[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 4031 Introduced in Senate (IS)]

111th CONGRESS
  2d Session
                                S. 4031

 To promote exploration for and development of rare earth elements in 
 the United States, to reestablish a competitive supply chain for rare 
 earth materials in the United States and countries that are allies of 
               the United States, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           December 15, 2010

  Mr. Bayh (for himself and Mr. Bond) introduced the following bill; 
   which was read twice and referred to the Committee on Energy and 
                           Natural Resources

_______________________________________________________________________

                                 A BILL


 
 To promote exploration for and development of rare earth elements in 
 the United States, to reestablish a competitive supply chain for rare 
 earth materials in the United States and countries that are allies of 
               the United States, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    (a) Short Title.--This Act may be cited as the ``Rare Earths 
Supply-Chain Technology and Resources Transformation Act of 2010'' or 
the ``RESTART Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title.
Sec. 2. Findings.
Sec. 3. Statement of policy with respect to the reestablishment of a 
                            rare earth materials supply chain in the 
                            United States and countries that are allies 
                            of the United States.
Sec. 4. Definitions.
Sec. 5. Actions to promote exploration for and development of rare 
                            earth elements in the United States.
Sec. 6. Executive agents for matters related to the rare earth 
                            materials supply chain.
Sec. 7. Assessments related to rare earth supply chain vulnerability.
Sec. 8. Rare earth materials loan guarantee program.
Sec. 9. Rare earth materials program.
Sec. 10. Defense-related manufacturing of rare earth materials.
Sec. 11. Study on cooperative development of production of and supply 
                            chain for rare earth materials in the 
                            United States.
Sec. 12. Restrictions on use of appropriated funds.
Sec. 13. Amendments to the National Materials and Minerals Policy, 
                            Research and Development Act of 1980.
Sec. 14. Repeal of National Critical Materials Act of 1984.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) Significant quantities of rare earth elements are used 
        in the production of clean energy technologies, including 
        advanced automotive propulsion batteries, electric motors, 
        high-efficiency light bulbs, solar panels, and wind turbines. 
        These technologies are used to advance the United States energy 
        policy of reducing dependence on foreign oil and decreasing 
        greenhouse gas emissions through expansion of cleaner sources 
        of energy.
            (2) Many modern defense technologies, such as radar and 
        sonar systems, precision-guided weapons, cruise missiles, and 
        lasers, cannot be built, as designed and specified, without the 
        use of rare earth elements and materials produced from them.
            (3) Rare earth materials also provide core functionality to 
        a variety of high technology applications in computing, 
        pollution abatement, power generation, water treatment, oil 
        refining, metal alloying, communications, health care, 
        agriculture, and other sectors.
            (4) Although at least 40 percent of the world's reserves of 
        rare earth elements are located within the United States and 
        countries that are allies of the United States, the United 
        States now depends on imports for nearly 100 percent of its 
        needs for rare earth materials because there are virtually no 
        active producers of rare earth materials in the United States.
            (5) The United States remains nearly entirely dependent on 
        overseas refineries for elemental and alloy processing of rare 
        earth elements and does not currently maintain a ``strategic 
        reserve'' of rare earth compounds, metals, or alloys.
            (6) By way of contrast, more than 97 percent of all rare 
        earth materials for world consumption are produced in the 
        People's Republic of China. The ability and willingness of 
        China to export rare earth materials is eroding due to the 
        growing demand for such materials in China, the enforcement of 
        environmental laws on current producers by the Government of 
        China, and the mandate of the Government of China to 
        consolidate the rare earth materials industry by decreasing the 
        number of mining permits.
            (7) The Government of China has taken several steps 
        recently that have caused significant perturbations in the 
        market for rare earth materials. For example, the draft rare 
        earth materials plan for 2009 to 2015 of the Ministry of 
        Industry and Information Technology of China proposed an 
        immediate ban on the exportation of dysprosium, terbium, 
        thulium, lutetium, and yttrium, the so-called ``heavy'' rare 
        earth elements, and a restriction on the exportation of all 
        other, light, rare earth metals to a level well below that 
        sufficient to satisfy the 2008 demand of Japan alone for such 
        metals.
            (8) In July 2010, the Government of China decreased the 
        export quota allocations for rare earth oxides and metals by 
        more than 70 percent, causing price increases of three to eight 
        times and causing supply shortages of some materials.
            (9) In September 2010, the Government of China reportedly 
        restricted the exportation of all rare earth oxides and metals 
        to Japan over a diplomatic incident.
            (10) In October 2010, the Government of China reportedly 
        restricted the exportation of all rare earth oxides and metals 
        to the United States and Europe, essentially cutting off the 
        global community from supplies of rare earth materials.
            (11) Given that the dominance of the rare earth materials 
        market by China has adversely impacted the stability of the 
        supply of such materials and endangers the access of the United 
        States and allies of the United States to such materials, rare 
        earth materials should qualify as materials either strategic or 
        critical to national security.
            (12) As such, there is an urgent need to identify and 
        assess the current global market situation with respect to rare 
        earth materials, the strategic value placed on rare earth 
        materials by foreign countries including China, and the 
        vulnerability of the supply chains of the Department of Defense 
        and the domestic manufacturing industry for rare earth elements 
        and products containing rare earth elements, such as neodymium 
        iron boron and other specialty magnets and rare earth ``doped'' 
        lasers.
            (13) The United States should facilitate the 
        reestablishment of a globally competitive rare earth materials 
        industry, in countries other than China, with multiple sources 
        of mining, processing, alloying, and manufacturing to achieve 
        self-sufficiency with respect to the production of rare earth 
        materials.
            (14) That self-sufficiency requires an uninterrupted supply 
        of strategic materials critical to national security and 
        innovative commercial product development, including with 
        respect to rare earth materials, to support the clean energy 
        and defense supply chains.
            (15) The United States currently cannot produce valuable 
        rare earth materials and permanent magnets. The capability to 
        do so should be explored using appropriate research and 
        development projects.

SEC. 3. STATEMENT OF POLICY WITH RESPECT TO THE REESTABLISHMENT OF A 
              RARE EARTH MATERIALS SUPPLY CHAIN IN THE UNITED STATES 
              AND COUNTRIES THAT ARE ALLIES OF THE UNITED STATES.

    It is the policy of the United States--
            (1) to take any and all actions necessary to ensure the 
        reestablishment of a competitive supply chain for rare earth 
        materials in the United States and in countries that are allies 
        of the United States; and
            (2) that such a supply chain should include the capacity to 
        conduct mining, refining, processing, alloying, and 
        manufacturing operations using suppliers in the United States 
        and countries that are allies of the United States to provide a 
        secure source of rare earth materials as a vital component of 
        national security and economic policy.

SEC. 4. DEFINITIONS.

    In this Act:
            (1) Alloy.--The term ``alloy'' means a partial or complete 
        solid solution of one or more elements in a metallic matrix.
            (2) Alloying.--The term ``alloying'' means the melting of 
        metal to create a metallic matrix.
            (3) Clean energy technology.--The term ``clean energy 
        technology'' means a technology related to the production, use, 
        transmission, storage, control, or conservation of energy that 
        is designed to--
                    (A) reduce the need for additional energy supplies 
                by--
                            (i) using existing energy supplies with 
                        greater efficiency; or
                            (ii) transmitting, distributing, or 
                        transporting energy with greater effectiveness 
                        through the infrastructure of a country;
                    (B) diversify the sources of the energy supply of a 
                country--
                            (i) to strengthen energy security; and
                            (ii) to increase supplies of energy in a 
                        manner that reflects consideration of the 
                        environmental effects of the entire energy 
                        supply system; or
                    (C) contribute to a stabilization of atmospheric 
                greenhouse gas concentrations through reduction, 
                avoidance, or sequestration of energy-related 
                emissions.
            (4) Process.--The term ``process'', in the case of a rare 
        earth oxide, means the conversion of the oxide into usable rare 
        earth metals and specialty alloys and powders for domestic 
        magnet and other manufacturing.
            (5) Rare earth.--The term ``rare earth'' means any of the 
        following chemical elements in any of their physical forms or 
        chemical combinations:
                    (A) Scandium.
                    (B) Yttrium.
                    (C) Lanthanum.
                    (D) Cerium.
                    (E) Praseodymium.
                    (F) Neodymium.
                    (G) Promethium.
                    (H) Samarium.
                    (I) Europium.
                    (J) Gadolinium.
                    (K) Terbium.
                    (L) Dysprosium.
                    (M) Holmium.
                    (N) Erbium.
                    (O) Thulium.
                    (P) Ytterbium.
                    (Q) Lutetium.
            (6) Refine.--The term ``refine'', in the case of a rare 
        earth element extracted from rock, means the separation and 
        purification of the rare earth element to commercial grades of 
        oxides or other salts such as oxalates or chlorides.

SEC. 5. ACTIONS TO PROMOTE EXPLORATION FOR AND DEVELOPMENT OF RARE 
              EARTH ELEMENTS IN THE UNITED STATES.

    (a) Policy.--It is the policy of the United States that each 
Federal agency shall take appropriate actions, to the extent consistent 
with applicable law, to expedite permitting and projects that will 
increase exploration for, and development of, rare earth elements in 
the United States.
    (b) Rare Earth Policy Task Force.--
            (1) Establishment.--There is established within the 
        Department of the Interior a task force to be known as the 
        ``Rare Earth Policy Task Force'' (in this section referred to 
        as the ``Task Force''), which shall report to the President 
        through the Secretary of the Interior.
            (2) Composition.--The Task Force shall be composed of the 
        following:
                    (A) The Secretary of the Interior (or a designee), 
                who shall serve as chair of the Task Force.
                    (B) The Secretary of Energy (or a designee).
                    (C) The Secretary of Agriculture (or a designee).
                    (D) The Secretary of Defense (or a designee).
                    (E) The Secretary of Commerce (or a designee).
                    (F) The Secretary of State (or a designee).
                    (G) The Director of the Office of Management and 
                Budget (or a designee).
                    (H) The Chairman of the Council on Environmental 
                Quality (or a designee).
                    (I) Such other members as the Secretary of the 
                Interior considers appropriate.
    (c) Duties.--The Task Force shall--
            (1) monitor and assist Federal agencies in expediting the 
        review and approval of permits or other actions, as necessary, 
        to accelerate the completion of projects that will increase 
        investment in, exploration for, and development of domestic 
        rare earth elements pursuant to the Federal Land Policy and 
        Management Act of 1976 (43 U.S.C. 1701 et seq.), the Act of 
        June 4, 1897 (commonly known as the ``Organic Act of 1897'' (16 
        U.S.C. 473-482, 551)), the National Forest Management Act of 
        1976 (16 U.S.C. 1600 et seq.), and any other applicable 
        statutory authorities related to domestic mining operations;
            (2) assist Federal agencies in reviewing laws (including 
        regulations) and policies that discourage investment in, 
        exploration for, and development of domestic rare earth 
        elements pursuant to Federal Land Policy and Management Act of 
        1976, the Act of June 4, 1897, the National Forest Management 
        Act of 1976, and any other applicable statutory authorities 
        related to domestic mining operations; and
            (3) take such other actions to otherwise increase 
        investment in, exploration for, and development of domestic 
        rare earth elements as the Task Force considers appropriate.
    (d) Annual Reports.--At least once each year, the Task Force shall 
submit to the President, the Committee on Natural Resources of the 
Senate, the Committee on Energy and Commerce of the House of 
Representatives, and the Committee on Natural Resources of the House of 
Representatives a report setting forth the following:
            (1) A description of the results of the coordinated and 
        expedited review of permits or other actions to promote 
        investment in, exploration for, and development of domestic 
        rare earth elements, and an identification of the procedures 
        and actions that have proven to be the most useful and 
        appropriate in coordinating and expediting the review of 
        projects that will increase investment in, exploration for, and 
        development of domestic rare earth elements.
            (2) An identification of the substantive and procedural 
        requirements of Federal, State, tribal, and local laws 
        (including regulations) and Executive orders that are 
        inconsistent with, duplicative of, or structured so as to 
        restrict effective implementation of the projects described in 
        paragraph (1).
            (3) Such recommendations as the Task Force considers 
        appropriate to advance the policy set forth in subsection (a).
    (e) Judicial Review.--
            (1) In general.--Nothing in this section shall be construed 
        to affect any judicial review of an agency action under any 
        other provision of law.
            (2) Construction.--This section--
                    (A) is intended to improve the internal management 
                of the Federal Government; and
                    (B) does not create any right or benefit, 
                substantive or procedural, enforceable at law or equity 
                by a party against the United States (including an 
                agency, instrumentality, officer, or employee of the 
                United States) or any other person.

SEC. 6. EXECUTIVE AGENTS FOR MATTERS RELATED TO THE RARE EARTH 
              MATERIALS SUPPLY CHAIN.

    (a) Establishment.--Not later than 30 days after the date of the 
enactment of this Act, the Secretary of Commerce, the Secretary of 
Defense, the Secretary of Energy, the Secretary of the Interior, and 
the Secretary of State shall jointly establish an interagency working 
group for the purposes of reestablishing the production of, and a 
competitive supply chain for, rare earth materials in the United 
States.
    (b) Representatives of Executive Departments.--
            (1) In general.--The Secretary of Commerce, the Secretary 
        of Defense, the Secretary of Energy, the Secretary of the 
        Interior, and the Secretary of State shall each appoint in the 
        department under the jurisdiction of such Secretary an 
        Executive Agent to serve as a representative on the interagency 
        working group established under subsection (a). Each Executive 
        Agent so appointed shall be an Assistant Secretary of the 
        department concerned.
            (2) Deadline for initial appointment of representatives.--
        The initial appointment under paragraph (1) of representatives 
        to the interagency working group established under subsection 
        (a) shall be made not later than 30 days after the date of the 
        enactment of this Act.

SEC. 7. ASSESSMENTS RELATED TO RARE EARTH SUPPLY CHAIN VULNERABILITY.

    (a) Report on Rare Earth Supply Chain Vulnerability.--
            (1) In general.--Not later than 180 days after the date of 
        the enactment of this Act, the Secretary of the Interior and 
        the Secretary of Energy shall jointly, in consultation with the 
        Secretary of Defense, the Secretary of Commerce, the Secretary 
        of State, and the United States Trade Representative--
                    (A) conduct an assessment of the vulnerability of 
                the supply chain for rare earth materials in the United 
                States; and
                    (B) determine pursuant to such assessment which 
                rare earth elements are critical to clean energy 
                technologies and the national and economic security of 
                the United States.
            (2) Submittal to congress.--
                    (A) In general.--Not later than 270 days after the 
                date of the enactment of this Act, the Secretary of the 
                Interior and the Secretary of Energy shall jointly 
                submit to Congress a report setting forth the results 
                of the assessment and the determinations under 
                paragraph (1).
                    (B) Form.--The report required by subparagraph (A) 
                shall be submitted in unclassified form.
    (b) Report on Establishment of a Rare Earth Stockpile.--Not later 
than one year after the date of the enactment of this Act, the 
Secretary of the Interior and the Secretary of Energy shall jointly, in 
consultation with the Secretary of Defense, the Secretary of Commerce, 
the Secretary of State, and the United States Trade Representative, 
submit to Congress a report setting forth the following:
            (1) A determination with respect to whether the rare earth 
        materials determined to be critical to clean energy 
        technologies and the national and economic security of the 
        United States pursuant to subsection (a)(1)(B) should be 
        procured and placed in a stockpile.
            (2) A description of legal authorities required to procure 
        and place in a stockpile the rare earth materials so determined 
        to be critical to clean energy technologies and the national 
        and economic security of the United States.
            (3) Recommendations on criteria and considerations 
        necessary to determine the commencement and termination of the 
        stockpiling of such materials.
            (4) Recommendations on criteria and considerations with 
        respect to the use of materials in the stockpile, such as in 
        instances of--
                    (A) the importation of rare earth materials into 
                the United States in violation of the antidumping or 
                countervailing duty provisions of title VII of the 
                Tariff Act of 1930 (19 U.S.C. 1671 et seq.); or
                    (B) other violations of the WTO Agreement or the 
                agreements annexed to the WTO Agreement by WTO member 
                countries with respect to the importation or 
                exportation of rare earth materials.
            (5) An assessment of the funding required, not including 
        the cost of the rare earth materials, to commence, operate, and 
        terminate the stockpiling of rare earth materials.
    (c) Definitions.--In this section:
            (1) Agreements annexed to the wto agreement.--The term 
        ``agreements annexed to the WTO Agreement'' means the 
        agreements referred to in section 101(d) of the Uruguay Round 
        Agreements Act (19 U.S.C. 3511(d)).
            (2) Stockpile.--The term ``stockpile'' means a strategic 
        reserve of rare earth oxides, and storable forms of rare earth 
        elements and alloys for purposes of clean energy technology and 
        the national and economic security of the United States.
            (3) WTO agreement; wto member country.--The terms ``WTO 
        Agreement'' and ``WTO member country'' have the meanings given 
        those terms in section 2 of the Uruguay Round Agreements Act 
        (19 U.S.C. 3501).

SEC. 8. RARE EARTH MATERIALS LOAN GUARANTEE PROGRAM.

    (a) Amendment.--Title XVII of the Energy Policy Act of 2005 (42 
U.S.C. 16511 et seq.) is amended by adding at the end the following:

``SEC. 1706. TEMPORARY PROGRAM FOR RARE EARTH MATERIALS REVITALIZATION.

    ``(a) Authority of Secretary.--
            ``(1) In general.--Subject to the availability of 
        appropriations, the Secretary may make guarantees under this 
        title for the commercial application of new or significantly 
        improved technologies (as compared to technologies in use in 
        the United States as of the date on which the guarantee is 
        made) for each project category described in paragraph (2).
            ``(2) Project categories.--A project category referred to 
        in paragraph (1) includes--
                    ``(A) the separation and recovery of rare earth 
                materials from ores or other sources;
                    ``(B) the preparation of rare earth materials in 
                oxide, metal, alloy, or other forms needed for--
                            ``(i) national security purposes;
                            ``(ii) the economic well-being of the 
                        United States; or
                            ``(iii) industrial production purposes;
                    ``(C) the application of rare earth materials in 
                the production of improved--
                            ``(i) magnets;
                            ``(ii) batteries;
                            ``(iii) refrigeration systems;
                            ``(iv) optical systems;
                            ``(v) electronics;
                            ``(vi) catalysis; and
                            ``(vii) applications that the Secretary 
                        determines to be necessary; and
                    ``(D) the application of rare earth materials in 
                any other appropriate use, as determined by the 
                Secretary.
    ``(b) Timeliness.--To the maximum extent practicable, in a manner 
that is consistent with the appropriate protection of the interests of 
the taxpayers of the United States, the Secretary shall minimize any 
delay in approving applications for loan guarantees under this section.
    ``(c) Cooperation.--To the maximum extent practicable, the 
Secretary shall cooperate with appropriate private sector participants 
to achieve a complete rare earth materials production capability in the 
United States by the date that is 5 years after the date of enactment 
of the Rare Earths and Critical Materials Revitalization Act of 2010.
    ``(d) Limitations.--The Secretary may make a guarantee for a 
project described in subsection (a)(2) only if the project, due to 
technical or financial uncertainly, is not, as of the date of receipt 
of the application for the guarantee--
            ``(1) being undertaken by the private sector; or
            ``(2) likely to be undertaken by the private sector.
    ``(e) Termination of Authority.--The authority provided by this 
section shall terminate on September 30, 2015.''.
    (b) Table of Contents Amendment.--The table of contents in section 
1(b) of the Energy Policy Act of 2005 (Public Law 109-58; 119 Stat. 
594) is amended by inserting after the item relating to section 1705 
the following:

``Sec. 1706. Temporary program for rare earth materials 
                            revitalization.''.

SEC. 9. RARE EARTH MATERIALS PROGRAM.

    (a) Definitions.--In this section:
            (1) Institution of higher education.--The term 
        ``institution of higher education'' has the meaning given the 
        term in section 102 of the Higher Education Act of 1965 (20 
        U.S.C. 1002).
            (2) Program.--The term ``program'' means a program for the 
        research, development, demonstration, and commercial 
        application of rare earth materials established by subsection 
        (b).
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
    (b) Establishment.--There is established in the Department of 
Energy a program to ensure the long-term, secure, and sustainable 
supply of rare earth materials in quantities that are sufficient to 
satisfy the national security, economic well-being, and industrial 
production needs of the United States.
    (c) Program Activities.--In carrying out the program, the Secretary 
shall support activities--
            (1) to better characterize and quantify virgin stocks of 
        rare earth materials using theoretical geochemical research;
            (2) to explore, discover, and recover rare earth materials 
        using advanced science and technology;
            (3) to improve methods for the extraction, processing, use, 
        recovery, and recycling of rare earth materials;
            (4) to improve the understanding of the performance, 
        processing, and adaptability in engineering designs of rare 
        earth materials;
            (5) to identify and test alternative materials that could 
        be substituted for rare earth materials in particular 
        applications;
            (6) to engineer and test applications that--
                    (A) use recycled rare earth materials;
                    (B) use alternative materials; or
                    (C) seek to minimize rare earth materials content;
            (7) to collect, catalogue, archive, and disseminate 
        information on rare earth materials, including scientific and 
        technical data generated by the research and development 
        activities supported under this section;
            (8) to assist scientists and engineers in making the 
        fullest possible use of the data holdings described in 
        paragraph (7);
            (9) to facilitate information-sharing and collaboration 
        among program participants and stakeholders; and
            (10) to assess, and subsequently provide for, the 
        appropriate protection of intellectual property regarding 
        research, processing, and use of rare earth materials, 
        including--
                    (A) applications in magnetic materials and 
                catalysts;
                    (B) processing of proprietary materials; and
                    (C) techniques used in solvent extraction.
    (d) Improved Processes and Technologies.--To the maximum extent 
practicable, the Secretary shall support new or significantly improved 
processes and technologies as compared to processes and technologies, 
as of the date of enactment of this Act, that are in use in the rare 
earth materials industry.
    (e) Expansion of Participation.--In carrying out the program, the 
Secretary shall encourage--
            (1) multidisciplinary collaborations among program 
        participants; and
            (2) extensive opportunities for students at institutions of 
        higher education, including each institution described in 
        section 371(a) of the Higher Education Act of 1965 (20 U.S.C. 
        1067q(a)).
    (f) Consistency.--The Secretary shall carry out the program in a 
manner consistent with the each policy and program described in the 
National Materials and Minerals Policy, Research and Development Act of 
1980 (30 U.S.C. 1601 et seq.).
    (g) International Collaboration.--To the maximum extent 
practicable, in carrying out the program, the Secretary may collaborate 
on activities of mutual interest with any relevant agency of a foreign 
country that has an interest relating to rare earth materials.
    (h) Plan.--
            (1) In general.--Not later than 180 days after the date of 
        enactment of this Act and biennially thereafter, in accordance 
        with paragraph (2), the Secretary shall prepare and submit to 
        the appropriate committees of Congress a plan that contains a 
        description of, for the period covered by the plan, the manner 
        by which carry out the program.
            (2) Specific requirements.--A plan described in paragraph 
        (1) shall contain a description of--
                    (A) for the 2-year period beginning on the date of 
                submission of the plan, the research and development 
                activities to be carried out under the program;
                    (B) the expected contributions of the program to 
                the creation of innovative methods and technologies for 
                the efficient and sustainable provision of rare earth 
                materials to the domestic economy of the United States;
                    (C) the criteria to be used to evaluate 
                applications for loan guarantees under section 1706 of 
                the Energy Policy Act of 2005;
                    (D) any project that receives loan guarantee 
                support under section 1706 of the Energy Policy Act of 
                2005 (including the status of the project);
                    (E) the manner by which the program promotes the 
                broadest possible participation by academic, 
                industrial, and other contributors; and
                    (F)(i) each action taken or proposed that reflects 
                recommendations from the assessment conducted under 
                subsection (i); or
                    (ii) the rationale of the Secretary for not taking 
                action pursuant to any recommendation of an assessment 
                under subsection (i) for a plan submitted following the 
                completion of an assessment.
            (3) Consultation.--In preparing each plan under paragraph 
        (1), the Secretary shall consult with--
                    (A) appropriate representatives of industry;
                    (B) institutions of higher education;
                    (C) National Laboratories;
                    (D) professional and technical societies; and
                    (E) other appropriate entities, as determined by 
                the Secretary.
    (i) Assessment.--
            (1) In general.--On the date on which the Secretary has 
        carried out the program for 4 years, the Secretary shall offer 
        to enter into an arrangement with the National Academy of 
        Sciences under which the Academy shall conduct an assessment of 
        the program.
            (2) Inclusions.--The assessment described in paragraph (1) 
        shall include--
                    (A)(i) the recommendation of the National Academy 
                of Sciences that the program should be continued; and
                    (ii) a description of any program improvement that 
                the Academy determines to be necessary; or
                    (B)(i) the recommendation of the National Academy 
                of Sciences that the program should be terminated; and
                    (ii) a description of each lesson learned from the 
                conduct of the program.
            (3) Availability.--Upon completion, the assessment 
        described in paragraph (1) shall be made available to--
                    (A) the appropriate committees of Congress; and
                    (B) the public.

SEC. 10. DEFENSE-RELATED MANUFACTURING OF RARE EARTH MATERIALS.

    (a) Sense of Congress.--It is the sense of Congress that--
            (1) the capability to produce rare earth materials is the 
        backbone of both the defense and energy supply chains;
            (2) the United States lacks sufficient capability to 
        produce rare earth materials;
            (3) there is an urgent need to reestablish a supply chain 
        in the United States for processing rare earth oxides into 
        metals and rare earth magnets; and
            (4) that urgency warrants the exercise of the authority of 
        the President under title I of the Defense Production Act of 
        1950 (50 U.S.C. App. 2071 et seq.) to support the 
        reestablishment of the capability to produce rare earth 
        materials and the supply chain described in paragraph (3) to 
        meet a deficiency in the defense industrial base and renewable 
        energy sectors of the United States.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary to provide loans or loan 
guarantees under title III of the Defense Production Act of 1950 (50 
U.S.C. App. 2091 et seq.) for which the total loan principal does not 
exceed--
            (1) $20,000,000 in the case of projects for the 
        establishment of a supply chain in the United States for 
        processing rare earth oxides into metals, into alloys, and into 
        powders; and
            (2) $30,000,000 in the case of projects for the 
        establishment of the capability to produce sintered domestic 
        neodymium iron boron magnets.
    (c) Report.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary of Defense shall submit to 
Congress a report describing past, current, and future projects for 
which loans or loan guarantees are provided under title III of the 
Defense Production Act of 1950 to support the reestablishment of a rare 
earth materials supply chain in the United States. If no such project 
is in process or planned as of the date of the report, the report shall 
include a justification for the lack of such projects, particularly the 
lack of projects to establish or support production capability in the 
United States in critical segments of the rare earth materials market.

SEC. 11. STUDY ON COOPERATIVE DEVELOPMENT OF PRODUCTION OF AND SUPPLY 
              CHAIN FOR RARE EARTH MATERIALS IN THE UNITED STATES.

    (a) Findings.--Congress makes the following findings:
            (1) It may not be possible for the United States to depend 
        on any single producer of rare earth materials to supply the 
        production and supply chain requirements necessary for the 
        national security and industrial development of the United 
        States.
            (2) It is also not reasonable to expect any one producer of 
        rare earth materials to overcome the challenges posed by the 
        monopoly in the rare earth materials market sponsored by the 
        Government of the People's Republic of China.
            (3) Therefore, a cooperative effort, involving several 
        producers of rare earth materials, should be considered as a 
        collaborative approach to leverage the resources of the United 
        States and countries that are allies of the United States.
    (b) Study Required.--The Secretary of the Interior and the 
Secretary of Energy shall jointly, in consultation with the Secretary 
of Defense, the Secretary of Commerce, the Secretary of State, and the 
United States Trade Representative, conduct a study to determine the 
feasibility and effectiveness of using a cooperative structure 
involving multiple producers of rare earth materials to reestablish the 
production of, and a supply chain for, rare earth materials in the 
United States.
    (c) Elements.--The study required by subsection (b) shall include 
an assessment of the following:
            (1) Whether establishing a cooperative involving multiple 
        producers of rare earth materials to reestablish the production 
        of, and a supply chain for, rare earth materials in the United 
        States would be in the national security and industrial 
        development interests of the United States, including by--
                    (A) resulting in improved heavy rare earth elements 
                distribution values for a cooperative refinery 
                described in paragraph (3); and
                    (B) creating depth in the supply chain for rare 
                earth materials.
            (2) The qualifications necessary for a producer of rare 
        earth materials to participate in the cooperative described in 
        paragraph (1), such as whether such a producer should be--
                    (A) permitted, based, and owned in the United 
                States;
                    (B) capable of producing both heavy and light rare 
                earth elements; or
                    (C) eligible for any of the loan guarantee programs 
                described in paragraph (3).
            (3) How existing programs could be used to facilitate the 
        establishment of a national cooperative rare earth refinery by 
        providing financing to rare earth elements mines that are owned 
        and permitted in the United States, such as through--
                    (A) loan guarantees under title III of the Defense 
                Production Act of 1950 (50 U.S.C. App. 2091 et seq.) or 
                section 1706 of the Energy Policy Act of 2005, as added 
                by section 8 of this Act; or
                    (B) funds in the National Defense Stockpile 
                Transaction Fund under section 9 of the Strategic and 
                Critical Materials Stock Piling Act (50 U.S.C. 98h).
            (4) The areas of knowledge, expertise, and skill that would 
        be necessary to the success of a cooperative refinery described 
        in paragraph (3), such as--
                    (A) production of rare earth elemental oxides and 
                metals from rare earth concentrates;
                    (B) production of any companion materials such as 
                tellurium, vanadium, cobalt, thorium, or other 
                strategic materials and metals; and
                    (C) development and use of ``front end'' processes 
                required by certain rare earth concentrates and use of 
                ``back end'' processes for rare earth oxides.
            (5) Other characteristics necessary to the success of the 
        refinery, such as the ability and willingness to purchase rare 
        earth concentrates from producers that participate in the 
        cooperative described in paragraph (1) and producers that do 
        not participate in the cooperative.
            (6) How to allow the participation in the cooperative of 
        producers of rare earth materials from countries that are 
        allies of the United States, such as through direct investment 
        by such producers in the cooperative refinery described in 
        paragraph (3).
            (7) The advisability of establishing a special advisory 
        board to ensure that the cooperative meets the national 
        security and industrial development needs of the United States, 
        consisting of representatives of the producers participating in 
        the cooperative, the United States Geological Survey, the 
        Society of Mining, Metallurgy and Exploration, the Department 
        of Defense (including representation with respect to the 
        National Defense Stockpile), the Department of Energy, and 
        other appropriate Federal agencies and nongovernmental 
        organizations.
            (8) The advisability of providing the special advisory 
        board described in paragraph (7) with authority to expend funds 
        in the National Defense Stockpile Transaction Fund under 
        section 9 of the Strategic and Critical Materials Stock Piling 
        Act (50 U.S.C. 98h) for the development of the cooperative.
            (9) Whether the cooperative could increase the viability of 
        the supply chain for rare earth materials in the United States 
        and countries that are allies of the United States by providing 
        or participating in pre-feasibility and exploration funding for 
        promising rare earth mining companies.
            (10) The feasibility and desirability of establishing a 
        design and prototype team at an organization that may 
        participate in the cooperative, such as a institution of higher 
        education, to provide technology transfer services to 
        participants in the cooperative.
            (11) The funds necessary to establish the cooperative and 
        the advisability of selling materials in a stockpile of rare 
        earth materials as described in section 7(b), if such a 
        stockpile is established, to maintain the financial integrity 
        of the cooperative, if necessary.
    (d) Report.--Not later than one year after the date of the 
enactment of this Act, the Secretary of the Interior and the Secretary 
of Energy shall jointly submit to Congress a report on the results of 
the study required by subsection (b).

SEC. 12. RESTRICTIONS ON USE OF APPROPRIATED FUNDS.

    A person that receives funds appropriated by Congress for the 
purpose of supporting the reestablishment of the production of, and a 
supply chain for, rare earth materials in the United States, as 
described in this Act--
            (1) may not sell or otherwise transfer any resources or 
        assets purchased, in whole or in part, using such funds to a 
        foreign-owned or controlled entity without the concurrence of 
        the Secretary of Energy, the Secretary of Defense, the 
        Secretary of State, and the Secretary of Commerce; and
            (2) shall be subject to the provisions of section 2538 of 
        title 10, United States Code, in the utilization of such funds, 
        including with respect to any rare earth materials sold by the 
        person.

SEC. 13. AMENDMENTS TO THE NATIONAL MATERIALS AND MINERALS POLICY, 
              RESEARCH AND DEVELOPMENT ACT OF 1980.

    (a) Policy.--Section 3 of the National Materials and Minerals 
Policy, Research and Development Act of 1980 (30 U.S.C. 1602) is 
amended--
            (1) in the first sentence, by striking ``The Congress 
        declares that it'' and inserting ``It''; and
            (2) in the second sentence, by striking ``The Congress 
        further declares that implementation'' and inserting 
        ``Implementation''.
    (b) Implementation.--Section 4 of the National Materials and 
Minerals Policy, Research and Development Act of 1980 (30 U.S.C. 1603) 
is amended--
            (1) by striking ``For the purpose'' and all that follows 
        through ``declares that the'' and inserting ``The''; and
            (2) by striking ``departments and agencies,'' and inserting 
        ``departments and agencies to implement the policies described 
        in section 3''.
    (c) Program Plan.--Section 5 of the National Materials and Minerals 
Policy, Research and Development Act of 1980 (30 U.S.C. 1604) is 
amended--
            (1) by striking ``date of enactment of this Act'' each 
        place it appears and inserting ``date of enactment of the Rare 
        Earths and Critical Materials Revitalization Act of 2010'';
            (2) in subsection (b)(1), by striking ``Federal 
        Coordinating Council for Science, Engineering, and Technology'' 
        and inserting ``National Science and Technology Council,'';
            (3) in subsection (c)--
                    (A) in the matter preceding paragraph (1)--
                            (i) by striking ``the Federal Emergency'' 
                        and all that follows through ``Agency, and''; 
                        and
                            (ii) by striking ``appropriate shall'' and 
                        inserting ``appropriate, shall'';
                    (B) by striking paragraph (1);
                    (C) by redesignating paragraph (2) as paragraph 
                (1);
                    (D) in paragraph (1) (as redesignated by 
                subparagraph (C)), by striking ``in the case'' and all 
                that follows through ``subsection, and which''; and
                    (E) by striking paragraph (3) and inserting the 
                following:
            ``(2) assess the adequacy, accessibility, and stability of 
        the supply of materials necessary to maintain national 
        security, economic well-being, and industrial production.'';
            (4) by striking subsections (d) and (e); and
            (5) by redesignating subsection (f) as subsection (d).

SEC. 14. REPEAL OF NATIONAL CRITICAL MATERIALS ACT OF 1984.

    Title II of Public Law 98-373 (30 U.S.C. 1801 et seq.) is repealed.
                                 <all>