I 
112TH CONGRESS 
1ST SESSION H. R. 1388 
To reestablish a competitive domestic rare earths minerals production indus-
try; a domestic rare earth processing, refining, purification, and metals 
production industry; a domestic rare earth metals alloying industry; and 
a domestic rare-earth-based magnet production industry and supply chain 
in the Defense Logistics Agency of the Department of Defense. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 6, 2011 
Mr. COFFMAN of Colorado (for himself, Mr. PETERS, Mr. LATTA, Mrs. 
LUMMIS, and Mrs. MCMORRIS RODGERS) introduced the following bill; 
which was referred to the Committee on Science, Space, and Technology, 
and in addition to the Committees on Natural Resources and Armed 
Services, for a period to be subsequently determined by the Speaker, in 
each case for consideration of such provisions as fall within the jurisdic-
tion of the committee concerned 
A BILL 
To reestablish a competitive domestic rare earths minerals 
production industry; a domestic rare earth processing, 
refining, purification, and metals production industry; 
a domestic rare earth metals alloying industry; and a 
domestic rare-earth-based magnet production industry 
and supply chain in the Defense Logistics Agency of 
the Department of Defense. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Rare Earths Supply Chain Technology and Resources 
Transformation Act of 2011’’ or the ‘‘RESTART Act’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
Sec. 2. Findings. 
Sec. 3. Actions to promote rare earth development. 
Sec. 4. Requirement to establish executive agents for rare earth related mat-
ters. 
Sec. 5. Rare earth materials loan guarantee program. 
Sec. 6. Establishment of a rare earth alloy and magnet program. 
Sec. 7. Rare earth materials program. 
Sec. 8. Amendments to National Materials and Minerals Policy, Research and 
Development Act of 1980. 
Sec. 9. Definitions. 
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 pan-
els, and wind turbines. These technologies are used 
to advance the United States energy policy of reduc-
ing dependence on foreign oil and decreasing green-
house 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 de-
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signed 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 com-
puting, pollution abatement, power generation, water 
treatment, oil refining, metal alloying, communica-
tions, health care, agriculture, and other sectors. 
(4) Though at least 40 percent of the world’s 
rare earth reserves are located within the United 
States and its ally nations, our country now depends 
upon imports for nearly 100 percent of its rare earth 
needs. 
(5) Furthermore, the United States has limited 
rare earth production, remains nearly entirely de-
pendent on overseas refineries for further elemental 
and alloy processing, and does not currently main-
tain a ‘‘strategic reserve’’ of rare earth compounds, 
metals, or alloys. 
(6) By way of contrast, more than 97 percent 
of all rare earths for world consumption is produced 
in China. The ability—and willingness—of China to 
export these rare earths is eroding due to its grow-
ing domestic demand, its enforcement of environ-
mental law on current producers, and its mandate to 
consolidate the industry by decreasing its number of 
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mining permits. In fact, China has taken several 
steps recently that have caused significant market 
perturbations. 
(7) For example, the Chinese Ministry of Indus-
try and Information Technology draft rare earths 
plan for 2009 to 2015 proposed an immediate ban 
on the export of dysprosium, terbium, thulium, lute-
tium, 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 2008 demand of Japan alone for such 
metals. 
(8) More recently, in July 2010, China de-
creased their export quota allocations on rare earth 
oxides and metals by over 70 percent, causing price 
increases of threefold to eightfold and causing sup-
ply shortages of some materials. 
(9) In September 2010, the Chinese Govern-
ment reportedly restricted export of all rare earth 
oxide and metal to Japan over a diplomatic incident. 
(10) Most recently, in October 2010, the Chi-
nese Government reportedly restricted export of all 
rare earth oxide and metal to the United States and 
Europe, essentially cutting off the global community 
from supplies of rare earth material. 
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(11) Given that Chinese dominance of the rare 
earths market has adversely impacted the supply 
stability and endangers the United States and its al-
lies’ assured access to key materials, rare earths 
should qualify as materials either strategic or critical 
to national security. As such, there is an urgent 
need to identify the current global market situation 
regarding rare earth materials, the strategic value 
placed on them by foreign nations including China, 
and the Department of Defense’s and domestic man-
ufacturing industry’s supply-chain vulnerability re-
lated to rare earths and end items containing rare 
earths such as neodymium iron boron and other spe-
cialty magnets, and rare earth ‘‘doped’’ lasers. 
(12) The United States Government should fa-
cilitate the reintroduction of a globally competitive 
non-Chinese rare earth industry with multiple 
sources of mining, processing, alloying, and manu-
facturing. 
(13) This self-sufficiency requires an uninter-
rupted supply of strategic materials critical to na-
tional security and innovative commercial product 
development, including rare earths, to support the 
clean energy and defense supply chains. 
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(14) The United States currently cannot re-
claim valuable rare earths and permanent magnets 
and such capability should be explored using appro-
priate research and development projects. 
SEC. 3. ACTIONS TO PROMOTE RARE EARTH DEVELOP-
MENT. 
(a) SENSE OF CONGRESS.—It is the sense of Con-
gress that the United States should take any and all ac-
tions necessary to ensure the reintroduction of a competi-
tive domestic and ally nation rare earth supply chain, to 
include the reintroduction of the capacity to conduct min-
ing, refining/processing, alloying and manufacturing oper-
ations using domestic and ally nation suppliers to provide 
a secure source of rare earth materials as a vital compo-
nent of national security and economic policy. 
(b) POLICY.—Each Federal agency shall take appro-
priate actions, to the extent consistent with applicable law, 
to expedite permitting and projects that will increase ex-
ploration for, and development of, domestic rare earths. 
(c) 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’’), 
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which shall report to the President through the Sec-
retary of the Interior. 
(2) COMPOSITION.—The Task Force shall be 
composed of the following: 
(A) The Secretary of the Interior (or a 
designee of such Secretary), who shall serve as 
chair of the Task Force. 
(B) The Secretary of Energy (or a des-
ignee of such Secretary). 
(C) The Secretary of Agriculture (or a des-
ignee of such Secretary). 
(D) The Secretary of Defense (or a des-
ignee of such Secretary). 
(E) The Secretary of Commerce (or a des-
ignee of such Secretary). 
(F) The Secretary of State (or a designee 
of such Secretary). 
(G) The Director of the Office of Manage-
ment and Budget (or a designee of the Direc-
tor). 
(H) The Chairman of the Council on Envi-
ronmental Quality (or a designee of the Chair-
man). 
(I) Such other members as the Secretary 
of the Interior considers appropriate. 
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(d) DUTIES.—The Task Force shall— 
(1) monitor and assist Federal agencies in expe-
diting 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 pursu-
ant 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 Pol-
icy 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 in-
crease investment in, exploration for, and develop-
ment of domestic rare earths as the Task Force con-
siders appropriate. 
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(e) ANNUAL REPORTS.—At least once each year, the 
Task Force shall submit to the President, the Committee 
on Energy and Natural Resources of the Senate, the Com-
mittee on Energy and Commerce of the House of Rep-
resentatives, 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 coordi-
nated and expedited review of permits or other ac-
tions to promote investment in, exploration for, and 
development of domestic rare earths, and an identi-
fication of the procedures and actions that have 
proven to be the most useful and appropriate in co-
ordinating and expediting the review of projects that 
will increase investment in, exploration for, and de-
velopment of domestic rare earths. 
(2) An identification of the substantive and pro-
cedural requirements of Federal, State, tribal, and 
local laws (including regulations) and Executive or-
ders 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 (b). 
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(f) TERMINATION.—The Task Force shall terminate 
10 years after the date of the enactment of this Act. 
(g) JUDICIAL REVIEW.— 
(1) IN GENERAL.—Nothing in this section shall 
be construed to affect any judicial review of an agen-
cy 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 (in-
cluding an agency, instrumentality, officer, or 
employee of the United States) or any other 
person. 
SEC. 4. REQUIREMENT TO ESTABLISH EXECUTIVE AGENTS 
FOR RARE EARTH RELATED MATTERS. 
No later than 30 days after the enactment of this 
Act the Secretaries of Commerce, Defense, Energy, the 
Interior, and State shall each appoint an Executive Agent, 
at the Assistant Secretary level of each affected agency, 
to serve as a representative on an interagency working 
group for the purposes of reestablishing a competitive do-
mestic rare earth supply chain. 
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SEC. 5. RARE EARTH MATERIALS LOAN GUARANTEE PRO-
GRAM. 
(a) AMENDMENT.—Title XVII of the Energy Policy 
Act of 2005 (42 U.S.C. 16511 et seq.) is amended by add-
ing at the end the following new section: 
‘‘SEC. 1706. TEMPORARY PROGRAM FOR RARE EARTH MA-
TERIALS REVITALIZATION. 
‘‘(a) IN GENERAL.—The Secretary is authorized, 
only to the extent provided in advance in a subsequent 
appropriations act, to make guarantees under this title for 
the commercial application of new or significantly im-
proved technologies (compared to technologies currently in 
use in the United States at the time the guarantee is 
issued) for the following categories of projects: 
‘‘(1) The separation and recovery of rare earth 
materials from ores or other sources. 
‘‘(2) The preparation of rare earth materials in 
oxide, metal, alloy, or other forms needed for na-
tional security, economic well-being, or industrial 
production purposes. 
‘‘(3) The application of rare earth materials in 
the production of improved— 
‘‘(A) magnets; 
‘‘(B) batteries; 
‘‘(C) refrigeration systems; 
‘‘(D) optical systems; 
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‘‘(E) electronics; and 
‘‘(F) catalysis. 
‘‘(4) The application of rare earth materials in 
other uses, as determined by the Secretary. 
‘‘(b) TIMELINESS.—The Secretary shall seek to mini-
mize delay in approving loan guarantee applications, con-
sistent with appropriate protection of taxpayer interests. 
‘‘(c) COOPERATION.—To the maximum extent prac-
ticable, the Secretary shall cooperate with appropriate pri-
vate sector participants to achieve a complete rare earth 
materials production capability in the United States or 
ally nations within 5 years after the date of enactment 
of the Rare Earths Supply Chain Technology and Re-
sources Transformation Act of 2011. 
‘‘(d) LIMITATION.—The Secretary is authorized to 
make a guarantee for a project under this section only 
if the project, due to technical or financial uncertainly, is 
not— 
‘‘(1) currently being undertaken by the private 
sector; or 
‘‘(2) likely to be undertaken by the private sec-
tor. 
‘‘(e) SUNSET.—The authority to enter into guaran-
tees under this section shall expire on September 30, 
2015.’’. 
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(b) TABLE OF CONTENTS AMENDMENT.—The table 
of contents of the Energy Policy Act of 2005 is amended 
by inserting after the item relating to section 1705 the 
following new item: 
‘‘Sec. 1706. Temporary program for rare earth materials revitalization.’’. 
SEC. 6. ESTABLISHMENT OF A RARE EARTH ALLOY AND 
MAGNET PROGRAM. 
(a) FINDINGS.—Congress finds the following: 
(1) While the capability to produce rare earth 
materials, including neodymium iron boron magnets 
(in this subsection referred to as ‘‘neo magnets’’), is 
the backbone of the defense supply chain, the United 
States lacks sufficient capability to produce such 
materials. 
(2) Sintered neo magnets are irreplaceable com-
ponents of critical military equipment, ranging from 
precision guided munitions to stealth technology to 
electric drive ship programs, and they allow systems 
within aircraft, tanks and other vehicles, missile sys-
tems, and command and control centers to withstand 
vibration, impact, and G-forces. 
(3) Yet despite the essential nature of these 
magnets to United States national security, the 
United States is completely reliant on unreliable for-
eign sources that are subject to interruption and dis-
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ruption, based on actions or events outside the con-
trol of the Federal Government. 
(4) In addition, industry officials have noted 
that it will take 3 to 5 years to develop a domestic 
neo magnet manufacturing capability for the com-
mercial market. 
(5) In light of these facts, there is a clear na-
tional security imperative to lay the groundwork im-
mediately for developing a supply chain in the 
United States that allows for ready access to neo-
dymium iron boron magnet alloys, dysprosium iron 
alloys, and sintered neodymium iron boron magnets. 
(b) REQUIREMENT TO ESTABLISH AN INVENTORY.— 
(1) ESTABLISHMENT.—In accordance with sec-
tion 15 of the Strategic and Critical Materials Stock 
Piling Act (50 U.S.C. 98h–6), using funds from the 
sale of excess materials in the National Defense 
Stockpile, the President, acting through the Sec-
retary of Defense, shall establish a neodymium iron 
boron magnet alloy and dysprosium iron alloy inven-
tory to be managed by the Administrator of the De-
fense Logistics Agency Strategic Materials. 
(2) SUSTAINING THE INVENTORY.—In carrying 
out paragraph (1), not later than one year after the 
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date of the enactment of this Act, the Secretary of 
Defense shall— 
(A) commence creating an inventory of do-
mestic or ally nation neodymium iron boron 
magnet alloys and dysprosium iron alloys; and 
(B) make such inventory accessible, includ-
ing by purchase, to producers of domestic neo-
dymium iron boron magnets, the Defense Lo-
gistics Agency of the Department of Defense, or 
other entities requiring such material to sup-
port national defense requirements. 
(3) AMOUNT OF MATERIALS.— 
(A) Not later than 180 days after the date 
of the enactment of this Act, the Secretary of 
Defense shall determine the amount of neodym-
ium iron boron magnet alloys and dysprosium 
iron alloys required for the inventory estab-
lished under paragraph (1). 
(B) In making the determination regarding 
neodymium iron boron magnet alloys and dys-
prosium iron alloys under subparagraph (A), 
the Secretary of Defense shall determine— 
(i) the aggregate demand for such 
magnets for national defense purposes; and 
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(ii) domestic and ally nation sources 
considered by the Secretary to be reliable, 
including an analysis of the viability of 
such sources for the near-term production 
of military-specific sintered neodymium 
iron boron magnet alloys and magnets. 
(C) If the Secretary of Defense cannot de-
termine the aggregate demand for neodymium 
iron boron magnet alloys and dysprosium iron 
alloys under subparagraph (B)(i), the Secretary 
shall establish an inventory of not less than 200 
metric tons of neodymium iron boron magnet 
alloy and 50 metric tons of dysprosium iron 
alloy. 
(c) REQUIREMENT TO ENCOURAGE
A DOMESTIC 
MANUFACTURING CAPABILITY.— 
(1) ENCOURAGEMENT.—In accordance with 
section 15 of the Strategic and Critical Materials 
Stock Piling Act (50 U.S.C. 98h–6), not later than 
one year after the date of the enactment of this Act, 
the President, acting through the Secretary of De-
fense, shall encourage the development of a domestic 
neodymium iron boron magnet manufacturing capa-
bility by seeking to enter into long-term supply con-
tracts for the delivery of necessary grades of domes-
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