[House Document 116-155]
[From the U.S. Government Publishing Office]




116th Congress, 2d Session - - - - - - - - - House Document 116-155
 
DECLARATION OF A NATIONAL EMERGENCY WITH RESPECT TO OUR NATION'S UNDUE 
                     RELIANCE ON CRITICAL MINERALS

                               __________



                                MESSAGE

                                  from


                     THE PRESIDENT OF THE UNITED STATES

                              transmitting

A DECLARATION OF A NATIONAL EMERGENCY TO DEAL WITH THE THREAT POSED BY 
   OUR NATION'S UNDUE RELIANCE ON CRITICAL MINERALS, IN PROCESSED OR 
   UNPROCESSED FORM, FROM FOREIGN ADVERSARIES. PURSUANT TO 50 U.S.C. 
1703(b); PUBLIC LAW 95-223, SEC. 204(b); (91 STAT. 1627) AND 50 U.S.C. 
        1641(b); PUBLIC LAW 94-412, SEC. 401(b); (90 STAT. 1257)







[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]









   October 1, 2020.--Message and accompanying papers referred to the 
        Committee on Foreign Affairs and ordered to be printed


                             _________
                              
                 U.S. GOVERNMENT PUBLISHING OFFICE
                 
19-011                   WASHINGTON : 2020













To the Congress of the United States:
    Pursuant to the International Emergency Economic Powers Act 
(50 U.S.C. 1701 et seq.) (IEEPA), the National Emergencies Act 
(50 U.S.C. 1601 et seq.), and section 301 of title 3, United 
States Code, I hereby report that I have issued an Executive 
Order declaring a national emergency to deal with the threat 
posed by our Nation's undue reliance on critical minerals, in 
processed or unprocessed form, from foreign adversaries.
    A strong America cannot be dependent on imports from 
foreign adversaries for the critical minerals that are 
increasingly necessary to maintain our economic and military 
strength in the 21st century. Because of the national 
importance of reliable access to critical minerals, I signed 
Executive Order 13817 of December 20, 2017 (A Federal Strategy 
To Ensure Secure and Reliable Supplies of Critical Minerals), 
which required the Secretary of the Interior to identify 
critical minerals and made it the policy of the Federal 
Government ``to reduce the Nation's vulnerability to 
disruptions in the supply of critical minerals.'' The critical 
minerals identified by the Secretary of the Interior are 
necessary inputs for the products our military, national 
infrastructure, and economy depend on the most. Our country 
needs critical minerals to make airplanes, computers, cell 
phones, electricity generation and transmission systems, and 
advanced electronics.
    Though these minerals are indispensable to our country, we 
presently lack the capacity to produce them in processed form 
in the quantities we need. American producers depend on foreign 
countries to supply and process them. Whereas the United States 
recognizes the continued importance of cooperation on supply 
chain issues with international partners and allies, in many 
cases, the aggressive economic practices of certain non-market 
foreign producers of critical minerals have destroyed vital 
mining and manufacturing jobs in the United States. We must 
reduce our vulnerability to adverse foreign government action, 
natural disaster, or other supply disruptions. Our national 
security, foreign policy, and economy require a consistent 
supply of each of these minerals.
    Using the authority vested in me by IEEPA, the Executive 
Order requires the Secretary of the Interior, in consultation 
with the Secretary of the Treasury, the Secretary of Defense, 
the Secretary of Commerce, and the heads of other executive 
departments and agencies, as appropriate, to investigate our 
Nation's undue reliance on critical minerals, in processed or 
unprocessed form, from foreign adversaries. Following this 
investigation, the Executive Order requires the Secretary of 
the Interior to submit a report to the President recommending 
additional executive action.
    The Executive Order also declares that it is the policy of 
the United States to protect and expand the domestic supply 
chain for minerals. Specific executive department and agency 
heads, including the Secretary of the Interior and the 
Secretary of Energy, are directed to take various actions to 
protect and expand the domestic supply chain for minerals, 
consistent with applicable law, such as the publication of 
guidance, the revision of regulations, and the acceleration of 
the issuance of permits.
    I am enclosing a copy of the Executive Order I have issued.

                                                   Donald J. Trump.
    The White House, September 30, 2020.












                            EXECUTIVE ORDER

                              ----------                              


  Addressing the Threat to the Domestic Supply Chain From Reliance on 
Critical Minerals From Foreign Adversaries and Supporting the Domestic 
                    Mining And Processing Industries

    By the authority vested in me as President by the 
Constitution and the laws of the United States of America, 
including the International Emergency Economic Powers Act (50 
U.S.C. 1701 et seq.) (IEEPA), the National Emergencies Act (50 
U.S.C. 1601 et seq.) (NEA), and section 301 of title 3, United 
States Code,
    I, DONALD J. TRUMP, President of the United States of 
America, find that a strong America cannot be dependent on 
imports from foreign adversaries for the critical minerals that 
are increasingly necessary to maintain our economic and 
military strength in the 21st century. Because of the national 
importance of reliable access to critical minerals, I signed 
Executive Order 13817 of December 20, 2017 (A Federal Strategy 
To Ensure Secure and Reliable Supplies of Critical Minerals), 
which required the Secretary of the Interior to identify 
critical minerals and made it the policy of the Federal 
Government ``to reduce the Nation's vulnerability to 
disruptions in the supply of critical minerals.'' Pursuant to 
my order, the Secretary of the Interior conducted a review with 
the assistance of other executive departments and agencies 
(agencies) that identified 35 minerals that (1) are ``essential 
to the economic and national security of the United States,'' 
(2) have supply chains that are ``vulnerable to disruption,'' 
and (3) serve ``an essential function in the manufacturing of a 
product, the absence of which would have significant 
consequences for our economy or our national security.''
    These critical minerals are necessary inputs for the 
products our military, national infrastructure, and economy 
depend on the most. Our country needs critical minerals to make 
airplanes, computers, cell phones, electricity generation and 
transmission systems, and advanced electronics. Though these 
minerals are indispensable to our country, we presently lack 
the capacity to produce them in processed form in the 
quantities we need. American producers depend on foreign 
countries to supply and process them. For 31 of the 35 critical 
minerals, the United States imports more than half of its 
annual consumption. The United States has no domestic 
production for 14 of the critical minerals and is completely 
dependent on imports to supply its demand. Whereas the United 
States recognizes the continued importance of cooperation on 
supply chain issues with international partners and allies, in 
many cases, the aggressive economic practices of certain non-
market foreign producers of critical minerals have destroyed 
vital mining and manufacturing jobs in the United States.
    Our dependence on one country, the People's Republic of 
China (China), for multiple critical minerals is particularly 
concerning. The United States now imports 80 percent of its 
rare earth elements directly from China, with portions of the 
remainder indirectly sourced from China through other 
countries. In the 1980s, the United States produced more of 
these elements than any other country in the world, but China 
used aggressive economic practices to strategically flood the 
global market for rare earth elements and displace its 
competitors. Since gaining this advantage, China has exploited 
its position in the rare earth elements market by coercing 
industries that rely on these elements to locate their 
facilities, intellectual property, and technology in China. For 
instance, multiple companies were forced to add factory 
capacity in China after it suspended exports of processed rare 
earth elements to Japan in 2010, threatening that country's 
industrial and defense sectors and disrupting rare earth 
elements prices worldwide.
    The United States also disproportionately depends on 
foreign sources for barite. The United States imports over 75 
percent of the barite it consumes, and over 50 percent of its 
barite imports come from China. Barite is of critical 
importance to the hydraulic fracturing (``fracking'') industry, 
which is vital to the energy independence of the United States. 
The United States depends on foreign sources for 100 percent of 
its gallium, with China producing around 95 percent of the 
global supply. Gallium-based semiconductors are indispensable 
for cellphones, blue and violet light-emitting diodes (LEDs), 
diode lasers, and fifth-generation (5G) telecommunications. 
Like for gallium, the United States is 100 percent reliant on 
imports for graphite, which is used to make advanced batteries 
for cellphones, laptops, and hybrid and electric cars. China 
produces over 60 percent of the world's graphite and almost all 
of the world's production of high-purity graphite needed for 
rechargeable batteries.
    For these and other critical minerals identified by the 
Secretary of the Interior, we must reduce our vulnerability to 
adverse foreign government action, natural disaster, or other 
supply disruptions. Our national security, foreign policy, and 
economy require a consistent supply of each of these minerals.
    I therefore determine that our Nation's undue reliance on 
critical minerals, in processed or unprocessed form, from 
foreign adversaries constitutes an unusual and extraordinary 
threat, which has its source in substantial part outside the 
United States, to the national security, foreign policy, and 
economy of the United States. I hereby declare a national 
emergency to deal with that threat.
    In addition, I find that the United States must broadly 
enhance its mining and processing capacity, including for 
minerals not identified as critical minerals and not included 
within the national emergency declared in this order. By 
expanding and strengthening domestic mining and processing 
capacity today, we guard against the possibility of supply 
chain disruptions and future attempts by our adversaries or 
strategic competitors to harm our economy and military 
readiness. Moreover, additional domestic capacity will reduce 
United States and global dependence on minerals produced in 
countries that do not endorse and pursue appropriate minerals 
supply chain standards, leading to human rights violations, 
forced and child labor, violent conflict, and health and 
environmental damage. Finally, a stronger domestic mining and 
processing industry fosters a healthier and faster-growing 
economy for the United States. Mining and mineral processing 
provide jobs to hundreds of thousands of Americans whose daily 
work allows our country and the world to ``Buy American'' for 
critical technology.
    I hereby determine and order:
    Section 1. (a) To address the national emergency declared 
by this order, and pursuant to subsection 203(a)(1)(B) of IEEPA 
(50 U.S.C. 1702(a)(1)(B)), the Secretary of the Interior, in 
consultation with the Secretary of the Treasury, the Secretary 
of Defense, the Secretary of Commerce, and the heads of other 
agencies, as appropriate, shall investigate our Nation's undue 
reliance on critical minerals, in processed or unprocessed 
form, from foreign adversaries. The Secretary of the Interior 
shall submit a report to the President, through the Assistant 
to the President for National Security Affairs, the Assistant 
to the President for Economic Policy, and the Assistant to the 
President for Trade and Manufacturing Policy, within 60 days of 
the date of this order. That report shall summarize any 
conclusions from this investigation and recommend executive 
action, which may include the imposition of tariffs or quotas, 
other import restrictions against China and other non-market 
foreign adversaries whose economic practices threaten to 
undermine the health, growth, and resiliency of the United 
States, or other appropriate action, consistent with applicable 
law.
    (b) By January 1, 2021, and every 180 days thereafter, the 
Secretary of the Interior, in consultation with the heads of 
other agencies, as appropriate, shall inform the President of 
the state of the threat posed by our Nation's reliance on 
critical minerals, in processed or unprocessed form, from 
foreign adversaries and recommend any additional actions 
necessary to address that threat.
    (c) The Secretary of the Interior, in consultation with the 
heads of other agencies, as appropriate, is hereby authorized 
to submit recurring and final reports to the Congress on the 
national emergency declared in this order, consistent with 
section 401(c) of the NEA (50 U.S.C. 1641(c)) and section 
204(c) of IEEPA (50 U.S.C. 1703(c)).
    Sec. 2. (a) It is the policy of the United States that 
relevant agencies should, as appropriate and consistent with 
applicable law, prioritize the expansion and protection of the 
domestic supply chain for minerals and the establishment of 
secure critical minerals supply chains, and should direct 
agency resources to this purpose, such that:
          (i) the United States develops secure critical 
        minerals supply chains that do not depend on resources 
        or processing from foreign adversaries;
          (ii) the United States establishes, expands, and 
        strengthens commercially viable critical minerals 
        mining and minerals processing capabilities; and
          (iii) the United States develops globally 
        competitive, substantial, and resilient domestic 
        commercial supply chain capabilities for critical 
        minerals mining and processing.
    (b) Within 30 days of the date of this order, the heads of 
all relevant agencies shall each submit a report to the 
President, through the Director of the Office of Management and 
Budget, the Assistant to the President for National Security 
Affairs, and the Assistant to the President for Economic 
Policy, that identifies all legal authorities and 
appropriations that the agency can use to meet the goals 
identified in subsection (a) of this section.
    (c) Within 60 days of the date of this order, the heads of 
all relevant agencies shall each submit a report as provided in 
subsection (b) of this section that details the agency's 
strategy for using the legal authorities and appropriations 
identified pursuant to that subsection to meet the goals 
identified in subsection (a) of this section. The report shall 
explain how the agency's activities will be organized and how 
it proposes to coordinate relevant activities with other 
agencies.
    (d) Within 60 days of the date of this order, the Director 
of the Office of Science and Technology Policy shall submit a 
report to the President, through the Director of the Office of 
Management and Budget, the Assistant to the President for 
National Security Affairs, the Assistant to the President for
    Economic Policy, and the Assistant to the President for 
Trade and Manufacturing Policy, that describes the current 
state of research and development activities undertaken by the 
Federal Government that relate to the mapping, extraction, 
processing, and use of minerals and that identifies future 
research and development needs and funding opportunities to 
strengthen domestic supply chains for minerals.
    (e) Within 45 days of the date of this order, the Secretary 
of State, in consultation with the United States Trade 
Representative, shall submit a report to the President, through 
the Assistant to the President for National Security Affairs, 
the Assistant to the President for Economic Policy, and the 
Assistant to the President for Trade and Manufacturing Policy, 
that details existing and planned efforts and policy options 
to:
          (i) reduce the vulnerability of the United States to 
        the disruption of critical mineral supply chains 
        through cooperation and coordination with partners and 
        allies, including the private sector;
          (ii) build resilient critical mineral supply chains, 
        including through initiatives to help allies build 
        reliable critical mineral supply chains within their 
        own territories;
          (iii) promote responsible minerals sourcing, labor, 
        and business practices; and
          (iv) reduce the dependence of the United States on 
        minerals produced using methods that do not adhere to 
        responsible mining standards.
    Sec. 3. The Secretary of the Interior, in consultation with 
the Secretary of Defense, shall consider whether the authority 
delegated at section 306 of Executive Order 13603 of March 16, 
2012 (National Defense Resources Preparedness) can be used to 
establish a program to provide grants to procure or install 
production equipment for the production and processing of 
critical minerals in the United States.
    Sec. 4. (a) Within 30 days of the date of this order, the 
Secretary of Energy shall develop and publish guidance (and, as 
appropriate, shall revoke, revise, or replace prior guidance, 
including loan solicitations) clarifying the extent to which 
projects that support domestic supply chains for minerals are 
eligible for loan guarantees pursuant to Title XVII of the 
Energy Policy Act of 2005, as amended (42 U.S.C. 16511 et seq.) 
(``Title XVII''), and for funding awards and loans pursuant to 
the Advanced Technology Vehicles Manufacturing incentive 
program established by section 136 of the Energy Independence 
and Security Act of 2007, as amended (42 U.S.C. 17013) (``the 
ATVM statute''). In developing such guidance, the Secretary:
          (i) shall consider whether the relevant provisions of 
        Title XVII can be interpreted in a manner that better 
        promotes the expansion and protection of the domestic 
        supply chain for minerals (including the development of 
        new supply chains and the processing, remediation, and 
        reuse of materials already in interstate commerce or 
        otherwise available domestically);
          (ii) shall examine the meaning of the terms ``avoid, 
        reduce, or sequester'' and other key terms in section 
        16513(a) of title 42, United States Code, which 
        provides that the Secretary ``may make guarantees under 
        this section only for projects that--(1) avoid, reduce, 
        or sequester air pollutants or anthropogenic emissions 
        of greenhouse gases; and (2) employ new or 
        significantly improved technologies as compared to 
        commercial technologies in service in the United States 
        at the time the guarantee is issued'';
          (iii) shall consider whether relevant provisions of 
        the ATVM statute may be interpreted in a manner that 
        better promotes the expansion and protection of the 
        domestic supply chain for minerals (including the 
        development of new supply chains and the processing, 
        remediation, and reuse of materials already in 
        interstate commerce or otherwise available 
        domestically), including in such consideration the 
        application of these provisions to minerals determined 
        to be components installed for the purpose of meeting 
        the performance requirements of advanced technology 
        vehicles; and
          (iv) shall examine the meaning of the terms 
        ``qualifying components'' and other key terms in 
        subsection 17013(a) of title 42, United States Code.
    (b) Within 30 days of the date of this order, the Secretary 
of Energy shall review the Department of Energy's regulations 
(including any preambles thereto) interpreting Title XVII and 
the ATVM statute, including the regulations published at 81 
Fed. Reg. 90,699 (Dec. 15, 2016) and 73 Fed. Reg. 66,721 (Nov. 
12, 2008), and shall identify all such regulations that may 
warrant revision or reconsideration in order to expand and 
protect the domestic supply chain for minerals (including the 
development of new supply chains and the processing, 
remediation, and reuse of materials already in interstate 
commerce or otherwise available domestically). Within 90 days 
of the date of this order, the Secretary shall propose for 
notice and comment a rule or rules to revise or reconsider any 
such regulations for this purpose, as appropriate and 
consistent with applicable law.
    Sec. 5. The Secretary of the Interior, the Secretary of 
Agriculture, the Secretary of Commerce, the Administrator of 
the Environmental Protection Agency, the Secretary of the Army 
(acting through the Assistant Secretary of the Army for Civil 
Works), and the heads of all other relevant agencies shall, as 
appropriate and consistent with applicable law, use all 
available authorities to accelerate the issuance of permits and 
the completion of projects in connection with expanding and 
protecting the domestic supply chain for minerals.
    Sec. 6. The Secretary of the Interior, the Secretary of 
Energy, and the Administrator of the Environmental Protection 
Agency shall examine all available authorities of their 
respective agencies and identify any such authorities that 
could be used to accelerate and encourage the development and 
reuse of historic coal waste areas, material on historic mining 
sites, and abandoned mining sites for the recovery of critical 
minerals.
    Sec. 7. Amendment. Executive Order 13817 is hereby amended 
to add the following sentence to the end of section 2(b):
    ``This list shall be updated periodically, following the 
same process, to reflect current data on supply, demand, and 
concentration of production, as well as current policy 
priorities.''
    Sec. 8. Definitions. As used in this order:
    (a) the term ``critical minerals'' means the minerals and 
materials identified by the Secretary of the Interior pursuant 
to section 2(b) of Executive Order 13817, as amended by this 
order; and
    (b) the term ``supply chain,'' when used with reference to 
minerals, includes the exploration, mining, concentration, 
separation, alloying, recycling, and reprocessing of minerals.
    Sec. 9. General Provisions. (a) Nothing in this order shall 
be construed to impair or otherwise affect:
    (i) the authority granted by law to an executive department 
or agency, or the head thereof; or
    (ii) the functions of the Director of the Office of 
Management and Budget relating to budgetary, administrative, or 
legislative proposals.
    (b) This order shall be implemented consistent with 
applicable law and subject to the availability of 
appropriations.
    (c) This order is not intended to, and does not, create any 
right or benefit, substantive or procedural, enforceable at law 
or in equity by any party against the United States, its 
departments, agencies, or entities, its officers, employees, or 
agents, or any other person.

                                                   Donald J. Trump.
    The White House, September 30, 2020.

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