Prepare for and take appropriate steps to
5
minimize the effects of supply chain shocks on crit-
6
ical industries and supply chains.
7
(5) Support the creation of jobs with competi-
8
tive wages in the manufacturing sector.
9
(6) Encourage manufacturing growth and op-
10
portunities in economically distressed areas and
11
communities of color.
12
(7) Promote the health of the economy of the
13
United States and the competitiveness of manufac-
14
turing in the United States.
15
(8) Coordinate executive branch actions nec-
16
essary to carry out the functions described in para-
17
graphs (1) through (7).
18
(c) UNDER SECRETARY OF THE OFFICE.—
19
(1) APPOINTMENT
AND
TERM.—The head of
20
the Office shall be the Under Secretary of the Office
21
of Supply Chain Resiliency and Crisis Response, ap-
22
pointed by the President, by and with the advice and
23
consent of the Senate, for a term of not more than
24
5 years.
25
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•HR 762 IH
(2) PAY.—The Under Secretary shall be com-
1
pensated at the rate in effect for level II of the Ex-
2
ecutive Schedule under section 5313 of title 5,
3
United States Code.
4
(3)
ADMINISTRATIVE
AUTHORITIES.—The
5
Under Secretary may appoint officers and employees
6
in accordance with chapter 51 and subchapter III of
7
chapter 53 of title 5, United States Code.
8
(d) CRITICAL SUPPLY CHAIN RESILIENCE PRO-
9
GRAM.—
10
(1) IN GENERAL.—The Under Secretary shall
11
support the resilience, diversity, security, and
12
strength of supply chains by providing grants, loans,
13
and loan guarantees for eligible activities described
14
under subsection (e) to eligible entities described
15
under subsection (f).
16
(2) APPLICATION.—To be eligible for a grant,
17
loan, or loan guarantee under this section, an eligi-
18
ble entity described in subsection (f) shall submit to
19
the Under Secretary an application at such time, in
20
such form, and containing such information as the
21
Under Secretary may require, including—
22
(A) a description of the proposed activity
23
to be carried out with such a grant, loan, or
24
loan guarantee;
25
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•HR 762 IH
(B) a description of the supply chain sup-
1
ported by the proposed activity; and
2
(C) an estimate of the total costs for such
3
activity.
4
(e) ELIGIBLE ACTIVITIES.—The following activities
5
may be carried out with amounts made available under
6
this section:
7
(1) The development, diversification, preserva-
8
tion, improvement, support, restoration, or expan-
9
sion of supply chains and the domestic manufac-
10
turing of critical goods and services, industrial
11
equipment, and manufacturing technology, including
12
activities that support any of the following:
13
(A) The domestic manufacturing of a crit-
14
ical good or service or industrial equipment.
15
(B) The commercialization, adoption, de-
16
ployment, or use of manufacturing technology
17
by domestic manufacturers.
18
(C) The design, engineering, construction,
19
expansion, improvement, repair, or maintenance
20
of critical infrastructure or a manufacturing fa-
21
cility in the United States.
22
(D) The purchase, lease, enhancement, or
23
retooling of industrial equipment for use in the
24
United States.
25
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•HR 762 IH
(E) The purchase, lease, or acquisition of
1
critical goods and services, industrial equip-
2
ment, or manufacturing technology from reli-
3
able sources.
4
(2) The manufacture or acquisition of a sub-
5
stitute for a critical good or service, industrial equip-
6
ment, or manufacturing technology.
7
(3) The establishment, improvement, develop-
8
ment, expansion, or preservation of surge capacity or
9
stockpiling of a critical good or service or industrial
10
equipment, as appropriate and necessary.
11
(4) The establishment, improvement, or preser-
12
vation of diverse, secure, reliable, and strong sources
13
and locations of a critical good or service in the
14
United States.
15
(f) ELIGIBLE ENTITIES.—The following entities are
16
eligible to receive grants, loans, and loan guarantees under
17
this section:
18
(1) A domestic manufacturer.
19
(2) A domestic enterprise.
20
(3) A State, county, city, or other political sub-
21
division of a State.
22
(4) A Tribal government.
23
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•HR 762 IH
(5) A manufacturing extension center estab-
1
lished as part of the Hollings Manufacturing Exten-
2
sion Partnership.
3
(6) A Manufacturing USA institute as de-
4
scribed in section 34(d) of the National Institute of
5
Standards and Technology Act (15 U.S.C. 278s(d)).
6
(7) An institution of higher education acting as
7
part of a consortium, partnership, or joint venture
8
with another eligible entity described in paragraphs
9
(1) through (6).
10
(8) A public or private nonprofit organization
11
or association acting as part of a consortium, part-
12
nership, or joint venture with another eligible entity
13
described in paragraphs (1) through (6).
14
(9) A consortium, partnership, or joint venture
15
of two or more eligible entities described under para-
16
graphs (1) through (8).
17
(g) REQUIREMENTS.—The Under Secretary may only
18
make a grant, loan, or loan guarantee available to an eligi-
19
ble entity if the Under Secretary makes a determination
20
of the following:
21
(1) The grant, loan, or loan guarantee is for an
22
activity described under subsection (e).
23
(2) Without a grant, loan, or loan guarantee
24
the eligible entity would not be able to fund or fi-
25
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•HR 762 IH
nance the activity under reasonable terms and condi-
1
tions.
2
(3) A grant, loan, or loan guarantee is a cost
3
effective, expedient, and practical financial assist-
4
ance for the activity.
5
(4) There is a reasonable assurance that—
6
(A) the eligible entity will implement the
7
activity in accordance with the application sub-
8
mitted pursuant to paragraph (2) of subsection
9
(d); and
10
(B) the activity will support—
11
(i) the resilience, diversity, security, or
12
strength of a supply chain; or
13
(ii) the national security or economic
14
security of the United States.
15
(5) The eligible entity agrees to provide the in-
16
formation required under paragraph (3) of sub-
17
section (m).
18
(h) CRITERIA.—The Under Secretary shall establish
19
criteria for the awarding of grants, loans, and loan guar-
20
antees that meet the requirements under subsection (g),
21
including the following:
22
(1) The extent to which the activity supports
23
the resilience, diversity, security, and strength of
24
supply chains.
25
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•HR 762 IH
(2) The extent to which the activity is funded
1
or financed by non-Federal sources.
2
(3) The extent to which the grant, loan, or loan
3
guarantee will assist small and medium-sized domes-
4
tic manufacturers.
5
(4) The amount of appropriations that are re-
6
quired to fund or finance the grant, loan, or loan
7
guarantee made available under this section.
8
(i) GRANT COST SHARE.—
9
(1) IN GENERAL.—The Federal share of the
10
cost of a grant awarded to an eligible entity under
11
this section may not exceed 80 percent of the total
12
cost of the activity.
13
(2) WAIVER.—Upon providing written justifica-
14
tion for a determination made pursuant to this para-
15
graph, which may be submitted with a classified
16
annex to the Committee on Energy and Commerce
17
of the House of Representatives and the Committee
18
on Commerce, Science, and Transportation of the
19
Senate, the Under Secretary may waive the cost
20
share requirement under paragraph (1)—
21
(A) during a period of national emergency
22
declared by an Act of Congress or the Presi-
23
dent; or
24
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•HR 762 IH
(B) upon making a determination that a
1
grant is necessary to avert the disruption,
2
strain, compromise, or elimination of a supply
3
chain that would severely affect the national se-
4
curity or economic security of the United
5
States.
6
(3) MAXIMUM FEDERAL INVOLVEMENT.—Fed-
7
eral assistance other than a grant under this section
8
may be used to satisfy the non-Federal share of the
9
cost of the activity.
10
(j) LOANS AND LOAN GUARANTEES.—
11
(1) IN GENERAL.—The Under Secretary may
12
enter into agreements with one or more eligible enti-
13
ties to make a loan, the proceeds of which shall be
14
used to finance eligible activities.
15
(2) MAXIMUM AMOUNT.—The amount of a loan
16
under this section shall not exceed 80 percent of the
17
reasonably anticipated costs of an activity.
18
(3) WAIVER.—Upon providing written justifica-
19
tion for a determination made pursuant to this para-
20
graph, which may be submitted with a classified
21
annex to the Committee on Energy and Commerce
22
of the House of Representatives and the Committee
23
on Commerce, Science, and Transportation of the
24
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•HR 762 IH
Senate, the Under Secretary may waive the require-
1
ment under paragraph (2)—
2
(A) during a period of national emergency
3
declared by an Act of Congress or the Presi-
4
dent; or
5
(B) upon making a determination that a
6
loan or loan guarantee is necessary to avert the
7
disruption, strain, compromise, or elimination
8
of a supply chain that would severely affect the
9
economic security of the United States.
10
(4) MAXIMUM
FEDERAL
INVOLVEMENT.—The
11
proceeds of a loan under this section may be used
12
to pay any non-Federal share of activity costs re-
13
quired if the loan is repayable from non-Federal
14
funds.
15
(5) LOAN GUARANTEES.—The Under Secretary
16
may provide a loan guarantee to a lender in lieu of
17
making a loan under this subsection.
18
(6) LOAN GUARANTEE TERMS.—The terms of a
19
loan guarantee provided under this subsection shall
20
be consistent with the terms established in this sub-
21
section for a loan.
22
(k) CREDITWORTHINESS.—
23
(1) IN GENERAL.—For a loan or loan guar-
24
antee issued under subsection (j), the eligible activity
25
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•HR 762 IH
and eligible entity receiving such loan or loan guar-
1
antee shall be creditworthy, which shall be deter-
2
mined by the Under Secretary.
3
(2) CONSIDERATIONS.—In determining the
4
creditworthiness of an eligible activity and eligible
5
entity, the Under Secretary shall take into consider-
6
ation relevant factors, including the following:
7
(A) The terms, conditions, financial struc-
8
ture, and security features of the proposed fi-
9
nancing.
10
(B) The revenue sources that will secure or
11
fund any note, bond, debenture, or other debt
12
obligation issued in connection with the Federal
13
financing.
14
(C) The financial assumptions upon which
15
the loan or loan guarantee is based.
16
(D) The ability of the eligible entity to suc-
17
cessfully achieve the goal of the activity.
18
(E) The financial soundness and credit his-
19
tory of the eligible entity.
20
(l) CONDITIONS.—The Under Secretary is authorized
21
to prescribe—
22
(1) either specifically or by maximum limits or
23
otherwise, rates of interest, guarantee and commit-
24
ment fees, and other charges which may be made in
25
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[Text truncated for display. Full text available on Congress.gov.]