[Congressional Record Volume 157, Number 49 (Wednesday, April 6, 2011)]
[Extensions of Remarks]
[Page E645]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                            THE RESTART ACT

                                 ______
                                 

                           HON. MIKE COFFMAN

                              of colorado

                    in the house of representatives

                        Wednesday, April 6, 2011

  Mr. COFFMAN of Colorado. Mr. Speaker, today I am introducing a 
bipartisan bill to avert a U.S. rare earth supply crisis by restoring 
our nation's production of rare earth metals. This bill, the Rare 
Earths Supply-Chain Technology and Resources Transformation Act of 2011 
(RESTART Act), would achieve this by reestablishing a domestic rare 
earth industry in the United States.
  Currently, the world is nearly 100 percent reliant on Chinese exports 
for these critical materials and China's trade policies of restricting 
rare earth exports pose a serious threat to both the economic and 
national security of the United States. China supplies about 95 percent 
of the world's rare earth metals, used in everything from wind 
turbines, electric car batteries, television sets, smart phones, and 
advanced weapons systems. Chinese officials have announced a decision 
to cut exports of rare earth metals by 35 percent in the first half of 
2011. The Chinese government-ordered reduction in rare earth metals 
exports demonstrates the urgent need for us to act to correct our rare 
earth supply chain vulnerability.
  I became alarmed early in 2009 when I learned that many U.S. defense 
contractors rely heavily on Chinese exports of rare earth metals to 
make everything from night vision goggles, tanks, and fighter aircraft, 
to precision guided munitions. This reliance on China poses a key 
vulnerability.
  My comprehensive, bipartisan legislation will put in place mechanisms 
to assist U.S. companies with meeting their needs for rare earth metals 
and ensure our national security needs are met in the near term.
  The legislation does not waive environmental laws, but it directs 
appropriate federal agencies to expedite the permitting process in 
order to increase the exploration and development of domestic rare 
earth elements, and the legislation establishes a multi-agency Task 
Force to carry out this process. The legislation makes federally-backed 
loans available to start rare earth production only when private 
capital is not available. The bill sets-up a Defense Logistics Agency 
rare earth domestic inventory to generate a domestic market and 
facilitate the domestic sourcing of rare earth alloys and magnets. It 
establishes a rare earth program at the U.S. Geological Survey, and it 
require the various cabinet Secretaries appoint Executive Agents for 
rare earths.
  Our Nation must act to protect our security interests with regard to 
rare earth elements. China is neither an ally of the United States nor 
is it a reliable trade partner when it comes to these strategic metals.
  My legislation has the support of the Coalition for a Prosperous 
America, CPA, the United States Magnet Materials Association, USMMA, 
and their members who are most affected by the disruption in the rare 
earth metals market.

                          ____________________