39–006 

113TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 2d Session 113–389 

RESOURCE ASSESSMENT OF RARE EARTHS 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. 981] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Natural Resources, to whom was referred the 

bill (H.R. 981) to direct the Secretary of the Interior to conduct a 

global rare earth element assessment, 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. 981 is to direct the Secretary of the Interior 

to conduct a global rare earth element assessment. 

BACKGROUND AND NEED FOR LEGISLATION

H.R. 981, the Resource Assessment of Rare Earths Act of 2013, 

requires the Secretary of the Interior to direct the United States 

Geological Survey (USGS) to conduct a quantitative global rare 

earth element assessment. 

The industrialization of China and India is driving demand for 

non-fuel mineral commodities, sparking a period of resource nationalism. China currently accounts for 80 percent of the world’s rare 

earth mineral supply. In 2010, China unofficially embargoed rare 

earth mineral shipments to Japan and quietly restricted exports to 

the U.S. and Europe. 

Chinese representatives speaking at various meetings have indicated they expect their country to be a net importer of rare earths 

within a few years. China’s reduction and stoppage of rare-earth 

mineral element exports necessary for telecommunications, military 

technologies, medical devices and renewable energy technologies 

have spurred the development of several pieces of legislation to 


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deal with supply disruptions of these important mineral commodities. 

H.R. 981 directs USGS, in cooperation with other national geological surveys, to conduct a three-year, comprehensive global mineral assessment of rare earth elements; to conduct an analysis, 

with the participation of the National Minerals Information Center 

and in consultation with appropriate agencies, of the rare earth 

elements supply chain and associated processes and products, including mining, processing, separation, metal production, alloy production, and manufacturing of products sold to end users; and to 

report back to Congress on its findings. Finally, the legislation authorizes an appropriation of $10 million for the period of fiscal 

years 2014 through 2016. 

COMMITTEE ACTION

H.R. 981 was introduced on March 6, 2013, by Congressman 

Henry C. ‘‘Hank’’ Johnson (D-GA). 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. 981—RARE Act of 2013 

Summary: H.R. 981 would authorize the appropriation of $10 

million for the United States Geological Survey (USGS) to conduct 

a global assessment of rare earth elements (a group of elements 

that are rarely found in high concentrations). Assuming appropriation of the authorized amounts, CBO estimates that implementing 

the legislation would cost $10 million over the 2014–2016 period. 


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Enacting H.R. 981 would not affect direct spending or revenues; 

therefore, pay-as-you-go procedures do not apply. 

H.R. 981 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. 981 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 

Authorization Level ....................................................................... 10 0 0 0 0 10 

Estimated Outlays ........................................................................ 4 4 2 0 0 10 

Basis of estimate: For this estimate, CBO assumes that the legislation will be enacted before the end of 2013 and that the entire 

amount authorized to be appropriated over the 2014–2016 period 

would be appropriated in 2014. Estimated outlays are based on historical spending patterns for similar USGS activities. 

H.R. 981 would require USGS to complete a global assessment 

of rare earth elements over a three-year period. The assessment 

would identify and quantify known deposits of rare earth elements 

and determine the geological conditions necessary to form such deposits. The assessment also would recommend future geological research projects related to rare earth elements and scarce minerals 

and analyze the process by which deposits of rare earth elements 

are brought to market. Assuming appropriation of the authorized 

amounts, CBO estimates that implementing H.R. 981 would cost 

$10 million over the 2014–2018 period. 

Pay-As-You-Go considerations: None. 

Intergovernmental and private-sector impact: H.R. 981 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 credit authority or an increase 

or decrease in revenues or tax expenditures. Assuming appropriation of the authorized amounts, CBO estimates that implementing 

the legislation would cost $10 million over the 2014–2016 period. 

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 direct the Secretary of the Interior to conduct a 

global rare earth element assessment. 


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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. 

Æ 


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