[Congressional Record (Bound Edition), Volume 156 (2010), Part 12]
[House]
[Pages 16818-16821]
[From the U.S. Government Publishing Office, www.gpo.gov]




     RARE EARTHS AND CRITICAL MATERIALS REVITALIZATION ACT OF 2010

  Mr. GORDON of Tennessee. Mr. Speaker, I move to suspend the rules and 
pass the bill (H.R. 6160) to develop a rare earth materials program, to 
amend the National Materials and Minerals Policy, Research and 
Development Act of 1980, and for other purposes, as amended.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 6160

       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 and Critical Materials Revitalization Act of 2010''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.

                     TITLE I--RARE EARTH MATERIALS

Sec. 101. Rare earth materials program.
Sec. 102. Rare earth materials loan guarantee program.

    TITLE II--NATIONAL MATERIALS AND MINERALS POLICY, RESEARCH, AND 
                              DEVELOPMENT

Sec. 201. Amendments to National Materials and Minerals Policy, 
              Research and Development Act of 1980.
Sec. 202. Repeal.

     SEC. 2. DEFINITIONS.

       In this Act:
       (1) Appropriate congressional committees.--The term 
     ``appropriate Congressional committees'' means the Committee 
     on Science and Technology of the House of Representatives and 
     the Committee on Commerce, Science, and Transportation and 
     the Committee on Energy and Natural Resources of the Senate.
       (2) Department.--The term ``Department'' means the 
     Department of Energy.
       (3) Rare earth materials.--The term ``rare earth 
     materials'' 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.
       (4) Secretary.--The term ``Secretary'' means the Secretary 
     of Energy.

                     TITLE I--RARE EARTH MATERIALS

     SEC. 101. RARE EARTH MATERIALS PROGRAM.

       (a) Establishment of Program.--
       (1) In general.--There is established in the Department a 
     program of research, development, demonstration, and 
     commercial application to assure 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.
       (2) Program activities.--The program shall support 
     activities to--
       (A) better characterize and quantify virgin stocks of rare 
     earth materials using theoretical geochemical research;
       (B) explore, discover, and recover rare earth materials 
     using advanced science and technology;
       (C) improve methods for the extraction, processing, use, 
     recovery, and recycling of rare earth materials;
       (D) improve the understanding of the performance, 
     processing, and adaptability in engineering designs of rare 
     earth materials;
       (E) identify and test alternative materials that can be 
     substituted for rare earth materials in particular 
     applications;
       (F) engineer and test applications that--
       (i) use recycled rare earth materials;
       (ii) use alternative materials; or
       (iii) seek to minimize rare earth materials content;
       (G) 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
       (H) facilitate information sharing and collaboration among 
     program participants and stakeholders.
       (3) Improved processes and technologies.--To the maximum 
     extent practicable, the Secretary shall support new or 
     significantly improved processes and technologies as compared 
     to those currently in use in the rare earth materials 
     industry.
       (4) Expanding participation.--The Secretary shall 
     encourage--
       (A) multidisciplinary collaborations among program 
     participants; and
       (B) 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)).
       (5) 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.).
       (6) International collaboration.--In carrying out the 
     program, the Secretary 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.
       (b) Plan.--
       (1) In general.--Within 180 days after the date of 
     enactment of this Act and biennially

[[Page 16819]]

     thereafter, the Secretary 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) the criteria to be used to evaluate applications for 
     loan guarantees under section 1706 of the Energy Policy Act 
     of 2005;
       (D) any projects receiving loan guarantee support under 
     such section and the status of such projects;
       (E) how the program is promoting the broadest possible 
     participation by academic, industrial, and other 
     contributors; and
       (F) actions taken or proposed that reflect recommendations 
     from the assessment conducted under subsection (c) 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 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.
       (c) Assessment.--
       (1) In general.--After the program has been in operation 
     for 4 years, the Secretary shall offer to enter into a 
     contract with the National Academy of Sciences under which 
     the National Academy shall conduct an assessment of the 
     program under subsection (a).
       (2) Inclusions.--The assessment shall include the 
     recommendation of the National Academy of Sciences that the 
     program should be--
       (A) continued, accompanied by a description of any 
     improvements needed in the program; or
       (B) terminated, accompanied by a description of the lessons 
     learned from the execution of the program.
       (3) Availability.--The assessment shall be made available 
     to Congress and the public upon completion.

     SEC. 102. 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.--As part of the program established in 
     section 101 of the Rare Earths and Critical Materials 
     Revitalization Act of 2010, 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 within 5 years 
     after the date of enactment of the Rare Earths and Critical 
     Materials Revitalization Act of 2010.
       ``(d) Domestic Supply Chain.--In support of the objective 
     in subsection (c) to achieve a rare earth materials 
     production capability in the United States that includes the 
     complete value chain described in paragraphs (1) through (4) 
     of subsection (a), the Secretary may not award a guarantee 
     for a project unless the project's proponent provides to the 
     Secretary an assurance that the loan or guarantee shall be 
     used to support the separation, recovery, preparation, or 
     manufacturing of rare earth materials in the United States 
     for customers within the United States unless insufficient 
     domestic demand for such materials results in excess 
     capacity.
       ``(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.''.

    TITLE II--NATIONAL MATERIALS AND MINERALS POLICY, RESEARCH, AND 
                              DEVELOPMENT

     SEC. 201. 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 and Critical Materials Revitalization Act of 
     2010'';
       (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 amending paragraph (3) to read as follows:
       ``(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. 202. REPEAL.

       Title II of Public Law 98-373 (30 U.S.C. 1801 et seq.; 98 
     Stat. 1248), also known as the National Critical Materials 
     Act of 1984, is repealed.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Tennessee (Mr. Gordon) and the gentleman from Texas (Mr. Hall) each 
will control 20 minutes.
  The Chair recognizes the gentleman from Texas.


                             General Leave

  Mr. GORDON of Tennessee. Madam Speaker, I ask unanimous consent that 
all Members may have 5 legislative days to revise and extend their 
remarks and to include extraneous material on H.R. 6160, the bill now 
under consideration.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Tennessee?
  There was no objection.
  Mr. GORDON of Tennessee. Madam Speaker, I yield myself such time as I 
may consume.
  I rise in strong support today of H.R. 6160, the Rare Earths and 
Critical Materials Revitalization Act of 2010. This bill was introduced 
by the gentlelady from Pennsylvania (Mrs. Dahlkemper) and cosponsored 
by Mr. Jerry Lewis, Mr. Coffman, Mr. Carnahan, myself, and a number of 
other Members who all recognize that we must take steps to recapture 
our technological lead in a wide range of industries critical to our 
economic health, our national defense, and a clean and secure energy 
future.
  For the last week you couldn't open a newspaper or watch TV without 
seeing a story warning us about the danger of our reliance on China for 
a little-known but critical class of raw materials called ``rare 
earths.'' Rare earths are an essential component of technologies in a 
wide array of emerging and established industries. And, for everything 
from oil refining to hybrid cars, wind turbines to weapon systems, 
computer monitors to disk drives, the future demand for rare earths is 
only expected to grow. However, despite the U.S. at one time being the 
leader in

[[Page 16820]]

this field, China now controls 97 percent of the global market. Making 
matters more urgent, China has begun limiting production and export of 
rare earths. This is clearly an untenable position for the U.S.
  This is not the first time the Congress has been concerned with the 
competitive implications of materials such as rare earths. In 1980--30 
years ago--we established a national minerals and materials policy. One 
core element in that legislation was a call to support ``a vigorous, 
comprehensive, and coordinated program of materials research and 
development.'' Unfortunately, over successive administrations the 
effort to sustain the program eroded. Now it is time to revive a 
coordinated effort to level the global playing field in rare earths. 
Mrs. Dahlkemper's bill calls for increased research and development to 
help address the Nation's rare earths shortage and reinvigorates the 
national policy for critical materials.
  Furthermore, the bill does not start a big new government program. 
All activities authorized in this Act should take place within existing 
programs at the Department of Energy, the Office of Science and 
Technology Policy, and other relevant agencies. And the bill does not 
authorize any new appropriations.
  I call on my colleagues to support H.R. 6160, and I look forward to 
its passage.
  I reserve the balance of my time.
  Mr. HALL of Texas. I yield myself such time as I may consume.
  The legislation before us today, H.R. 6160, the Rare Earths and 
Critical Materials Revitalization Act of 2010, deals with a very 
important matter of potential concern to national security and to the 
economy. Rare earths are used in many different high-tech applications, 
including certain military and weapons systems, and China controls the 
bulk of world supply and recently announced its intention to reduce 
exports, triggering concerns that the U.S. could face a supply gap. 
This is clearly an important issue that warrants our attention.
  The obvious question we face now is how best to address this concern. 
H.R. 6160 intends to do so through establishment of a rare earths 
materials research and development program and authorization of loan 
guarantees to support rare earth minerals mining, processing, and 
production activities. Notwithstanding the clear and significant 
potential for a rare earth supply shortage, during the committee markup 
of this bill Republicans questioned whether the activities called for 
in H.R. 6160 provide the appropriate policy response to this issue. I 
will summarize these concerns as they were noted in the additional GOP 
views included in the report on the bill.
  To the extent that a rare earth supply gap may present national 
security concerns, such concerns should probably be addressed through 
the Department of Defense and the House and Senate Armed Services 
Committees.
  With respect to commercial supply needs, taxpayer subsidies in the 
form of loan guarantees should be restricted to those areas not 
undertaken by the private sector. This principle is particularly 
important in the case of rare earths due to the aggressive private 
pursuit of rare earth mining opportunities in response to recent price 
increases. Unfortunately, an amendment to address this concern was 
defeated in committee.
  I am pleased, however, that several other Republican amendments to 
improve H.R. 6160 were approved with bipartisan support, specifically 
amendments to, one, eliminate funding authorizations for R&D 
activities; two, elimination of a rare earth ``R&D Information 
Center''; three, limit loan guarantee support for the exportation of 
unprocessed rare earth materials necessary to meet domestic demand; 
and, four, reduce the length of authorization for rare earth loan 
guarantees from 8 years to 5 years.
  Further, modified language addressing additional Republican concerns 
related to the international collaboration was worked out following the 
markup, and I thank Chairman Gordon for working with our side of the 
aisle to improve this provision.

                              {time}  1650

  Overall, despite the many remaining questions and concerns regarding 
rare earths in this legislation, I recognize the importance of ensuring 
a stable supply of rare earth materials and the potential for a near-
term supply shortage, and I remain committed to working on this issue 
and on this bill as it moves through the legislative process.
  I reserve the balance of my time.
  Mr. GORDON of Tennessee. I yield such time as she may consume to the 
lead sponsor of this good bill, the gentlewoman from Pennsylvania (Mrs. 
Dahlkemper).
  Mrs. DAHLKEMPER. Madam Speaker, I want to thank the leadership of the 
House and, particularly, Chairman Gordon and Ranking Member Hall for 
allowing this bill to come forward. I think it is a very important 
piece of legislation for, certainly, the national defense and the 
economy of our country.
  I ask: What would happen to our national defense if we could no 
longer build a jet engine, vehicle batteries or advanced targeting 
systems? What are the chances that our country would become energy 
independent if we could not produce hybrid cars, wind turbines or other 
alternative energy products? What would happen to our economy if the 
technologies we depend on to make business work were no longer 
available?
  These are questions we would have to answer if China cut off our 
supply of rare earth materials--vital components to nearly every piece 
of advanced technology we use in our national defense and throughout 
business and industry.
  For the past decade, the United States has been almost entirely 
dependent on China for its supply of rare earth materials despite the 
fact that we have an abundant reserve of these materials within our own 
borders. China currently accounts for as much as 90 percent of the 
world's available supply of rare earth materials, but they are reducing 
the amount of these materials going into the global market. Just this 
summer, China announced it would cut its rare earth exports for the 
second half of 2010 by 72 percent.
  The bottom line is this: China is cornering the market on rare earth 
materials, and we, the United States, are falling behind. That is why 
we need to act now to begin the process of creating our own domestic 
supply of rare earth materials so the United States is never dependent 
on China or on any other country for crucial components for our 
national security.
  My bill, H.R. 6160, the Rare Earths and Critical Materials 
Revitalization Act, is a bipartisan plan to jump-start U.S. research 
and development in rare earth materials to improve our ability to find, 
extract, process, and use rare earths to improve products. We want to 
ultimately create a robust domestic supply of rare earths.
  My legislation will foster a strong rare earths industry here in the 
United States. The scope of this bill spans the full supply chain from 
exploration to mining to manufacturing. It will reduce risks in 
financing new rare earth production facilities by guaranteeing loans to 
companies with new processing and refining technologies. My bill will 
also help create a U.S. minerals and materials policy so we are never 
without a plan of action if our supply of rare earths falls short.
  China has stated clearly that foreign firms that move their 
manufacturing capacities onto Chinese soil will have no trouble 
procuring rare earth materials for their needs. That's just another way 
that American manufacturing jobs are being lured overseas. That has to 
stop. We need to make things right here in our country and to give 
those great manufacturing jobs to American men and women.
  Madam Speaker, this bill cannot wait. Just last week, China 
reportedly cut off Japan's supply of rare earths in the wake of a 
territory conflict. This is a clear warning sign, and we would be 
foolish to ignore it. If China is willing to use its control of rare 
earths as leverage over other countries, we need to counter that 
advantage by jump-starting our domestic market of rare earths now. The 
GAO reports that it may take

[[Page 16821]]

up to 15 years to rebuild the United States' rare earth supply chain. 
Delaying the seed money to begin this process only prolongs our 
dependency on China.
  I urge my colleagues to support this bipartisan plan to promote U.S. 
global competitiveness and to ensure our national defense technology is 
made in America.
  Mr. HALL of Texas. Madam Speaker, I yield 3 minutes to the gentleman 
from California (Mr. Bilbray).
  Mr. BILBRAY. Madam Speaker, I appreciate this bill on two points. I 
appreciate the fact that the chairman of the Science and Technology 
Committee has been willing to bring forth this bill, which is very 
critical at a very critical time. I also want to thank the gentlewoman 
from Pennsylvania (Mrs. Dahlkemper) for raising this issue.
  From the Science and Technology Committee's point of view, this is an 
appropriate action to take. Sadly, Madam Speaker, we should have 
sitting on the podium next to our chairman the chairman of the Natural 
Resources Committee, because I think all of us will agree that all of 
the funding and all of the studies do not accomplish anything if we do 
not have access to the material to make it reality. One of the critical 
things we need to do is to bridge the gap between what we know we need 
to do and what we allow to be done.
  One of the sad things right now is the fact that we keep talking 
about great breakthroughs. We have got to recognize that all of us are 
so excited about high-tech electrification of transportation systems, 
about the efficiency and energy saved there and about the reduction in 
the carbon footprint. If we want to drive our Priuses, then we have to 
be brave enough not only to support this bill but to tell our 
colleagues that we have to open up the public lands to allow the mining 
to be done so that we will have access to create these miracles. Too 
often we are willing to talk about spending money to do the kinds of 
things that need to be done, but we are not willing to say we need to 
reform our Federal regulations and our processes to make those things 
possible.
  One hears all the time that what America needs for energy 
independence is a new Manhattan Project. Well, ladies and gentlemen, as 
somebody who has worked on environmental issues for over 30 years, the 
Manhattan Project would be illegal to do today. Federal regulation 
would not allow a Manhattan Project. As the committee that works on 
science, we need to understand that we can only do so much. The 
jurisdiction of the Natural Resources Committee needs to be partners in 
this effort. We need to tear down the barriers of government regulation 
which do not allow access to those important components that are public 
property and public resources. The American people own these resources, 
and they should be able to have access to them.
  I am very sensitive to the environmental impact of exploiting 
resources in an inappropriate way. Yet, as a former member of the Air 
Resources Board, I am very, very aware of the great environmental 
threat if we do not utilize our own native resources to address these 
issues.
  So I want to thank the chairman. This is probably one of his last 
bills to be before this committee. It is a great, great bill at a 
critical time. I hope the committees of jurisdiction, such as the 
Natural Resources Committee, will be as strong and as brave to bring 
these items forward so the gentlewoman from Pennsylvania's bill can not 
only see the light of day here in this body but actually can see the 
implementation of one of the most important things that is facing us as 
an economy and as a free people, which is just making sure that we have 
the access to those items that make these miracles possible.
  Thank you very much for this bill, and I support it.
  Mr. HALL of Texas. Madam Speaker, I have no further requests for 
time, and I yield back the balance of my time.
  Mr. GORDON of Tennessee. I yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Tennessee (Mr. Gordon) that the House suspend the rules 
and pass the bill, H.R. 6160, as amended.
  The question was taken.
  The SPEAKER pro tempore. In the opinion of the Chair, two-thirds 
being in the affirmative, the ayes have it.
  Mr. GORDON of Tennessee. Madam Speaker, on that I demand the yeas and 
nays.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. Pursuant to clause 8 of rule XX and the 
Chair's prior announcement, further proceedings on this motion will be 
postponed.

                          ____________________