AUKUS Undersea Defense Act

I 118TH CONGRESS 1ST SESSION H. R. 3939 To provide for the transfer of not more than two Virginia class submarines from the inventory of the Navy to the Government of Australia on a sale basis under section 21 of the Arms Export Control Act, and for other purposes. IN THE HOUSE OF REPRESENTATIVES JUNE 9, 2023 Mr. MEEKS (for himself, Mr. BERA, and Mr. COURTNEY) introduced the fol- lowing bill; which was referred to the Committee on Foreign Affairs, and in addition to the Committee on Armed Services, for a period to be subse- quently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To provide for the transfer of not more than two Virginia class submarines from the inventory of the Navy to the Government of Australia on a sale basis under section 21 of the Arms Export Control Act, and for other pur- poses. 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 ‘‘AUKUS Undersea De- 4 fense Act’’. 5 VerDate Sep 11 2014 23:34 Jul 07, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H3939.IH H3939 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 3939 IH SEC. 2. FINDINGS. 1 Congress finds the following: 2 (1) The new trilateral security partnership be- 3 tween Australia, the United Kingdom, and the 4 United States (in this section referred to as the 5 ‘‘AUKUS partnership’’) is intended to positively 6 contribute to peace and stability in the Indo-Pacific 7 region through enhanced deterrence. 8 (2) This trilateral security partnership builds 9 on and enhances the United States, Australia, and 10 the United Kingdom’s commitment to a free and 11 open Indo-Pacific, and more broadly to a rules-based 12 international order. 13 (3) Australia has a strong record of leadership 14 in the international nuclear non-proliferation regime 15 and is fully committed to responsible stewardship of 16 naval nuclear propulsion technology. 17 (4) Pillar 1 of the AUKUS partnership aims to 18 provide Australia with a conventionally armed, nu- 19 clear-powered submarine capability while upholding 20 the highest non-proliferation standards. 21 (5) In support of this Pillar 1 goal, the United 22 States and the United Kingdom plan to increase 23 port visits to Australia of conventionally armed, nu- 24 clear-powered submarines then begin forward rota- 25 VerDate Sep 11 2014 23:34 Jul 07, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H3939.IH H3939 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 3939 IH tions of such submarines to Australia at Submarine 1 Rotational Force-West. 2 (6) In support of these goals, the United States 3 will transfer Virginia-class submarines to Australia 4 to bolster its critical undersea capabilities and en- 5 hance its undersea presence in the Indo-Pacific re- 6 gion. 7 (7) Pillar 1 of the AUKUS partnership will en- 8 hance all three nations’ defense industrial capacity 9 to produce and sustain interoperable nuclear-pow- 10 ered submarines, expand collective undersea pres- 11 ence in the Indo-Pacific, and contribute to freedom 12 of navigation, security, and stability in the Indo-Pa- 13 cific region. 14 (8) Trilateral security cooperation that 15 strengthens joint capabilities, enhances the ability to 16 share information and technology safely, and inte- 17 grates defense industrial bases and supply chains 18 will contribute to the security of each nation as well 19 as peace and stability in the Indo-Pacific region. 20 SEC. 3. AUSTRALIA, UNITED KINGDOM, AND UNITED 21 STATES SUBMARINE SECURITY ACTIVITIES. 22 (a) AUTHORIZATION TO TRANSFER SUBMARINES.— 23 (1) IN GENERAL.—Subject to paragraph (6), 24 the President may transfer not more than two Vir- 25 VerDate Sep 11 2014 23:34 Jul 07, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H3939.IH H3939 kjohnson on DSK79L0C42PROD with BILLS 4 •HR 3939 IH ginia class submarines from the inventory of the 1 Navy to the Government of Australia on a sale basis 2 under section 21 of the Arms Export Control Act 3 (22 U.S.C. 2761). 4 (2) COSTS OF TRANSFER.—Any expense in- 5 curred by the United States in connection with the 6 transfer authorized by this subsection shall be 7 charged to the Government of Australia. 8 (3) WAIVER OF CERTIFICATION REQUIRE- 9 MENT.—The requirement for the Chief of Naval Op- 10 erations to make a certification under section 8678 11 of title 10, United States Code, shall not apply to 12 a transfer under this subsection. 13 (4) USE OF FUNDS.—The Secretary of the 14 Navy may use the proceeds of a transfer under this 15 subsection— 16 (A) for the acquisition of vessels to replace 17 the vessels transferred to the Government of 18 Australia; or 19 (B) to carry out any other authority the 20 use of which the Secretary of the Navy deter- 21 mines would improve the submarine industrial 22 base. 23 (5) CREDITING OF RECEIPTS.—Notwith- 24 standing any provision of law pertaining to the cred- 25 VerDate Sep 11 2014 23:34 Jul 07, 2023 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H3939.IH H3939 kjohnson on DSK79L0C42PROD with BILLS 5 •HR 3939 IH iting of amounts received from a sale under the 1 terms of the Arms Export Control Act (22 U.S.C. 2 2761), any receipt of the United States as a result 3 of a transfer under this section shall— 4 (A) be credited, at the discretion of the 5 Secretary of the Navy to— 6 (i) the appropriation, fund, or account 7 used in incurring the original obligation; 8 (ii) an appropriate appropriation, 9 fund, or account currently available for the 10 purposes for which the expenditures were 11 made; or 12 (iii) any other appropriation, fund, or 13 account available for the purpose specified 14 in paragraph (4)(B); and 15 (B) remain available for obligation until 16 expended for the same purpose as the appro- 17 priation to which the receipt is credited. 18 (6) APPLICABILITY OF EXISTING LAW TO 19 TRANSFER SPECIAL NUCLEAR MATERIAL AND UTILI- 20 ZATION FACILITIES FOR MILITARY APPLICATIONS.— 21 (A) IN GENERAL.—With respect to any 22 special nuclear material for use in utilization fa- 23 cilities or any portion of a vessel transferred 24 under this subsection constituting utilization fa- 25 VerDate Sep 11 2014 23:34 Jul 07, 2023 Jkt 039200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H3939.IH H3939 kjohnson on DSK79L0C42PROD with BILLS 6 •HR 3939 IH cilities for military applications under section 1 91 of the Atomic Energy Act of 1954 (42 2 U.S.C. 2121), transfer of such material or such 3 facilities shall only occur in accordance with 4 such section 91. 5 (B) USE OF FUNDS.—The Secretary of 6 Energy may use proceeds from a transfer de- 7 scribed in subparagraph (A) for the acquisition 8 of submarine naval nuclear propulsion plants 9 and the nuclear fuel to replace the propulsion 10 plants and fuel transferred to the Government 11 of Australia. 12 (b) REPAIR AND REFURBISHMENT OF AUKUS SUB- 13 MARINES.—Section 8680 of title 10, United States Code, 14 is amended— 15 (1) by redesignating subsection (c) as sub- 16 section (d); and 17 (2) by inserting after subsection (b) the fol- 18 lowing: 19 ‘‘(c) REPAIR AND REFURBISHMENT OF CERTAIN 20 SUBMARINES.—(1) Notwithstanding any other provision 21 of this section, the Secretary of the Navy shall determine 22 the appropriate shipyard in the United States, Australia, 23 or the United Kingdom to perform any repair or refurbish- 24 ment of a United States submarine involved in submarine 25 VerDate Sep 11 2014 23:34 Jul 07, 2023 Jkt 039200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H3939.IH H3939 kjohnson on DSK79L0C42PROD with BILLS 7 •HR 3939 IH security activities between Australia, the United Kingdom, 1 and the United States (in this section referred to as 2 ‘AUKUS’). 3 ‘‘(2) Repair or refurbishment described in paragraph 4 (1) may be carried out by personnel of the United States, 5 United Kingdom, or Australia in accordance with the 6 international arrangements governing AUKUS submarine 7 security activities.’’. 8 SEC. 4. ACCEPTANCE OF CONTRIBUTIONS IN SUPPORT OF 9 AUSTRALIA, UNITED KINGDOM, AND UNITED 10 STATES SUBMARINE SECURITY ACTIVITIES. 11 (a) IN GENERAL.—Chapter 155 of title 10, United 12 States Code, is amended by inserting after section 2608 13 the following new section: 14 ‘‘§ 2609. Acceptance of contributions for Australia, 15 United Kingdom, and United States sub- 16 marine security activities; Submarine Se- 17 curity Activities Account 18 ‘‘(a) ACCEPTANCE AUTHORITY.—The Secretary of 19 Defense may accept from the Government of Australia 20 contributions of money made by the Government of Aus- 21 tralia for use by the Department of Defense in support 22 of non-nuclear related aspects of submarine security ac- 23 tivities between Australia, the United Kingdom, and the 24 United States (in this section referred to as ‘AUKUS’). 25 VerDate Sep 11 2014 23:34 Jul 07, 2023 Jkt 039200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H3939.IH H3939 kjohnson on DSK79L0C42PROD with BILLS 8 •HR 3939 IH ‘‘(b) ESTABLISHMENT OF SUBMARINE SECURITY AC- 1 TIVITIES ACCOUNT.—(1) There is established in the 2 Treasury of the United States a special account to be 3 known as the ‘Submarine Security Activities Account’. 4 ‘‘(2) Contributions of money accepted by the Sec- 5 retary of Defense under subsection (a) shall be credited 6 to the Submarine Security Activities Account. 7 ‘‘(c) USE OF THE SUBMARINE SECURITY ACTIVITIES 8 ACCOUNT.—(1) The Secretary of Defense may use funds 9 in the Submarine Security Activities Account— 10 ‘‘(A) for any purpose authorized by law that the 11 Secretary determines would support AUKUS sub- 12 marine security activities; or 13 ‘‘(B) to carry out a military construction 14 project that is consistent with the purposes for 15 which the contributions were made and is not other- 16 wise authorized by law. 17 ‘‘(2) Funds in the Submarine Security Activities Ac- 18 count may be used as described in this subsection without 19 further specific authorization in law. 20 ‘‘(d) TRANSFERS OF FUNDS.—(1) In carrying out 21 subsection (c), the Secretary of Defense may transfer 22 funds available in the Submarine Security Activities Ac- 23 count to appropriations available to the Department of 24 Defense. 25 VerDate Sep 11 2014 23:34 Jul 07, 2023 Jkt 039200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H3939.IH H3939 kjohnson on DSK79L0C42PROD with BILLS 9 •HR 3939 IH ‘‘(2) In carrying out subsection (c), and in accordance 1 with the Atomic Energy Act of 1954 (42 U.S.C. 2011 et 2 seq.), the Secretary of Defense may transfer funds avail- 3 able in the Submarine Security Activities Account to ap- 4 propriations or funds of the Department of Energy avail- 5 able to carry out activities related to AUKUS submarine 6 security activities. 7 ‘‘(3) Funds transferred under this subsection shall be 8 available for obligation for the same time period and for 9 the same purpose as the appropriation to which trans- 10 ferred. 11 ‘‘(4) Upon a determination by the Secretary that all 12 or part of the funds transferred from the Submarine Secu- 13 rity Activities Account are not necessary for the purposes 14 for which such funds were transferred, all or such part 15 of such funds shall be transferred back to the Submarine 16 Security Activities Account. 17 ‘‘(e) INVESTMENT OF MONEY.—(1) Upon request by 18 the Secretary of Defense, the Secretary of the Treasury 19 may invest money in the Submarine Security Activities Ac- 20 count in securities of the United States or in securities 21 guaranteed as to principal and interest by the United 22 States. 23 ‘‘(2) Any interest or other income that accrues from 24 investment in securities referred to in paragraph (1) shall 25 VerDate Sep 11 2014 23:34 Jul 07, 2023 Jkt 039200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H3939.IH H3939 kjohnson on DSK79L0C42PROD with BILLS 10 •HR 3939 IH be deposited to the credit of the Submarine Security Ac- 1 tivities Account. 2 ‘‘(f) REPORT.—(1) Not later than 60 days after the 3 date on which contributions of money accepted by the Sec- 4 retary of Defense under subsection (a) are credited to the 5 Submarine Security Activities Account under subsection 6 (b), the Secretary of Defense shall submit to the appro- 7 priate congressional committees a report on— 8 ‘‘(A) the amount of money so transferred; 9 ‘‘(B) a description of the intended use of the 10 funds; and 11 ‘‘(C) any other matters related to the adminis- 12 tration of the Submarine Security Activities Account 13 as determined necessary by the Secretary. 14 ‘‘(2) The report required by this subsection shall be 15 submitted in unclassified form but may include a classified 16 annex. 17 ‘‘(3) In this subsection, the term ‘appropriate con- 18 gressional committees’ means— 19 ‘‘(A) the congressional defense committees; and 20 ‘‘(B) the Committee on Foreign Affairs of the 21 House of Representatives and the Committee on 22 Foreign Relations of the Senate. 23 VerDate Sep 11 2014 23:34 Jul 07, 2023 Jkt 039200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H3939.IH H3939 kjohnson on DSK79L0C42PROD with BILLS 11 •HR 3939 IH ‘‘(g) RELATIONSHIP TO OTHER LAWS.—The author- 1 ity to accept or transfer funds under this section is in ad- 2 dition to any other authority to accept or transfer funds.’’. 3 (b) CLERICAL AMENDMENT.—The table of sections 4 at the beginning of such chapter is amended by inserting 5 after the item relating to section 2608 the following: 6 ‘‘2609. Acceptance of contributions for Australia, United Kingdom, and United States submarine security activities; Submarine Security Ac- tivities Account.’’. SEC. 5. AUSTRALIA, UNITED KINGDOM, AND UNITED 7 STATES SUBMARINE SECURITY TRAINING. 8 (a) IN GENERAL.—The President may transfer or 9 authorize the export of defense services to the Government 10 of Australia under the Arms Export Control Act (22 11 U.S.C. 2751 et seq.) that may also be directly exported 12 to Australian private-sector personnel to support the de- 13 velopment of the Australian submarine industrial base 14 necessary for submarine security activities between Aus- 15 tralia, the United Kingdom, and the United States (in this 16 section referred to as ‘‘AUKUS’’), including in cases in 17 which such private-sector personnel are not officers, em- 18 ployees, or agents of the Government of Australia. 19 (b) APPLICATION OF REQUIREMENTS FOR FURTHER 20 TRANSFER.—Any transfer of defense services to the Gov- 21 ernment of Australia pursuant to subsection (a) to persons 22 other than those directly provided such defense services 23 pursuant to subsection (a) shall only be made in accord- 2 [Text truncated for display. 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