[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 2093 Introduced in Senate (IS)]

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116th CONGRESS
  1st Session
                                S. 2093

  To provide for the establishment of the Thorium-Bearing Rare Earth 
             Refinery Cooperative, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 11, 2019

   Mr. Rubio introduced the following bill; which was read twice and 
       referred to the Committee on Energy and Natural Resources

_______________________________________________________________________

                                 A BILL


 
  To provide for the establishment of the Thorium-Bearing Rare Earth 
             Refinery Cooperative, 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.

    This Act may be cited as the ``Rare Earth Cooperative 21st Century 
Manufacturing Act'' or the ``RE-Coop 21st Century Manufacturing Act''.

SEC. 2. FINDINGS; STATEMENT OF POLICY.

    (a) Findings.--Congress finds the following:
            (1) Rare earth elements are critical for advanced energy 
        technologies, national defense, and other commercial and 
        industrial applications.
            (2) The People's Republic of China (referred to in this 
        subsection as ``China'') has leveraged its monopoly control 
        over the rare earth value chain to force corporations from the 
        United States, Europe, Japan, and South Korea to transfer 
        manufacturing facilities, technology, and jobs to China in 
        exchange for secure supply contracts.
            (3) The increasingly aggressive mercantile behavior of 
        China has led to involuntary transfers of technology, 
        manufacturing, and jobs, which has resulted in onerous trade 
        imbalances with the United States and trading partners of the 
        United States.
            (4) The Comptroller General of the United States has 
        confirmed that the monopoly control of China over the rare 
        earth value chain has resulted in vulnerabilities in the 
        procurement of multiple United States weapons systems.
            (5) Direct links exist between rare earth mineralogy and 
        thorium.
            (6) Thorium is a radioactive element commonly associated 
        with the lanthanide elements in most rare earth deposits 
        located in the United States and elsewhere.
            (7) Regulations regarding thorium represent a barrier to 
        the development of a rare earth industry that is based in the 
        United States.
            (8) Meeting the strategic national interest objectives of 
        the United States and economic and environmental goals are best 
        achieved through the creation of a rare earth cooperative.
            (9) A rare earth cooperative could--
                    (A) greatly increase the production of rare earth 
                elements;
                    (B) ensure environmental safety; and
                    (C) lower the cost of the production and financial 
                risks faced by rare earth producers in the United 
                States.
            (10) Historically, agricultural and electric cooperatives 
        have stood as one of the greatest success stories of the United 
        States.
    (b) Statement of Policy.--It is the policy of the United States to 
advance domestic refining of rare earth elements and the safe storage 
of thorium in anticipation of the potential future industrial uses of 
thorium, including energy, because--
            (1) thorium has a mineralogical association with valuable 
        rare earth elements;
            (2) there is a great need to develop domestic refining 
        capacity to process domestic rare earth element deposits; and
            (3) the economy of the United States would benefit from the 
        rapid development and control of intellectual property relating 
        to the commercial development of technology utilizing thorium.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Actinide.--The term ``actinide'' means a natural 
        element associated with any of the series of 15 metallic 
        elements between actinium, with atomic number 89, and 
        lawrencium, with atomic number 103, on the periodic table.
            (2) Cooperative.--The term ``Cooperative'' means the 
        Thorium-Bearing Rare Earth Refinery Cooperative established 
        under section 4(a).
            (3) Corporation.--The term ``Corporation'' means the 
        Thorium Storage, Energy, and Industrial Products Corporation 
        established under section 5(a).
            (4) National laboratory.--The term ``National Laboratory'' 
        has the meaning given the term in section 2 of the Energy 
        Policy Act of 2005 (42 U.S.C. 15801).
            (5) Rare earth element.--The term ``rare earth element'' 
        means a natural element associated with--
                    (A) the metallic element scandium, with atomic 
                number 21, or yttrium, with atomic number 39;
                    (B) any of the series of 15 metallic elements 
                between lanthanum, with atomic number 57, and lutetium, 
                with atomic number 71, on the periodic table; or
                    (C) any of the series of 15 metallic elements 
                between actinium, with atomic number 89, and 
                lawrencium, with atomic number 103, on the periodic 
                table.

SEC. 4. RARE EARTH REFINERY COOPERATIVE.

    (a) Establishment.--Not later than 60 days after the date of 
enactment of this Act, the Secretary of Commerce shall coordinate with 
any relevant Federal agencies to procure the issuance of a Federal 
charter for a privately funded, privately operated, and privately 
managed cooperative with respect to rare earth elements, which--
            (1) shall--
                    (A) be known as the Thorium-Bearing Rare Earth 
                Refinery Cooperative;
                    (B) coordinate the establishment of a fully 
                integrated United States value chain with respect to 
                rare earth elements to serve the national security 
                needs of the United States and the needs of industry in 
                the United States; and
                    (C) produce products that use rare earth elements, 
                including metal powders (such as rare earth oxides and 
                rare earth salts, including chlorides and nitrates), 
                metals containing rare earth elements, alloys, magnets, 
                and other value-added products using rare earth 
                elements, as required by--
                            (i) the owners of, and investors in, the 
                        Cooperative; and
                            (ii) the defense industry of the United 
                        States; and
            (2) may--
                    (A) accept domestic and international investment 
                from--
                            (i) commercial or industrial users of 
                        products containing rare earth elements, 
                        including trade groups or associations formed 
                        to act on behalf of the defense industry or 
                        other end-users of those products; or
                            (ii) any of the resource suppliers of the 
                        Cooperative;
                    (B) accept investment or funding from foreign 
                governments, State agencies, or State-sponsored 
                entities, including universities or research 
                institutions, subject to the approval of the Committee 
                on Foreign Investment in the United States established 
                under section 721(k) of the Defense Production Act of 
                1950 (50 U.S.C. 4565(k));
                    (C) distribute finished goods and profits in 
                proportion to investment;
                    (D) on behalf of the owners of the Cooperative, 
                sell surplus finished goods on the open market; and
                    (E) accept and process rare earth resources, or 
                other critical minerals, with elevated levels of 
                thorium or uranium that are--
                            (i) mined in the United States;
                            (ii) from any domestic waste product, co-
                        product, or byproduct of some other mined 
                        commodity; or
                            (iii) produced by any foreign supplier that 
                        has invested in the Cooperative.
    (b) Securing Rare Earths.--The following materials shall be 
considered to be an unrefined and unprocessed ore, as defined in 
section 40.4 of title 10, Code of Federal Regulations, or any successor 
regulation:
            (1) Any material accepted by the Cooperative under 
        subsection (a)(2)(E).
            (2) A thorium bearing rare earth ore that is--
                    (A) a byproduct or coproduct of another mined 
                commodity; and
                    (B) sold and shipped under a supply agreement with 
                the Cooperative.
    (c) Producers of Rare Earths.--A producer that acts under a supply 
contract with the Cooperative may, under the rules for unrefined and 
unprocessed ore under part 40 of title 10, Code of Federal Regulations, 
process, manage, and transport any material with respect to which the 
contract applies.
    (d) Liability.--Notwithstanding any other provision of law or 
regulation--
            (1) the Federal Government shall not be liable for any 
        activities of the Cooperative under this section; and
            (2) the Cooperative shall establish and secure sufficient 
        financial surety bonding and other insurance, consistent with 
        private industry standards.

SEC. 5. THORIUM STORAGE, ENERGY, AND INDUSTRIAL PRODUCTS CORPORATION.

    (a) Establishment.--Not later than 60 days after the date of 
enactment of this Act, the Secretary of Energy shall coordinate with 
relevant Federal agencies to procure the issuance of a Federal charter 
for a privately funded and privately operated corporation, which--
            (1) shall be known as the Thorium Storage, Energy, and 
        Industrial Products Corporation; and
            (2) in accordance with all applicable laws, regulations, 
        and rules, shall--
                    (A) on a preprocessing basis, assume liability for 
                and ownership of all thorium and mineralogically 
                associated or related actinides and decay products 
                contained within the rare earth element ores utilized 
                by the Cooperative;
                    (B) take physical possession and safely store all 
                thorium-containing actinide byproducts, with the costs 
                of the storage to be paid by the Cooperative; and
                    (C) manage the sale of all valuable actinide and 
                decay products, utilizing the proceeds for the 
                development of commercial uses and market for thorium, 
                including energy.
    (b) Thorium Storage.--The Corporation shall establish not less than 
1 facility, each of which shall--
            (1) be known as a ``Thorium Bank'';
            (2) provide safe and long-term storage for all thorium 
        produced as a byproduct in the production of rare earth 
        elements for the Cooperative; and
            (3) hold and maintain financial surety bonding and 
        insurance consistent with private industry standards.
    (c) Industrial Products.--The Corporation may establish not less 
than 1 division, each of which shall be known as an ``Industrial 
Products Corporation'', for the certification, licensing, insuring, and 
commercial development of all nonenergy uses for thorium (including 
thorium isotopes and thorium daughter elements), including alloys, 
catalysts, medical isotopes, and other products.
    (d) Energy Applications.--The Corporation may establish not less 
than 1 energy products, energy systems, or energy applications division 
for the certification, licensing, insuring, commercial development, 
deployment, lease, and licensing of such products and services, 
including--
            (1) developing intellectual property;
            (2) acquiring technology;
            (3) developing, manufacturing, operating, or leasing 
        commercial thorium energy systems; and
            (4) developing, manufacturing, operating, or leasing 
        related thermal processing systems.
    (e) International Partnerships.--
            (1) In general.--The Corporation may sell or distribute 
        equity and establish partnerships with the United States.
            (2) Foreign investors.--Any foreign investor in the 
        Corporation shall make a voluntary filing with the Committee on 
        Foreign Investment in the United States established under 
        section 721(k) of the Defense Production Act of 1950 (50 U.S.C. 
        4565(k)).
    (f) Liability.--Notwithstanding any other provision of law or 
regulation--
            (1) the Federal Government shall not be liable for any 
        activities of the Corporation under this section; and
            (2) the Corporation shall establish and secure sufficient 
        financial surety bonding and other insurance, consistent with 
        private industry standards, for the management and storage of 
        radioactive materials and other waste and hazards.

SEC. 6. FEDERAL SUPPORT.

    (a) Meetings With Relevant Parties.--The Secretary of Commerce and 
the Secretary of Defense shall provide initial assistance to the 
Cooperative, and the Secretary of Energy and the Secretary of Defense 
shall provide initial assistance to the Corporation, by establishing 
peer-to-peer meetings with allies of the United States in the North 
Atlantic Treaty Organization, other allied foreign governments, Federal 
and State agencies, science and technology research institutions, and 
commercial users and consumers of rare earth elements and energy.
    (b) Eligibility for Certain Support.--
            (1) Grant and loan programs.--The Cooperative and the 
        Corporation may apply for funding assistance provided by any 
        relevant grant or loan program carried out by the Department of 
        Energy, the Department of Defense, or the Department of 
        Commerce, including, with respect to the Corporation--
                    (A) the Small Modular Reactor Licensing Technical 
                Support Program of the Department of Energy; and
                    (B) any program of the Office of Advanced Reactor 
                Technologies of the Department of Energy.
            (2) Technical and data support to the corporation.--The 
        National Laboratories shall provide technical and data support 
        to the Corporation on parity with transfers made before the 
        date of enactment of this Act by the National Laboratories to 
        the Chinese Academy of Sciences and any other foreign agent or 
        entity.
    (c) Department of Energy Policy.--The Secretary of Energy shall 
adopt and execute a policy that promotes the United States, acting in 
conjunction with the Corporation, as a global leader in thorium energy 
systems.

SEC. 7. APPOINTMENT OF INITIAL OFFICERS.

    (a) In General.--The Secretary of Commerce and the Secretary of 
Energy shall jointly appoint 2 citizens of the United States--
            (1) neither of whom may be an employee of, consultant to, 
        advisor to, or affiliate of the United States Government; and
            (2) who shall act as the initial officers and Board of 
        Directors of both the Cooperative and the Corporation.
    (b) Qualifications.--The 2 individuals appointed under subsection 
(a) shall each have expertise in, and a history of promoting--
            (1) the development of a platform--
                    (A) that is based in the United States;
                    (B) that is funded using multinational sources; and
                    (C) the purpose of which is the development of a 
                fully integrated rare earth value chain; and
            (2) the commercial development of uses and markets for 
        thorium, including energy.
    (c) Responsibilities.--The individuals appointed under subsection 
(a) shall work with the Secretary of Commerce to develop corporate 
bylaws and terms of governance for the Cooperative, and with the 
Secretary of Energy to develop those bylaws and terms for the 
Corporation, which shall be set forth in a Memorandum of Understanding 
for each such entity that outlines specific obligations, commitments, 
limitations on sources of international investment, and goals that are 
specific to the national interests of the United States.
    (d) Duration of Service.--The individuals appointed under 
subsection (a) shall continue to serve in those roles for as long as 
provided under the terms of governance developed under subsection (c).

SEC. 8. OTHER PROVISIONS.

    (a) Annual Audits.--The Cooperative and the Corporation shall, on 
the date that is 180 days after the date on which each such entity is 
established, and annually thereafter, submit to the Secretary of 
Commerce, the Secretary of Energy, and the Secretary of Defense an 
audited report, which shall--
            (1) be conducted by an outside auditing firm; and
            (2) for the period covered by the report, evaluate the 
        progress and success of the Cooperative and the Corporation in 
        meeting all targets and objectives established by the 
        Secretary, in consultation with the heads of other relevant 
        Federal agencies.
    (b) Authority of the Secretary of Defense.--The Secretary of 
Defense may monitor the output of the Cooperative and the Corporation 
with respect to the national security objectives set forth in the 
Memorandum of Understanding required for each entity under section 
7(c).
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