[House Report 113-389]
[From the U.S. Government Publishing Office]


113th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     113-389

======================================================================



 
             RESOURCE ASSESSMENT OF RARE EARTHS ACT OF 2013

                                _______
                                

 April 1, 2014.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

 Mr. Hastings of Washington, from the Committee on Natural Resources, 
                        submitted the following

                              R E P O R T

                        [To accompany H.R. 981]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Natural Resources, to whom was referred 
the bill (H.R. 981) to direct the Secretary of the Interior to 
conduct a global rare earth element assessment, and for other 
purposes, having considered the same, report favorably thereon 
without amendment and recommend that the bill do pass.

                          PURPOSE OF THE BILL

    The purpose of H.R. 981 is to direct the Secretary of the 
Interior to conduct a global rare earth element assessment.

                  BACKGROUND AND NEED FOR LEGISLATION

    H.R. 981, the Resource Assessment of Rare Earths Act of 
2013, requires the Secretary of the Interior to direct the 
United States Geological Survey (USGS) to conduct a 
quantitative global rare earth element assessment.
    The industrialization of China and India is driving demand 
for non-fuel mineral commodities, sparking a period of resource 
nationalism. China currently accounts for 80 percent of the 
world's rare earth mineral supply. In 2010, China unofficially 
embargoed rare earth mineral shipments to Japan and quietly 
restricted exports to the U.S. and Europe.
    Chinese representatives speaking at various meetings have 
indicated they expect their country to be a net importer of 
rare earths within a few years. China's reduction and stoppage 
of rare-earth mineral element exports necessary for 
telecommunications, military technologies, medical devices and 
renewable energy technologies have spurred the development of 
several pieces of legislation to deal with supply disruptions 
of these important mineral commodities.
    H.R. 981 directs USGS, in cooperation with other national 
geological surveys, to conduct a three-year, comprehensive 
global mineral assessment of rare earth elements; to conduct an 
analysis, with the participation of the National Minerals 
Information Center and in consultation with appropriate 
agencies, of the rare earth elements supply chain and 
associated processes and products, including mining, 
processing, separation, metal production, alloy production, and 
manufacturing of products sold to end users; and to report back 
to Congress on its findings. Finally, the legislation 
authorizes an appropriation of $10 million for the period of 
fiscal years 2014 through 2016.

                            COMMITTEE ACTION

    H.R. 981 was introduced on March 6, 2013, by Congressman 
Henry C. ``Hank'' Johnson (D-GA). The bill was referred to the 
Committee on Natural Resources, and within the Committee to the 
Subcommittee on Energy and Mineral Resources. On March 21, 
2013, the Subcommittee held a hearing on the bill. On May 15, 
2013, the Full Natural Resources Committee met to consider the 
bill. The Subcommittee on Energy and Mineral Resources was 
discharged by unanimous consent. No amendments were offered, 
and the bill was then adopted and ordered favorably reported to 
the House of Representatives by unanimous consent.

            COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS

    Regarding clause 2(b)(1) of rule X and clause 3(c)(1) of 
rule XIII of the Rules of the House of Representatives, the 
Committee on Natural Resources' oversight findings and 
recommendations are reflected in the body of this report.

                    COMPLIANCE WITH HOUSE RULE XIII

    1. Cost of Legislation. Clause 3(d)(1) of rule XIII of the 
Rules of the House of Representatives requires an estimate and 
a comparison by the Committee of the costs which would be 
incurred in carrying out this bill. However, clause 3(d)(2)(B) 
of that rule provides that this requirement does not apply when 
the Committee has included in its report a timely submitted 
cost estimate of the bill prepared by the Director of the 
Congressional Budget Office under section 402 of the 
Congressional Budget Act of 1974. Under clause 3(c)(3) of rule 
XIII of the Rules of the House of Representatives and section 
403 of the Congressional Budget Act of 1974, the Committee has 
received the following cost estimate for this bill from the 
Director of the Congressional Budget Office:

H.R. 981--RARE Act of 2013

    Summary: H.R. 981 would authorize the appropriation of $10 
million for the United States Geological Survey (USGS) to 
conduct a global assessment of rare earth elements (a group of 
elements that are rarely found in high concentrations). 
Assuming appropriation of the authorized amounts, CBO estimates 
that implementing the legislation would cost $10 million over 
the 2014-2016 period.
    Enacting H.R. 981 would not affect direct spending or 
revenues; therefore, pay-as-you-go procedures do not apply.
    H.R. 981 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would not affect the budgets of state, local, or tribal 
governments.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 981 is shown in the following table. 
The costs of this legislation fall within budget function 300 
(natural resources and environment).

----------------------------------------------------------------------------------------------------------------
                                                                 By fiscal year, in millions of dollars--
                                                         -------------------------------------------------------
                                                            2014     2015     2016     2017     2018   2014-2018
----------------------------------------------------------------------------------------------------------------
                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Authorization Level.....................................       10        0        0        0        0        10
Estimated Outlays.......................................        4        4        2        0        0        10
----------------------------------------------------------------------------------------------------------------

    Basis of estimate: For this estimate, CBO assumes that the 
legislation will be enacted before the end of 2013 and that the 
entire amount authorized to be appropriated over the 2014-2016 
period would be appropriated in 2014. Estimated outlays are 
based on historical spending patterns for similar USGS 
activities.
    H.R. 981 would require USGS to complete a global assessment 
of rare earth elements over a three-year period. The assessment 
would identify and quantify known deposits of rare earth 
elements and determine the geological conditions necessary to 
form such deposits. The assessment also would recommend future 
geological research projects related to rare earth elements and 
scarce minerals and analyze the process by which deposits of 
rare earth elements are brought to market. Assuming 
appropriation of the authorized amounts, CBO estimates that 
implementing H.R. 981 would cost $10 million over the 2014-2018 
period.
    Pay-As-You-Go considerations: None.
    Intergovernmental and private-sector impact: H.R. 981 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would not affect the budgets of state, 
local, or tribal governments.
    Estimate prepared by: Federal costs: Jeff LaFave; Impact on 
state, local, and tribal governments: Melissa Merrell; Impact 
on the private sector: Amy Petz.
    Estimate approved by: Theresa Gullo, Deputy Assistant 
Director for Budget Analysis.
    2. Section 308(a) of Congressional Budget Act. As required 
by clause 3(c)(2) of rule XIII of the Rules of the House of 
Representatives and section 308(a) of the Congressional Budget 
Act of 1974, this bill does not contain any new credit 
authority or an increase or decrease in revenues or tax 
expenditures. Assuming appropriation of the authorized amounts, 
CBO estimates that implementing the legislation would cost $10 
million over the 2014-2016 period.
    3. General Performance Goals and Objectives. As required by 
clause 3(c)(4) of rule XIII, the general performance goal or 
objective of this bill is to direct the Secretary of the 
Interior to conduct a global rare earth element assessment.

                           EARMARK STATEMENT

    This bill does not contain any Congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined 
under clause 9(e), 9(f), and 9(g) of rule XXI of the Rules of 
the House of Representatives.

                    COMPLIANCE WITH PUBLIC LAW 104-4

    This bill contains no unfunded mandates.

                       COMPLIANCE WITH H. RES. 5

    Directed Rule Making. The Chairman does not believe that 
this bill directs any executive branch official to conduct any 
specific rule-making proceedings.
    Duplication of Existing Programs. This bill does not 
establish or reauthorize a program of the federal government 
known to be duplicative of another program. Such program was 
not included in any report from the Government Accountability 
Office to Congress pursuant to section 21 of Public Law 111-139 
or identified in the most recent Catalog of Federal Domestic 
Assistance published pursuant to the Federal Program 
Information Act (Public Law 95-220, as amended by Public Law 
98-169) as relating to other programs.

                PREEMPTION OF STATE, LOCAL OR TRIBAL LAW

    This bill is not intended to preempt any State, local or 
tribal law.

                        CHANGES IN EXISTING LAW

    If enacted, this bill would make no changes in existing 
law.

                                  
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