6

     Sec. 307.  Government-owned Equipment.  An agency head is
authorized, pursuant to section 303(e) of the Act, to install additional
equipment, facilities, processes, or improvements to facilities owned by
the government and to install government-owned equipment in industrial
facilities owned by private persons.

     Sec. 308.  Identification of Shortfalls.  Except during periods of
national emergency or after a Presidential determination in accordance
with sections 301(e)(1)(D)(ii), 302(c)(4)(B), or 303(a)(7)(B) of the
Act, no guarantee, loan or other action pursuant to sections 301, 302,
and 303 of the Act to correct an industrial shortfall shall be taken
unless the shortfall has been identified in the Budget of the United
States or amendments thereto.

     Sec. 309.  Defense Production Act Fund Manager.  The Secretary of
Defense is designated the Defense Production Act Fund Manager, in
accordance with section 304(f) of the Act, and shall carry out the
duties specified in that section, in consultation with the agency heads
having approved Title III projects and appropriated Title III funds.

     Sec. 310.  Critical Items List.  (a) Pursuant to section
107(b)(1)(A) of the Act, the Secretary of Defense shall identify
critical components and critical technology items for each item on the
Critical Items List of the Commanders-in-Chief of the Unified and
Specified Commands and other items within the inventory of weapon
systems and defense equipment.

     (b) Each agency head shall take appropriate action to ensure that
critical components or critical technology items are available from
reliable sources when needed to meet defense requirements during
peacetime, graduated mobilization, and national emergency.  "Appropriate
action" may include restricting contract solicitations to reliable
sources, restricting contract solicitations to domestic sources
(pursuant to statutory authority), stockpiling critical components, and
developing substitutes for critical components or critical technology
items.

     Sec. 311.  Strengthening Domestic Capability.  An agency head, in
accordance with section 107(a) of the Act, may utilize the authority of
Title III of the Act or any other provision of law, in consultation with
the Secretary of Defense, to provide appropriate incentives to develop,
maintain, modernize, and expand the productive capacities of domestic
sources for critical components, critical technology items, and
industrial resources essential for the execution of the national
security strategy of the United States.

     Sec. 312.  Modernization of Equipment.  An agency head, in
accordance with section 108(b) of the Act, may utilize the authority of
Title III of the Act to guarantee the purchase or lease of advance
manufacturing equipment and any related services with respect to any
such equipment for purposes of the Act.

             PART IV - IMPACT OF OFFSETS

     Sec. 401.  Offsets. (a) The responsibilities and authority
conferred upon the President by section 309 of the Act with respect to
offsets are delegated to the Secretary of Commerce, who shall function
as the President's Executive Agent for carrying out this authority.