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[House Report 113-390]
[From the U.S. Government Publishing Office]

113th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     113-390

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      NATIONAL STRATEGIC AND CRITICAL MINERALS POLICY ACT OF 2013

                                _______
                                

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

                                _______
                                

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

                              R E P O R T

                        [To accompany H.R. 1063]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Natural Resources, to whom was referred 
the bill (H.R. 1063) to require the Secretary of the Interior 
to conduct an assessment of the capability of the Nation to 
meet our current and future demands for the minerals critical 
to United States manufacturing and agricultural competitiveness 
and economic and national security in a time of expanding 
resource nationalism, and for other purposes, having considered 
the same, report favorably thereon without amendment and 
recommend that the bill do pass.

                          PURPOSE OF THE BILL

    The purpose of H.R. 1063 is to require the Secretary of the 
Interior to conduct an assessment of the capability of the 
Nation to meet our current and future demands for the minerals 
critical to United States manufacturing and agricultural 
competitiveness and economic and national security in a time of 
expanding resource nationalism.

                  BACKGROUND AND NEED FOR LEGISLATION

    Strategic and critical minerals are essential to our 
economy, livelihood and national security. Renewable energy, 
national defense equipment, agriculture and everyday items such 
as televisions, telephones, computers and light bulbs are all 
dependent on minerals. Currently the United States relies on 
foreign sources for a majority of our non-fuel mineral 
materials and, according to the U.S. Geological Survey, is 
almost 100 percent dependent on foreign sources for rare earth 
minerals.
    Mining of mineral resources creates tangible value, 
introducing new money into the Nation's economic system. 
Additional tangible value is added to the raw mined product 
through manufacturing, construction, and other uses. Harvesting 
domestic mineral resources contributes to local economies, and 
to the Nation's overall economic security.
    According to the National Research Council, one of the 
primary advantages the United States possesses over its 
strongest industrial competitors is its domestic resource base. 
The United States is among the world's largest producer of many 
important metals and minerals, particularly copper, gold, lead, 
molybdenum, silver, and zinc, and it still has substantial 
domestic reserves of these metals. Yet U.S. mineral exploration 
stagnated or declined during most of the 1990s and 2000s while 
global mineral exploration trends were strongly positive.
    While in the early 1990s the U.S. received 20 percent of 
the worldwide exploration budget, today it hovers around 8 
percent. Without increased domestic exploration, significant 
declines in U.S. mineral production are unavoidable as present 
reserves are exhausted.
    The lack of exploration expenditures and other factors 
described below has led to an increased import dependency for 
non-fuel mineral materials. For example, 27 years ago the 
United States was dependent on foreign sources for 30 non-fuel 
mineral materials, six of which were entirely imported to meet 
the Nation's requirements and another 16 were imported to meet 
more than 60 percent of the Nation's needs.
    By 2014, the U.S. import dependence for non-fuel mineral 
materials more than doubled from 30 to 63 commodities, 19 
commodities were imported entirely to meet the Nation's 
requirements, and another 22 commodities required imports of 
more than 50 percent.
    Factors contributing to the decline in domestic mineral 
exploration activities and other downward trends in the 
domestic mining industry during the late 1990s are directly 
related to the regulatory and administrative changes made 
during that time period, including revisions to the 3809 
Regulations and the Millsite Opinion.
    Working through the permitting process also became more 
cumbersome, as federal and state agencies with land management 
and regulatory responsibilities over mineral exploration and 
development projects worked at cross purposes to one another. 
Legal challenges under the National Environmental Policy Act by 
anti-mining groups also contributed to the delays and 
uncertainties in obtaining the necessary permits for 
exploration and development. As such, the United States is 
ranked 25th out of 25 major mining countries in permitting, 
averaging 7 to 10 years for final approval.
    Currently the United States lacks a coherent national 
policy to assure domestic availability of minerals essential 
for national economic well-being, national security, and global 
economic competitiveness.
    H.R. 1063, the National Strategic and Critical Minerals 
Policy Act of 2013, will help strengthen and improve our 
national minerals policy by requiring a government-wide survey 
of U.S. mineral resources needed to meet the Nation's 
requirements and a look at factors adversely impacting domestic 
mineral development, including workforce, permitting and 
regulations.

                            COMMITTEE ACTION

    H.R. 1063 was introduced on March 12, 2013, by Congressman 
Doug Lamborn (R-CO). The bill was referred to the Committee on 
Natural Resources, and within the Committee to the Subcommittee 
on Energy and Mineral Resources. On March 21, 2013, the 
Subcommittee held a hearing on the bill. On May 15, 2013, the 
Full Natural Resources Committee met to consider the bill. The 
Subcommittee on Energy and Mineral Resources was discharged by 
unanimous consent. No amendments were offered, and the bill was 
then adopted and ordered favorably reported to the House of 
Representatives by unanimous consent.

            COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS

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

                    COMPLIANCE WITH HOUSE RULE XIII

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

H.R. 1063--National Strategic and Critical Minerals Policy Act of 2013

    Summary: H.R. 1063 would require the Secretary of the 
Interior to complete a global assessment of certain minerals 
used for manufacturing, agricultural, and national security 
purposes. The bill also would require the Secretary to complete 
a comprehensive report related to domestic production of such 
minerals.
    Based on information provided by the United States 
Geological Survey (USGS) and the Bureau of Land Management 
(BLM), CBO estimates that implementing the legislation would 
cost $18 million over the 2014-2018 period, assuming 
appropriation of the necessary amounts. Enacting the bill would 
not affect direct spending or revenues; therefore, pay-as-you-
go procedures do not apply.
    H.R. 1063 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would not affect the budgets of state, local, or tribal 
governments.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 1063 is shown in the following table. 
The costs of this legislation fall within budget function 300 
(natural resources and environment).

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

Global Mineral Assessment:
    Estimated Authorization Level............................       3       3       3       3       3        15
    Estimated Outlays........................................       3       3       3       3       3        15
Mineral Report:
    Estimated Authorization Level............................       1       1       1       0       0         3
    Estimated Outlays........................................       1       1       1       0       0         3
Total Proposed Changes:
    Estimated Authorization Level............................       4       4       4       3       3        18
    Estimated Outlays........................................       4       4       4       3       3        18
----------------------------------------------------------------------------------------------------------------

    Basis of estimate: For this estimate, CBO assumes that the 
legislation will be enacted during 2013 and that the necessary 
amounts will be appropriated for each fiscal year. Estimated 
outlays are based on historical spending patterns for similar 
USGS activities.
    H.R. 1063 would require USGS to expand its ongoing global 
mineral assessment to include certain minerals used for 
manufacturing, agricultural, and national security purposes. In 
2001, USGS began working on the global assessment, which will 
include assessments of three mineral commodities, and is 
expected to complete that assessment in 2013 under current law. 
The bill would require the agency to complete a global 
assessment of at least six additional commodities. Based on 
information from the agency regarding the cost and time 
required to complete the ongoing global assessment, CBO 
estimates that expanding that assessment would cost about $3 
million a year. Those amounts would be used to pay for 
additional staff, contract costs, and international travel.
    The bill also would require the Department of the Interior 
to gather data related to mineral production from multiple 
federal agencies and to complete a report that would be updated 
annually through 2016. Based on information regarding the costs 
of similar activities and assuming appropriation of the 
necessary amounts, CBO estimates that implementing this 
provision would cost about $1 million a year over the 2014-2016 
period. Those amounts would be used to develop data tracking 
systems and to hire additional staff to gather, input, analyze, 
and update the data.
    Pay-As-You-Go considerations: None.
    Intergovernmental and private-sector impact: H.R. 1063 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would not affect the budgets of state, 
local, or tribal governments.
    Estimate prepared by: Federal costs: Jeff LaFave; Impact on 
state, local and tribal governments: Melissa Merrell; Impact on 
the Private sector: Amy Petz.
    Estimate approved by: Theresa Gullo, Deputy Assistant 
Director for Budget Analysis.
    2. Section 308(a) of Congressional Budget Act. As required 
by clause 3(c)(2) of rule XIII of the Rules of the House of 
Representatives and section 308(a) of the Congressional Budget 
Act of 1974, this bill does not contain any new budget 
authority, credit authority, or an increase or decrease in 
revenues or tax expenditures. Based on information provided by 
the United States Geological Survey and the Bureau of Land 
Management, CBO estimates that implementing the legislation 
would cost $18 million over the 2014-2018 period, assuming 
appropriation of the necessary amounts.
    3. General Performance Goals and Objectives. As required by 
clause 3(c)(4) of rule XIII, the general performance goal or 
objective of this bill is to require the Secretary of the 
Interior to conduct an assessment of the capability of the 
Nation to meet our current and future demands for the minerals 
critical to United States manufacturing and agricultural 
competitiveness and economic and national security in a time of 
expanding resource nationalism.

                           EARMARK STATEMENT

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

                    COMPLIANCE WITH PUBLIC LAW 104-4

    This bill contains no unfunded mandates.

                       COMPLIANCE WITH H. RES. 5

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

                PREEMPTION OF STATE, LOCAL OR TRIBAL LAW

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

                        CHANGES IN EXISTING LAW

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

                                  
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