[House Report 118-723]
[From the U.S. Government Publishing Office]
118th Congress } { Report
HOUSE OF REPRESENTATIVES
2d Session } { 118-723
======================================================================
CRITICAL MINERAL CONSISTENCY ACT OF 2024
_______
November 1, 2024.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Westerman, from the Committee on Natural Resources, submitted the
following
R E P O R T
together with
DISSENTING VIEWS
[To accompany H.R. 8446]
[Including cost estimate of the Congressional Budget Office]
The Committee on Natural Resources, to whom was referred
the bill (H.R. 8446) to amend the Energy Act of 2020 to include
critical materials in the definition of critical mineral, and
for other purposes, having considered the same, reports
favorably thereon with an amendment and recommends that the
bill as amended do pass.
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Critical Mineral Consistency Act of
2024''.
SEC. 2. CRITICAL MATERIALS INCLUDED AS CRITICAL MINERALS.
Section 7002 of the Energy Act of 2020 (30 U.S.C. 1606) is amended--
(1) in subsection (a)(3)(A), to read as follows:
``(A) In general.--The term `critical mineral'
means--
``(i) any mineral, element, substance, or
material designated as critical by the
Secretary under subsection (c); and
``(ii) a critical material as determined by
the Secretary of Energy under paragraph
(2)(A).''; and
(2) in subsection (c)(5), by adding at the end the following:
``(C) Inclusion of critical materials.--Not later
than 45 days after the date on which the Secretary of
Energy determines a non-fuel mineral, element,
substance, or material to be a critical material under
subsection (a)(2)(A), the Secretary shall update the
list of critical minerals published under paragraph (3)
to include such critical material.''.
Purpose of the Legislation
The purpose of H.R. 8446 is to amend the Energy Act of 2020
to include critical materials in the definition of critical
mineral, and for other purposes.
Background and Need for Legislation
The Energy Act of 2020, which sets the definition of
critical minerals, also directs the Secretary of the Department
of Energy (DOE) to develop a critical materials list that
includes all minerals on the Department of the Interior United
States Geological Survey's (USGS) Critical Mineral List (CML)
but adds: ``any non-fuel mineral, element, substance, or
material that the Secretary of Energy determines: (i) has a
high risk of supply chain disruption; and (ii) serves an
essential function in one or more energy technologies,
including technologies that produce, transmit, store, and
conserve energy.'' DOE's methodology for material determination
is forward-looking, accounting for international demand
scenarios and growth trajectories specifically for energy
technologies. On the other hand, while USGS is working on
incorporating forecasting metrics as stipulated by the Energy
Act of 2020, current criteria use historical data to determine
supply risk to the U.S. economy and national security.
DOE's 2023 Critical Materials List, unlike the USGS CML,
contains copper, electrical steel, fluorine, silicon, and
silicon carbide. H.R. 8446 would ensure that the materials on
the DOE list would also appear on the USGS CML--just as all
minerals on USGS's list appear on DOE's list.
Committee Action
H.R. 8446 was introduced on May 17, 2024, by Rep. Juan
Ciscomani (R-AZ). The bill was referred to the Committee on
Natural Resources, and within the Committee to the Subcommittee
on Energy and Mineral Resources. On June 4, 2024, the
Subcommittee on Energy and Mineral Resources held a hearing on
the bill. On June 12, 2024, the Committee on Natural Resources
met to consider the bill. The Subcommittee on Energy and
Mineral Resources was discharged from further consideration of
H.R. 8446 by unanimous consent. Representative Pete Stauber (R-
MN) offered an Amendment in the Nature of a Substitute
designated Stauber_053. The amendment was agreed to by voice
vote. Representative Melanie Stansbury (D-NM) offered an
amendment to the Amendment in the Nature of a Substitute
designated Stansbury #1. The amendment was not agreed to by a
roll call vote of 14 yeas to 18 nays, as follows:
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
The bill, as amended, was ordered favorably reported to the
House of Representatives by a roll call vote of 19 yeas to 13
nays, as follows:
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
Hearings
For the purposes of clause 3(c)(6) of House rule XIII, the
following hearing was used to develop or consider this measure:
hearing by the Subcommittee on Energy and Mineral Resources
held on June 4, 2024.
Section-by-Section Analysis
Section 1. Short title
Designates the bill as the ``Critical Mineral Consistency
Act of 2024''.
Section 2. Critical materials included as critical minerals
Amends Section 7002 of the Energy Act of 2020, adding
critical materials designated by the Secretary of Energy to the
definition of critical minerals. This section also stipulates
that the Secretary of the Interior must update the CML no later
than 45 days after the Secretary of Energy deems a commodity as
a critical material.
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 and
Congressional Budget Act
1. Cost of Legislation and the Congressional Budget Act.
With respect to the requirements of clause 3(c)(2) and (3) of
rule XIII of the Rules of the House of Representatives and
sections 308(a) and 402 of the Congressional Budget Act of
1974, the Committee has received the following estimate for the
bill from the Director of the Congressional Budget Office:
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
H.R. 8446 would require the U.S. Geological Survey (USGS)
to update its list of minerals essential to the United States'
economy or national security to include any materials that the
Department of Energy (DOE) has designated as critical for
energy technologies.
Currently, there are five materials designated as critical
by DOE that are not included in the USGS's list of critical
minerals. If those materials were added to the list, the agency
would be required to identify all known sources of each
material and annually report on each material's projected
supply and demand. Using information from the USGS about the
costs of its current assessments, CBO estimates that listing
and assessing the five additional materials would cost $1
million over the 2024-2029 period.
If DOE designates new materials after enactment, the USGS
would be required to include them on its list and in subsequent
annual reports. Using information about the timing of past
updates to DOE's list and the costs of the USGS's current
assessments, CBO estimates that listing and reporting on any
new DOE designations would cost $1 million over the 2024-2029
period.
In total, CBO estimates that implementing H.R. 8446 would
cost $2 million over the 2024-2029 period; any related spending
would be subject to the availability of appropriated funds.
The CBO staff contact for this estimate is Emma Uebelhor.
The estimate was reviewed by H. Samuel Papenfuss, Deputy
Director of Budget Analysis.
Phillip L. Swagel,
Director, Congressional Budget Office.
2. 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 amend the Energy Act of 2020 to
include critical materials in the definition of critical
mineral, and for other purposes.
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.
Unfunded Mandates Reform Act Statement
According to the Congressional Budget Office, H.R. 8446
contains no unfunded mandates as defined by the Unfunded
Mandates Reform Act.
Existing Programs
Directed Rule Making. This bill does not contain any
directed rule makings.
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.
Applicability to Legislative Branch
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act.
Preemption of State, Local or Tribal Law
Any preemptive effect of this bill over state, local, or
tribal law is intended to be consistent with the bill's
purposes and text and the Supremacy Clause of Article VI of the
U.S. Constitution.
H.L.C.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italics, and existing law in which no
change is proposed is shown in roman):
ENERGY ACT OF 2020
DIVISION Z--ENERGY ACT OF 2020
* * * * * * *
TITLE VII--CRITICAL MINERALS
* * * * * * *
SEC. 7002. MINERAL SECURITY.
(a) Definitions.--In this section:
(1) Byproduct.--The term ``byproduct'' means a
critical mineral--
(A) the recovery of which depends on the
production of a host mineral that is not
designated as a critical mineral; and
(B) that exists in sufficient quantities to
be recovered during processing or refining.
(2) Critical material.--The term ``critical
material'' means--
(A) any non-fuel mineral, element, substance,
or material that the Secretary of Energy
determines--
(i) has a high risk of a supply chain
disruption; and
(ii) serves an essential function in
1 or more energy technologies,
including technologies that produce,
transmit, store, and conserve energy;
or
(B) a critical mineral.
(3) Critical mineral.--
[(A) In general.--The term ``critical
mineral'' means any mineral, element,
substance, or material designated as critical
by the Secretary under subsection (c).]
(A) In general.--The term ``critical
mineral'' means--
(i) any mineral, element, substance,
or material designated as critical by
the Secretary under subsection (c); and
(ii) a critical material as
determined by the Secretary of Energy
under paragraph (2)(A).
(B) Exclusions.--The term ``critical
mineral'' does not include--
(i) fuel minerals;
(ii) water, ice, or snow;
(iii) common varieties of sand,
gravel, stone, pumice, cinders, and
clay.
(4) Indian tribe.--The term ``Indian Tribe'' has the
meaning given the term in section 4 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C.
5304).
(5) Secretary.--The term ``Secretary'' means the
Secretary of the Interior.
(6) State.--The term ``State'' means--
(A) a State;
(B) the District of Columbia;
(C) the Commonwealth of Puerto Rico;
(D) Guam;
(E) American Samoa;
(F) the Commonwealth of the Northern Mariana
Islands; and
(G) the United States Virgin Islands.
(7) Institution of higher education.--The term
``institution of higher education'' means--
(A) an institution of higher education (as
defined in section 101(a) of the Higher
Education Act of 1965 (20 U.S.C. 1001(a))); or
(B) a postsecondary vocational institution
(as defined in section 102(c) of the Higher
Education Act of 1965 (20 U.S.C. 1002(c))).
(b) Policy.--
(1) In general.--Section 3 of the National Materials
and Minerals Policy, Research and Development Act of
1980 (30 U.S.C. 1602) is amended--
(A) by striking paragraph (3) and inserting
the following:
``(3) establish an analytical and forecasting
capability for identifying critical mineral demand,
supply, and other factors to allow informed actions to
be taken to avoid supply shortages, mitigate price
volatility, and prepare for demand growth and other
market shifts;'';
(B) in paragraph (6), by striking ``and''
after the semicolon at the end; and
(C) by striking paragraph (7) and inserting
the following:
``(7) facilitate the availability, development, and
environmentally responsible production of domestic
resources to meet national material or critical mineral
needs;
``(8) avoid duplication of effort, prevent
unnecessary paperwork, and minimize delays in the
administration of applicable laws (including
regulations) and the issuance of permits and
authorizations necessary to explore for, develop, and
produce critical minerals and to construct critical
mineral manufacturing facilities in accordance with
applicable environmental and land management laws;
``(9) strengthen--
``(A) educational and research capabilities
at not lower than the secondary school level;
and
``(B) workforce training for exploration and
development of critical minerals and critical
mineral manufacturing;
``(10) bolster international cooperation through
technology transfer, information sharing, and other
means;
``(11) promote the efficient production, use, and
recycling of critical minerals;
``(12) develop alternatives to critical minerals; and
``(13) establish contingencies for the production of,
or access to, critical minerals for which viable
sources do not exist within the United States.''.
(2) Conforming amendment.--Section 2(b) of the
National Materials and Minerals Policy, Research and
Development Act of 1980 (30 U.S.C. 1601(b)) is amended
by striking ``(b) As used in this Act, the term'' and
inserting the following:
``(b) Definitions.--In this Act:
``(1) Critical mineral.--The term `critical mineral'
means any mineral, element, substance, or material
designated as critical by the Secretary under section
7002(c) of the Energy Act of 2020.
``(2) Materials.--The term''.
(c) Critical Mineral Designations.--
(1) Draft methodology and list.--The Secretary,
acting through the Director of the United States
Geological Survey (referred to in this subsection as
the ``Secretary''), shall publish in the Federal
Register for public comment--
(A) a description of the draft methodology
used to identify a draft list of critical
minerals;
(B) a draft list of minerals, elements,
substances, and materials that qualify as
critical minerals; and
(C) a draft list of critical minerals
recovered as byproducts and their host
minerals.
(2) Availability of data.--If available data is
insufficient to provide a quantitative basis for the
methodology developed under this subsection,
qualitative evidence may be used to the extent
necessary.
(3) Final methodology and list.--After reviewing
public comments on the draft methodology and the draft
lists published under paragraph (1) and updating the
methodology and lists as appropriate, not later than 45
days after the date on which the public comment period
with respect to the draft methodology and draft lists
closes, the Secretary shall publish in the Federal
Register--
(A) a description of the final methodology
for determining which minerals, elements,
substances, and materials qualify as critical
minerals;
(B) the final list of critical minerals; and
(C) the final list of critical minerals
recovered as byproducts and their host
minerals.
(4) Designations.--
(A) In general.--For purposes of carrying out
this subsection, the Secretary shall maintain a
list of minerals, elements, substances, and
materials designated as critical, pursuant to
the final methodology published under paragraph
(3), that the Secretary determines--
(i) are essential to the economic or
national security of the United States;
(ii) the supply chain of which is
vulnerable to disruption (including
restrictions associated with foreign
political risk, abrupt demand growth,
military conflict, violent unrest,
anti-competitive or protectionist
behaviors, and other risks throughout
the supply chain); and
(iii) serve an essential function in
the manufacturing of a product
(including energy technology-, defense-
, currency-, agriculture-, consumer
electronics-, and health care-related
applications), the absence of which
would have significant consequences for
the economic or national security of
the United States.
(B) Inclusions.--Notwithstanding the criteria
under paragraph (3), the Secretary may
designate and include on the list any mineral,
element, substance, or material determined by
another Federal agency to be strategic and
critical to the defense or national security of
the United States.
(C) Required consultation.--The Secretary
shall consult with the Secretaries of Defense,
Commerce, Agriculture, and Energy and the
United States Trade Representative in
designating minerals, elements, substances, and
materials as critical under this paragraph.
(5) Subsequent review.--
(A) In general.--The Secretary, in
consultation with the Secretaries of Defense,
Commerce, Agriculture, and Energy and the
United States Trade Representative, shall
review the methodology and list under paragraph
(3) and the designations under paragraph (4) at
least every 3 years, or more frequently as the
Secretary considers to be appropriate.
(B) Revisions.--Subject to paragraph (4)(A),
the Secretary may--
(i) revise the methodology described
in this subsection;
(ii) determine that minerals,
elements, substances, and materials
previously determined to be critical
minerals are no longer critical
minerals; and
(iii) designate additional minerals,
elements, substances, or materials as
critical minerals.
(C) Inclusion of critical materials.--Not
later than 45 days after the date on which the
Secretary of Energy determines a non-fuel
mineral, element, substance, or material to be
a critical material under subsection (a)(2)(A),
the Secretary shall update the list of critical
minerals published under paragraph (3) to
include such critical material.
(6) Notice.--On finalization of the methodology and
the list under paragraph (3), or any revision to the
methodology or list under paragraph (5), the Secretary
shall submit to Congress written notice of the action.
(d) Resource Assessment.--
(1) In general.--Not later than 4 years after the
date of enactment of this Act, in consultation with
applicable State (including geological surveys), local,
academic, industry, and other entities, the Secretary
(acting through the Director of the United States
Geological Survey) or a designee of the Secretary,
shall complete a comprehensive national assessment of
each critical mineral that--
(A) identifies and quantifies known critical
mineral resources, using all available public
and private information and datasets, including
exploration histories; and
(B) provides a quantitative and qualitative
assessment of undiscovered critical mineral
resources throughout the United States,
including probability estimates of tonnage and
grade, using all available public and private
information and datasets, including exploration
histories.
(2) Supplementary information.--In carrying out this
subsection, the Secretary may carry out surveys and
field work (including drilling, remote sensing,
geophysical surveys, topographical and geological
mapping, and geochemical sampling and analysis) to
supplement existing information and datasets available
for determining the existence of critical minerals in
the United States.
(3) Public access.--Subject to applicable law, to the
maximum extent practicable, the Secretary shall make
all data and metadata collected from the comprehensive
national assessment carried out under paragraph (1)
publically and electronically accessible.
(4) Technical assistance.--At the request of the
Governor of a State or the head of an Indian Tribe, the
Secretary may provide technical assistance to State
governments and Indian Tribes conducting critical
mineral resource assessments on non-Federal land.
(5) Prioritization.--
(A) In general.--The Secretary may sequence
the completion of resource assessments for each
critical mineral such that critical minerals
considered to be most critical under the
methodology established under subsection (c)
are completed first.
(B) Reporting.--During the period beginning
not later than 1 year after the date of
enactment of this Act and ending on the date of
completion of all of the assessments required
under this subsection, the Secretary shall
submit to Congress on an annual basis an
interim report that--
(i) identifies the sequence and
schedule for completion of the
assessments if the Secretary sequences
the assessments; or
(ii) describes the progress of the
assessments if the Secretary does not
sequence the assessments.
(6) Updates.--The Secretary may periodically update
the assessments conducted under this subsection based
on--
(A) the generation of new information or
datasets by the Federal Government; or
(B) the receipt of new information or
datasets from critical mineral producers, State
geological surveys, academic institutions,
trade associations, or other persons.
(7) Additional surveys.--The Secretary shall complete
a resource assessment for each additional mineral or
element subsequently designated as a critical mineral
under subsection (c)(5)(B) not later than 2 years after
the designation of the mineral or element.
(8) Report.--Not later than 2 years after the date of
enactment of this Act, the Secretary shall submit to
Congress a report describing the status of geological
surveying of Federal land for any mineral commodity--
(A) for which the United States was dependent
on a foreign country for more than 25 percent
of the United States supply, as depicted in the
report issued by the United States Geological
Survey entitled ``Mineral Commodity Summaries
2021''; but
(B) that is not designated as a critical
mineral under subsection (c).
(e) Report of Small Business Administration.--Not later than
1 year and 300 days after the date of enactment of this Act,
the Administrator of the Small Business Administration shall
submit to the applicable committees of Congress a report that
assesses the performance of Federal agencies with respect to--
(1) complying with chapter 6 of title 5, United
States Code (commonly known as the ``Regulatory
Flexibility Act''), in promulgating regulations
applicable to the critical minerals industry; and
(2) performing an analysis of the efficiency of
regulations applicable to the critical minerals
industry, including those that are disproportionately
burdensome to small businesses.
(f) Federal Register Process.--
(1) Departmental review.--Absent any extraordinary
circumstance, and except as otherwise required by law,
the Secretary and the Secretary of Agriculture shall
ensure that each Federal Register notice described in
paragraph (2) shall be--
(A) subject to any required reviews within
the Department of the Interior or the
Department of Agriculture; and
(B) published in final form in the Federal
Register not later than 45 days after the date
of initial preparation of the notice.
(2) Preparation.--The preparation of Federal Register
notices required by law associated with the issuance of
a critical mineral exploration or mine permit shall be
delegated to the organizational level within the agency
responsible for issuing the critical mineral
exploration or mine permit.
(3) Transmission.--All Federal Register notices
regarding official document availability, announcements
of meetings, or notices of intent to undertake an
action shall be originated in, and transmitted to the
Federal Register from, the office in which, as
applicable--
(A) the documents or meetings are held; or
(B) the activity is initiated.
(4) Application of certain provisions.--
(A) In general.--Subsection (f) shall also
apply to--
(i) an exploration project in which
the presence of a byproduct is
reasonably expected, based on known
mineral companionality, geologic
formation, mineralogy, or other
factors; and
(ii) a project that demonstrates that
a byproduct is of sufficient grade
that, when combined with the production
of a host mineral, the byproduct is
economic to recover, as determined by
the applicable Secretary in accordance
with subparagraph (B), and that the
byproduct will be recovered in
commercial quantities.
(B) Requirement.--In making the determination
under subparagraph (A)(ii), the applicable
Secretary shall consider the cost effectiveness
of the byproducts recovery.
(g) Recycling, Innovation, Efficiency, and Alternatives.--
(1) Establishment.--The Secretary of Energy (referred
to in this subsection as the ``Secretary'') shall
conduct a program (referred to in this subsection as
the ``program'') of research, development,
demonstration, and commercialization--
(A) to develop alternatives to critical
materials that do not occur in significant
abundance in the United States;
(B) to promote the efficient production, use,
and recycling of critical materials, with
special consideration for domestic critical
materials, throughout the supply chain;
(C) to ensure the long-term, secure, and
sustainable supply of critical materials; and
(D) to prioritize work in areas that the
private sector by itself is not likely to
undertake due to financial or technical
limitations.
(2) Cooperation.--In carrying out the program, the
Secretary shall cooperate with appropriate--
(A) Federal agencies, including the
Department of the Interior;
(B) the National Laboratories;
(C) critical material producers, processors,
and manufacturers;
(D) trade associations;
(E) academic institutions (including students
and postdoctoral staff at institutions of
higher education);
(F) small businesses;
(G) nongovernmental organizations; and
(H) other relevant entities or individuals.
(3) Energy innovation hub.--In carrying out the
program, the Secretary may use an Energy Innovation Hub
authorized under section 206 of the Department of
Energy Research Coordination Act (42 U.S.C. 18632).
(4) Activities.--Under the program, the Secretary
shall carry out activities that include the
identification and development of--
(A) alternative materials, particularly
materials available in abundance within the
United States and not subject to potential
supply restrictions, that lessen the need for
critical materials;
(B) alternative energy technologies or
alternative designs of existing energy
technologies, particularly technologies or
designs that use materials that--
(i) occur in abundance in the United
States; and
(ii) are not subject to potential
supply restrictions;
(C) technologies or process improvements that
minimize the use and content, or lead to more
efficient use, of critical materials across the
full supply chain;
(D) innovative technologies and practices to
diversify commercially viable and sustainable
domestic sources of critical materials,
including technologies for recovery from waste
streams;
(E) technologies, process improvements, or
design optimizations that facilitate the
recycling of critical materials, and options
for improving the rates of collection of
products and scrap containing critical
materials from post-consumer, industrial, or
other waste streams;
(F) advanced critical material extraction,
production, separation, alloying, or processing
technologies that decrease the energy
consumption, environmental impact, and costs of
those activities, including--
(i) efficient water and wastewater
management strategies;
(ii) technologies and management
strategies to control the environmental
impacts of radionuclides in ore
tailings;
(iii) technologies for separation and
processing; and
(iv) technologies for increasing the
recovery rates of coproducts and
byproducts from host metal ores;
(G) commercial markets, advanced storage
methods, energy applications, and other
beneficial uses of critical materials; and
(H) advanced theoretical, computational, and
experimental tools necessary to support the
crosscutting research and development needs of
diverse critical minerals stakeholders.
(5) Plan.--
(A) In general.--Not later than 1 year after
the date of enactment of this Act, the
Secretary shall submit to Congress a plan to
carry out the program.
(B) Inclusions.--The plan under subparagraph
(A) shall include a description of--
(i) the research and development
activities to be carried out under the
program during the subsequent 2 years;
(ii) the expected contributions under
the program to the creation of
innovative methods and technologies for
the efficient and sustainable provision
of critical materials to the domestic
economy;
(iii) the expected activities under
the program to mitigate the
environmental and health impacts of the
extraction, processing, manufacturing,
use, recovery, and recycling of
critical materials; and
(iv) how the program will promote the
broadest possible participation by
academic, industrial, and other
contributors and the public.
(6) Coordination and nonduplication.--To the maximum
extent practicable, the Secretary shall ensure that the
activities carried out under this subsection are
coordinated with, and do not duplicate the efforts of,
other programs within the Federal Government, including
the work underway by the Critical Materials Institute
and the National Minerals Information Center.
(7) Standard of review.--Not later than 2 years after
the date of enactment of this Act, the Secretary shall
conduct a review of activities carried out under the
program to determine the achievement of the technical
milestones identified under paragraph (8)(D)(i)(I).
(8) Critical materials consortium.--
(A) In general.--Not later than 1 year after
the date of enactment of this Act, the
Secretary shall establish and operate a
Critical Materials Consortium (referred to in
this paragraph as the ``Consortium'') for the
purpose of supporting the program by providing,
to the maximum extent practicable, a
centralized entity for multidisciplinary,
collaborative, critical materials research and
development.
(B) Leadership.--If an Energy Innovation Hub
authorized under section 206 of the Department
of Energy Research Coordination Act (42 U.S.C.
18632) that is focused on critical materials
exists on the date of enactment of this Act,
the Secretary shall leverage the personnel and
expertise of the Energy Innovation Hub to
manage the Consortium for not less than 3 years
following the date on which the Consortium is
established.
(C) Membership.--The members of the
Consortium shall be representatives from
relevant Federal agencies, the National
Laboratories, the National Minerals Information
Center, institutions of higher education,
private sector entities, multiinstitutional
collaborations, and other appropriate entities.
(D) Responsibilities.--The Consortium shall--
(i) develop and implement a multiyear
plan that--
(I) identifies technical
goals and milestones for the
program;
(II) utilizes the high
performance computing
capabilities of the Department;
and
(III) leverages the expertise
of the National Laboratories
and the United States
Geological Survey; and
(ii) submit an annual report to the
Secretary summarizing the activities of
the Consortium, including an evaluation
of the role of the Consortium in the
achievement of the technical milestones
identified under clause (i)(I).
(E) Sunset; termination.--
(i) In general.--The Secretary may
provide support to the Consortium for a
period of not more than 10 years,
subject to the availability of
appropriations.
(ii) Merit review.--Not later than 5
years after the date on which the
Consortium is established, the
Secretary shall conduct a rigorous
merit review to determine whether the
Consortium helped the program achieve
the technical milestones identified
under subparagraph (D)(i)(I).
(iii) Termination.--If the Secretary
determines that the Consortium has not
helped the program achieve the
technical milestones identified under
subparagraph (D)(i)(I), the Secretary
may terminate any financial or
technical support that the Department
provides to the Consortium.
(9) Reports.--Not later than 2 years after the date
of enactment of this Act, and annually thereafter, the
Secretary shall submit to Congress a report summarizing
the activities, findings, and progress of the program.
(10) Authorization of appropriations.--There are
authorized to be appropriated to the Secretary to carry
out this subsection--
(A) $125,000,000 for fiscal year 2021;
(B) $105,000,000 for fiscal year 2022;
(C) $100,000,000 for fiscal year 2023;
(D) $135,000,000 for fiscal year 2024; and
(E) $135,000,000 for fiscal year 2025.
(h) Critical Materials Supply Chain Research Facility.--
(1) In general.--The Secretary of Energy (referred to
in this subsection as the ``Secretary'') shall support
construction of a Critical Materials Supply Chain
Research Facility (referred to in this subsection as
the ``facility'').
(2) Requirements.--The facility--
(A) shall be used to further enable research,
development, demonstration, and
commercialization activities throughout the
supply chain for critical materials; and
(B) shall provide an integrated, rapidly
reconfigurable research platform.
(3) Authorization of appropriations.--There are
authorized to be appropriated to the Secretary to fund
the design and construction of the facility, to remain
available until expended--
(A) $10,000,000 for fiscal year 2021;
(B) $30,000,000 for fiscal year 2022; and
(C) $35,000,000 for fiscal year 2023.
(i) Critical Materials Research Database and Information
Portal.--
(1) In general.--In carrying out the program
established under subsection (g)(1), the Secretary and
the Secretary of Energy (referred to in this subsection
as the ``Secretaries''), in consultation with the
Director of the National Science Foundation, shall
establish and operate a Critical Materials Information
Portal (referred to in this subsection as the
``Portal'') to collect, catalogue, disseminate, and
archive information on critical materials.
(2) Cooperation.--In carrying out paragraph (1), the
Secretaries shall leverage the expertise of the
National Minerals Information Center, the Office of
Scientific and Technical Information, and the Critical
Materials Consortium established under subsection
(g)(8)(A).
(3) Purpose.--The purpose of the Portal is to support
the development of a web-based platform to provide
public access to a database of computed information on
known and predicted critical materials and related
material properties and computational tools in order--
(A) to accelerate breakthroughs in critical
materials identification and design;
(B) to strengthen the foundation for
technologies that will enable more sustainable
recycling, substitution, use, and recovery and
minimize the environmental impacts of methods
for extraction, processing, and manufacturing
of critical materials; and
(C) to drive the development of advanced
materials for applications that span the
missions of the Department of Energy and the
Department of the Interior (referred to in this
subsection as the ``Departments'') in energy,
environment, and national security.
(4) Activities.--In carrying out this subsection, the
Secretaries shall--
(A) conduct cooperative research with
industry, academia, and other research
institutions to facilitate the design of novel
materials, including critical materials and
substitutes for critical materials;
(B) leverage existing high-performance
computing systems to conduct high throughput
calculations and develop computing and data
mining algorithms for the prediction of
material properties, including a focus on
critical materials;
(C) leverage and support research in
mineralogy and mineral chemistry to enhance the
understanding, prediction, and manipulation of
critical materials;
(D) assist scientists and engineers in making
the fullest possible use of the relevant data
holdings of the Departments, including the
scientific and technical data generated by the
research and development activities funded
under subsection (g);
(E) seek and incorporate other information on
critical materials to enhance the Departments'
utility for program participants and other
users; and
(F) manage and make available to researchers
and the public accessible, curated,
standardized, secure, and privacy-protected
data sets from the public and private sectors
for the purposes of critical materials research
and development activities.
(5) Proprietary information.--In carrying out this
subsection, the Secretaries shall ensure, consistent
with section 5(f) of the National Materials and
Minerals Policy, Research and Development Act of 1980
(30 U.S.C. 1604(f)), that--
(A) no person uses the information and data
collected for the Portal for a purpose other
than the development of, or reporting of,
aggregate data in a manner such that the
identity of the person or firm who supplied the
information is not discernible and is not
material to the intended uses of the
information;
(B) no person discloses any information or
data collected for the Portal unless the
information or data has been transformed into a
statistical or aggregate form that does not
allow the identification of the person or firm
who supplied particular information; and
(C) procedures are established to require the
withholding of any information or data
collected for the Portal if at least 1 of the
Secretaries determines that the withholding is
necessary to protect proprietary information,
including any trade secrets or other
confidential information.
(j) Analysis and Forecasting.--
(1) Capabilities.--In order to evaluate existing
critical mineral policies and inform future actions
that may be taken to avoid supply shortages, mitigate
price volatility, and prepare for demand growth and
other market shifts, the Secretary (acting through the
Director of the United States Geological Survey) or a
designee of the Secretary, in consultation with the
Energy Information Administration, academic
institutions, and others in order to maximize the
application of existing competencies related to
developing and maintaining computer-models and similar
analytical tools, shall conduct and publish the results
of an annual report that includes--
(A) as part of the annually published Mineral
Commodity Summaries from the United States
Geological Survey, a comprehensive review of
critical mineral production, consumption, and
recycling patterns, including--
(i) the quantity of each critical
mineral domestically produced during
the preceding year;
(ii) the quantity of each critical
mineral domestically consumed during
the preceding year;
(iii) market price data or other
price data for each critical mineral;
(iv) an assessment of--
(I) critical mineral
requirements to meet the
national security, energy,
economic, industrial,
technological, and other needs
of the United States during the
preceding year;
(II) the reliance of the
United States on foreign
sources to meet those needs
during the preceding year; and
(III) the implications of any
supply shortages, restrictions,
or disruptions during the
preceding year;
(v) the quantity of each critical
mineral domestically recycled during
the preceding year;
(vi) the market penetration during
the preceding year of alternatives to
each critical mineral;
(vii) a discussion of international
trends associated with the discovery,
production, consumption, use, costs of
production, prices, and recycling of
each critical mineral as well as the
development of alternatives to critical
minerals; and
(viii) such other data, analyses, and
evaluations as the Secretary finds are
necessary to achieve the purposes of
this subsection; and
(B) a comprehensive forecast, entitled the
``Annual Critical Minerals Outlook'', of
projected critical mineral production,
consumption, and recycling patterns,
including--
(i) the quantity of each critical
mineral projected to be domestically
produced over the subsequent 1-year, 5-
year, and 10-year periods;
(ii) the quantity of each critical
mineral projected to be domestically
consumed over the subsequent 1-year, 5-
year, and 10-year periods;
(iii) an assessment of--
(I) critical mineral
requirements to meet projected
national security, energy,
economic, industrial,
technological, and other needs
of the United States;
(II) the projected reliance
of the United States on foreign
sources to meet those needs;
and
(III) the projected
implications of potential
supply shortages, restrictions,
or disruptions;
(iv) the quantity of each critical
mineral projected to be domestically
recycled over the subsequent 1-year, 5-
year, and 10-year periods;
(v) the market penetration of
alternatives to each critical mineral
projected to take place over the
subsequent 1-year, 5-year, and 10-year
periods;
(vi) a discussion of reasonably
foreseeable international trends
associated with the discovery,
production, consumption, use, costs of
production, and recycling of each
critical mineral as well as the
development of alternatives to critical
minerals; and
(vii) such other projections relating
to each critical mineral as the
Secretary determines to be necessary to
achieve the purposes of this
subsection.
(2) Proprietary information.--In preparing a report
described in paragraph (1), the Secretary shall ensure,
consistent with section 5(f) of the National Materials
and Minerals Policy, Research and Development Act of
1980 (30 U.S.C. 1604(f)), that--
(A) no person uses the information and data
collected for the report for a purpose other
than the development of or reporting of
aggregate data in a manner such that the
identity of the person or firm who supplied the
information is not discernible and is not
material to the intended uses of the
information;
(B) no person discloses any information or
data collected for the report unless the
information or data has been transformed into a
statistical or aggregate form that does not
allow the identification of the person or firm
who supplied particular information; and
(C) procedures are established to require the
withholding of any information or data
collected for the report if the Secretary
determines that withholding is necessary to
protect proprietary information, including any
trade secrets or other confidential
information.
(k) Education and Workforce.--
(1) Workforce assessment.--Not later than 1 year and
300 days after the date of enactment of this Act, the
Secretary of Labor (in consultation with the Secretary,
the Director of the National Science Foundation,
institutions of higher education with substantial
expertise in mining, institutions of higher education
with significant expertise in minerals research,
including fundamental research into alternatives, and
employers in the critical minerals sector) shall submit
to Congress an assessment of the domestic availability
of technically trained personnel necessary for critical
mineral exploration, development, assessment,
production, manufacturing, recycling, analysis,
forecasting, education, and research, including an
analysis of--
(A) skills that are in the shortest supply as
of the date of the assessment;
(B) skills that are projected to be in short
supply in the future;
(C) the demographics of the critical minerals
industry and how the demographics will evolve
under the influence of factors such as an aging
workforce;
(D) the effectiveness of training and
education programs in addressing skills
shortages;
(E) opportunities to hire locally for new and
existing critical mineral activities;
(F) the sufficiency of personnel within
relevant areas of the Federal Government for
achieving the policies described in section 3
of the National Materials and Minerals Policy,
Research and Development Act of 1980 (30 U.S.C.
1602); and
(G) the potential need for new training
programs to have a measurable effect on the
supply of trained workers in the critical
minerals industry.
(2) Curriculum study.--
(A) In general.--The Secretary and the
Secretary of Labor shall jointly enter into an
arrangement with the National Academy of
Sciences and the National Academy of
Engineering under which the Academies shall
coordinate with the National Science Foundation
on conducting a study--
(i) to design an interdisciplinary
program on critical minerals that will
support the critical mineral supply
chain and improve the ability of the
United States to increase domestic,
critical mineral exploration,
development, production, manufacturing,
research, including fundamental
research into alternatives, and
recycling;
(ii) to address undergraduate and
graduate education, especially to
assist in the development of graduate
level programs of research and
instruction that lead to advanced
degrees with an emphasis on the
critical mineral supply chain or other
positions that will increase domestic,
critical mineral exploration,
development, production, manufacturing,
research, including fundamental
research into alternatives, and
recycling;
(iii) to develop guidelines for
proposals from institutions of higher
education with substantial capabilities
in the required disciplines for
activities to improve the critical
mineral supply chain and advance the
capacity of the United States to
increase domestic, critical mineral
exploration, research, development,
production, manufacturing, and
recycling; and
(iv) to outline criteria for
evaluating performance and
recommendations for the amount of
funding that will be necessary to
establish and carry out the program
described in paragraph (3).
(B) Report.--Not later than 2 years after the
date of enactment of this Act, the Secretary
shall submit to Congress a description of the
results of the study required under
subparagraph (A).
(3) Program.--
(A) Establishment.--The Secretary and the
Secretary of Labor shall jointly conduct a
competitive grant program under which
institutions of higher education may apply for
and receive 4-year grants for--
(i) startup costs for newly
designated faculty positions in
integrated critical mineral education,
research, innovation, training, and
workforce development programs
consistent with paragraph (2);
(ii) internships, scholarships, and
fellowships for students enrolled in
programs related to critical minerals;
(iii) equipment necessary for
integrated critical mineral innovation,
training, and workforce development
programs; and
(iv) research of critical minerals
and their applications, particularly
concerning the manufacture of critical
components vital to national security.
(B) Renewal.--A grant under this paragraph
shall be renewable for up to 2 additional 3-
year terms based on performance criteria
outlined under paragraph (2)(A)(iv).
(l) National Geological and Geophysical Data Preservation
Program.--Section 351(k) of the Energy Policy Act of 2005 (42
U.S.C. 15908(k)) is amended by striking ``$30,000,000 for each
of fiscal years 2006 through 2010'' and inserting ``$5,000,000
for each of fiscal years 2021 through 2029, to remain available
until expended''.
(m) Amendments to the National Materials and Minerals,
Policy, Research and Development Act of 1980.--
(1) Program plan.--Section 5 of the National
Materials and Minerals Policy, Research and Development
Act of 1980 (30 U.S.C. 1604) is amended--
(A) by striking ``date of enactment of this
Act'' each place it appears and inserting
``date of enactment of the Energy Act of
2020'';
(B) in subsection (b)(1), by striking
``Federal Coordinating Council for Science,
Engineering, and Technology'' and inserting
``National Science and Technology Council'';
(C) in subsection (c)--
(i) in the matter preceding paragraph
(1)--
(I) by striking ``the Federal
Emergency'' and all that
follows through ``Agency,
and''; and
(II) by striking
``appropriate shall'' and
inserting ``appropriate,
shall'';
(ii) by striking paragraphs (1) and
(3);
(iii) by redesignating paragraph (2)
as paragraph (1);
(iv) in paragraph (1) (as so
redesignated)--
(I) by striking ``within 1
year after October 21, 1980''
and inserting ``not later than
1 year after the date of the
enactment of the Energy Act of
2020'';
(II) by striking ``which
assesses'' and inserting ``that
assesses''; and
(III) by striking ``in the
case'' and all that follows
through ``subsection, and
which'' and inserting ``and
that''; and
(v) by adding at the end the
following:
``(2) assess the adequacy and stability of the supply
of materials necessary to maintain national security,
economic well-being, public health, and industrial
production.''; and
(D) in subsection (e), by striking ``Bureau
of Mines'' each place it appears and inserting
``United States Geological Survey''.
(2) Policy.--Section 3 of the National Materials and
Minerals Policy, Research and Development Act of 1980
(30 U.S.C. 1602) is amended, in the matter preceding
paragraph (1)--
(A) in the first sentence, by striking ``The
Congress declares that it'' and inserting
``It''; and
(B) in the second sentence, by striking ``The
Congress further declares that implementation''
and inserting ``Implementation''.
(3) Implementation.--Section 4 of the National
Materials and Minerals Policy, Research and Development
Act of 1980 (30 U.S.C. 1603) is amended, in the matter
preceding paragraph (1)--
(A) by striking ``For the purpose'' and all
that follows through ``declares that the'' and
inserting ``The''; and
(B) by striking ``departments and agencies,''
and inserting ``departments and agencies to
implement the policy described in section 3''.
(n) Administration.--
(1) In general.--The National Critical Materials Act
of 1984 (30 U.S.C. 1801 et seq.) is repealed.
(2) Conforming amendment.--Section 3(d) of the
National Superconductivity and Competitiveness Act of
1988 (15 U.S.C. 5202(d)) is amended in the first
sentence by striking ``, with the assistance of the
National Critical Materials Council as specified in the
National Critical Materials Act of 1984 (30 U.S.C. 1801
et seq.),''.
(3) Savings clauses.--
(A) In general.--Nothing in this section or
an amendment made by this section modifies any
requirement or authority provided by--
(i) the matter under the heading
``geological survey''
of the first section of the Act of
March 3, 1879 (43 U.S.C. 31(a)); or
(ii) the first section of Public Law
87-626 (43 U.S.C. 31(b)).
(B) Effect on department of defense.--Nothing
in this section or an amendment made by this
section affects the authority of the Secretary
of Defense with respect to the work of the
Department of Defense on critical material
supplies in furtherance of the national defense
mission of the Department of Defense.
(C) Secretarial order not affected.--This
section shall not apply to any mineral
described in Secretarial Order No. 3324, issued
by the Secretary on December 3, 2012, in any
area to which the order applies.
(o) Authorization of Appropriations.--There is authorized to
be appropriated to the Secretary to carry out this section
$50,000,000 for each of fiscal years 2021 through 2029.
* * * * * * *
DISSENTING VIEWS
H.R. 8446 would amend the definition of ``critical
mineral'' in the Energy Act of 2020 to include critical
materials from the Department of Energy (DOE) critical
materials list. Critical minerals are currently designated by
the United States Geological Survey (USGS) in accordance with
the mandates of the Energy Act, using peer-reviewed scientific
methodology.
Sections 7002(a) and (c) of the Energy Act of 2020 define a
``critical mineral'' as a non-fuel mineral or mineral material
essential to the economic or national security of the U.S. and
which has a supply chain vulnerable to disruption. Critical
minerals are also characterized as serving an essential
function in the manufacturing of a product, the absence of
which would have significant consequences for the economy or
national security.
USGS maintains the federal critical minerals list; the 2022
list names 50 minerals that are critical to the U.S. economy
and national security and are vulnerable to supply chain
disruptions. This is a dynamic list, which will be updated at
least every three years to reflect mineral supply, demand,
production, and evolving mineral supply chain risks. The Energy
Act of 2020 created the framework for updating the critical
minerals list, requiring the Department of the Interior (DOI)
to use the best available science and incorporate interagency
and public feedback into the critical mineral designations.
In addition to the USGS critical minerals list, both DOE
and the Department of Defense, Defense Logistics Agency (DLA)
have their own lists of ``critical materials'' and ``strategic
materials,'' respectively. These lists are specific to these
agencies' activities and mandates; they draw on the USGS list
but include sector-specific analysis and modeling. The DOE list
is specific to energy needs, and the DLA list is specific to
the needs of defense and includes authorities to stockpile
certain materials.
The Biden administration and the 117th Congress made
significant investments in domestic research on and production
of critical minerals and materials, including tax and
permitting incentives under the Inflation Reduction Act (IRA),
the Infrastructure Investment and Jobs Act (IIJA), the CHIPS
and Science Act, and executive actions invoking the Defense
Production Act. Some of these are available exclusively to
minerals on the USGS list, but other investments or incentives
target strategic or critical materials (materials on the DOD or
DOE lists) or a subset of any of these lists. Benefits
exclusive to the USGS critical minerals list include expedited
permitting under Title 41 of the Fixing Americas Surface
Transportation Act (FAST-41) and certain grants from IIJA and
the CHIPS and Science Act.
Due to the incentives targeting critical minerals, the USGS
critical minerals list and methodologies have come under
significant scrutiny since the publication of the 2022 list. In
particular, many have criticized the critical minerals
assessment for not including demand projections, relying on
past data, and not incorporating modeled future risks.
Unlike USGS's list, the DOE critical materials list is
forward-looking and bases criticality determinations on
projections of risk and demand in the near (2020-2025) and
medium (2025-2030) term.\1\ Critics of USGS's critical minerals
list methodology have pointed to DOE's more forward-looking
list as more useful for informing supply chain planning.
---------------------------------------------------------------------------
\1\Rowan, Linda R. April 8, 2024. ``Critical Mineral Resources:
National Policy and Critical Minerals List.'' Congressional Research
Service. https://www.crs.gov/Reports/R47982.
---------------------------------------------------------------------------
In accordance with the Energy Act of 2020, USGS is working
on the 2025 critical minerals list. As USGS testified at the
legislative hearing on H.R. 8446, the agency is updating its
methodology for the 2025 list to ``incorporate a data-driven
modeling approach to evaluate potential risks to mineral supply
chains.''
Congress should support this inclusive, science-based
approach rather than adding minerals to the list through
legislative action. Given the significant investments and
incentives available to critical minerals, mining interests
have made concentrated lobbying efforts to legislatively add
specific minerals to the USGS critical minerals list. The major
discrepancy between the DOE critical materials list and the
USGS critical minerals list is copper, which is currently
considered a critical material by DOE but not a critical
mineral by USGS. Given industry lobbying for copper to be
considered critical and previous legislative pushes to add
copper to the USGS critical minerals list, H.R. 8446 can be
understood as an attempt to make copper eligible for federal
support for critical minerals.
While copper plays an important role in the economy and
national security, its supply chain is not currently considered
at risk. The U.S. is a significant producer of copper; the USGS
estimates that the U.S. mined 1.3 million tons of copper in
2022 from 25 operating copper mines. There are currently
multiple additional copper mines in the permitting process,
which will likely begin production in several years. The U.S.
also has ``multiple domestic options for downstream smelting
and refining to copper metal.''\2\ Importantly, copper is
highly recyclable, and the U.S. supplied about a third of the
copper used domestically through recycling in 2022.\3\ More
recycling could go even further toward mitigating supply chain
risks while reducing environmental impact.
---------------------------------------------------------------------------
\2\David Applegate, Director of USGS. Letter to Senators Sinema,
Kelly, Manchin, Braun, Warnock, and Romney re: designating copper as a
critical mineral. April 13, 2023. https://
subscriber.politicopro.com/eenews/f/eenews/?id=00000188-4953-d998-ab8f-
fb5f223b0000.
\3\Ibid.
---------------------------------------------------------------------------
While the economy is considered vulnerable to a supply
disruption for copper, this vulnerability is ``mitigated by a
relatively low U.S. net import reliance on foreign supplies and
a diversity of foreign supply sources.''\4\ Although net import
reliance increased from 2018 to 2021, the latest data--
published in 2023--show that import reliance decreased from
2021 to 2022; imports decreased even as domestic copper
consumption increased.\5\ Furthermore, ``American imports of
refined copper come predominantly from Chile, Canada, and
Mexico, reliable trade partners with whom the U.S. has free
trade agreements.''\6\
---------------------------------------------------------------------------
\4\Ibid.
\5\Ibid.
\6\Ibid.
---------------------------------------------------------------------------
Copper's inclusion on DOE's critical materials list is
controversial because DOE's own analyses do not show copper to
be critical in the near term or medium term, although it is
considered near critical in the medium term.
The critical minerals list is designed to focus attention
and resources on the most essential and at-risk mineral supply
chains. In adding critical materials to the definition of
critical minerals in the Energy Act of 2020, copper would
become eligible for production support, research grants, and
expedited permitting--potentially siphoning resources from much
more at-risk and fragile mineral supply chains to the well-
developed copper industry.
Raul M. Grijalva,
Ranking Member.
[all]