50 U.S. Code § 98h–6 - Development of domestic sources

(a) Purchase of materials of domestic origin; processing of materials in domestic facilitiesSubject to subsection (c) and to the extent the President determines such action is required for the national defense, the President shall encourage the development and appropriate conservation of domestic sources for materials determined pursuant to section 98b(a) of this title to be strategic and critical materials—
by purchasing, or making a commitment to purchase, strategic and critical materials of domestic origin when such materials are needed for the stockpile;
by contracting with domestic facilities, or making a commitment to contract with domestic facilities, for the processing or refining of strategic and critical materials in the stockpile when processing or refining is necessary to convert such materials into a form more suitable for storage and subsequent disposition;
by qualifying existing domestic facilities and domestically produced strategic and critical materials to meet the requirements of defense and essential civilian industries in times of national emergency when existing domestic sources of supply are either insufficient or vulnerable to single points of failure; and
by contracting with domestic facilities to recycle strategic and critical materials, thereby increasing domestic supplies when such materials would otherwise be insufficient to support defense and essential civilian industries in times of national emergency.
(b) Terms and conditions of contracts and commitments

A contract or commitment made under subsection (a) may not exceed five years from the date of the contract or commitment. Such purchases and commitments to purchase may be made for such quantities and on such terms and conditions, including advance payments, as the President considers to be necessary.

(c) Proposed transactions included in annual materials plan; availability of funds
Descriptions of proposed transactions under subsection (a) shall be included in the appropriate annual materials plan submitted to Congress under section 98h–2(b) of this title. Changes to any such transaction, or the addition of a transaction not included in such plan, shall be made in the manner provided by section 98d(a)(2) of this title.
The authority of the President to enter into obligations under this section is effective for any fiscal year only to the extent that funds in the National Defense Stockpile Transaction Fund are adequate to meet such obligations. Payments required to be as a result of obligations incurred under this section shall be made from amounts in the fund.
(d) Transportation and incidental expensesThe authority of the President under subsection (a) includes the authority to pay—
the expenses of transporting materials; and
other incidental expenses related to carrying out such subsection.
(e) Reports

The President shall include in the reports required under section 98h–2(a) of this title information with respect to activities conducted under this section.


2016—Subsec. (a)(3), (4). Pub. L. 114–328 added pars. (3) and (4).

2013—Subsec. (a). Pub. L. 113–66 inserted “and appropriate conservation” after “development” in introductory provisions.