II 

111TH CONGRESS 

2D SESSION S. 3521 

To provide for the reestablishment of a domestic rare earths materials 

production and supply industry in the United States, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JUNE 22, 2010 

Ms. MURKOWSKI introduced the following bill; which was read twice and 

referred to the Committee on Energy and Natural Resources 

A BILL 

To provide for the reestablishment of a domestic rare earths 

materials production and supply industry in the United 

States, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Rare Earths Supply 

5 Technology and Resources Transformation Act of 2010’’ 

6 or the ‘‘RESTART Act’’. 

7 SEC. 2. FINDINGS. 

8 Congress makes the following findings: 

9 (1) Significant quantities of rare earths are 

10 used in the production of clean energy technologies, 


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1 including advanced automotive propulsion batteries, 

2 electric motors, high-efficiency light bulbs, solar pan3 els, and wind turbines. These technologies are used 

4 to advance the United States energy policy of reduc5 ing dependence on foreign oil and decreasing green6 house gas emissions through expansion of cleaner 

7 sources of energy. 

8 (2) Many modern defense technologies such as 

9 radar and sonar systems, precision-guided weapons, 

10 cruise missiles, and lasers cannot be built, as de11 signed and specified, without the use of rare earths 

12 and materials produced from them. 

13 (3) Rare earths also provide core functionality 

14 to a variety of high technology applications in com15 puting, pollution abatement, power generation, water 

16 treatment, oil refining, metal alloying, communica17 tions, health care, agriculture, and other sectors. 

18 (4) Though at least 15 percent of the world’s 

19 rare earth reserves are located within the United 

20 States, the country now depends upon imports for 

21 nearly 100 percent of its rare earth needs because 

22 there are virtually no active rare earth producers in 

23 the United States. More than 97 percent of all rare 

24 earths for world consumption are produced in China. 


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1 (5) The ability—and willingness—of China to 

2 export rare earths is eroding due to its growing do3 mestic demand, its enforcement of environmental 

4 law on current producers, and its mandate to con5 solidate the industry by decreasing its number of 

6 mining permits. The Chinese Ministry of Industry 

7 and Information Technology draft rare earths plan 

8 for 2009 to 2015 proposes an immediate ban on the 

9 export of dysprosium, terbium, thulium, lutetium, 

10 and yttrium, the so-called ‘‘heavy’’ rare earths, and 

11 a restriction on the exports of all other, light, rare 

12 earth metals to a level well below that sufficient to 

13 satisfy the demand of Japan in 2008 alone for such 

14 metals. 

15 (6) Furthermore, the United States has limited 

16 rare earth production, remains entirely dependent on 

17 overseas refineries for further elemental and alloy 

18 processing, and does not currently maintain a ‘‘stra19 tegic reserve’’ of rare earth compounds, metals, or 

20 alloys. 

21 (7) Rare earths should qualify as materials ei22 ther strategic or critical to national security. The 

23 United States Government should facilitate the do24 mestic reintroduction of a globally competitive rare 

25 earth industry that is self-sufficient in the United 


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1 States domestic market with multiple sources of 

2 mining, processing, alloying, and manufacturing. 

3 (8) This self-sufficiency requires an uninter4 rupted supply of strategic materials critical to na5 tional security and innovative commercial product 

6 development, including rare earths, to support the 

7 clean energy and defense supply chains. 

8 (9) The United States currently cannot reclaim 

9 valuable rare earths and permanent magnets from 

10 scrapped military or consumer products, industrial 

11 materials or equipment, which allows entities in 

12 other countries to identify and recover such mate13 rials for resale to United States manufacturers at 

14 considerable cost. 

15 (10) There is an urgent need to identify the 

16 current global market situation regarding rare 

17 earths, the strategic value placed on them by foreign 

18 nations including China, and the supply-chain 

19 vulnerabilities related to rare earths and products 

20 containing rare earths. 

21 SEC. 3. ACTIONS TO PROMOTE RARE EARTH DEVELOP22 MENT. 

23 (a) POLICY.—It is the policy of the United States 

24 that each Federal agency shall take appropriate actions, 

25 to the extent consistent with applicable law, to expedite 


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1 permitting and projects that will increase exploration for, 

2 and development of, domestic rare earths. 

3 (b) RARE EARTH POLICY TASK FORCE.— 

4 (1) ESTABLISHMENT.—There is established 

5 within the Department of the Interior a task force 

6 to be known as the ‘‘Rare Earth Policy Task Force’’ 

7 (referred to in this section as the ‘‘Task Force’’), 

8 which shall report to the President through the Sec9 retary of the Interior. 

10 (2) COMPOSITION.—The Task Force shall be 

11 composed of the following: 

12 (A) The Secretary of the Interior (or a 

13 designee), who shall serve as chair of the Task 

14 Force. 

15 (B) The Secretary of Energy (or a des16 ignee). 

17 (C) The Secretary of Agriculture (or a des18 ignee). 

19 (D) The Secretary of Defense (or a des20 ignee). 

21 (E) The Secretary of Commerce (or a des22 ignee). 

23 (F) The Secretary of State (or a designee). 

24 (G) The Director of the Office of Manage25 ment and Budget (or a designee). 


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1 (H) The Chairman of the Council on Envi2 ronmental Quality (or a designee). 

3 (I) Such other members as the Secretary 

4 of the Interior considers appropriate. 

5 (c) DUTIES.—The Task Force shall— 

6 (1) monitor and assist Federal agencies in expe7 diting the review and approval of permits or other 

8 actions, as necessary, to accelerate the completion of 

9 projects that will increase investment in, exploration 

10 for, and development of domestic rare earths pursu11 ant to the Federal Land Policy and Management 

12 Act of 1976 (43 U.S.C. 1701 et seq.), the Act of 

13 June 4, 1897 (commonly known as the ‘‘Organic Act 

14 of 1897’’ (16 U.S.C. 473–482, 551), the National 

15 Forest Management Act of 1976 (16 U.S.C. 1600 et 

16 seq.), and any other applicable statutory authorities 

17 related to domestic mining operations; 

18 (2) assist Federal agencies in reviewing laws 

19 (including regulations) and policies that discourage 

20 investment in, exploration for, and development of 

21 domestic rare earths pursuant to Federal Land Pol22 icy and Management Act of 1976, the Act of June 

23 4, 1897, the National Forest Management Act of 

24 1976, and any other applicable statutory authorities 

25 related to domestic mining operations; and 


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1 (3) take such other actions to otherwise in2 crease investment in, exploration for, and develop3 ment of domestic rare earths as the Task Force con4 siders appropriate. 

5 (d) ANNUAL REPORTS.—At least once each year, the 

6 Task Force shall submit to the President, the Committee 

7 on Natural Resources of the Senate, the Committee on 

8 Energy and Commerce of the House of Representatives, 

9 and the Committee on Natural Resources of the House 

10 of Representatives a report setting forth the following: 

11 (1) A description of the results of the coordi12 nated and expedited review of permits or other ac13 tions to promote investment in, exploration for, and 

14 development of domestic rare earths, and an identi15 fication of the procedures and actions that have 

16 proven to be the most useful and appropriate in co17 ordinating and expediting the review of projects that 

18 will increase investment in, exploration for, and de19 velopment of domestic rare earths. 

20 (2) An identification of the substantive and pro21 cedural requirements of Federal, State, tribal, and 

22 local laws (including regulations) and Executive or23 ders that are inconsistent with, duplicative of, or 

24 structured so as to restrict effective implementation 

25 of the projects described in paragraph (1). 


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1 (3) Such recommendations as the Task Force 

2 considers appropriate to advance the policy set forth 

3 in subsection (a). 

4 (e) JUDICIAL REVIEW.— 

5 (1) IN GENERAL.—Nothing in this section shall 

6 be construed to affect any judicial review of an agen7 cy action under any other provision of law. 

8 (2) CONSTRUCTION.—This section— 

9 (A) is intended to improve the internal 

10 management of the Federal Government; and 

11 (B) does not create any right or benefit, 

12 substantive or procedural, enforceable at law or 

13 equity by a party against the United States (in14 cluding an agency, instrumentality, officer, or 

15 employee of the United States) or any other 

16 person. 

17 SEC. 4. ASSESSMENT OF RARE EARTH SUPPLY CHAIN VUL18 NERABILITY. 

19 (a) ASSESSMENT.—Not later than 180 days after the 

20 date of the enactment of this Act, the Secretary of the 

21 Interior and the Secretary of Energy shall jointly, in con22 sultation with the Secretary of Defense, the Secretary of 

23 Commerce, the Secretary of State, and the United States 

24 Trade Representative— 


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1 (1) undertake an assessment of the domestic 

2 rare earth supply chain; 

3 (2) determine pursuant to such assessment 

4 which rare earth elements are critical to clean en5 ergy technologies and the national and economic se6 curity of the United States; and 

7 (3) submit to Congress a report setting forth 

8 the results of such assessment and determination. 

9 (b) ESTABLISHMENT OF STOCKPILE.—Not later than 

10 one year after the date of the enactment of this Act, the 

11 Secretary of the Interior and the Secretary of Energy shall 

12 jointly, in consultation with the Secretary of Defense, the 

13 Secretary of Commerce, the Secretary of State, and the 

14 United States Trade Representative, submit to Congress 

15 a report setting forth the following: 

16 (1) An assessment whether or not the rare 

17 earth materials determined to be critical to clean en18 ergy technologies and the national and economic se19 curity of the United States pursuant to subsection 

20 (a)(2) should be procured and placed in a stockpile. 

21 (2) An assessment whether or not adequate 

22 legal authorities exist to procure and place in a 

23 stockpile the rare earth materials so determined to 

24 be critical to clean energy technologies and the na25 tional and economic security of the United States. 


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1 (3) Recommendations on the criteria to be uti2 lized in determining the commencement and termi3 nation of the stockpiling of such rare earth mate4 rials. 

5 (c) STOCKPILE DEFINED.—In this section, the term 

6 ‘‘stockpile’’ means a strategic reserve of rare earth oxides, 

7 and storable forms of rare earths and alloys for purposes 

8 of clean energy technology and the national and economic 

9 security of the United States. 

10 SEC. 5. LOAN GUARANTEES FOR THE DOMESTIC RARE 

11 EARTH SUPPLY CHAIN. 

12 (a) REPORT TO INDUSTRY.—Not later than 90 days 

13 after the date of the enactment of the Act, the Secretary 

14 of Energy shall issue a report to industry describing avail15 able mechanisms for obtaining government loan guaran16 tees for purposes of reestablishing a domestic rare earth 

17 supply chain. 

18 (b) DEPARTMENT OF ENERGY SUPPORT.—Not later 

19 than 90 days after the date of the enactment of the Act, 

20 the Secretary of Energy shall issue guidance for the rare 

21 earth industry on obtaining loan guarantees under title 

22 XVII of the Energy Policy Act of 2005 (Public Law 109– 

23 58; 22 U.S.C. 16511 et seq.) and the American Recovery 

24 and Reinvestment Act of 2009 (Public Law 111–16) for 

25 purposes of supporting the reestablishment of mining, sepVerDate Mar 15 2010 03:12 Jun 23, 2010 Jkt 089200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S3521.IS S3521

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1 aration, purification, metal processing, refining, alloying, 

2 and manufacturing operations in the United States relat3 ing to rare earths that will support the domestic clean en4 ergy technology and defense supply chains. 

5 SEC. 6. DEFENSE-RELATED PRODUCTION OF RARE EARTHS. 

6 (a) SENSE OF CONGRESS.—It is the sense of Con7 gress that— 

8 (1) the United States faces a shortage of key 

9 rare earth materials that form the backbone of both 

10 the defense and energy supply chains; and 

11 (2) the urgent need to reestablish a domestic 

12 rare earth supply chain warrants a prioritization of 

13 projects under the Defense Production Act of 1950 

14 (50 U.S.C. App. 2061 et seq.) to support the rees15 tablishment of such a supply chain. 

16 (b) REPORT.—Not later than 180 days after the date 

17 of the enactment of this Act, the Secretary of Defense 

18 shall submit to Congress a report describing past, current, 

19 and future projects under the Defense Production Act of 

20 1950 to support the domestic rare earth supply chain. If 

21 no such project is in process or planned as of the date 

22 of the report, the report shall include a justification for 

23 the lack of projects to support a domestic rare earth sup24 ply chain, particularly projects to establish or support doVerDate Mar 15 2010 03:12 Jun 23, 2010 Jkt 089200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\S3521.IS S3521

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1 mestic manufacturing capability in critical segments of the 

2 rare earth market. 

3 SEC. 7. SUPPORT FOR DOMESTIC RARE EARTH SUPPLY 

4 CHAIN. 

5 It is the sense of Congress that, in order to reestab6 lish the security of rare earth supplies within the United 

7 States, and associated technologies— 

8 (1) there is a pressing need to support innova9 tion, training, and workforce development in the do10 mestic rare earth supply chain; 

11 (2) the Department of Energy, the Department 

12 of the Interior, the Department of Commerce, and 

13 the Department of Defense should each, utilizing 

14 funds available to such department for basic re15 search and development, provide funds to academic 

16 institutions, Government laboratories, corporate re17 search and development, not-for-profit research and 

18 development, and industry associations in support of 

19 innovation, training, and workforce development in 

20 the domestic rare earth supply chain; and 

21 (3) in providing funds under paragraph (2), the 

22 Department of Energy, the Department of the Inte23 rior, the Department of Commerce, and the Depart24 ment of Defense should give priority to academic in25 stitutions, Government laboratories, corporations, 


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1 not-for-profit entities, and industry associations that 

2 will utilize domestically produced rare earths and as3 sociated materials. 

4 SEC. 8. RESTRICTIONS. 

5 (a) LIMITATION ON DIVESTMENT OF FACILITIES

6 CREATED.—No recipient of appropriated funds for the 

7 purposes of supporting the reestablishment of a domestic 

8 rare earth supply chain, may divest any resources or as9 sets funded, whether in whole or in part, by such appro10 priated funds to any foreign-owned or controlled entity 

11 without the concurrence of the Secretary of Energy, the 

12 Secretary of Defense, and the Secretary of Commerce. 

13 (b) ENHANCING NATIONAL SECURITY.—Any recipi14 ent of appropriated funds obtained in connection with the 

15 reestablishment of a domestic rare earth supply chain 

16 shall be subject to the provisions of section 2538 of title 

17 10, United States Code, in the utilization of such funds, 

18 including with respect to any rare earth-related material 

19 sold by such recipient in the commercial marketplace. 

20 SEC. 9. DEFINITIONS. 

21 In this Act: 

22 (1) ALLOY.—The terms ‘‘alloy’’ means a partial 

23 or complete solid solution of one or more elements 

24 in a metallic matrix. 


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1 (2) ALLOYING.—The term ‘‘alloying’’ means the 

2 melting of metal to create a metallic matrix. 

3 (3) CLEAN ENERGY TECHNOLOGY.—The term 

4 ‘‘clean energy technology’’ means a technology re5 lated to the production, use, transmission, storage, 

6 control, or conservation of energy that will— 

7 (A) reduce the need for additional energy 

8 supplies by using existing energy supplies with 

9 greater efficiency or by transmitting, distrib10 uting, or transporting energy with greater effec11 tiveness through the infrastructure of the 

12 United States; 

13 (B) diversify the sources of energy supply 

14 of the United States to strengthen energy secu15 rity and to increase supplies with a favorable 

16 balance of environmental effects if the entire 

17 technology system is considered; or 

18 (C) contribute to a stabilization of atmos19 pheric greenhouse gas concentrations through 

20 reduction, avoidance, or sequestration of en21 ergy-related emissions. 

22 (4) PROCESS.—The term ‘‘process’’, in the case 

23 of a rare earth oxide, means the conversion of the 

24 oxide into usable rare earth metals and specialty alVerDate Mar 15 2010 03:12 Jun 23, 2010 Jkt 089200 PO 00000 Frm 00014 Fmt 6652 Sfmt 6201 E:\BILLS\S3521.IS S3521

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1 loys and powders for domestic magnet and other 

2 manufacturing. 

3 (5) RARE EARTH.—The term ‘‘rare earth’’— 

4 (A) means the chemical elements in the 

5 periodic table from lanthanum (atomic number 

6 57) up to and including lutetium (atomic num7 ber 71); and 

8 (B) includes the chemical elements yttrium 

9 and scandium. 

10 (6) REFINE.—The term ‘‘refine’’, in the case of 

11 a rare earth extracted from rock, means the separa12 tion and purification of the rare earth to commercial 

13 grades of oxides or other salts such as oxalates or 

14 chlorides. 

Æ 


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