Use of authorities under Defense Production Act of 1950

(a) Covered agency head defined In this section, the term covered agency head means the head of an agency to whom the President delegated, under section 201(a) of Executive Order 13603 (77 Fed. Reg. 16651; relating to national defense resources preparedness), authorities under section 101 of the Defense Production Act of 1950 (50 U.S.C. 4511). (b) Mandatory utilization During the period the emergency declared under section 3 is in effect, the President shall use the authorities provided under title III of the Defense Production Act of 1950 (50 U.S.C. 4531 et seq.) to expand productive capacity with respect to and supply of basic household necessities. (c) Requirements (1) Strategic plan Not later than 15 days after the date of enactment of this Act, the President, acting through each covered agency head, shall develop a strategic plan for the expenditure of funds from the Defense Production Act Fund (50 U.S.C. 4534) to increase the domestic supply of basic household necessities. (2) Economic impact analysis Each covered agency head shall conduct a continuous assessment of the domestic industrial base within the purview of the covered agency head to identify supply chain bottlenecks that contribute to price volatility for basic household necessities. (3) Evidentiary requirement for project execution The President may not execute a contract, loan, or purchase commitment under this section unless a relevant covered agency head submits a written certification to the President that the proposed activity supported by the contract, loan, or purchase commitment— (A) is directly supported by empirical economic data; and (B) can be reasonably proven to result in a reduction of the retail or wholesale cost of a specific basic household necessity within 180 days of the commencement of the activity. (4) Authorized actions In carrying out subsection (a), the President may carry out the following actions: (A) Loan guarantees and loans Issue guarantees and make loans under sections 301 and 302 of the Defense Production Act of 1950 (50 U.S.C. 4531, 4532) to small- and medium-sized businesses to modernize facilities for the production of basic household necessities. (B) Purchase commitments Execute purchase commitments under section 303 of the Defense Production Act of 1950 (50 U.S.C. 4533) to make available basic household necessities at a consistent price to individuals in the United States for the duration of the agreement. (C) Production cost offset Provide for subsidy payments under section 303(c) of the Defense Production Act of 1950 (50 U.S.C. 4533(c)) to offset the costs of domestically produced raw materials essential to the production of basic household necessities. (d) Exemption from national defense requirement Under subsections (b) and (c), the President shall exercise the authorities provided under title III of the Defense Production Act of 1950 (50 U.S.C. 4531 et seq.) without regard to any requirement of that Act that the exercise of such authorities be for the national defense.