National Defense Stockpile Market Impact Committee Request for Public Comments on the Potential Market Impact of the Proposed Fiscal Year 2018 Annual Materials Plan

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Federal RegisterAug 29, 2016
81 Fed. Reg. 59181 (Aug. 29, 2016)

AGENCY:

Bureau of Industry and Security, Commerce.

ACTION:

Notice of inquiry; request for comments.

SUMMARY:

The purpose of this notice is to advise the public that the National Defense Stockpile Market Impact Committee, co-chaired by the Departments of Commerce and State, is seeking public comments on the potential market impact of the proposed Fiscal Year 2018 National Defense Stockpile Annual Materials Plan. The role of the Market Impact Committee is to advise the National Defense Stockpile Manager on the projected domestic and foreign economic effects of all acquisitions, conversions, and disposals involving the stockpile and related material research and development projects. Public comments are an important element of the Committee's market impact review process.

DATES:

To be considered, written comments must be received by September 28, 2016.

ADDRESSES:

Address all comments concerning this notice to Eric Longnecker, U.S. Department of Commerce, Bureau of Industry and Security, Office of Strategic Industries and Economic Security, 1401 Constitution Avenue NW., Room 3876, Washington, DC 20230, fax: (202) 482-5650 (Attn: Eric Longnecker), email: MIC@bis.doc.gov; and Levi White, U.S. Department of State, Bureau of Energy Resources, 2201 C Street NW., Washington, DC 20520, fax: (202) 647-4037 (Attn: Levi White), email: WhiteLA2@state.gov.

FOR FURTHER INFORMATION CONTACT:

Parya Milani, Office of Strategic Industries and Economic Security, Bureau of Industry and Security, U.S. Department of Commerce, telephone: (202) 482-8228, fax: (202) 482-5650 (Attn: Parya Milani), email: MIC@bis.doc.gov.

SUPPLEMENTARY INFORMATION:

Background

Under the authority of the Strategic and Critical Materials Stock Piling Revision Act of 1979, as amended (the Stock Piling Act) (50 U.S.C. 98, et seq.), the Department of Defense's Defense Logistics Agency (DLA), as National Defense Stockpile Manager, maintains a stockpile of strategic and critical materials to supply the military, industrial, and essential civilian needs of the United States for national defense. Section 9(b)(2)(G)(ii) of the Stock Piling Act (50 U.S.C. 98(h)(b)(2)(G)(ii)) authorizes the National Defense Stockpile Manager to fund material research and development projects to develop new materials for the stockpile.

Section 3314 of the Fiscal Year (FY) 1993 National Defense Authorization Act (NDAA) (50 U.S.C. 98h-1) formally established a Market Impact Committee (the Committee) to “advise the National Defense Stockpile Manager on the projected domestic and foreign economic effects of all acquisitions and disposals of materials from the stockpile. . . .” The Committee must also balance market impact concerns with the statutory requirement to protect the U.S. Government against avoidable loss.

The Committee is comprised of representatives from the Departments of Commerce, State, Agriculture, Defense, Energy, Interior, the Treasury, and Homeland Security, and is co-chaired by the Departments of Commerce and State. The FY 1993 NDAA directs the Committee to consult with industry representatives that produce, process, or consume the materials stored in or of interest to the National Defense Stockpile Manager.

As the National Defense Stockpile Manager, the DLA must produce an Annual Materials Plan proposing the maximum quantity of each listed material that may be acquired, disposed of, upgraded, converted, or sold by the DLA in a particular fiscal year. In Attachment 1, the DLA lists the quantities and type of activity (potential acquisition, potential disposal, potential upgrade, potential conversion, or potential sale) associated with each material in its proposed FY 2018 Annual Materials Plan (“AMP”). The quantities listed in Attachment 1 are not acquisition, disposal, upgrade, conversion or sales target quantities, but rather a statement of the proposed maximum quantity of each listed material that may be acquired, disposed of, upgraded, converted, or sold in a particular fiscal year by the DLA, as noted. The quantity of each material that will actually be acquired or offered for sale will depend on the market for the material at the time of the acquisition or offering, as well as on the quantity of each material approved for acquisition, disposal, conversion, or upgrade by Congress.

The Committee is seeking public comments on the potential market impact associated with the proposed FY 2018 AMP as enumerated in Attachment 1. Public comments are an important element of the Committee's market impact review process.

Submission of Comments

The Committee requests that interested parties provide written comments, supporting data and documentation, and any other relevant information on the potential market impact of the quantities associated with the proposed FY 2018 AMP. All comments must be submitted to the addresses indicated in this notice. All comments submitted through email must include the phrase “Market Impact Committee Notice of Inquiry” in the subject line.

The Committee encourages interested persons who wish to comment to do so at the earliest possible time. The period for submission of comments will close on September 28, 2016. The Committee will consider all comments received before the close of the comment period. Comments received after the end of the comment period will be considered, if possible, but their consideration cannot be assured.

All comments submitted in response to this notice will be made a matter of public record and will be available for public inspection and copying. Anyone submitting business confidential information should clearly identify the business confidential portion of the submission and also provide a non-confidential submission that can be placed in the public record. The Committee will seek to protect such information to the extent permitted by law.

The Office of Administration, Bureau of Industry and Security, U.S. Department of Commerce, displays public comments on the BIS Freedom of Information Act (FOIA) Web site at http://www.bis.doc.gov/foia. This office does not maintain a separate public inspection facility. If you have technical difficulties accessing this Web site, please call BIS's Office of Administration at (202) 482-1900 for assistance.

Dated: August 23, 2016.

Kevin J. Wolf,

Assistant Secretary for Export Administration.

Proposed Fiscal Year 2018 Annual Materials Plan

Material Unit Quantity Footnote
Potential Disposals:
Beryllium Metal ST 2
Chromium, Ferro ST 23,500
Chromium, Metal ST 200
E-Waste MT 50 ()
Dysprosium MT 0.5
Germanium Scrap kg 5,000
Iridium Catalyst Lbs 50
Manganese, Ferro ST 50,000
Manganese, Metallurgical Grade SDT 322,025
Nickel Based Alloys Lbs 150,000
Platinum Tr Oz 8,380
Platinum—Iridium Tr Oz 489
Tantalum Carbide Powder Lb Ta 3,777
Tantalum Scrap Lbs 190
Tin MT 804
Titanium Based Alloys Lbs 75,000
Tungsten Metal Powder LB W 275,738 ()
Tungsten Ores and Concentrates LB W 3,000,000
Yttrium Aluminum Garnet Rods kg 250
Zinc ST 7,993 ()
Potential Acquisitions:
Antimony MT 1,100
Beryllium Metal ST 2 ()
Boron Carbide MT 1,000
High Modulus High Strength Carbon Fibers MT 72
CZT (Cadmium Zinc Tellurium substrates) cm 32,000
Dysprosium MT 0.5
Electrolytic Manganese Metal MT 3,000
Europium MT 18
Ferro-niobium MT 209
Germanium Metal kg 1,000
HMX/RDX Lbs 5,500,000
Lithium Cobalt Oxide (LCO) kg 600
Lithium Nickel Cobalt Aluminum Oxide (LNCAO) kg 2,160
Mesocarbon Microbeads (MCMB) kg 15,552
Rare Earths MT 416 ()
Silicon Carbide Fibers Lbs 875
TATB (Triamino-Trinitrobenzene) LB 48,000
Tantalum Lb Ta 33,990
Tungsten-3 Rhenium Metal kg 5,000
Yttrium Oxide MT 10
Potential Conversions:
Beryllium Metal ST 2
Footnote Key:
Actual quantity will be limited to remaining inventory.
Strategic and Critical Materials collected from E-Waste.
This acquisition allows for use of non-stockpile materials in the production of material meeting modern specifications. U.S.C. 50 § 98 Sec. 5a(1) allows for replacement of stockpile materials with better quality material without specific legislated authority.
Excludes acquisition of yttrium, dysprosium and europium as these rare earths were requested under separate legislation.

[FR Doc. 2016-20579 Filed 8-26-16; 8:45 am]

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