[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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