§98d. Authority for stockpile operations

(a) Funds appropriated for acquisitions; proposed stockpile transactions; significant changes therein

(1) Except for acquisitions made under the authority of paragraph (3) or (4) of section 98e(a) of this title, no funds may be obligated or appropriated for acquisition of any material under this subchapter unless funds for such acquisition have been authorized by law. Funds appropriated for such acquisition (and for transportation and other incidental expenses related to such acquisition) shall remain available until expended, unless otherwise provided in appropriation Acts.

(2) If for any fiscal year the President proposes certain stockpile transactions in the annual materials plan submitted to Congress for that year under section 98h–2(b) of this title and after that plan is submitted the President proposes (or Congress requires) a significant change in any such transaction, or a significant transaction not included in such plan, no amount may be obligated or expended for such transaction during such year until the President has submitted a full statement of the proposed transaction to the appropriate committees of Congress and a period of 45 days has passed from the date of the receipt of such statement by such committees.

(b) Disposal

Except for disposals made under the authority of paragraph (3), (4), or (5) of section 98e(a) of this title or under section 98f(a) of this title, no disposal may be made from the stockpile unless such disposal, including the quantity of the material to be disposed of, has been specifically authorized by law.

(c) Authorization of appropriations

There is authorized to be appropriated such sums as may be necessary to provide for the transportation, processing, refining, storage, security, maintenance, rotation, and disposal of materials contained in or acquired for the stockpile. Funds appropriated for such purposes shall remain available to carry out the purposes for which appropriated for a period of two fiscal years, if so provided in appropriation Acts.

(June 7, 1939, ch. 190, §5, as added Pub. L. 96–41, §2(a), July 30, 1979, 93 Stat. 321 ; amended Pub. L. 97–35, title II, §203(a), (b), Aug. 13, 1981, 95 Stat. 381 , 382; Pub. L. 98–525, title IX, §903, Oct. 19, 1984, 98 Stat. 2573 ; Pub. L. 99–661, div. C, title II, §3207(a)(2), Nov. 14, 1986, 100 Stat. 4069 ; Pub. L. 100–180, div. C, title II, §3206(a), Dec. 4, 1987, 101 Stat. 1247 ; Pub. L. 102–484, div. C, title XXXIII, §3312, Oct. 23, 1992, 106 Stat. 2653 ; Pub. L. 103–160, div. C, title XXXIII, §3312, Nov. 30, 1993, 107 Stat. 1962 .)

Prior Provisions

A prior section 98d, acts June 7, 1939, ch. 190, §5, 53 Stat. 812 ; July 23, 1946, ch. 590, 60 Stat. 598 , related to release of stock pile materials, prior to repeal by section 2(a) of Pub. L. 96–41. See section 98f of this title.

Provisions similar to those in this section were contained in former sections 98b and 98g of this title prior to repeal by Pub. L. 96–41.

Amendments

1993-Subsec. (a)(2). Pub. L. 103–160 substituted "and a period of 45 days has passed from the date of the receipt of such statement by such committees." for "and a period of 30 days has passed from the date of the receipt of such statement by such committees. In computing any 30-day period for the purpose of the preceding sentence, there shall be excluded any day on which either House of Congress is not in session because of an adjournment of more than three days to a day certain."

1992-Subsec. (b). Pub. L. 102–484 struck out "(1)" after "the stockpile" and ", or (2) if the disposal would result in there being an unobligated balance in the National Defense Stockpile Transaction Fund in excess of $100,000,000" after "authorized by law".

1987-Subsec. (a)(2). Pub. L. 100–180 struck out "or until each such committee, before the expiration of such period, notifies the President that it has no objection to the proposed transaction" before period at end of first sentence.

1986-Subsec. (b). Pub. L. 99–661 substituted "paragraph (3), (4), or (5)" for "paragraph (4) or (5)".

1984-Subsec. (b)(2). Pub. L. 98–525, §903(b), substituted "$100,000,000" for "$250,000,000".

Pub. L. 98–525, §903(a), substituted "an unobligated balance" for "a balance" where first appearing and "$250,000,000" for "$1,000,000,000 or, in the case of a disposal to be made after September 30, 1983, if the disposal would result in there being a balance in the fund in excess of $500,000,000".

1981-Subsec. (a). Pub. L. 97–35, §203(a), designated existing provisions as par. (1), inserted applicability to other incidental expenses, substituted "until expended, unless otherwise" for "for a period of five fiscal years, if so", and added par. (2).

Subsec. (b). Pub. L. 97–35, §203(b), inserted designation for cl. (1) and added cl. (2).

Effective Date of 1984 Amendment

Section 903(b) of Pub. L. 98–525, as amended by Pub. L. 99–145, title XVI, §1611(b), Nov. 8, 1985, 99 Stat. 776 , provided in part that the amendment by section 903(b) of Pub. L. 98–525, is effective Oct. 1, 1987.

Effective Date of 1981 Amendment

Section 203(f) of Pub. L. 97–35 provided that: "The amendments made by subsection (a) [amending this section] shall apply with respect to funds appropriated for fiscal years beginning after September 30, 1981."

Delegation of Functions

Functions of President under this section delegated to Secretary of Defense by section 1 of Ex. Ord. No. 12636, Feb. 25, 1988, 53 F.R. 6114, set out under section 98 of this title.

Required Disposals During Ten-Year Period

Pub. L. 106–65, div. C, title XXXIV, §3402(a)–(e), Oct. 5, 1999, 113 Stat. 972 , 973, provided that:

"(a) Disposal Required.-Subject to subsection (c), the President shall make disposals from the National Defense Stockpile of materials in quantities as follows:

"(1) Beryllium metal, 250 short tons.

"(2) Chromium ferro alloy, 496,204 short tons.

"(3) Chromium metal, 5,000 short tons.

"(4) Palladium, 497,271 troy ounces.

"(b) Management of Disposal To Achieve Objectives for Receipts.-The President shall manage the disposal of materials under subsection (a) so as to result in receipts to the United States in amounts equal to-

"(1) $10,000,000 during fiscal year 2000;

"(2) $100,000,000 during the 5-fiscal year period ending September 30, 2004; and

"(3) $300,000,000 during the 10-fiscal year period ending September 30, 2009.

"(c) Minimization of Disruption and Loss.-The President may not dispose of the material under subsection (a) to the extent that the disposal will result in-

"(1) undue disruption of the usual markets of producers, processors, and consumers of the materials proposed for disposal; or

"(2) avoidable loss to the United States.

"(d) Disposition of Receipts.-Notwithstanding section 9 of the Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98h), funds received as a result of the disposal of materials under subsection (a) shall be deposited into the general fund of the Treasury.

"(e) Relationship to Other Disposal Authority.-The disposal authority provided in subsection (a) is new disposal authority and is in addition to, and shall not affect, any other disposal authority provided by law regarding the materials specified in such subsection."

Authorized Disposal of Zirconium Ore

Pub. L. 106–31, title I, §303, May 21, 1999, 113 Stat. 67 , provided that:

"(a) Disposal Authorized.-Subject to subsection (c), the President may dispose of the material in the National Defense Stockpile specified in the table in subsection (b).

"(b) Table.-The total quantity of the material authorized for disposal by the President under subsection (a) is as follows:

"(c) Minimization of Disruption and Loss.-The President may not dispose of material under subsection (a) to the extent that the disposal will result in-

"(1) undue disruption of the usual markets of producers, processors, and consumers of the material proposed for disposal; or

"(2) avoidable loss to the United States.

"(d) Relationship to Other Disposal Authority.-The disposal authority provided in subsection (a) is new disposal authority and is in addition to, and shall not affect, any other disposal authority provided by law regarding the material specified in such subsection.

"(e) National Defense Stockpile Defined.-In this section, the term 'National Defense Stockpile Transaction Fund' means the fund in the Treasury of the United States established under section 9(a) of the Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98h(a))."

Required Disposals During Fiscal Years 1999 to 2005

Pub. L. 105–262, title VIII, §8109, Oct. 17, 1998, 112 Stat. 2322 , provided that:

"(a) Disposal of Certain Materials in National Defense Stockpile.-Subject to subsection (c), the President shall dispose of materials contained in the National Defense Stockpile and specified in the table in subsection (b) so as to result in receipts to the United States in the amount of $100,000,000 by the end of fiscal year 1999.

"(b) Disposal Quantities.-The total quantities of materials authorized for disposal by the President under subsection (a) may not exceed the amounts set forth in the following table:

"(c) Minimization of Disruption and Loss.-The President may not dispose of materials under subsection (a) to the extent that the disposal will result in-

"(1) undue disruption of the usual markets of producers, processors, and consumers of the materials proposed for disposal; or

"(2) avoidable loss to the United States.

"(d) Treatment of Receipts.-Notwithstanding section 9 of the Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98h), funds received as a result of the disposal of materials authorized for disposal under subsection (a) shall be deposited into the general fund of the Treasury.

"(e) Relationship to Other Disposal Authority.-(1) The disposal authority provided in subsection (a) is new disposal authority and is in addition to, and shall not affect, any other disposal authority provided by law regarding the materials specified in such subsection.

"(2) The disposal authority provided in subsection (a) is referred to in section 3303 of the National Defense Authorization Act for Fiscal Year 1999 [Pub. L. 105–261, set out as a note below], and the quantities of the materials specified in the table in subsection (b) are included in the quantities specified in the table in subsection (b) of such section 3303.

"(f) Definition.-In this section, the term 'National Defense Stockpile' means the stockpile provided for in section 4 of the Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98c)."

Pub. L. 105–261, div. C, title XXXIII, §§3301, 3303, Oct. 17, 1998, 112 Stat. 2262 , 2263, as amended by Pub. L. 106–65, div. C, title XXXIV, §3403(a), Oct. 5, 1999, 113 Stat. 973 , provided that:

"SEC. 3301. DEFINITIONS.

"In this title [amending section 98h of this title]:

"(1) The term 'National Defense Stockpile' means the stockpile provided for in section 4 of the Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98c).

"(2) The term 'National Defense Stockpile Transaction Fund' means the fund in the Treasury of the United States established under section 9(a) of the Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98h(a)).

"SEC. 3303. AUTHORITY TO DISPOSE OF CERTAIN MATERIALS IN NATIONAL DEFENSE STOCKPILE.

"(a) Disposal Required.-Subject to subsection (c), the President shall dispose of materials contained in the National Defense Stockpile and specified in the table in subsection (b) so as to result in receipts to the United States in the amount of-

"(1) $105,000,000 by the end of fiscal year 1999;

"(2) $460,000,000 by the end of fiscal year 2002;

"(3) $555,000,000 by the end of fiscal year 2003; and

"(4) $590,000,000 by the end of fiscal year 2005.

"(b) Limitations on Disposal Authority.-(1) The total quantities of materials authorized for disposal by the President under subsection (a) may not exceed the amounts set forth in the following table:

"(2) The President may not dispose of materials under this section in excess of the disposals necessary to result in receipts in the amounts specified in subsection (a).

"(c) Minimization of Disruption and Loss.-The President may not dispose of materials under subsection (a) to the extent that the disposal will result in-

"(1) undue disruption of the usual markets of producers, processors, and consumers of the materials proposed for disposal; or

"(2) avoidable loss to the United States.

"(d) Treatment of Receipts.-Notwithstanding section 9 of the Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98h), funds received as a result of the disposal of materials authorized for disposal under subsection (a) shall be treated as follows:

"(1) The following amounts shall be transferred to the Secretary of Health and Human Services, to be credited in the manner determined by the Secretary to the Federal Hospital Insurance Trust Fund and the Federal Supplementary Medical Insurance Trust Fund:

"(A) $3,000,000 during fiscal year 1999.

"(B) $22,000,000 during fiscal year 2000.

"(C) $28,000,000 during fiscal year 2001.

"(D) $31,000,000 during fiscal year 2002.

"(E) $8,000,000 during fiscal year 2003.

"(2) The balance of the funds received shall be deposited into the general fund of the Treasury.

"(e) Relationship to Other Disposal Authority.-The disposal authority provided in subsection (a) is new disposal authority and is in addition to, and shall not affect, any other disposal authority provided by law regarding the materials specified in such subsection.

"(f) Authorization of Sale.-The authority provided by this section to dispose of materials contained in the National Defense Stockpile so as to result in receipts of $100,000,000 of the amount specified for fiscal year 1999 in subsection (a) by the end of that fiscal year shall be effective only to the extent provided in advance in appropriation Acts."

Authorized Disposals; Fiscal Year 1998

Pub. L. 105–85, div. A, title XXXIII, §§3301, 3303–3305, Nov. 18, 1997, 111 Stat. 2056 , 2057, as amended by Pub. L. 106–65, div. C, title XXXIV, §§3402(f)(2), 3403(b), Oct. 5, 1999, 113 Stat. 973 , provided that:

"SEC. 3301. DEFINITIONS.

"In this title [amending section 98e of this title]:

"(1) The term 'National Defense Stockpile' means the stockpile provided for in section 4 of the Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98c).

"(2) The term 'National Defense Stockpile Transaction Fund' means the fund in the Treasury of the United States established under section 9(a) of the Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98h(a)).

"(3) The term 'Market Impact Committee' means the Market Impact Committee established under section 10(c) of the Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98h–1(c)).

"SEC. 3303. DISPOSAL OF BERYLLIUM COPPER MASTER ALLOY IN NATIONAL DEFENSE STOCKPILE.

"(a) Disposal Authorization.-Pursuant to section 5(b) of the Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98d(b)), the National Defense Stockpile Manager may dispose of all beryllium copper master alloy from the National Defense Stockpile as part of continued efforts to modernize the stockpile.

"(b) Precondition for Disposal.-Before beginning the disposal of beryllium copper master alloy under subsection (a), the National Defense Stockpile Manager shall certify to Congress that the disposal of beryllium copper master alloy will not adversely affect the capability of the National Defense Stockpile to supply the strategic and critical material needs of the United States.

"(c) Consultation With Market Impact Committee.-In disposing of beryllium copper master alloy under subsection (a), the National Defense Stockpile Manager shall consult with the Market Impact Committee to ensure that the disposal of beryllium copper master alloy does not disrupt the domestic beryllium industry.

"(d) Extended Sales Contracts.-The National Defense Stockpile Manager shall provide for the use of long-term sales contracts for the disposal of beryllium copper master alloy under subsection (a) so that the domestic beryllium industry can re-absorb this material into the market in a gradual and nondisruptive manner. However, no such contract shall provide for the disposal of beryllium copper master alloy over a period longer than eight years, beginning on the date of the commencement of the first contract under this section.

"(e) Relationship to Other Disposal Authority.-The disposal authority provided in subsection (a) is new disposal authority and is in addition to, and shall not affect, any other disposal authority provided by law regarding materials in the National Defense Stockpile.

"(f) Beryllium Copper Master Alloy Defined.-For purposes of this section, the term 'beryllium copper master alloy' means an alloy of nominally four percent beryllium in copper.

"SEC. 3304. DISPOSAL OF TITANIUM SPONGE IN NATIONAL DEFENSE STOCKPILE.

"(a) Disposal Required.-Subject to subsection (b), the National Defense Stockpile Manager shall dispose of 34,800 short tons of titanium sponge contained in the National Defense Stockpile provided for in section 4 of the Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98c) and excess to stockpile requirements.

"(b) Consultation With Market Impact Committee.-In disposing of titanium sponge under subsection (a), the National Defense Stockpile Manager shall consult with the Market Impact Committee to ensure that the disposal of titanium sponge does not disrupt the domestic titanium industry.

"(c) Relationship to Other Disposal Authority.-The disposal authority provided in subsection (a) is new disposal authority and is in addition to, and shall not affect, any other disposal authority provided by law regarding materials in the National Defense Stockpile.

"SEC. 3305. DISPOSAL OF COBALT IN NATIONAL DEFENSE STOCKPILE.

"(a) Disposal Required.-Subject to subsections (b) and (c), the President shall dispose of cobalt contained in the National Defense Stockpile so as to result in receipts to the United States in amounts equal to-

"(1) $20,000,000 during fiscal year 2003;

"(2) $50,000,000 during fiscal year 2004;

"(3) $64,000,000 during fiscal year 2005;

"(4) $67,000,000 during fiscal year 2006; and

"(5) $34,000,000 during fiscal year 2007.

"(b) Limitations on Disposal Authority.-(1) The total quantity of cobalt authorized for disposal by the President under subsection (a) may not exceed 14,058,014 pounds.

"(2) The President may not dispose of cobalt under this section in excess of the disposals necessary to result in receipts in the amounts specified in subsection (a).

"(c) Minimization of Disruption and Loss.-The President may not dispose of cobalt under subsection (a) to the extent that the disposal will result in-

"(1) undue disruption of the usual markets of producers, processors, and consumers of cobalt; or

"(2) avoidable loss to the United States.

"(d) Treatment of Receipts.-Notwithstanding section 9 of the Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98h), funds received as a result of the disposal of cobalt under subsection (a) shall be deposited into the general fund of the Treasury.

"(e) Relationship to Other Disposal Authority.-The disposal authority provided in subsection (a) is new disposal authority and is in addition to, and shall not affect, any other disposal authority provided by law regarding materials in the National Defense Stockpile."

Required Disposals During Ten-Fiscal Year Period Ending September 30, 2006

Pub. L. 104–201, div. C, title XXXIII, §§3301, 3303, Sept. 23, 1996, 110 Stat. 2854 , 2855, as amended by Pub. L. 106–65, div. C, title XXXIV, §§3402(f)(1), 3403(c), Oct. 5, 1999, 113 Stat. 973 , 974, provided that:

"SEC. 3301. DEFINITIONS.

"In this title [amending sections 98a, 98b, 98e, 98h–4, and 98h–5 of this title]:

"(1) The term 'National Defense Stockpile' means the stockpile provided for in section 4 of the Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98c).

"(2) The term 'National Defense Stockpile Transaction Fund' means the fund in the Treasury of the United States established under section 9(a) of the Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98h(a)).

"SEC. 3303. DISPOSAL OF CERTAIN MATERIALS IN NATIONAL DEFENSE STOCKPILE.

"(a) Disposal Required.-Subject to subsection (c), the President shall dispose of materials contained in the National Defense Stockpile and specified in the table in subsection (b) so as to result in receipts to the United States in amounts equal to-

"(1) $81,000,000 during fiscal year 1997; and

"(2) $720,000,000 during the ten-fiscal year period ending September 30, 2006.

"(b) Limitations on Disposal Authority.-(1) The total quantities of materials authorized for disposal by the President under subsection (a) may not exceed the amounts set forth in the following table:

"(2) The President may not dispose of materials under this section in excess of the disposals necessary to result in receipts in the amounts specified in subsection (a).

"(c) Minimization of Disruption and Loss.-The President may not dispose of materials under subsection (a) to the extent that the disposal will result in-

"(1) undue disruption of the usual markets of producers, processors, and consumers of the materials proposed for disposal; or

"(2) avoidable loss to the United States.

"(d) Treatment of Receipts.-Notwithstanding section 9 of the Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98h), funds received as a result of the disposal of materials under subsection (a) shall be-

"(1) deposited into the general fund of the Treasury; and

"(2) to the extent necessary, used to offset the revenues that will be lost as a result of execution of the amendments made by section 4303(a) of the National Defense Authorization Act for Fiscal Year 1996 [amending section 2761 of Title 22, Foreign Relations and Intercourse] (Public Law 104–106; 110 Stat. 658).

"(e) Qualifying Offsetting Legislation.-This section is specifically enacted as qualifying offsetting legislation for the purpose of offsetting fully the estimated revenues lost as a result of the amendments made by subsection (a) of section 4303 of the National Defense Authorization Act for Fiscal Year 1996 (Public Law 104–106; 110 Stat. 658), and as such is deemed to satisfy the conditions in subsection (b) of such section [22 U.S.C. 2761 note].

"(f) Relationship to Other Disposal Authority.-The disposal authority provided in subsection (a) is new disposal authority and is in addition to, and shall not affect, any other disposal authority provided by law regarding the materials specified in such subsection."

Limitation on Authority To Dispose of Zinc

Pub. L. 103–337, div. C, title XXXIII, §3304, Oct. 5, 1994, 108 Stat. 3098 , provided that:

"(a) Limitation on Disposal Authority.-The disposal of zinc from the National Defense Stockpile pursuant to any disposal authority provided by law may not commence before April 1, 1995.

"(b) Condition on Disposal After Expiration of Limitation.-If any quantity of zinc is proposed for disposal from the National Defense Stockpile during fiscal year 1995 upon the expiration of the limitation prescribed under subsection (a), the President shall submit to Congress not later than February 15, 1995, a revised annual materials plan under section 11(b) of the Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98h–2[(b)]) that specifically describes the proposed disposals. The revised plan shall include the views of the Market Impact Committee regarding the market impact of the disposals, as required under section 10(c) of such Act (50 U.S.C. 98h–1(c)).

"(c) Effect on Transfers of Zinc to Other Federal Agencies.-Nothing in this section shall limit the authority of the National Defense Stockpile Manager to transfer zinc in the National Defense Stockpile to the jurisdiction and control of another Federal agency for official Government use.

"(d) National Defense Stockpile Defined.-The term 'National Defense Stockpile' means the stockpile provided for in section 4 of the Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98c)."

National Defense Stockpile Modernization Program

Section 3301 of Pub. L. 103–160 provided that:

"(a) Disposal Authorized.-Subject to the conditions specified in subsection (b), the President may dispose of obsolete and excess materials currently contained in the National Defense Stockpile provided for in section 4 of the Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98c) in order to modernize the stockpile. The materials subject to disposal under this subsection and the quantity of each material authorized to be disposed of by the President are set forth in the following table:

"(b) Conditions on Disposal.-The authority of the President under subsection (a) to dispose of materials stored in the National Defense Stockpile may not be used unless and until the Secretary of Defense certifies to Congress that the disposal of such materials will not adversely affect the capability of the stockpile to supply the strategic and critical materials necessary to meet the needs of the United States during a period of national emergency that requires a significant level of mobilization of the economy of the United States, including any reconstitution of the military and industrial capabilities necessary to meet the planning assumptions used by the Secretary of Defense under section 14(b) of the Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98h–5(b))."

Section 3303(a) of Pub. L. 103–160 provided that: "During fiscal year 1994, the disposal of chromite and manganese ores of metallurgical grade under the authority of section 3302(a) of the National Defense Authorization Act for Fiscal Year 1993 (Public Law 102–484; 106 Stat. 2649; 50 U.S.C. 98d note) may be made only for processing within the United States and the territories and possessions of the United States."

Sections 3301 to 3303 of Pub. L. 102–484, as amended by Pub. L. 103–160, div. C, title XXXIII, §3303(b), Nov. 30, 1993, 107 Stat. 1961 ; Pub. L. 103–337, div. A, title X, §1070(c)(3), div. C, title XXXIII, §3303, Oct. 5, 1994, 108 Stat. 2858 , 3098, provided that:

"SEC. 3301. DEFINITIONS.

"For purposes of this subtitle [subtitle A (§§3301–3308) of title XXXIII of div. C of Pub. L. 102–484, enacting provisions set out as a note under section 98h–1 of this title and amending provisions set out as a note below]:

"(1) The terms 'National Defense Stockpile' and 'stockpile' mean the stockpile provided for in section 4 of the Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98c).

"(2) The term 'National Defense Stockpile Transaction Fund' means the fund in the Treasury of the United States established under section 9(a) of the Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98h(a)).

"SEC. 3302. DISPOSAL OF OBSOLETE AND EXCESS MATERIALS CONTAINED IN THE NATIONAL DEFENSE STOCKPILE.

"(a) Disposal Authorized.-Subject to the conditions specified in subsection (b), the President may dispose of obsolete and excess materials currently contained in the National Defense Stockpile in order to modernize the stockpile. The materials subject to disposal under this subsection and the quantity of each material authorized to be disposed of by the President are set forth in the following table:

"(b) Conditions on Disposal.-The authority of the President under subsection (a) to dispose of materials stored in the stockpile may not be used unless and until the President submits to Congress a revised annual materials plan under section 11(b) of the Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98h–2(b)) that-

"(1) complies with the requirements of section 10(c) of such Act (50 U.S.C. 98h–1), as added by section 3314; and

"(2) contains the certification of the Secretary of Defense that the disposal of such materials will not adversely affect the capability of the National Defense Stockpile to supply the strategic and critical materials necessary to meet the needs of the United States during a period of national emergency that requires a significant level of mobilization of the economy of the United States, including any reconstitution of the military and industrial capabilities necessary to meet the planning assumptions used by the Secretary of Defense under section 14(b) of such Act (50 U.S.C. 98h–5(b)).

"(c) Required Use of Previous Disposal Authorities.-(1) The President shall complete the disposal of all quantities of materials in the National Defense Stockpile that-

"(A) have been previously authorized for disposal by law; and

"(B) have not been disposed of before the date of the enactment of this Act [Oct. 23, 1992].

"(2) The disposal of materials required by this subsection shall be completed before the end of the five-year period beginning on October 1, 1992, unless the President notifies Congress that the Market Impact Committee established under section 10(c) of the Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98h–1(c)), as added by section 3314, determines that completion of the disposal of such materials during such period would result in the undue disruption of the usual markets of such materials. The notification shall also indicate the date on which the disposal of such materials will be completed.

"(d) Special Limitation Regarding Silver.-(1) The disposal of silver under this section may only occur in the form of coins or, subject to paragraph (2), as material furnished by the Federal Government to a contractor for the use of the contractor in the performance of a Federal Government contract.

"(2) A contractor receiving silver as Government furnished material shall pay the Federal Government the amount equal to the fair market value of the silver, as determined by the National Defense Stockpile Manager. The amount paid by the contractor for the silver shall be deposited in the National Defense Stockpile Transaction Fund.

"(e) Special Limitation Regarding Chromite and Manganese Ores.-During fiscal year 1993, the disposal of chromite and manganese ores of metallurgical grade under subsection (a) may be made only for processing within the United States and the territories and possessions of the United States.

"(f) Special Limitation Regarding Chromium and Manganese Ferro.-The disposal of chromium ferro and manganese ferro under subsection (a) may not commence before October 1, 1995.

"(g) Relationship to Other Disposal Authority.-The disposal authority provided in subsection (a) is in addition to any other disposal authority provided by law.

"SEC. 3303. USE OF BARTER ARRANGEMENTS IN MODERNIZATION PROGRAM.

"The President may enter into barter arrangements to dispose of materials under section 3302 in order to acquire strategic and critical materials for, or upgrade strategic and critical materials in, the National Defense Stockpile."

Authorized Disposals; Fiscal Year 1992

Pub. L. 102–190, div. C, title XXXIII, §3301, Dec. 5, 1991, 105 Stat. 1583 , as amended by Pub. L. 102–484, div. C, title XXXIII, §3308, Oct. 23, 1992, 106 Stat. 2653 , provided that:

"(a) Authority.-During fiscal year 1992, the National Defense Stockpile Manager may dispose of materials in the National Defense Stockpile in accordance with this section. The value of materials disposed of may not exceed $150,000,000 during such fiscal year. Such disposal may be made only as specified in subsection (b).

"(b) Materials Authorized To Be Disposed.-Any disposal under subsection (a) shall be made-

"(1) from quantities of materials in the National Defense Stockpile previously authorized for disposal by law, including the materials authorized for disposal in accordance with the table contained in section 3302(b) of the National Defense Authorization Act for Fiscal Years 1990 and 1991 (Public Law 101–189; 103 Stat. 1686 [set out as a note below]); or

"(2) in the case of materials in the National Defense Stockpile that have been determined to be excess to the current requirements of the stockpile, in accordance with the following table:

"(c) Additional Authority.-The disposal authority provided in subsection (a) is in addition to any other disposal authority provided by law.

"(d) Limitation on Disposals.-The National Defense Stockpile Manager may dispose of materials under this section during fiscal year 1992 only to the extent that the total amount received (or to be received) from such disposals for such fiscal year does not exceed the amount obligated from the National Defense Stockpile Transaction Fund during such fiscal year for the purposes authorized under section 9(b)(2) of the Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98h(b)(2))."

Authorized Disposals; Fiscal Years 1990 and 1991

Pub. L. 101–189, div. C, title XXXIII, §3302, Nov. 29, 1989, 103 Stat. 1685 , provided that:

"(a) Authority.-During fiscal years 1990 and 1991, the National Defense Stockpile Manager may dispose of materials in the National Defense Stockpile in accordance with this section. The value of materials disposed of may not exceed $180,000,000 during each of such fiscal years, and such disposal may be made only as specified in subsection (b).

"(b) Materials Authorized to be Disposed.-Any disposal under subsection (a) shall be made from quantities of materials in the National Defense Stockpile previously authorized for disposal by law or, in the case of materials in the National Defense Stockpile that have been determined to be excess to the current requirements of the stockpile, in accordance with the following table:

"(c) Additional Authority.-The disposal authority provided in subsection (a) is in addition to any other disposal authority provided by law.

"(d) Limitation on Disposals During Fiscal Years 1990 and 1991.-The National Defense Stockpile Manager may dispose of materials under this section during each of the fiscal years 1990 and 1991 only to the extent that the total amount received (or to be received) from such disposals for each such fiscal year does not exceed the amount obligated from the National Defense Stockpile Transaction Fund during such fiscal year for the purposes authorized under section 9(b)(2) of the Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98h(b)(2))."

Authorized Disposals; Fiscal Year 1989

Pub. L. 100–456, div. A, title XV, §1501, Sept. 29, 1988, 102 Stat. 2085 , provided that:

"(a) Authority.-Notwithstanding section 5(b) of the Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98d(b)) but subject to subsection (c), the President may during fiscal year 1989 dispose of materials in the National Defense Stockpile in accordance with this section. The value of the materials disposed of may not exceed $180,000,000 and may only be made as specified in subsection (b).

"(b) Materials Authorized To Be Disposed.-Any disposal pursuant to the authority in subsection (a) shall be made from materials in the National Defense Stockpile previously authorized for disposal by law and from the following materials in the National Defense Stockpile, such materials having been determined to be excess to stockpile requirements:

"(c) Disposals During Fiscal Year 1989.-The President may dispose of materials under this section during fiscal year 1989 only to the extent that the total amount received (or to be received) from such disposals does not exceed the amount expended from the National Defense Stockpile Transaction Fund during fiscal year 1989 for purposes authorized under section 9(b)(2) of such Act [section 98h(b)(2) of this title]."

Conversion of Chromium and Manganese Ore to High Carbon Ferrochromium and High Carbon Ferromanganese

Section 3205 of Pub. L. 99–661 provided that:

"(a) Required Upgrading.-During each of fiscal years 1987 through 1993, the President shall-

"(1) obtain bids from domestic producers of high carbon ferrochromium and of high carbon ferromanganese; and

"(2) award contracts for the conversion of chromium and manganese ores held in the National Defense Stockpile into high carbon ferrochromium and high carbon ferromanganese, respectively.

"(b) Quantities To Be Upgraded.-(1) Contracts awarded under subsection (a) shall provide for the addition of not less than 53,500 short tons of high carbon ferrochromium and not less than 67,500 short tons of high carbon ferromanganese to the National Defense Stockpile during each of the fiscal years covered by subsection (a).

"(2) If, during any fiscal year referred to in subsection (a), the minimum quantity of high carbon ferrochromium or high carbon ferromanganese to be added to the National Defense Stockpile, as required by paragraph (1), is not met, the quantity of such material to be added to the stockpile in the next fiscal year shall be increased by the quantity of the deficiency.

"(c) Seven-Year Minimum Quantities.-The total quantities of high carbon ferrochromium and high carbon ferromanganese to be added to the National Defense Stockpile over the seven fiscal years referred to in subsection (a) shall be as follows:

"(1) High carbon ferrochromium, 374,000 short tons.

"(2) High carbon ferromanganese, 472,000 short tons.

"(d) Definition.-In this section, the term 'National Defense Stockpile' means the stockpile provided for in section 4 of the Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98c)."

Similar provisions were contained in Pub. L. 99–500, §101(c) [title IX, §9110], Oct. 18, 1986, 100 Stat. 1783–82 , 1783-120, and Pub. L. 99–591, §101(c) [title IX, §9110], Oct. 30, 1986, 100 Stat. 3341–82 , 3341-120.

Storage, Maintenance, Protection and Disposal of Silver in National Defense Stockpile After September 30, 1987; Use of Proceeds

Pub. L. 99–500, §101(m) [title V, §519], Oct. 18, 1986, 100 Stat. 1783–308 , 1783-326, and Pub. L. 99–591, §101(m) [title V, §519], Oct. 30, 1986, 100 Stat. 3341–308 , 3341-326, provided that: "Effective September 30, 1987, none of the funds made available by this Act or any other Act with respect to fiscal year 1987 and any other fiscal year may be used to store, to maintain or to protect more than 128,000,000 troy ounces of silver deposited in the National Defense Stockpile. The Administrator of General Services, or any Federal officer assuming the Administrator's responsibilities with respect to management of the stockpile, shall use all proceeds generated from the disposal of silver to purchase, no later than October 1, 1988, stockpile materials to meet National Defense Stockpile goals and specifications in effect on October 1, 1984."

Prohibition of Reductions in Stockpile Goals

Pub. L. 99–145, title XVI, §1612, Nov. 8, 1985, 99 Stat. 776 , as amended by Pub. L. 99–661, div. C, title II, §3201, Nov. 14, 1986, 100 Stat. 4067 , prohibited action before Oct. 1, 1987, to implement or administer any change in a stockpile goal in effect on Oct. 1, 1984, that would result in a reduction in the quality or quantity of any strategic and critical material acquired for the National Defense Stockpile.

Disposal Authorization

Section 3204 of Pub. L. 99–661 provided that:

"(a) In General.-(1) The President is authorized to dispose of the following quantities of materials that are currently held in the National Defense Stockpile (established by section 3 of the Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98b)) and that are hereby determined to be excess to the current requirements of the stockpile:

"(2) Authority provided by paragraph (1) is in addition to any other authority provided by law to dispose of materials from the National Defense Stockpile.

"(b) Special Disposal Authority.-During fiscal year 1987, the President may contract to carry out authorized disposals of materials from the National Defense Stockpile without regard to the limitation in section 5(b)(2) of the Strategic and Critical Materials Stock Piling Act [50 U.S.C. 98d(b)(2)], but only to the extent that the total amount received (or to be received) from such disposals does not exceed the amount obligated from the National Defense Stockpile Transaction Fund during such fiscal year for purposes authorized under section 9(b)(2) of such Act (as amended by section 3203) [50 U.S.C. 98h(b)(2)]."

Pub. L. 98–525, title IX, §§901, 902, Oct. 19, 1984, 98 Stat. 2573 , provided that:

"Sec. 901. (a) Any authority provided by law before the date of the enactment of this Act [Oct. 19, 1984] to enter into contracts for the disposal of materials in the National Defense Stockpile established by section 3 of the Strategic and Critical Materials Stock Piling Act (hereinafter in this title referred to as "the Act") (50 U.S.C. 98b) shall expire on September 30, 1984.

"Sec. 902. Effective on October 1, 1984, the President is authorized to dispose of the following quantities of materials currently held in the National Defense Stockpile in accordance with the provisions of the Act [this chapter], such quantities having been determined to be excess to the current requirements of the stockpile:

"(1) 3,200 short tons of antimony.

"(2) 5,600 short tons of asbestos, chrysotile.

"(3) 7,500,000 carats of diamond stones.

"(4) 51,210 short dry tons of manganese dioxide battery natural.

"(5) 292,000 short dry tons of metallurgical grade manganese.

"(6) 5,000 flasks of mercury.

"(7) 500,000 pounds of mercuric oxide.

"(8) 1,000,000 pounds of mica, muscovite film first and second qualities.

"(9) 1,000,000 pounds of mica, muscovite splittings.

"(10) 50,000 pounds of mica, phlogopite splittings.

"(11) 167 short tons of mica block and lump.

"(12) 100,000 pounds of quartz crystals.

"(13) 10,000,000 troy ounces of silver.

"(14) 125,000 pounds of talc, block and lump.

"(15) 50,000 pounds of thorium nitrate.

"(16) 20,000 long tons of tin.

"(17) 2,400,000 pounds of tungsten contained in ores.

"(18) 4,200 long tons of vegetable tannin, chestnut.

"(19) 20,000 long tons of vegetable tannin, quebracho."

Section 201 of Pub. L. 97–35 provided that:

"(a) Effective on October 1, 1981, the President is authorized to dispose of the following quantities of materials currently held in the National Defense Stockpile established by section 3 of the Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98b), such quantities having been determined to be excess to the current requirements of the stockpile:

"(1) 1,000,000 pounds of iodine.

"(2) 1,500,000 carats of diamonds, industrial crushing bort.

"(3) 710,253 pounds of mercuric oxide.

"(4) 50,000 flasks of mercury.

"(5) 6,000,000 pounds of mica, muscovite splittings.

"(6) 25,000 pounds of mica, phlogopite splittings.

"(7) 46,537,000 troy ounces of silver.

"(8) 1,000 short tons of antimony.

"(9) 2,000 short tons of asbestos chrysotile.

"(10) 50,000 pounds of mica muscovite film, first and second qualities.

"(11) 50,000 pounds of mica muscovite block, stained and lower.

"(12) 700 long tons of vegetable tannin extract, wattle.

"(b) Effective on October 1, 1982, the President is authorized to dispose of the following quantities of materials currently held in the National Defense Stockpile, such quantities having been determined to be excess to the current requirements of the stockpile:

"(1) 44,682,000 troy ounces of silver.

"(2) 1,000 short tons of antimony.

"(3) 2,000 short tons of asbestos chrysotile.

"(4) 1,500,000 carats of diamond stones.

"(5) 1,000,000 pounds of iodine.

"(6) 50,000 pounds of mica muscovite film, first and second qualities.

"(7) 50,000 pounds of mica muscovite block, stained and lower.

"(8) 697 long tons of vegetable tannin extract, wattle.

"(c) Effective on October 1, 1983, the President is authorized to dispose of the following quantities of materials currently held in the National Defense Stockpile, such quantities having been determined to be excess to the current requirements of the stockpile:

"(1) 13,900,000 troy ounces of silver.

"(2) 1,000 short tons of antimony.

"(3) 6,000 short tons of asbestos amosite.

"(4) 2,000 short tons of asbestos chrysotile.

"(5) 1,500,000 carats of diamond stones.

"(6) 197,465 carats of diamonds, industrial crushing bort.

"(7) 213,000 pounds of iodine.

"(8) 50,000 pounds of mica muscovite film, first and second qualities.

"(9) 50,000 pounds of mica muscovite block, stained and lower.

"(d)(1) The authority to enter into contracts for the disposal of materials in the stockpile under the disposal authorizations contained in paragraphs (7) through (12) of subsection (a) expires on September 30, 1982.

"(2) The authority to enter into contracts for the disposal of materials in the stockpile under the disposal authorizations contained in subsection (b) expires on September 30, 1983.

"(3) The authority to enter into contracts for the disposal of materials in the stockpile under the disposal authorizations contained in subsection (c) expires on September 30, 1984.

"(e) Any disposal under the authority of subsection (a), (b), or (c) shall be carried out in accordance with the provisions of the Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98 et seq.).

"(f)(1) The authority contained in subsections (b)(1) and (c)(1) shall not become effective unless the President, not later than September 1, 1982, determines that the silver authorized for disposal by such subsections is excess to the requirements of the stockpile as of that date.

"(2) A determination by the President under paragraph (1) shall be based upon consideration of such factors as the President considers relevant, including the following factors:

"(A) The demand for silver in each of the next ten years for the industrial, military, and naval needs of the United States for national defense.

"(B) The domestic supply of silver for each of the next ten years, as a function of price, that would be available to meet the demand identified under subparagraph (A).

"(C) The potential dependency of the United States on foreign supplies of silver in each of the next ten years to meet the demand identified under subparagraph (A).

"(D) The effect of disposal under subsections (b)(1) and (c)(1) on (i) the world silver market (in terms of price and supply), (ii) the domestic and international silver mining industry (in terms of exploration and production), (iii) international currency and monetary policy, and (iv) long range military preparedness.

"(3) If the President makes a determination described in paragraph (1), he shall promptly report to the Committees on Armed Services of the Senate and House of Representatives that he has made such determination and shall include a detailed discussion and analysis of the factors set forth in paragraph (2) and other relevant factors."

Authorization of Appropriations

Section 202 of Pub. L. 97–35 provided that:

"(a) Effective on October 1, 1981, there is authorized to be appropriated the sum of $535,000,000 for the acquisition of strategic and critical materials under section 6(a) of the Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98e(a)).

"(b) Any acquisition using funds appropriated under the authorization of subsection (a) shall be carried out in accordance with the provisions of the Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98 et seq.)."

Annual Sales of Silver From the National Defense Stockpile After December 21, 1982

Pub. L. 97–377, title I, §101(c) [title VII, §799B], Dec. 21, 1982, 96 Stat. 1866 , provided that: "After the date of enactment of this Act [Dec. 21, 1982], annual sales of silver from the National Defense Stockpile under the authority of Public Law 97–35 [see Tables for classification], or any other Act, shall not exceed 10 per centum of the silver produced from existing domestic producing mines in the preceding 12 month period."

Disposal of Silver From National Defense Stockpile; Congressional Approval of Recommended Method of Disposal

Pub. L. 97–114, title VII, §788, Dec. 29, 1981, 95 Stat. 1592 , provided that, after Dec. 29, 1981, no sale of silver from the National Defense Stockpile was to occur until the President, not later than July 1, 1982, redetermined that the silver authorized for disposal was excess to the requirements of the stockpile and reported such determination to Congress with discussion and analysis of the factors considered, including alternative methods of disposal for such silver, and the President's recommended method of disposal, and prohibited disposal of silver from the National Defense Stockpile prior to the approval by Congress of the recommended method of disposal.

Disposal of Government-Owned Tin Smelter at Texas City, Texas

Act June 22, 1956, ch. 426, 70 Stat. 329 , directed Federal Facilities Corporation immediately to sell or lease Government-owned tin smelter at Texas City, Texas, and waste acid plant and other assets of Government's tin program, prescribed corporate powers of Corporation in regard to sale or lease, established a Tin Advisory Committee to consult with Corporation, established periods for receipt and negotiation of purchase proposals, and provided that if no contract for sale or lease was effected prior to Jan. 31, 1957, then smelter and other assets be reported as excess property for transfer and disposal in accordance with provisions of Federal Property and Administrative Services Act of 1949.

Maintenance of Domestic Tin-Smelting Industry; Transfer of Functions, Etc.

Act June 28, 1947, ch. 159, 61 Stat. 190 , as amended June 29, 1948, ch. 722, 62 Stat. 1101 ; June 30, 1949, ch. 284, 63 Stat. 350 ; Aug. 21, 1950, ch. 766, 64 Stat. 468 ; July 30, 1953, ch. 282, title I, §103, 67 Stat. 230 ; June 22, 1956, ch. 426, §5(a), 70 Stat. 329 , declared tin to be a highly strategic and critical material in short supply, directed that it was in the public interest that Congress make a thorough investigation on the advisability of the maintenance of a permanent tin-smelting industry and study the availability of adequate tin supplies, provided that the powers, functions, duties, and authority of the United States exercised by the Reconstruction Finance Corporation to buy, sell, and transport tin, and tin ore and concentrates, to improve, develop, maintain, and operate by lease or otherwise the Government-owned tin smelter at Texas City, Texas, to finance research in tin smelting and processing, and to do all other things necessary to the accomplishment of the foregoing continue in effect until Jan. 31, 1957, or until such earlier time as the Congress shall otherwise provide, and be exercised and performed by such officer, agency, or instrumentality of the United States as the President may designate, authorized diversification of tin-recovery facilities in the United States, and required the Reconstruction Finance Corporation to report to Congress on its activities not later than Dec. 31, 1947, and at the end of each six months thereafter.

Federal Facilities Corporation; Abolition and Dissolution of Reconstruction Finance Corporation and Federal Facilities Corporation

Ex. Ord. No. 10539, eff. June 22, 1954, 19 F.R. 3827, designated the Federal Facilities Corporation to perform and exercise the functions formerly performed and exercised by the Reconstruction Finance Corporation under act June 28, 1947, set out as a note above. The Reconstruction Finance Corporation, which was created by the Reconstruction Finance Corporation Act, act Jan. 22, 1932, ch. 8, 47 Stat. 5 , was subsequently abolished by section 6(a) of Reorg. Plan No. 1 of 1957, eff. June 30, 1957, 22 F.R. 4633, 71 Stat. 647, set out in the Appendix to Title 5, Government Organization and Employees. The Federal Facilities Corporation was, in turn, dissolved by Pub. L. 87–190, §6, Aug. 30, 1961, 75 Stat. 419 , effective Sept. 30, 1961, set out as a note under sections 1921 to 1929 of the Appendix to this title.

Disposal of Government-Owned Tin Smelter at Texas City, Texas; Cancellation of Obligations

Cancellation of obligation of General Services Administration to Federal Facilities Corporation existing by virtue of section 5(b) of act June 22, 1956, set out as a note above, see section 4(b) of Pub. L. 87–190, Aug. 30, 1961, 75 Stat. 418 , set out as a note under sections 1921 to 1929 of the Appendix to this title.

Section Referred to in Other Sections

This section is referred to in sections 98e, 98h, 98h–2, 98h–6 of this title.