1.
(a)This Act may be cited
as the Rare Earths Supply-Chain
Technology and Resources Transformation Act of 2010
or
the RESTART
Act
.
(b)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.
2.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.
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
StatesIt 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.
4.In this Act:
(1)The
term alloy means a partial or complete solid solution of one or
more elements in a metallic matrix.
(2)The
term alloying means the melting of metal to create a metallic
matrix.
(3)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)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)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)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.
5.Actions to
promote exploration for and development of rare earth elements in the United
States
(a)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)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)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)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)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)
(1)Nothing in this section shall be construed to affect any
judicial review of an agency action under any other provision of law.
(2)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.
6.Executive agents
for matters related to the rare earth materials supply chain
(a)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)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 representativesThe 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.
7.Assessments
related to rare earth supply chain vulnerability
(a)Report on rare
earth supply chain vulnerability
(1)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)
(A)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)The
report required by subparagraph (A) shall be submitted in unclassified
form.
(b)Report on
establishment of a rare earth stockpileNot 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)In
this section:
(1)Agreements
annexed to the WTO AgreementThe 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)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 countryThe 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).
8.Rare earth
materials loan guarantee program
(a)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:
1706.Temporary
program for rare earth materials revitalization
(a)
(1)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)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)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)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)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)The authority provided by this section shall terminate
on September 30,
2015.
.
(b)Table of
contents amendmentThe 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.
.
9.Rare earth
materials program
(a)In
this section:
(1)Institution of
higher educationThe 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)The
term program means a program for the research, development,
demonstration, and commercial application of rare earth materials established
by subsection (b).
(3)The
term Secretary means the Secretary of Energy.
(b)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)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 technologiesTo 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
participationIn 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)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
collaborationTo 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)
(1)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)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)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)
(1)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)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)Upon
completion, the assessment described in paragraph (1) shall be made available
to—
(A)the appropriate
committees of Congress; and
(B)the
public.
10.Defense-related
manufacturing of rare earth materials
(a)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 appropriationsThere 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)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.
11.Study on
cooperative development of production of and supply chain for rare earth
materials in the United States
(a)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)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)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)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).
12.Restrictions on
use of appropriated fundsA
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.
13.Amendments to
the National Materials and Minerals Policy, Research and Development Act of
1980
(a)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)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)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).
14.Repeal of
National Critical Materials Act of 1984Title II of Public Law 98–373 (30 U.S.C.
1801 et seq.) is repealed.