Federal

Supply CHAINS Act

Source: Congress.gov · 9,308 words in original text

What This Bill Does

This bill creates a new Office of Manufacturing Security and Resilience within the Department of Commerce to monitor and strengthen U.S. supply chains for critical goods and industries. The Office will work with private companies, labor groups, allied nations and federal agencies to identify weaknesses in supply chains and reduce reliance on countries that pose security risks. ##

Who It Affects

- The Department of Commerce and its Secretary - Private manufacturers and businesses involved in critical supply chains - Labor organizations and unions - Domestic manufacturers producing critical goods - Federal agencies involved in national security and commerce - State and local governments - Tribal governments - Allied and partner nations' governments - Agricultural and food system producers ##

Key Provisions

- The Secretary of Commerce must establish or designate an Office of Manufacturing Security and Resilience within 180 days of the bill's enactment, led by an Assistant Secretary appointed by the President with Senate approval. (Sec. 2(a)) - The Assistant Secretary must develop a comprehensive strategy within one year to support the resilience, diversity, security and strength of critical supply chains, including plans to mitigate vulnerabilities and reduce reliance on countries of concern. (Sec. 3(a)) - The Assistant Secretary must establish a supply chain monitoring program that maps critical supply chains, identifies gaps and vulnerabilities, and evaluates the capability of domestic manufacturers to produce critical goods. (Sec. 4(a), (b)) - The Assistant Secretary must designate critical industries, supply chains and critical goods within 270 days, with opportunities for public comment, and update these designations at least every four years. (Sec. 4(d)) - Companies that voluntarily share supply chain information with the government can protect that information from public disclosure under Freedom of Information Act rules if marked with an express statement. (Sec. 4(h)) - The Assistant Secretary must work with the National Institute of Standards and Technology to develop voluntary standards and best practices for domestic manufacturers to improve supply chain resilience. (Sec. 6(a)) - The Inspector General of the Department of Commerce must audit the Office every four years starting four years after enactment to evaluate whether requirements are met and recommend improvements. (Sec. 7(a)) - The Assistant Secretary must evaluate the agriculture and food system supply chain within 270 days and report on its stability, workforce needs and opportunities to create training programs. (Sec. 8(a)) - The Secretary must produce a report within one year assessing the Department of Commerce's existing resources, programs and expertise relevant to supply chain resilience and manufacturing innovation. (Sec. 9(a)) ##

What Changes

A new government office will be created to monitor U.S. critical supply chains and work with companies and allied nations to reduce supply chain vulnerabilities. The federal government will develop strategies to reduce American reliance on countries the government identifies as security risks and encourage companies to move manufacturing from those countries to the United States or allied nations. Government agencies will coordinate more closely on supply chain issues. Companies can share sensitive supply chain information with the government with legal protection from public disclosure. ##

Important Definitions

The bill defines these key terms: - **Critical good**: Any raw material, metal, advanced processed material, product or supply whose absence would significantly affect U.S. national security, economic security or critical infrastructure - **Critical industry**: An industry critical for U.S. national security or economic security, considering key technology focus areas and critical infrastructure - **Critical supply chain**: A supply chain for a critical good - **Supply chain shock**: Disruptions including natural disasters, extreme weather, pandemics, biological threats, cyberattacks, great power conflict, terrorist attacks, geopolitical attacks or public health emergencies - **Country of concern**: A country where a concentrated critical supply chain is located and that poses significant national security or economic security threats to the U.S., or whose government has committed crimes against humanity or genocide - **Ally or key international partner nation**: Countries critical to addressing supply chain weaknesses that do not pose significant security risks to the U.S. - **Domestic manufacturer**: A business conducting research, development, engineering or production activities for manufacturing in the United States - **Manufacturing technology**: Technologies necessary for manufacturing critical goods - **Critical supply chain information**: Non-public information about sustaining supply chains during shocks, risk mitigation planning or operational best practices - **Resilient critical supply chain**: A supply chain that ensures U.S. production capacity during disruptions and includes private sector risk management, minimized exposure to shocks and financial capacity to recover ##

Effective Date

Not specified in bill text

I 118TH CONGRESS 1ST SESSION H. R. 763 To establish an Office of Manufacturing Security and Resilience in the De- partment of Commerce, to provide for a Department of Commerce assess- ment and strategy to counter threats to critical supply chains, 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 an Office of Manufacturing Security and Resil- ience in the Department of Commerce, to provide for a Department of Commerce assessment and strategy to counter threats to critical supply chains, 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; TABLE OF CONTENTS. 3 (a) SHORT TITLE.—This Act may be cited as the 4 ‘‘Supply Chain Health And Integrity for the Nation’s Suc- 5 cess Act’’ or the ‘‘Supply CHAINS Act’’. 6 VerDate Sep 11 2014 00:04 Feb 24, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H763.IH H763 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 763 IH (b) TABLE OF CONTENTS.—The table of contents for 1 this Act is as follows: 2 Sec. 1. Short title; table of contents. Sec. 2. Office of Manufacturing Security and Resilience. Sec. 3. Department of Commerce assessment and strategy to counter threats to critical supply chains. Sec. 4. Critical supply chain monitoring program. Sec. 5. Manufacturing security and resilience program. Sec. 6. Critical supply chain innovation and best practices. Sec. 7. Program evaluation by the Inspector General of the Department of Commerce. Sec. 8. Agriculture and food system critical supply chain monitoring and as- sessment. Sec. 9. Department of Commerce capability assessment. Sec. 10. Definitions. SEC. 2. OFFICE OF MANUFACTURING SECURITY AND RESIL- 3 IENCE. 4 (a) ESTABLISHMENT.—Not later than 180 days after 5 the date of the enactment of this Act, the Secretary shall 6 establish or designate an Office of Manufacturing Security 7 and Resilience. 8 (b) MISSION.—The mission of the Office shall be the 9 following: 10 (1) Help to promote the leadership of the 11 United States with respect to critical industries and 12 critical supply chains that— 13 (A) strengthen the national security of the 14 United States; and 15 (B) have a significant effect on the eco- 16 nomic security of the United States. 17 (2) Encourage partnerships and collaboration 18 with the private sector, labor organizations, the gov- 19 VerDate Sep 11 2014 00:04 Feb 24, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H763.IH H763 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 763 IH ernments of countries that are allies or key inter- 1 national partner nations of the United States, States 2 or political subdivisions thereof, and Tribal govern- 3 ments in order to— 4 (A) promote the resilience of critical supply 5 chains; and 6 (B) identify, prepare for, and respond to 7 supply chain shocks to— 8 (i) critical industries; and 9 (ii) critical supply chains. 10 (3) Monitor the resilience, diversity, security, 11 and strength of critical supply chains and critical in- 12 dustries. 13 (4) Support the availability of critical goods 14 from domestic manufacturers, domestic enterprises, 15 and manufacturing operations in the United States 16 and in countries that are allies or key international 17 partner nations. 18 (5) Assist the Federal Government in preparing 19 for and responding to critical supply chain shocks, 20 including by improving the flexible manufacturing 21 capacities and capabilities in the United States. 22 (6) Consistent with United States obligations 23 under international agreements, encourage and 24 incentivize the reduced reliance of domestic entities 25 VerDate Sep 11 2014 00:04 Feb 24, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H763.IH H763 kjohnson on DSK79L0C42PROD with BILLS 4 •HR 763 IH and domestic manufacturers on critical goods from 1 countries of concern. 2 (7) Encourage the relocation of manufacturing 3 facilities that manufacture critical goods from coun- 4 tries of concern to the United States and countries 5 that are allies and key international partner nations 6 to strengthen the resilience, diversity, security, and 7 strength of critical supply chains. 8 (8) Support the creation of jobs with competi- 9 tive wages in the United States manufacturing sec- 10 tor. 11 (9) Encourage manufacturing growth and op- 12 portunities in economically distressed areas and un- 13 derserved communities. 14 (10) Promote the health of the economy of the 15 United States and the competitiveness of manufac- 16 turing in the United States. 17 (c) ASSISTANT SECRETARY OF THE OFFICE.— 18 (1) APPOINTMENT AND TERM.—The head of 19 the Office shall be the Assistant Secretary of Manu- 20 facturing Security and Resilience, appointed by the 21 President, by and with the advice and consent of the 22 Senate. 23 (2) PAY.—The Assistant Secretary shall be 24 compensated at the rate in effect for level IV of the 25 VerDate Sep 11 2014 00:04 Feb 24, 2023 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H763.IH H763 kjohnson on DSK79L0C42PROD with BILLS 5 •HR 763 IH Executive Schedule under section 5315 of title 5, 1 United States Code. 2 (3) ADMINISTRATIVE AUTHORITIES.—The As- 3 sistant Secretary may appoint officers and employ- 4 ees in accordance with chapter 51 and subchapter 5 III of chapter 53 of title 5, United States Code. 6 (4) USE OF EXISTING DEPARTMENT PER- 7 SONNEL AND RESOURCES.—The Assistant Secretary 8 shall, to the extent practicable, utilize existing per- 9 sonnel, resources, and expertise of the Department 10 of Commerce. 11 (d) EXPERTISE AND STAFFING.—In executing the 12 mission under subsection (b), the Assistant Secretary— 13 (1) shall establish capabilities to— 14 (A) assess the state of technology, innova- 15 tion, and production capacity in the United 16 States and other nations; and 17 (B) conduct other activities deemed to be 18 critical for the use of analytic capabilities, sta- 19 tistics, datasets, and metrics related to critical 20 technologies and innovation; 21 (2) may utilize external organizations, such as 22 federally funded research and development centers 23 and institutions of higher education, to provide inde- 24 pendent and objective technical support; and 25 VerDate Sep 11 2014 00:04 Feb 24, 2023 Jkt 039200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H763.IH H763 kjohnson on DSK79L0C42PROD with BILLS 6 •HR 763 IH (3) shall evaluate and implement, when avail- 1 able and as appropriate, recommendations from the 2 Department of Commerce capability assessment pro- 3 duced under section 9. 4 SEC. 3. DEPARTMENT OF COMMERCE ASSESSMENT AND 5 STRATEGY TO COUNTER THREATS TO CRIT- 6 ICAL SUPPLY CHAINS. 7 (a) IN GENERAL.—In accordance with Executive 8 Order No. 14017 (86 Fed. Reg. 11849; relating to Amer- 9 ica’s supply chains), the Assistant Secretary shall, not 10 later than 1 year after the date of the enactment of this 11 Act, develop a strategy for the Department of Commerce 12 to support the resilience, diversity, security, and strength 13 of critical supply chains. 14 (b) STRATEGY.—The strategy required under sub- 15 section (a) shall include a plan to do the following: 16 (1) Support sufficient access to critical goods 17 by mitigating critical supply chain vulnerabilities, in- 18 cluding critical supply chains concentrated in coun- 19 tries of concern. 20 (2) Collaborate with other relevant Federal 21 agencies to assist allies or key international partner 22 nations build capacity for manufacturing critical 23 goods. 24 VerDate Sep 11 2014 00:04 Feb 24, 2023 Jkt 039200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H763.IH H763 kjohnson on DSK79L0C42PROD with BILLS 7 •HR 763 IH (3) Initiate and support translation research in 1 engineering and manufacturing by entering into con- 2 tracts or making other arrangements (including 3 grants, awards, cooperative agreements, loans, and 4 other forms of assistance) to advance that research 5 and to assess the impact of that research on the eco- 6 nomic well-being, climate, environment, public 7 health, and national security of the United States. 8 (4) Recover from supply chain shocks. 9 (5) Identify, in coordination with other relevant 10 Federal agencies, actions relating to critical supply 11 chains with which the United States might— 12 (A) raise living standards; 13 (B) increase employment opportunities; 14 and 15 (C) improve response to supply chain 16 shocks. 17 (6) Protect against supply chain shocks from 18 countries of concern relating to critical supply 19 chains. 20 (7) Provide recommendations to effectuate the 21 strategy under this section, including recommenda- 22 tions to— 23 VerDate Sep 11 2014 00:04 Feb 24, 2023 Jkt 039200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H763.IH H763 kjohnson on DSK79L0C42PROD with BILLS 8 •HR 763 IH (A) increase visibility into the networks 1 and capabilities of suppliers and domestic man- 2 ufacturers; 3 (B) identify industry best practices; 4 (C) evaluate how diverse supplier networks, 5 multi-platform and multi-region production ca- 6 pabilities and sources, and integrated global 7 and regional critical supply chains can— 8 (i) enhance the resilience of critical in- 9 dustries and manufacturing capabilities in 10 the United States; 11 (ii) support and create jobs in the 12 United States; and 13 (iii) support access of the United 14 States to critical goods during a supply 15 chain shock; 16 (D) identify and mitigate risks, includ- 17 ing— 18 (i) the financial and operational risks 19 of a critical supply chain; 20 (ii) significant vulnerabilities to crit- 21 ical supply chain shocks including extreme 22 weather events, cyberattacks, pandemic 23 and biological threats, terrorist and geo- 24 VerDate Sep 11 2014 00:04 Feb 24, 2023 Jkt 039200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H763.IH H763 kjohnson on DSK79L0C42PROD with BILLS 9 •HR 763 IH political attacks, and other emergencies; 1 and 2 (iii) exposure to gaps and 3 vulnerabilities in domestic capacity or ca- 4 pabilities and sources of imports needed to 5 sustain critical industries and critical sup- 6 ply chains; 7 (E) identify enterprise resource planning 8 systems that are— 9 (i) compatible across critical supply 10 chain tiers; and 11 (ii) affordable for small and medium- 12 sized businesses; 13 (F) understand the total cost of ownership, 14 total value contribution, and other best prac- 15 tices that encourage strategic partnerships 16 throughout critical supply chains; 17 (G) identify opportunities to work with al- 18 lies or key international partner nations of the 19 United States to build more resilient critical in- 20 dustry supply chains and mitigate risks; 21 (H) identify opportunities to reuse and re- 22 cycle critical goods, including raw materials, to 23 increase the resilience of critical supply chains; 24 VerDate Sep 11 2014 00:04 Feb 24, 2023 Jkt 039200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H763.IH H763 kjohnson on DSK79L0C42PROD with BILLS 10 •HR 763 IH (I) strengthen the financial and oper- 1 ational health of small and medium-sized busi- 2 nesses in critical supply chains of the United 3 States and countries that are allies or key inter- 4 national partner nations of the United States to 5 mitigate risks and ensure diverse and competi- 6 tive supplier markets that are less vulnerable to 7 failure; 8 (J) coordinate with countries on— 9 (i) sourcing critical goods, industrial 10 equipment, and manufacturing technology; 11 and 12 (ii) developing, sustaining, and ex- 13 panding production and availability of crit- 14 ical goods, industrial equipment, and man- 15 ufacturing technology during a supply 16 chain shock; and 17 (K) identify such other services as the As- 18 sistant Secretary determines necessary. 19 (c) SUBMISSION OF STRATEGY.— 20 (1) IN GENERAL.—Not later than 1 year after 21 the date of enactment of this Act, the Assistant Sec- 22 retary shall submit to the Committee on Energy and 23 Commerce of the House of Representatives and the 24 Committee on Commerce, Science, and Transpor- 25 VerDate Sep 11 2014 00:04 Feb 24, 2023 Jkt 039200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H763.IH H763 kjohnson on DSK79L0C42PROD with BILLS 11 •HR 763 IH tation of the Senate, and publish on the website of 1 the Department of Commerce, a report containing 2 the strategy developed under subsection (a). 3 (2) UPDATE.—Not less than once every 4 years 4 after the date on which the strategy is submitted 5 under paragraph (1), the Assistant Secretary shall 6 submit to Congress and publish on the website of 7 the Department of Commerce an update to such 8 strategy. 9 (3) FORM.—The report submitted under para- 10 graph (1), and any update submitted under para- 11 graph (2), shall be submitted in unclassified form 12 and may include a classified annex. 13 (d) ASSESSMENT.— 14 (1) IN GENERAL.—Not later than 1 year after 15 the date of enactment of this Act, and not later than 16 once every four years thereafter, the Assistant Sec- 17 retary, in coordination with the head of each rel- 18 evant Federal agency and relevant private sector en- 19 tities, labor organizations, States and political sub- 20 divisions thereof, and territorial and Tribal govern- 21 ments, shall submit to the relevant committees of 22 Congress and post on the website of the Assistant 23 Secretary a report on critical supply chain resilience 24 and domestic manufacturing (in this subsection re- 25 VerDate Sep 11 2014 00:04 Feb 24, 2023 Jkt 039200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H763.IH H763 kjohnson on DSK79L0C42PROD with BILLS 12 •HR 763 IH ferred to as the ‘‘report’’) to strengthen, improve, 1 and preserve the resilience, diversity, security, and 2 strength of critical supply chains. 3 (2) CONTENTS OF ASSESSMENT.—The assess- 4 ment shall include the following: 5 (A) An identification of— 6 (i) industries that are critical for the 7 national security of the United States, con- 8 sidering the key technology focus areas 9 and critical infrastructure; 10 (ii) supply chains and critical goods 11 designated under section 4(d); 12 (iii) other goods, supplies, and serv- 13 ices that are critical to the crisis prepared- 14 ness of the United States; 15 (iv) substitutes for critical goods, in- 16 dustrial equipment, and manufacturing 17 technology; and 18 (v) countries that are critical to ad- 19 dressing critical supply chain weaknesses 20 and vulnerabilities. 21 (B) A description of the matters identified 22 and ev [Text truncated for display. Full text available on Congress.gov.]

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