[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1388 Introduced in House (IH)]
112th CONGRESS
1st Session
H. R. 1388
To reestablish a competitive domestic rare earths minerals production
industry; a domestic rare earth processing, refining, purification, and
metals production industry; a domestic rare earth metals alloying
industry; and a domestic rare-earth-based magnet production industry
and supply chain in the Defense Logistics Agency of the Department of
Defense.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 6, 2011
Mr. Coffman of Colorado (for himself, Mr. Peters, Mr. Latta, Mrs.
Lummis, and Mrs. McMorris Rodgers) introduced the following bill; which
was referred to the Committee on Science, Space, and Technology, and in
addition to the Committees on Natural Resources and Armed Services, for
a period to be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the
committee concerned
_______________________________________________________________________
A BILL
To reestablish a competitive domestic rare earths minerals production
industry; a domestic rare earth processing, refining, purification, and
metals production industry; a domestic rare earth metals alloying
industry; and a domestic rare-earth-based magnet production industry
and supply chain in the Defense Logistics Agency of the Department of
Defense.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Rare Earths Supply
Chain Technology and Resources Transformation Act of 2011'' or the
``RESTART Act''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Actions to promote rare earth development.
Sec. 4. Requirement to establish executive agents for rare earth
related matters.
Sec. 5. Rare earth materials loan guarantee program.
Sec. 6. Establishment of a rare earth alloy and magnet program.
Sec. 7. Rare earth materials program.
Sec. 8. Amendments to National Materials and Minerals Policy, Research
and Development Act of 1980.
Sec. 9. Definitions.
SEC. 2. FINDINGS.
Congress makes the following findings:
(1) Significant quantities of rare earths 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 earths and materials produced from them.
(3) Rare earths 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) Though at least 40 percent of the world's rare earth
reserves are located within the United States and its ally
nations, our country now depends upon imports for nearly 100
percent of its rare earth needs.
(5) Furthermore, the United States has limited rare earth
production, remains nearly entirely dependent on overseas
refineries for further elemental and alloy processing, 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
earths for world consumption is produced in China. The
ability--and willingness--of China to export these rare earths
is eroding due to its growing domestic demand, its enforcement
of environmental law on current producers, and its mandate to
consolidate the industry by decreasing its number of mining
permits. In fact, China has taken several steps recently that
have caused significant market perturbations.
(7) For example, the Chinese Ministry of Industry and
Information Technology draft rare earths plan for 2009 to 2015
proposed an immediate ban on the export of dysprosium, terbium,
thulium, lutetium, and yttrium, the so-called ``heavy'' rare
earths, and a restriction on the exports 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) More recently, in July 2010, China decreased their
export quota allocations on rare earth oxides and metals by
over 70 percent, causing price increases of threefold to
eightfold and causing supply shortages of some materials.
(9) In September 2010, the Chinese Government reportedly
restricted export of all rare earth oxide and metal to Japan
over a diplomatic incident.
(10) Most recently, in October 2010, the Chinese Government
reportedly restricted export of all rare earth oxide and metal
to the United States and Europe, essentially cutting off the
global community from supplies of rare earth material.
(11) Given that Chinese dominance of the rare earths market
has adversely impacted the supply stability and endangers the
United States and its allies' assured access to key materials,
rare earths should qualify as materials either strategic or
critical to national security. As such, there is an urgent need
to identify the current global market situation regarding rare
earth materials, the strategic value placed on them by foreign
nations including China, and the Department of Defense's and
domestic manufacturing industry's supply-chain vulnerability
related to rare earths and end items containing rare earths
such as neodymium iron boron and other specialty magnets, and
rare earth ``doped'' lasers.
(12) The United States Government should facilitate the
reintroduction of a globally competitive non-Chinese rare earth
industry with multiple sources of mining, processing, alloying,
and manufacturing.
(13) This self-sufficiency requires an uninterrupted supply
of strategic materials critical to national security and
innovative commercial product development, including rare
earths, to support the clean energy and defense supply chains.
(14) The United States currently cannot reclaim valuable
rare earths and permanent magnets and such capability should be
explored using appropriate research and development projects.
SEC. 3. ACTIONS TO PROMOTE RARE EARTH DEVELOPMENT.
(a) Sense of Congress.--It is the sense of Congress that the United
States should take any and all actions necessary to ensure the
reintroduction of a competitive domestic and ally nation rare earth
supply chain, to include the reintroduction of the capacity to conduct
mining, refining/processing, alloying and manufacturing operations
using domestic and ally nation suppliers to provide a secure source of
rare earth materials as a vital component of national security and
economic policy.
(b) Policy.--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,
domestic rare earths.
(c) 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'' (referred to in this section
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 of
such Secretary), who shall serve as chair of the Task
Force.
(B) The Secretary of Energy (or a designee of such
Secretary).
(C) The Secretary of Agriculture (or a designee of
such Secretary).
(D) The Secretary of Defense (or a designee of such
Secretary).
(E) The Secretary of Commerce (or a designee of
such Secretary).
(F) The Secretary of State (or a designee of such
Secretary).
(G) The Director of the Office of Management and
Budget (or a designee of the Director).
(H) The Chairman of the Council on Environmental
Quality (or a designee of the Chairman).
(I) Such other members as the Secretary of the
Interior considers appropriate.
(d) 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 earths 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 earths
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 earths as the Task Force considers appropriate.
(e) Annual Reports.--At least once each year, the Task Force shall
submit to the President, the Committee on Energy and 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 earths, 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 earths.
(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 (b).
(f) Termination.--The Task Force shall terminate 10 years after the
date of the enactment of this Act.
(g) 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. 4. REQUIREMENT TO ESTABLISH EXECUTIVE AGENTS FOR RARE EARTH
RELATED MATTERS.
No later than 30 days after the enactment of this Act the
Secretaries of Commerce, Defense, Energy, the Interior, and State shall
each appoint an Executive Agent, at the Assistant Secretary level of
each affected agency, to serve as a representative on an interagency
working group for the purposes of reestablishing a competitive domestic
rare earth supply chain.
SEC. 5. 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 new
section:
``SEC. 1706. TEMPORARY PROGRAM FOR RARE EARTH MATERIALS REVITALIZATION.
``(a) In General.--The Secretary is authorized, only to the extent
provided in advance in a subsequent appropriations act, to make
guarantees under this title for the commercial application of new or
significantly improved technologies (compared to technologies currently
in use in the United States at the time the guarantee is issued) for
the following categories of projects:
``(1) The separation and recovery of rare earth materials
from ores or other sources.
``(2) The preparation of rare earth materials in oxide,
metal, alloy, or other forms needed for national security,
economic well-being, or industrial production purposes.
``(3) The application of rare earth materials in the
production of improved--
``(A) magnets;
``(B) batteries;
``(C) refrigeration systems;
``(D) optical systems;
``(E) electronics; and
``(F) catalysis.
``(4) The application of rare earth materials in other
uses, as determined by the Secretary.
``(b) Timeliness.--The Secretary shall seek to minimize delay in
approving loan guarantee applications, consistent with appropriate
protection of taxpayer interests.
``(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 or ally nations within 5 years after the date of
enactment of the Rare Earths Supply Chain Technology and Resources
Transformation Act of 2011.
``(d) Limitation.--The Secretary is authorized to make a guarantee
for a project under this section only if the project, due to technical
or financial uncertainly, is not--
``(1) currently being undertaken by the private sector; or
``(2) likely to be undertaken by the private sector.
``(e) Sunset.--The authority to enter into guarantees under this
section shall expire on September 30, 2015.''.
(b) Table of Contents Amendment.--The table of contents of the
Energy Policy Act of 2005 is amended by inserting after the item
relating to section 1705 the following new item:
``Sec. 1706. Temporary program for rare earth materials
revitalization.''.
SEC. 6. ESTABLISHMENT OF A RARE EARTH ALLOY AND MAGNET PROGRAM.
(a) Findings.--Congress finds the following:
(1) While the capability to produce rare earth materials,
including neodymium iron boron magnets (in this subsection
referred to as ``neo magnets''), is the backbone of the defense
supply chain, the United States lacks sufficient capability to
produce such materials.
(2) Sintered neo magnets are irreplaceable components of
critical military equipment, ranging from precision guided
munitions to stealth technology to electric drive ship
programs, and they allow systems within aircraft, tanks and
other vehicles, missile systems, and command and control
centers to withstand vibration, impact, and G-forces.
(3) Yet despite the essential nature of these magnets to
United States national security, the United States is
completely reliant on unreliable foreign sources that are
subject to interruption and disruption, based on actions or
events outside the control of the Federal Government.
(4) In addition, industry officials have noted that it will
take 3 to 5 years to develop a domestic neo magnet
manufacturing capability for the commercial market.
(5) In light of these facts, there is a clear national
security imperative to lay the groundwork immediately for
developing a supply chain in the United States that allows for
ready access to neodymium iron boron magnet alloys, dysprosium
iron alloys, and sintered neodymium iron boron magnets.
(b) Requirement To Establish an Inventory.--
(1) Establishment.--In accordance with section 15 of the
Strategic and Critical Materials Stock Piling Act (50 U.S.C.
98h-6), using funds from the sale of excess materials in the
National Defense Stockpile, the President, acting through the
Secretary of Defense, shall establish a neodymium iron boron
magnet alloy and dysprosium iron alloy inventory to be managed
by the Administrator of the Defense Logistics Agency Strategic
Materials.
(2) Sustaining the inventory.--In carrying out paragraph
(1), not later than one year after the date of the enactment of
this Act, the Secretary of Defense shall--
(A) commence creating an inventory of domestic or
ally nation neodymium iron boron magnet alloys and
dysprosium iron alloys; and
(B) make such inventory accessible, including by
purchase, to producers of domestic neodymium iron boron
magnets, the Defense Logistics Agency of the Department
of Defense, or other entities requiring such material
to support national defense requirements.
(3) Amount of materials.--
(A) Not later than 180 days after the date of the
enactment of this Act, the Secretary of Defense shall
determine the amount of neodymium iron boron magnet
alloys and dysprosium iron alloys required for the
inventory established under paragraph (1).
(B) In making the determination regarding neodymium
iron boron magnet alloys and dysprosium iron alloys
under subparagraph (A), the Secretary of Defense shall
determine--
(i) the aggregate demand for such magnets
for national defense purposes; and
(ii) domestic and ally nation sources
considered by the Secretary to be reliable,
including an analysis of the viability of such
sources for the near-term production of
military-specific sintered neodymium iron boron
magnet alloys and magnets.
(C) If the Secretary of Defense cannot determine
the aggregate demand for neodymium iron boron magnet
alloys and dysprosium iron alloys under subparagraph
(B)(i), the Secretary shall establish an inventory of
not less than 200 metric tons of neodymium iron boron
magnet alloy and 50 metric tons of dysprosium iron
alloy.
(c) Requirement To Encourage a Domestic Manufacturing Capability.--
(1) Encouragement.--In accordance with section 15 of the
Strategic and Critical Materials Stock Piling Act (50 U.S.C.
98h-6), not later than one year after the date of the enactment
of this Act, the President, acting through the Secretary of
Defense, shall encourage the development of a domestic
neodymium iron boron magnet manufacturing capability by seeking
to enter into long-term supply contracts for the delivery of
necessary grades of domestic neodymium iron boron magnets to
meet the demand of the Department of Defense.
(2) Requirements.--In carrying out paragraph (1), the
Secretary of Defense shall--
(A) identify one or more reliable producers,
potential producers, or past producers of sintered
neodymium iron boron magnets and seek to enter into a
long-term supply contract with such producer of such
magnets to support the national defense needs of the
United States;
(B) ensure that a sintered neodymium iron boron
magnet producer who is awarded any such long-term
contract establishes manufacturing capability for only
military-use magnets for sale to the National Defense
Stockpile;
(C) include all appropriate language in any such
contract to indemnify the producers regarding
intellectual property issues; and
(D) require the Administrator of the Defense
Logistics Agency Strategic Materials to make available
such magnets for purchase by Federal Government
contractors until the date on which the Secretary
determines that an alternate qualified domestic
supplier of sintered neodymium iron boron magnets
exists.
(d) Termination.--The authority under subsection (b) and the
authority to enter into a long-term supply contract under subsection
(c) shall terminate on the earlier of the following dates:
(1) The date on which the Secretary of Defense determines
that an alternate qualified domestic supplier of neodymium iron
boron magnet alloy and dysprosium iron alloy exists.
(2) October 1, 2018.
SEC. 7. RARE EARTH MATERIALS PROGRAM.
(a) In General.--There is established in the United States
Geological Survey a program of research, development, demonstration,
and commercial application to ensure the long-term, secure, and
sustainable supply of rare earth materials sufficient to satisfy the
national security, economic well-being, and industrial production needs
of the United States.
(b) Program Activities.--The program described in subsection (a)
shall support activities to--
(1) better characterize and quantify virgin stocks of rare
earth materials using theoretical geochemical research;
(2) explore, discover, and recover rare earth materials
using advanced science and technology;
(3) improve methods for the extraction, processing, use,
recovery, and recycling of rare earth materials;
(4) improve the understanding of the performance,
processing, and adaptability in engineering designs of rare
earth materials;
(5) identify and test alternative materials that can be
substituted for rare earth materials in particular
applications;
(6) 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) 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, and assist scientists
and engineers in making the fullest possible use of the data
holdings; and
(8) facilitate information sharing and collaboration among
program participants and stakeholders.
(c) Improved Processes and Technologies.--To the maximum extent
practicable, the Secretary of the Interior shall support new or
significantly improved processes and technologies as compared to those
currently in use in the rare earth materials industry.
(d) Expanding Participation.--The Secretary of the Interior shall
encourage--
(1) multidisciplinary collaborations among program
participants; and
(2) extensive opportunities for students at institutions of
higher education, including institutions listed under section
371(a) of the Higher Education Act of 1965 (20 U.S.C.
1067q(a)).
(e) Consistency.--The program shall be consistent with the policies
and programs in the National Materials and Minerals Policy, Research
and Development Act of 1980 (30 U.S.C. 1601 et seq.).
(f) International Collaboration.--In carrying out the program, the
Secretary of the Interior may collaborate, to the extent practicable,
on activities of mutual interest with the relevant agencies of foreign
countries with interests relating to rare earth materials.
(g) Plan.--
(1) In general.--Within 180 days after the date of
enactment of this Act and biennially thereafter, the Secretary
of the Interior shall prepare and submit to the appropriate
congressional committees a plan to carry out the program
established under subsection (a).
(2) Specific requirements.--The plan shall include a
description of--
(A) the research and development activities to be
carried out by the program during the subsequent 2
years;
(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;
(C) how the program is promoting the broadest
possible participation by academic, industrial, and
other contributors; and
(D) actions taken or proposed that reflect
recommendations from the assessment conducted under
subsection (h) or the Secretary's rationale for not
taking action pursuant to any recommendation from such
assessment for plans submitted following the completion
of the assessment under such subsection.
(3) Consultation.--In preparing each plan under paragraph
(1), the Secretary of the Interior shall consult with
appropriate representatives of industry, institutions of higher
education, Department of Energy national laboratories,
professional and technical societies, and other entities, as
determined by the Secretary.
SEC. 8. AMENDMENTS TO NATIONAL MATERIALS AND MINERALS POLICY, RESEARCH
AND DEVELOPMENT ACT OF 1980.
(a) 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 Supply Chain Technology and Resources Transformation Act
of 2011'';
(2) in subsection (b), by striking ``Federal Coordinating
Council for Science, Engineering, and Technology'' and
inserting ``National Science and Technology Council,'';
(3) in subsection (c)--
(A) by striking ``the Federal Emergency'' and all
that follows through ``Agency, and'';
(B) by striking ``appropriate shall'' and inserting
``appropriate, shall'';
(C) by striking paragraph (1);
(D) in paragraph (2), by striking ``in the case''
and all that follows through ``subsection,'';
(E) by redesignating paragraph (2) as paragraph
(1); and
(F) 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).
(b) Policy.--Section 3 of such Act (30 U.S.C. 1602) is amended--
(1) by striking ``The Congress declares that it'' and
inserting ``It''; and
(2) by striking ``The Congress further declares that
implementation'' and inserting ``Implementation''.
(c) Implementation.--Section 4 of such Act (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 set forth
in section 3''.
SEC. 9. DEFINITIONS.
In this Act:
(1) Alloy.--The terms ``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) Appropriate congressional committees.--The term
``appropriate congressional committees'' means the Committee on
Natural Resources of the House of Representatives and the
Committee Energy and Natural Resources of the Senate.
(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.
<all>