89–010 

Calendar No. 176 

116TH CONGRESS REPORT " ! SENATE 1st Session 116–74 

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. 

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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. 

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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: 

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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 

By fiscal year, millions of dollars— 

2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2019– 

2024 

2019– 

2029 

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 

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. 


Insert graphic folio 9 here SR74.001
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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. 

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