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[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 3521 Introduced in Senate (IS)]

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.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Rare Earths Supply Technology and 
Resources Transformation Act of 2010'' or the ``RESTART Act''.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) Significant quantities of rare earths are used in the 
        production of clean energy technologies, including advanced 
        automotive propulsion batteries, electric motors, high-
        efficiency light bulbs, solar panels, and wind turbines. These 
        technologies are used to advance the United States energy 
        policy of reducing dependence on foreign oil and decreasing 
        greenhouse gas emissions through expansion of cleaner sources 
        of energy.
            (2) Many modern defense technologies such as radar and 
        sonar systems, precision-guided weapons, cruise missiles, and 
        lasers cannot be built, as designed and specified, without the 
        use of rare earths and materials produced from them.
            (3) Rare earths also provide core functionality to a 
        variety of high technology applications in computing, pollution 
        abatement, power generation, water treatment, oil refining, 
        metal alloying, communications, health care, agriculture, and 
        other sectors.
            (4) Though at least 15 percent of the world's rare earth 
        reserves are located within the United States, the country now 
        depends upon imports for nearly 100 percent of its rare earth 
        needs because there are virtually no active rare earth 
        producers in the United States. More than 97 percent of all 
        rare earths for world consumption are produced in China.
            (5) The ability--and willingness--of China to export rare 
        earths is eroding due to its growing domestic demand, its 
        enforcement of environmental law on current producers, and its 
        mandate to consolidate the industry by decreasing its number of 
        mining permits. The Chinese Ministry of Industry and 
        Information Technology draft rare earths plan for 2009 to 2015 
        proposes an immediate ban on the export of dysprosium, terbium, 
        thulium, lutetium, and yttrium, the so-called ``heavy'' rare 
        earths, and a restriction on the exports of all other, light, 
        rare earth metals to a level well below that sufficient to 
        satisfy the demand of Japan in 2008 alone for such metals.
            (6) Furthermore, the United States has limited rare earth 
        production, remains entirely dependent on overseas refineries 
        for further elemental and alloy processing, and does not 
        currently maintain a ``strategic reserve'' of rare earth 
        compounds, metals, or alloys.
            (7) Rare earths should qualify as materials either 
        strategic or critical to national security. The United States 
        Government should facilitate the domestic reintroduction of a 
        globally competitive rare earth industry that is self-
        sufficient in the United States domestic market with multiple 
        sources of mining, processing, alloying, and manufacturing.
            (8) This self-sufficiency requires an uninterrupted supply 
        of strategic materials critical to national security and 
        innovative commercial product development, including rare 
        earths, to support the clean energy and defense supply chains.
            (9) The United States currently cannot reclaim valuable 
        rare earths and permanent magnets from scrapped military or 
        consumer products, industrial materials or equipment, which 
        allows entities in other countries to identify and recover such 
        materials for resale to United States manufacturers at 
        considerable cost.
            (10) There is an urgent need to identify the current global 
        market situation regarding rare earths, the strategic value 
        placed on them by foreign nations including China, and the 
        supply-chain vulnerabilities related to rare earths and 
        products containing rare earths.

SEC. 3. ACTIONS TO PROMOTE RARE EARTH DEVELOPMENT.

    (a) Policy.--It is the policy of the United States that each 
Federal agency shall take appropriate actions, to the extent consistent 
with applicable law, to expedite permitting and projects that will 
increase exploration for, and development of, domestic rare earths.
    (b) Rare Earth Policy Task Force.--
            (1) Establishment.--There is established within the 
        Department of the Interior a task force to be known as the 
        ``Rare Earth Policy Task Force'' (referred to in this section 
        as the ``Task Force''), which shall report to the President 
        through the Secretary of the Interior.
            (2) Composition.--The Task Force shall be composed of the 
        following:
                    (A) The Secretary of the Interior (or a designee), 
                who shall serve as chair of the Task Force.
                    (B) The Secretary of Energy (or a designee).
                    (C) The Secretary of Agriculture (or a designee).
                    (D) The Secretary of Defense (or a designee).
                    (E) The Secretary of Commerce (or a designee).
                    (F) The Secretary of State (or a designee).
                    (G) The Director of the Office of Management and 
                Budget (or a designee).
                    (H) The Chairman of the Council on Environmental 
                Quality (or a designee).
                    (I) Such other members as the Secretary of the 
                Interior considers appropriate.
    (c) Duties.--The Task Force shall--
            (1) monitor and assist Federal agencies in expediting the 
        review and approval of permits or other actions, as necessary, 
        to accelerate the completion of projects that will increase 
        investment in, exploration for, and development of domestic 
        rare earths pursuant to the Federal Land Policy and Management 
        Act of 1976 (43 U.S.C. 1701 et seq.), the Act of June 4, 1897 
        (commonly known as the ``Organic Act of 1897'' (16 U.S.C. 473-
        482, 551), the National Forest Management Act of 1976 (16 
        U.S.C. 1600 et seq.), and any other applicable statutory 
        authorities related to domestic mining operations;
            (2) assist Federal agencies in reviewing laws (including 
        regulations) and policies that discourage investment in, 
        exploration for, and development of domestic rare earths 
        pursuant to Federal Land Policy and Management Act of 1976, the 
        Act of June 4, 1897, the National Forest Management Act of 
        1976, and any other applicable statutory authorities related to 
        domestic mining operations; and
            (3) take such other actions to otherwise increase 
        investment in, exploration for, and development of domestic 
        rare earths as the Task Force considers appropriate.
    (d) Annual Reports.--At least once each year, the Task Force shall 
submit to the President, the Committee on Natural Resources of the 
Senate, the Committee on Energy and Commerce of the House of 
Representatives, and the Committee on Natural Resources of the House of 
Representatives a report setting forth the following:
            (1) A description of the results of the coordinated and 
        expedited review of permits or other actions to promote 
        investment in, exploration for, and development of domestic 
        rare earths, and an identification of the procedures and 
        actions that have proven to be the most useful and appropriate 
        in coordinating and expediting the review of projects that will 
        increase investment in, exploration for, and development of 
        domestic rare earths.
            (2) An identification of the substantive and procedural 
        requirements of Federal, State, tribal, and local laws 
        (including regulations) and Executive orders that are 
        inconsistent with, duplicative of, or structured so as to 
        restrict effective implementation of the projects described in 
        paragraph (1).
            (3) Such recommendations as the Task Force considers 
        appropriate to advance the policy set forth in subsection (a).
    (e) Judicial Review.--
            (1) In general.--Nothing in this section shall be construed 
        to affect any judicial review of an agency action under any 
        other provision of law.
            (2) Construction.--This section--
                    (A) is intended to improve the internal management 
                of the Federal Government; and
                    (B) does not create any right or benefit, 
                substantive or procedural, enforceable at law or equity 
                by a party against the United States (including an 
                agency, instrumentality, officer, or employee of the 
                United States) or any other person.

SEC. 4. ASSESSMENT OF RARE EARTH SUPPLY CHAIN VULNERABILITY.

    (a) Assessment.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary of the Interior and the Secretary 
of Energy shall jointly, in consultation with the Secretary of Defense, 
the Secretary of Commerce, the Secretary of State, and the United 
States Trade Representative--
            (1) undertake an assessment of the domestic rare earth 
        supply chain;
            (2) determine pursuant to such assessment which rare earth 
        elements are critical to clean energy technologies and the 
        national and economic security of the United States; and
            (3) submit to Congress a report setting forth the results 
        of such assessment and determination.
    (b) Establishment of Stockpile.--Not later than one year after the 
date of the enactment of this Act, the Secretary of the Interior and 
the Secretary of Energy shall jointly, in consultation with the 
Secretary of Defense, the Secretary of Commerce, the Secretary of 
State, and the United States Trade Representative, submit to Congress a 
report setting forth the following:
            (1) An assessment whether or not the rare earth materials 
        determined to be critical to clean energy technologies and the 
        national and economic security of the United States pursuant to 
        subsection (a)(2) should be procured and placed in a stockpile.
            (2) An assessment whether or not adequate legal authorities 
        exist to procure and place in a stockpile the rare earth 
        materials so determined to be critical to clean energy 
        technologies and the national and economic security of the 
        United States.
            (3) Recommendations on the criteria to be utilized in 
        determining the commencement and termination of the stockpiling 
        of such rare earth materials.
    (c) Stockpile Defined.--In this section, the term ``stockpile'' 
means a strategic reserve of rare earth oxides, and storable forms of 
rare earths and alloys for purposes of clean energy technology and the 
national and economic security of the United States.

SEC. 5. LOAN GUARANTEES FOR THE DOMESTIC RARE EARTH SUPPLY CHAIN.

    (a) Report to Industry.--Not later than 90 days after the date of 
the enactment of the Act, the Secretary of Energy shall issue a report 
to industry describing available mechanisms for obtaining government 
loan guarantees for purposes of reestablishing a domestic rare earth 
supply chain.
    (b) Department of Energy Support.--Not later than 90 days after the 
date of the enactment of the Act, the Secretary of Energy shall issue 
guidance for the rare earth industry on obtaining loan guarantees under 
title XVII of the Energy Policy Act of 2005 (Public Law 109-58; 22 
U.S.C. 16511 et seq.) and the American Recovery and Reinvestment Act of 
2009 (Public Law 111-16) for purposes of supporting the reestablishment 
of mining, separation, purification, metal processing, refining, 
alloying, and manufacturing operations in the United States relating to 
rare earths that will support the domestic clean energy technology and 
defense supply chains.

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

    (a) Sense of Congress.--It is the sense of Congress that--
            (1) the United States faces a shortage of key rare earth 
        materials that form the backbone of both the defense and energy 
        supply chains; and
            (2) the urgent need to reestablish a domestic rare earth 
        supply chain warrants a prioritization of projects under the 
        Defense Production Act of 1950 (50 U.S.C. App. 2061 et seq.) to 
        support the reestablishment of such a supply chain.
    (b) Report.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary of Defense shall submit to 
Congress a report describing past, current, and future projects under 
the Defense Production Act of 1950 to support the domestic rare earth 
supply chain. If no such project is in process or planned as of the 
date of the report, the report shall include a justification for the 
lack of projects to support a domestic rare earth supply chain, 
particularly projects to establish or support domestic manufacturing 
capability in critical segments of the rare earth market.

SEC. 7. SUPPORT FOR DOMESTIC RARE EARTH SUPPLY CHAIN.

    It is the sense of Congress that, in order to reestablish the 
security of rare earth supplies within the United States, and 
associated technologies--
            (1) there is a pressing need to support innovation, 
        training, and workforce development in the domestic rare earth 
        supply chain;
            (2) the Department of Energy, the Department of the 
        Interior, the Department of Commerce, and the Department of 
        Defense should each, utilizing funds available to such 
        department for basic research and development, provide funds to 
        academic institutions, Government laboratories, corporate 
        research and development, not-for-profit research and 
        development, and industry associations in support of 
        innovation, training, and workforce development in the domestic 
        rare earth supply chain; and
            (3) in providing funds under paragraph (2), the Department 
        of Energy, the Department of the Interior, the Department of 
        Commerce, and the Department of Defense should give priority to 
        academic institutions, Government laboratories, corporations, 
        not-for-profit entities, and industry associations that will 
        utilize domestically produced rare earths and associated 
        materials.

SEC. 8. RESTRICTIONS.

    (a) Limitation on Divestment of Facilities Created.--No recipient 
of appropriated funds for the purposes of supporting the 
reestablishment of a domestic rare earth supply chain, may divest any 
resources or assets funded, whether in whole or in part, by such 
appropriated funds to any foreign-owned or controlled entity without 
the concurrence of the Secretary of Energy, the Secretary of Defense, 
and the Secretary of Commerce.
    (b) Enhancing National Security.--Any recipient of appropriated 
funds obtained in connection with the reestablishment of a domestic 
rare earth supply chain shall be subject to the provisions of section 
2538 of title 10, United States Code, in the utilization of such funds, 
including with respect to any rare earth-related material sold by such 
recipient in the commercial marketplace.

SEC. 9. DEFINITIONS.

    In this Act:
            (1) Alloy.--The terms ``alloy'' means a partial or complete 
        solid solution of one or more elements in a metallic matrix.
            (2) Alloying.--The term ``alloying'' means the melting of 
        metal to create a metallic matrix.
            (3) Clean energy technology.--The term ``clean energy 
        technology'' means a technology related to the production, use, 
        transmission, storage, control, or conservation of energy that 
        will--
                    (A) reduce the need for additional energy supplies 
                by using existing energy supplies with greater 
                efficiency or by transmitting, distributing, or 
                transporting energy with greater effectiveness through 
                the infrastructure of the United States;
                    (B) diversify the sources of energy supply of the 
                United States to strengthen energy security and to 
                increase supplies with a favorable balance of 
                environmental effects if the entire technology system 
                is considered; or
                    (C) contribute to a stabilization of atmospheric 
                greenhouse gas concentrations through reduction, 
                avoidance, or sequestration of energy-related 
                emissions.
            (4) Process.--The term ``process'', in the case of a rare 
        earth oxide, means the conversion of the oxide into usable rare 
        earth metals and specialty alloys and powders for domestic 
        magnet and other manufacturing.
            (5) Rare earth.--The term ``rare earth''--
                    (A) means the chemical elements in the periodic 
                table from lanthanum (atomic number 57) up to and 
                including lutetium (atomic number 71); and
                    (B) includes the chemical elements yttrium and 
                scandium.
            (6) Refine.--The term ``refine'', in the case of a rare 
        earth extracted from rock, means the separation and 
        purification of the rare earth to commercial grades of oxides 
        or other salts such as oxalates or chlorides.
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