Financing and acquisition of critical minerals or materials

(a) Authority (1) In general The Reserve may deploy financing and acquisition tools as described in subsection (b) to achieve the purposes of the Reserve, subject to the condition that the Reserve may not deploy such tools to benefit a foreign entity of concern. (2) Considerations In carrying out this section, the Reserve shall consider— (A) the results of the assessments described in section 205(3); (B) the ability of the Reserve to efficiently achieve the purposes of the Reserve with limited resources; (C) diversification across critical minerals and materials; (D) non-Reserve investments and market developments regarding a specific critical mineral or material; (E) with respect to deploying financing and acquisition tools with a specific producer or processor, the management, financial condition, and ability of the producer or processor to fulfill any contractual obligations; and (F) other factors the Reserve determines valuable to achieving the purposes of the Reserve over an extended period of time. (3) Federal Government Investments The Reserve shall, to the maximum extent practicable in carrying out this section, consult, coordinate, and leverage existing Federal Government investments, including by— (A) the Export-Import Bank of the United States; (B) the United States International Development Finance Corporation; (C) the Department of Energy, pursuant to title XVII of the Energy Policy Act of 2005 (42 U.S.C. 16511 et seq.); (D) the Office of Strategic Capital of the Department of Defense; and (E) applicable execution offices of the Department of Defense for contract actions carried out under title III of the Defense Production Act of 1950 (50 U.S.C. 4531 et seq.). (b) Means of support The financing and acquisition tools referred to in subsection (a) include the following: (1) Loans to authorized intermediaries (A) Loan program authorized The Reserve may make loans to authorized intermediaries who may use those funds to enter into financing and purchasing agreements with producers and processors of critical minerals or materials. (B) Loan conditions (i) In general In making loans under subparagraph (A), the Reserve shall establish such terms and conditions as the Reserve determines appropriate to achieve the purposes of the Reserve. (ii) Adjustment of loan terms The Reserve and an authorized intermediary may adjust loan terms under a loan issued under subparagraph (A) if the Reserve and that authorized intermediary agree to the adjustment. (iii) Preferential terms for certain loans In making loans under subparagraph (A), the Reserve— (I) may provide preferential loan terms— (aa) which may include an interest rate equal to the Federal funds rate, to an authorized intermediary that will use the loan to enter into financing and purchasing agreements with producers or processors of critical minerals or materials; and (bb) to authorized intermediaries that will use the loan to enter into financing and purchasing agreements with producers or processors of critical minerals or materials in partner countries, in such manner as the Reserve determines appropriate; and (II) shall— (aa) consult with the heads of Federal departments and agencies described in section 203(5) with respect to the loan terms described in subclause (I)(aa); and (bb) ensure that, under the terms of such loans, authorized intermediaries shall, to the maximum extent practicable, give priority to United States suppliers of critical minerals and materials and preference to the United States supply chain. (C) Proposal solicitation To be eligible to receive a loan under subparagraph (A), an authorized intermediary shall submit to the Reserve an application at such time, in such manner, and containing such information as the Reserve may require, including the proposed financing or purchasing agreements described in that subparagraph. (D) Uncured default (i) In general If an authorized intermediary fails to make a required repayment on a loan under subparagraph (A) for a 90-day period, the Reserve may— (I) recoup the amount of that loan by taking possession of the critical mineral and material inventories of the authorized intermediary and any other contractual rights of the authorized intermediary to receive critical minerals or materials from suppliers; (II) revoke the participation with the Reserve of the authorized intermediary; (III) subject to clause (ii), appoint itself as conservator or receiver of the authorized intermediary; (IV) obtain a lien on the assets of the intermediary pursuant to section 102(c)(5)(J); and (V) adjust the loan terms pursuant to subparagraph (B)(ii). (ii) Authorities under conservator or receivership If the Reserve appoints itself a conservator or receiver of an authorized intermediary under clause (i)(II), the Reserve shall have the same authorities with respect to the authorized intermediary that the Federal Deposit Insurance Corporation has with respect to an institution for which the Federal Deposit Insurance Corporation has appointed itself as conservator or receiver under the Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.). (iii) Treatment of bankruptcy An authorized intermediary for which the Reserve has appointed itself a conservator or a receiver under clause (i)(II) may not be placed into bankruptcy under title 11, United States Code, during that conservatorship or receivership, and any bankruptcy process under title 11, United States Code, that is in effect when the appointment occurs shall be terminated. (2) Acquisitions (A) Acquisition through solicitation and direct contracting with private counterparties. (B) Acquisition through physically cleared financial instruments, such as futures contracts through intermediaries, including financial exchanges. (C) Acquisition through options contracts directly or through intermediaries, including financial exchanges. (3) Non-recourse lending Non-recourse lending to projects secured by a portion of the expected production of the project. (4) Other transactions Other financing and acquisition transactions, including contract for differences, advance or milestone payments, advanced market commitments, and minority, non-controlling equity investment, as determined by the Board as necessary to fulfill the purposes of the Reserve, except that equity investment shall only be used with— (A) a written justification describing how other financing and acquisition tools in this section are not sufficient; and (B) a written explanation of the intended exit strategy for the equity investment. (c) Partner co-Investment (1) In general A partner country may, if approved by the Reserve, make capital contributions of at least $100,000,000 to the Reserve for purposes of financing or acquisition under subsection (b). (2) Minimum amount The Reserve shall annually adjust the amount in paragraph (1) by the percentage increase in the Personal Consumption Expenditures Price Index of the Bureau of Economic Analysis of the Department of Commerce, rounded to the nearest $1,000,000. (3) Treatment of capital contributions The Reserve— (A) shall maintain separate accounts for the capital contributions of each partner country that provides such contributions under paragraph (1); (B) shall not commingle the capital contributions of any partner country with any other partner country or the funds of the Reserve; (C) may return such capital contributions to the partner country at any time, without obligation or penalty, or under such other terms and conditions as agreed to by the Reserve and that partner country; and (D) may not guarantee the repayment of such capital contributions to a partner country. (4) Loans made with partner co-investment funds Financing and acquisitions made under subsection (b) with capital contributions under paragraph (1) shall be made in the same manner as financing and acquisitions made under subsection (b) with funds of the Reserve. (5) Restriction The Reserve may not approve a partner country under paragraph (1) unless the partner country certifies that the capital contributions being made are coming from funds of the partner country and not from funds of a foreign entity of concern or a covered country. (d) International advisory council of partners (1) In general The Reserve may establish an International Advisory Council of Partners comprising— (A) the Vice-chairperson, who shall be the head of the council; and (B) 1 representative from each partner country that makes a capital contribution under subsection (c)(1). (2) Consultation The International Advisory Council of Partners shall, at the request of the Reserve, advise the Reserve on financing and acquisitions made with capital contributions under subsection (c)(1). (3) Applicability of FACA Chapter 10 of title 5, United States Code (commonly known as the Federal Advisory Committee Act), shall not apply to the International Advisory Council of Partners.