[Senate Report 116-74]
[From the U.S. Government Publishing Office]
Calendar No. 176
116th Congress } { Report
SENATE
1st Session } { 116-74
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RARE EARTH ELEMENT ADVANCED COAL
TECHNOLOGIES ACT
_______
August 16, 2019.--Ordered to be printed
Filed, under authority of the order of the Senate of August 1, 2019
_______
Ms. Murkowski, from the Committee on Energy and Natural
Resources, submitted the following
R E P O R T
[To accompany S. 1052]
[Including cost estimate of the Congressional Budget Office]
The Committee on Energy and Natural Resources, to which was
referred the bill (S. 1052) to authorize the Office of Fossil
Energy to develop advanced separation technologies for the
extraction and recovery of rare earth elements and minerals
from coal and coal byproducts, and for other purposes, having
considered the same, reports favorably thereon with an
amendment in the nature of a substitute and recommends that the
bill, as amended, do pass.
AMENDMENT
The amendment is as follows:
1. Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Rare Earth Element Advanced Coal
Technologies Act''.
SEC. 2. PROGRAM FOR EXTRACTION AND RECOVERY OF RARE EARTH ELEMENTS AND
MINERALS FROM COAL AND COAL BYPRODUCTS.
(a) In General.--The Secretary of Energy, acting through the
Assistant Secretary for Fossil Energy (referred to in this Act as the
``Secretary''), shall carry out a program under which the Secretary
shall develop advanced separation technologies for the extraction and
recovery of rare earth elements and minerals from coal and coal
byproducts.
(b) Authorization of Appropriations.--There is authorized to be
appropriated to the Secretary to carry out the program described in
subsection (a) $23,000,000 for each of fiscal years 2020 through 2027.
SEC. 3. REPORT.
Not later than 1 year after the date of enactment of this Act, the
Secretary shall submit to the Committee on Energy and Natural Resources
of the Senate and the Committee on Energy and Commerce of the House of
Representatives a report evaluating the development of advanced
separation technologies for the extraction and recovery of rare earth
elements and minerals from coal and coal byproducts, including acid
mine drainage from coal mines.
PURPOSE
The purpose of S. 1052 is to authorize the Office of Fossil
Energy to develop advanced separation technologies for the
extraction and recovery of rare earth elements and minerals
from coal and coal byproducts.
BACKGROUND AND NEED
Rare earth elements (REEs) are designated as a critical
mineral by the Department of the Interior and are used in a
range of products including cell phones, global positioning
systems (GPS), medical equipment, and defense applications. The
United States currently produces only a small amount of REEs,
with the majority of the world production and processing
occurring in China. Due to the reduction of Chinese exports of
REEs in 2006, the average cost of imports from China increased
2,432 percent from 2002 to 2011, and by 723 percent in 2011
alone.
U.S. mineral import dependence and the concentration of
mineral supply from certain countries are broadly recognized as
growing threats to economic growth, competitiveness, and
national security. The resulting price and supply chain
volatility has prompted a greater focus on policies related to
mineral security and ``critical minerals'' that are important
in use, susceptible to supply disruption, and for which no
substitutes are readily available.
According to the National Energy Technology Lab (NETL) and
based on annual estimates, acid mine drainage sludge in West
Virginia and Pennsylvania represents approximately 610 to 2,700
tons per year of REEs. NETL has been examining the concept of
extracting REEs from coal and coal byproducts since 2010.
Congress appropriated funding in 2014 for NETL to develop
extraction technologies for REEs from coal byproducts. S. 1052
formally authorizes the program.
LEGISLATIVE HISTORY
S. 1052 was introduced by Senators Manchin, Murkowski, and
Capito on April 4, 2019. The Committee on Energy and Natural
Resources held a hearing to consider the bill on May 14, 2019.
In the 115th Congress, S. 1563, similar legislation, was
introduced by Senator Manchin on July 13, 2017. On December 5,
2017, the Subcommittee on Energy held a legislative hearing on
S. 1563. The Committee on Energy and Natural Resources met in
open business session on March 8, 2018, and ordered S. 1563
favorably reported (S. Rept. 115-255).
The Senate Committee on Energy and Natural Resources met in
open business session on July 16, 2019, and ordered S. 1052
favorably reported, as amended.
COMMITTEE RECOMMENDATION
The Senate Committee on Energy and Natural Resources, in
open business session on July 16, 2019, by a majority voice
vote of a quorum present, recommends that the Senate pass S.
1052, if amended as described herein. Senator Lee asked to be
recorded as voting no.
COMMITTEE AMENDMENT
During its consideration of S. 1052, the Committee adopted
an amendment in the nature of a substitute. The substitute
amendment strikes section 2, which provided Congressional
findings, and renumbers the sections accordingly.
Section 3 (as renumbered) is amended to: (1) strike the
requirement for an assessment to be conducted; (2) strike the
requirement that the Secretary of Energy (Secretary) write and
submit the report in consultation with the Secretary of
Defense; and (3) limit the scope of the reporting requirement
to evaluate only the development of the advanced separation
technologies.
SECTION-BY-SECTION ANALYSIS
Section 1. Short title
Section 1 contains the short title.
Sec. 2. Program for the extraction and recovery of rare earth elements
and minerals from coal and coal byproducts
Section 2 requires the Secretary, acting through the
Assistant Secretary for Fossil Energy, to carry out a program
to develop advanced separation technologies for the extraction
and recovery of REEs and minerals from coal and coal
byproducts. Subsection (b) authorizes $23 million for each of
fiscal years 2020 through 2027.
Sec. 3. Report
Section 3 directs the Secretary, within one year of
enactment, to provide a report to the Congressional committees
of jurisdiction that evaluates the development of advanced
separation technologies for the extraction and recovery of REEs
and minerals from coal and coal byproducts.
COST AND BUDGETARY CONSIDERATIONS
The following estimate of the costs of this measure has
been provided by the Congressional Budget Office:
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
S. 1052 would authorize the appropriation of $23 million
annually over the 2020-2027 period for the Department of Energy
(DOE) to develop advanced technologies to extract rare earth
elements and minerals from coal and coal byproducts. In 2019,
DOE allocated $18 million for such activities. The bill also
would direct DOE to submit a report to the Congress on the
development of such technologies.
Based on historical spending patterns for similar
activities, and assuming appropriation of the authorized
amounts, CBO estimates that implementing S. 1052 would cost $66
million over the 2019-2024 period and $165 million over the
2019-2029 period.
The costs of the legislation (detailed in Table 1) fall
within budget function 270 (energy).
TABLE 1.--ESTIMATED INCREASES IN SPENDING SUBJECT TO APPROPRIATION UNDER S. 1052
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By fiscal year, millions of dollars--
--------------------------------------------------------------------------------------------------
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2019-2024 2019-2029
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Authorization........................................ 0 23 23 23 23 23 23 23 23 0 0 115 184
Estimated Outlays.................................... 0 3 9 15 18 21 22 22 22 20 13 66 165
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The CBO staff contact for this estimate is Janani
Shankaran. The estimate was reviewed by H. Samuel Papenfuss,
Deputy Assistant Director for Budget Analysis.
REGULATORY IMPACT EVALUATION
In compliance with paragraph 11(b) of rule XXVI of the
Standing Rules of the Senate, the Committee makes the following
evaluation of the regulatory impact which would be incurred in
carrying out S. 1052. The bill is not a regulatory measure in
the sense of imposing Government-established standards or
significant economic responsibilities on private individuals
and businesses.
No personal information would be collected in administering
the program. Therefore, there would be no impact on personal
privacy.
Little, if any, additional paperwork would result from the
enactment of S. 1052, as ordered reported.
CONGRESSIONALLY DIRECTED SPENDING
S. 1052, as ordered reported, does not contain any
congressionally directed spending items, limited tax benefits,
or limited tariff benefits as defined in rule XLIV of the
Standing Rules of the Senate.
EXECUTIVE COMMUNICATIONS
Executive views on S. 1052 were requested, but have not
been received. The testimony provided by the Department of
Energy at the December 5, 2017, hearing on S. 1563, similar
legislation, follows:
Testimony of Under Secretary Mark Menezes, U.S. Department of Energy
S. 1563--Rare Earth Element Advanced Coal Technologies Act
It's likely the development of a domestic supply of rare
earth elements (REEs) that is economically competitive will
help fuel our nation's economic growth, secure our energy
independence, and increase our national security. The bill
appears to authorize $20 million per year from 2018 through
2025 for the Department of Energy (specifically the Office of
Fossil Energy) to develop advanced separation technologies for
the extraction and recovery of REEs and minerals from coal and
coal byproducts. It appears the bill also requests that DOE, in
consultation with the Department of Defense, within 1 year
after date of enactment, submit a report that assesses the
importance of REEs to the United States, evaluates the
development of new separation technologies, and analyzes the
market impact of new technologies. Due to the complexities of
the research and scope of the report, Congress may want to
consider extending the due date of the initial assessment.
The bill appears to acknowledge the current ongoing efforts
within DOE to advance separation technologies for the recovery
of REEs. Thus, DOE appreciates the proposed legislation as it
incorporates its ongoing R&D. DOE is developing technologies
with the goal of enabling additional domestic supplies of REEs,
reducing environmental impact of coal and REE production, and
delivering technologies that can be manufactured within the
United States. DOE has accomplished much in this area,
including the evaluation of pilot-scale processing options, and
the nature and distribution of REEs in U.S. coal deposits.
CHANGES IN EXISTING LAW
In compliance with paragraph 12 of rule XXVI of the
Standing Rules of the Senate, the Committee notes that no
changes in existing law are made by the bill as ordered
reported.