[Senate Report 118-93]
[From the U.S. Government Publishing Office]


                                                    Calendar No. 196

118th Congress}                                            { Report
                                 SENATE
 1st Session  }                                            { 118-93

======================================================================
                   INTERGOVERNMENTAL CRITICAL MINERALS 
                              TASK FORCE ACT

                               __________

                              R E P O R T

                                 OF THE

                   COMMITTEE ON HOMELAND SECURITY AND

                          GOVERNMENTAL AFFAIRS

                          UNITED STATES SENATE

                              TO ACCOMPANY

                                S. 1871

            TO CREATE INTERGOVERNMENTAL COORDINATION BETWEEN
          STATE, LOCAL, TRIBAL, AND TERRITORIAL JURISDICTIONS,
           AND THE FEDERAL GOVERNMENT TO COMBAT UNITED STATES
          RELIANCE ON THE PEOPLE'S REPUBLIC OF CHINA AND OTHER
         COVERED COUNTRIES FOR CRITICAL MINERALS AND RARE EARTH 
                       METALS, AND FOR OTHER PURPOSES

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]


               September 5, 2023.--Ordered to be printed
               
                              __________

                                
                    U.S. GOVERNMENT PUBLISHING OFFICE                    
                           WASHINGTON : 2023                    
          
-----------------------------------------------------------------------------------                
              
        COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS

                   GARY C. PETERS, Michigan, Chairman
THOMAS R. CARPER, Delaware           RAND PAUL, Kentucky
MAGGIE HASSAN, New Hampshire         RON JOHNSON, Wisconsin
KYRSTEN SINEMA, Arizona              JAMES LANKFORD, Oklahoma
JACKY ROSEN, Nevada                  MITT ROMNEY, Utah
ALEX PADILLA, California             RICK SCOTT, Florida
JON OSSOFF, Georgia                  JOSH HAWLEY, Missouri
RICHARD BLUMENTHAL, Connecticut      ROGER MARSHALL, Kansas

                   David M. Weinberg, Staff Director
            Lena C. Chang, Director of Governmental Affairs
              Chelsea A. Davis, Professional Staff Member
           William E. Henderson III, Minority Staff Director
              Christina N. Salazar, Minority Chief Counsel
                  Andrew J. Hopkins, Minority Counsel
                     Laura W. Kilbride, Chief Clerk
                     
                     
                     
                                                    Calendar No. 196

118th Congress}                                            { Report
                                 SENATE
 1st Session  }                                            { 118-93

======================================================================
 
           INTERGOVERNMENTAL CRITICAL MINERALS TASK FORCE ACT                     
                     
                                 _______
                                

               September 5, 2023.--Ordered to be printed

                                _______
                                

 Mr. Peters, from the Committee on Homeland Security and Governmental 
                    Affairs, submitted the following

                              R E P O R T

                         [To accompany S. 1871]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Homeland Security and Governmental 
Affairs, to which was referred the bill (S. 1871) to create 
intergovernmental coordination between State, local, Tribal, 
and territorial jurisdictions, and the Federal Government to 
combat United States reliance on the People's Republic of China 
and other covered countries for critical minerals and rare 
earth metals, 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.

                                CONTENTS

                                                                   Page
  I. Purpose and Summary..............................................1
 II. Background and Need for the Legislation..........................2
III. Legislative History..............................................4
 IV. Section-by-Section Analysis of the Bill, as Reported.............5
  V. Evaluation of Regulatory Impact..................................6
 VI. Congressional Budget Office Cost Estimate........................7
VII. Changes in Existing Law Made by the Bill, as Reported............8

                         I. PURPOSE AND SUMMARY

    S. 1871, the Intergovernmental Critical Minerals Task Force 
Act, would create an intergovernmental taskforce to strengthen 
domestic critical mineral supply chains and combat the United 
States' reliance on the People's Republic of China and other 
adversarial countries for critical minerals. The bill requires 
the task force--comprised of representatives from more than 17 
different federal agencies and components--to consult with 
state, local, tribal, and territorial governments, along with 
public and private sector stakeholders, in performing its 
duties. Among its responsibilities, the task force would help 
address homeland security risks related to the critical mineral 
supply chain; work to create well-paying, safe, American jobs 
to support supply chain growth in the United States; and 
identify environmentally responsible opportunities to improve 
domestic mining, processing, refinement, reuse, and recycling 
of critical minerals. Additionally, the task force would 
recommend strategies for strengthening international 
partnerships in furtherance of global critical minerals supply 
chain security. Two years after the bill's enactment, the 
legislation requires the task force to report to Congress and 
make public its findings, guidelines, and recommendations.

              II. BACKGROUND AND NEED FOR THE LEGISLATION

    Critical minerals play a major role in the production of 
transportation, renewable energy infrastructure, military 
defense systems, and other manufactured technologies crucial 
for U.S. national and homeland security.\1\ The nation's 
reliance on insecure and adversarial countries for these 
minerals and their supply chains, particularly the People's 
Republic of China, creates significant national security 
risks.\2\ China is currently the leading nation for production 
of more than half of the 50 critical minerals identified by the 
U.S. Geological Survey in 2022. The United States is 100% net 
import reliant on 12 critical minerals and 50% net import 
reliant on an additional 31 critical mineral commodities.\3\ 
Additionally, China controls the supply chain for these 
minerals and the products to which they contribute. For 
example, China refines most of the world's lithium and cobalt, 
makes most of the world's electric vehicle battery parts, 
produces most of the world's lithium-ion batteries, and holds 
more than two thirds of global lithium-ion recycling 
capacity.\4\
---------------------------------------------------------------------------
    \1\Government Accountability Office, Critical Minerals: Building on 
Federal Efforts to Advance Recovery and Substitution Could Help Address 
Supply Risks (GAO-GAO-22-104824) (June 2022).
    \2\The White House, Building Resilient Supply Chains, Revitalizing 
American Manufacturing, and Fostering broad-Based Growth: 100 Day 
Reviews under Executive Order 14017 (June 2021); Zongyuan Zoe Liu, How 
to Secure Critical Minerals for Clean Energy Without Alienating China, 
Council on Foreign Relations (blog) (May 25, 2023) (https://
www.cfr.org/blog/how-secure-critical-minerals-clean-energy-without-
alienating-china).
    \3\Department of the Interior, United States Geological Survey, 
Mineral Commodity Summaries 2023 (Jan. 2023).
    \4\Can the World Make an Electric Car Battery Without China?, The 
New York Times (May 16, 2023) (https://www.nytimes.com/interactive/
2023/05/16/business/china-ev-battery.html).
---------------------------------------------------------------------------
    This bill builds on previous federal strategies developed 
to address several challenges related to the current critical 
minerals supply chain. In 2017, former President Donald Trump 
issued Executive Order 13817 to establish a federal strategy to 
ensure secure and reliable supplies of critical minerals.\5\ 
Since 2017, Presidents Trump and Biden issued Executive Orders 
13953 and 14017 respectively, to help address concerns with the 
U.S. critical mineral supply chain.\6\ Additionally, Congress 
has passed legislation--such as the Energy Act of 2020 and the 
Infrastructure Investment and Jobs Act--to develop clean energy 
infrastructure and increase critical mineral activities.\7\ In 
response to these efforts, agencies, such as the Department of 
Energy, have developed strategies to mitigate challenges 
associated with the nation's critical mineral dependence.\8\ In 
2022, the Department of Energy also announced a program 
providing $39 million dollars in funding for new technologies 
to grow a secure critical mineral supply chain and strengthen 
national security.\9\ Despite this progress, domestic demand 
for critical minerals is expected to increase by up to 600% 
over the next several decades, and the supply chains for these 
minerals will likely continue to generate greater risks to our 
national security, economy, and environment.\10\ This 
multidimensional problem requires a cohesive strategy to 
facilitate coordination at every level of the U.S. government. 
Combatting China's dominance in critical minerals will take an 
all-of-government approach that unites federal agencies across 
disciplines with state, local, tribal, and territorial partners 
and all relevant stakeholders.
---------------------------------------------------------------------------
    \5\Exec. Order No. 13817, 82 Fed. Reg. 60835 (Dec. 26, 2017).
    \6\Exec. Order No. 13953, 85 Fed. Reg. 62544 (Oct. 5, 2020); Exec. 
Order No. 14017, 86 Fed. Reg. 11849 (Mar. 1, 2021).
    \7\Bipartisan Policy Center, Expanding Domestic Critical Mineral 
Supply Chains (Mar. 15, 2023) (https://bipartisanpolicy.org/blog/
expanding-us-critical-mineral-supply/#::text=The%20Ener
gy%20Act%20of%202020,of%20the%20Interior%20(DOI)).
    \8\Department of Energy, Critical Minerals and Materials: U.S. 
Department of Energy's Strategy to Support Domestic Critical Mineral 
and Material Supply Chains (FY 2021-FY 2031) (Sept. 30, 2023).
    \9\Department of Energy, DOE Announces $39 Million for Technology 
to Grow the Domestic Critical Minerals Supply Chain and Strengthen 
National Security (Oct. 27, 2022); See also, in 2021: Department of 
Energy, DOE Awards $30M to Secure Domestic Supply Chain of Critical 
Materials (Sept. 2, 2021).
    \10\Id.; The Aspen Institute, Energy & Environment Program, A 
Critical Minerals Policy for the United States: The Role of Congress in 
Scaling Domestic Supply and De-Risking Supply Chains (June 2023) 
(https://www.aspeninstitute.org/wp-content/uploads/2023/06/Critical-
Miner
als-Report.pdf).
---------------------------------------------------------------------------
    The United States continues to face obstacles related to 
building its domestic supply chain. In 2022, the Government 
Accountability Office identified several key challenges related 
to recovering (i.e., recycling and use of nontraditional 
resources) and substituting (i.e., developing alternatives to) 
critical minerals. These barriers included incomplete federal 
data collection, limited domestic infrastructure, limited 
scientific research and environmental concerns, and gaps in the 
workforce.\11\ These issues pose challenges to supply chain 
innovation and growth. For example, scientists and geologists 
face future workforce gaps, with more than half of the current 
domestic mining workforce expected to retire by 2029. 
Additionally, increases in critical mineral production could 
generate environmental risks--such as toxic waste and 
biodiversity impacts--along with concerns for tribal 
communities near critical minerals projects.\12\ With the help 
of diverse stakeholder perspectives and engagement at every 
level of government, the task force would aim to provide tools 
to promote supply chain growth in a manner that protects the 
environment, incorporates community input, and promotes a 
strong domestic workforce.
---------------------------------------------------------------------------
    \11\Government Accountability Office, supra note 1.
    \12\The Aspen Institute, Energy & Environment Program, A Critical 
Minerals Policy for the United States: The Role of Congress in Scaling 
Domestic Supply and De-Risking Supply Chains (June 2023) (https://
www.aspeninstitute.org/wp-content/uploads/2023/06/Critical-Minerals-
Report
.pdf).
---------------------------------------------------------------------------
    No country, including the United States, can onshore every 
piece of the supply chain for every critical mineral. 
International partnerships are key to meeting national critical 
mineral demands.\13\ The United States has entered into many 
strategic partnerships to secure clean, reliable supply chains. 
For example, the United States helped launch the Partnership 
for Global Infrastructure and Investment, signed the Mineral 
Security Partnership, and joined the Quadrilateral Security 
Dialogue (QUAD).\14\ The Intergovernmental Critical Mineral 
Task Force Act aims to improve U.S. partnerships by 
establishing strategies to strengthen supply chain security 
with international allies and partners. Ultimately, the task 
force would help achieve the goals of enhancing transparency in 
the nation's supply chains; strengthening the domestic 
workforce with safe and well-paying American jobs; ensuring 
regulations related to the supply chain are efficient and 
environmentally responsible, while considering input from 
tribal and local communities; and improving U.S. international 
partnerships regarding critical minerals.
---------------------------------------------------------------------------
    \13\The White House, Building Resilient Supply Chains, Revitalizing 
American Manufacturing, and Fostering broad-Based Growth: 100 Day 
Reviews under Executive Order 14017 (June 2021); Department of the 
Interior, United States Geological Survey, Mineral Commodity Summaries 
2023 (Jan. 2023).
    \14\Zongyuan Zoe Liu, How to Secure Critical Minerals for Clean 
Energy Without Alienating China, Council on Foreign Relations (blog) 
(May 25, 2023) (https://www.cfr.org/blog/how-secure-critical-minerals-
clean-energy-without-alienating-china); Carnegie Endowment for 
International Peace, Friendshoring Critical Minerals: What Could the 
U.S. and Its Partners Produce? (May 3, 2023) (https://
carnegieendowment.org/2023/05/03/friendshoring-critical-minerals-what-
could-u.s.-and-its-partners-produce-pub-89659).
---------------------------------------------------------------------------

                        III. LEGISLATIVE HISTORY

    Senator Gary Peters (D-MI) introduced S. 1871, the 
Intergovernmental Critical Minerals Task Force Act, on June 8, 
2023, with original cosponsors Senator Mitt Romney (R-UT) and 
Senator James Lankford (R-OK). The bill was referred to the 
Committee on Homeland Security and Governmental Affairs.
    The Committee considered S. 1871 at a business meeting on 
June 14, 2023. At the business meeting, Senators Peters, 
Romney, and Lankford offered a substitute amendment to the bill 
as well as a modification to the substitute amendment. Senator 
Rosen also offered an amendment to the bill as well as a 
modification to the amendment. The Peters-Romney-Lankford 
substitute amendment, as modified, made organizational changes 
to the bill; added several agencies to the task force's 
composition; clarified the task force's purposes and required 
topics to address in its duties and report recommendations; 
added examples of countries with whom the United States should 
strengthen its strategic partnerships; and made changes to the 
task force and GAO reporting requirements. The Rosen amendment 
added the Senate Committee on Commerce, Science, and 
Transportation to the list of committees responsible for 
reviewing the task force's work and clarified that the task 
force should consult with individuals from states that are 
involved in the critical mineral supply chain. The Committee 
adopted the modification to the Peters-Romney-Lankford 
substitute amendment by unanimous consent, and adopted the 
substitute amendment by unanimous consent as modified, with 
Senators Peters, Hassan, Sinema, Rosen, Padilla, Ossoff, Paul, 
Lankford, Romney, Scott, and Hawley present. The Committee 
adopted the modification to the Rosen amendment by voice vote, 
and adopted the amendment by voice vote as modified, with 
Senators Peters, Hassan, Sinema, Rosen, Padilla, Ossoff, Paul, 
Lankford, Romney, Scott, and Hawley present.
    The bill, as amended by the Peters-Romney-Lankford 
substitute amendment as modified and Rosen amendment as 
modified, was ordered to be reported favorably by roll call 
vote of 10 yeas to 1 nay, with Senators Peters, Hassan, Sinema, 
Rosen, Padilla, Ossoff, Lankford, Romney, Scott, and Hawley 
voting in the affirmative, and with Senator Paul voting in the 
negative. Senators Carper, Blumenthal, Johnson, and Marshall 
voted yea by proxy, for the record only.

        IV. SECTION-BY-SECTION ANALYSIS OF THE BILL, AS REPORTED

Section 1. Short title

    This section establishes the short title of the bill as the 
``Intergovernmental Critical Minerals Task Force Act.''

Section 2. Definitions

    This section defines the terms ``appropriate committees of 
Congress,'' ``covered country,'' ``critical mineral,'' 
``Director,'' and ``task force.''

Section 3. Findings

    This section explains the importance, national security 
risks, and vulnerabilities associated with the global and 
domestic critical mineral supply chains. Specifically, this 
section outlines the scope of the United States' reliance on 
the People's Republic of China for critical minerals and 
critical mineral supply chains.

Section 4. Intergovernmental critical minerals task force

    Subsection (a) describes the purposes of the task force. 
The task force shall (1) assess the critical mineral reliance 
of the United States on the People's Republic of China and 
other covered countries, and the associated homeland and 
national security risks at each level of government; (2) 
recommend ways to onshore and improve the domestic supply chain 
of critical minerals; and (3) reduce U.S. reliance on covered 
countries for critical minerals and supply chains.
    Subsection (b) requires the Director of the Office of 
Management and Budget (OMB) to create the task force, within 90 
days of this bill's enactment.
    Subsection (c) outlines the composition of the task force. 
The OMB Director may serve as chair of the task force or 
designate a chair. The Director must appoint at least 17 
representatives with critical mineral supply chain expertise 
from specified agencies. The task force must consult with 
state, local, tribal, and territorial governments, along with 
specific public and private sector stakeholders, such as 
academic researchers, mining industry stakeholders, and labor 
representatives. Consultees must include individuals from 
states whose communities are involved in the critical mineral 
supply chain. After enactment, the task force will meet at 
least once every 90 days until it publishes the report 
described in subsection (d)(2).
    Subsection (d)(1) describes the duties of the task force. 
The task force is required to facilitate coordination and 
cooperation at each level of government to enhance data sharing 
and transparency in critical mineral supply chains. The task 
force must make recommendations, considering the economic costs 
of those recommendations and focusing on supply chains posing 
the greatest national security risks. These recommendations 
must address the following topics: research and development 
into emerging supply chain technologies; reducing U.S. reliance 
on foreign adversaries for critical minerals and expanding 
domestic critical mineral industries and supply chains; 
modifying regulations to accelerate environmentally responsible 
critical mineral production; strengthening the workforce 
surrounding critical minerals with well-paying, safe, U.S. 
jobs; mitigating homeland and national security risks when the 
United States relies on foreign adversaries for critical 
minerals; and strengthening international partnerships with 
U.S. partners and allies to enhance critical minerals supply 
chain security.
    Subsection (d)(2) requires the task force to report to 
Congress and make public its findings, guidelines, and 
recommendations no later than two years after the bill's 
enactment. The report must be in unclassified form, but may 
contain a classified annex. The Director must redact 
information from the public report that poses a risk to 
homeland and national security.
    Subsection (e) requires the task force to terminate 90 days 
after the date on which the task force completes its duties 
under subsection (d)(2).
    Subsection (f) requires the Comptroller General to submit a 
report to Congress after 18 months examining the regulatory 
landscape related to the domestic supply chain for critical 
minerals.

                   V. EVALUATION OF REGULATORY IMPACT

    Pursuant to the requirements of paragraph 11(b) of rule 
XXVI of the Standing Rules of the Senate, the Committee has 
considered the regulatory impact of this bill and determined 
that the bill will have no regulatory impact within the meaning 
of the rules. The Committee agrees with the Congressional 
Budget Office's statement that the bill contains no 
intergovernmental or private-sector mandates as defined in the 
Unfunded Mandates Reform Act (UMRA) and would impose no costs 
on state, local, or tribal governments.

             VI. CONGRESSIONAL BUDGET OFFICE COST ESTIMATE
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]


    S. 1871 would establish a task force to coordinate federal, 
state, and private-sector efforts to increase domestic 
production of critical minerals, such as aluminum, titanium, 
and rare earth elements. The task force would identify new 
methods of mining, processing, and recycling critical minerals 
to reduce U.S. reliance on foreign adversaries. Under the bill, 
the task force would submit a report to the Congress on its 
findings within two years of enactment and terminate within 90 
days thereafter. The bill also would require the Government 
Accountability Office to report on the effects of federal and 
state regulations on the domestic supply of critical minerals.
    The task force would consist of representatives from 
federal agencies and would consult with nonfederal entities. 
Using information about the cost of similar efforts, CBO 
estimates that implementing S. 1871 would cost $2 million over 
the 2023-2028 period for staff salaries, travel, and other 
administrative expenses to operate the task force. In addition, 
CBO estimates that satisfying the reporting requirements of S. 
1871 would cost less than $500,000. Such spending would be 
subject to the availability of appropriated funds.
    The costs of the legislation, detailed in Table 1, fall 
within budget function 800 (general government).

                TABLE 1.--ESTIMATED INCREASES IN SPENDING SUBJECT TO APPROPRIATION UNDER S. 1871
----------------------------------------------------------------------------------------------------------------
                                                                 By fiscal year, millions of dollars--
                                                      ----------------------------------------------------------
                                                        2023    2024    2025    2026    2027    2028   2023-2028
----------------------------------------------------------------------------------------------------------------
Estimated Authorization..............................       0       1       1       0       0       0         2
Estimated Outlays....................................       0       1       1       0       0       0         2
----------------------------------------------------------------------------------------------------------------

    The CBO staff contact for this estimate is Aldo Prosperi. 
The estimate was reviewed by Christina Hawley Anthony, Deputy 
Director of Budget Analysis.
                               Phillip L. Swagel, Director,
                                       Congressional Budget Office.

       VII. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

    This legislation would make no change in existing law, 
within the meaning of clauses (a) and (b) of subparagraph 12 of 
rule XXVI of the Standing Rules of the Senate, because this 
legislation would not repeal or amend any provision of current 
law.

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