I 
117TH CONGRESS 
2D SESSION 
H. R. 7460 
To require the Secretary of Energy to establish a program to incentivize 
investment in facilities that carry out the metallurgy of rare earth ele-
ments and the production of finished rare earth products, and for other 
purposes. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 7, 2022 
Mr. TONY GONZALES of Texas (for himself and Mr. GIMENEZ) introduced the 
following bill; which was referred to the Committee on Energy and Com-
merce, and in addition to the Committees on Education and Labor, For-
eign Affairs, and Financial Services, for a period to be subsequently de-
termined by the Speaker, in each case for consideration of such provisions 
as fall within the jurisdiction of the committee concerned 
A BILL 
To require the Secretary of Energy to establish a program 
to incentivize investment in facilities that carry out the 
metallurgy of rare earth elements and the production 
of finished rare earth products, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Obtaining National 
and Secure Homeland Operations for Rare Earth Manu-
facturing Act’’ or the ‘‘ONSHORE Manufacturing Act’’. 
VerDate Sep 11 2014 
19:28 Apr 14, 2022
Jkt 029200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H7460.IH
H7460
pamtmann on DSKBC07HB2PROD with BILLS
SEC. 2. DEFINITIONS. 
In this Act: 
(1) 
APPROPRIATE
COMMITTEES
OF
CON-
GRESS.—The term ‘‘appropriate committees of Con-
gress’’ means— 
(A) the Select Committee on Intelligence, 
the Committee on Energy and Natural Re-
sources, the Committee on Commerce, Science, 
and Transportation, the Committee on Foreign 
Relations, the Committee on Armed Services, 
the Committee on Appropriations, the Com-
mittee on Banking, Housing, and Urban Af-
fairs, the Committee on Homeland Security and 
Governmental Affairs, and the Committee on 
Finance of the Senate; and 
(B) the Permanent Select Committee on 
Intelligence, the Committee on Energy and 
Commerce, the Committee on Foreign Affairs, 
the Committee on Armed Services, the Com-
mittee on Science, Space, and Technology, the 
Committee on Appropriations, the Committee 
on Financial Services, the Committee on Home-
land Security, and the Committee on Ways and 
Means of the House of Representatives. 
(2) CONCENTRATED RARE EARTH ELEMENT.— 
The term ‘‘concentrated rare earth element’’ means 
VerDate Sep 11 2014 
19:28 Apr 14, 2022
Jkt 029200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H7460.IH
H7460
pamtmann on DSKBC07HB2PROD with BILLS
a rare earth element that has been extracted or sep-
arated from raw materials and concentrated. 
(3) COVERED ENTITY.—The term ‘‘covered en-
tity’’ means a private entity, a consortium of private 
entities, or a consortium of public and private enti-
ties with a demonstrated ability to substantially fi-
nance, construct, expand, or technologically upgrade 
a covered facility. 
(4) COVERED
FACILITY.—The term ‘‘covered 
facility’’ means a facility located in a State that car-
ries out the metallurgy of rare earth elements for 
the production of finished rare earth products. 
(5) COVERED INCENTIVE.—The term ‘‘covered 
incentive’’ means— 
(A) an incentive offered by a Federal, 
State, local, or Tribal governmental entity to a 
covered entity for the purposes of— 
(i) constructing within the jurisdiction 
of the governmental entity a covered facil-
ity; or 
(ii) expanding or technologically up-
grading an existing facility within that ju-
risdiction to be a covered facility; and 
(B) a workforce-related incentive (includ-
ing a grant agreement relating to workforce 
VerDate Sep 11 2014 
19:28 Apr 14, 2022
Jkt 029200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H7460.IH
H7460
pamtmann on DSKBC07HB2PROD with BILLS
training or vocational education), any conces-
sion with respect to real property, funding for 
research and development with respect to rare 
earth elements and finished rare earth prod-
ucts, and any other incentive determined appro-
priate by the Secretary, in consultation with the 
Secretary of State. 
(6) FINISHED
RARE
EARTH
PRODUCT.—The 
term ‘‘finished rare earth product’’ means— 
(A) a product composed of— 
(i) metal powders, such as rare earth 
oxides and rare earth salts, including 
chlorides and nitrates; 
(ii) metals containing rare earth ele-
ments; 
(iii) alloys; or 
(iv) magnets; and 
(B) any other value-added product that is 
composed fully or partially of rare earth ele-
ments. 
(7) FOREIGN ENTITY.— 
(A) IN GENERAL.—The term ‘‘foreign enti-
ty’’ means— 
(i) a government of a foreign country 
and a foreign political party; 
VerDate Sep 11 2014 
19:28 Apr 14, 2022
Jkt 029200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H7460.IH
H7460
pamtmann on DSKBC07HB2PROD with BILLS
(vii) any corporation, partnership, as-
sociation, or other organization organized 
under the laws of a country controlled by 
an entity described in subparagraph (A). 
(8) FOREIGN ENTITY OF CONCERN.—The term 
‘‘foreign entity of concern’’ means any foreign entity 
that is— 
(A) designated as a foreign terrorist orga-
nization by the Secretary of State under section 
219 of the Immigration and Nationality Act (8 
U.S.C. 1189); 
(B) included on the list of specially des-
ignated nationals and blocked persons main-
tained by the Office of Foreign Assets Control 
of the Department of the Treasury; 
(C) owned by, controlled by, or subject to 
the jurisdiction, direction, or otherwise under 
the undue influence of a government of a cov-
ered nation (as defined in section 2533c(d) of 
title 10, United States Code); 
(D) alleged by the Attorney General to 
have been involved in activities for which a con-
viction was obtained under— 
VerDate Sep 11 2014 
19:28 Apr 14, 2022
Jkt 029200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H7460.IH
H7460
pamtmann on DSKBC07HB2PROD with BILLS
(i) chapter 37 of title 18, United 
States Code (commonly known as the ‘‘Es-
pionage Act’’); 
(ii) section 951 or 1030 of title 18, 
United States Code; 
(iii) chapter 90 of title 18, United 
States Code (commonly known as the 
‘‘Economic Espionage Act of 1996’’); 
(iv) the Arms Export Control Act (22 
U.S.C. 2751 et seq.); 
(v) section 224, 225, 226, 227, or 236 
of the Atomic Energy Act of 1954 (42 
U.S.C. 2274–2278; 2284); 
(vi) the Export Control Reform Act of 
2018 (50 U.S.C. 4801 et seq.); or 
(vii) the International Emergency 
Economic Powers Act (50 U.S.C. 1701 et 
seq.); or 
(E) determined by the Secretary, in con-
sultation with the Secretary of Defense and the 
Director of National Intelligence, to be engaged 
in unauthorized conduct that is detrimental to 
the national security or foreign policy of the 
United States under this Act. 
VerDate Sep 11 2014 
19:28 Apr 14, 2022
Jkt 029200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H7460.IH
H7460
pamtmann on DSKBC07HB2PROD with BILLS
(9) GOVERNMENTAL ENTITY.—The term ‘‘gov-
ernmental entity’’ means— 
(A) a State; and 
(B) a local government of a State. 
(10) INTELLIGENCE
COMMUNITY.—The term 
‘‘intelligence community’’ has the meaning given the 
term in section 3 of the National Security Act of 
1947 (50 U.S.C. 3003). 
(11) METALLURGY.—The term ‘‘metallurgy’’ 
means the process of producing finished rare earth 
products from concentrated rare earth elements. 
(12) PERSON.—The term ‘‘person’’ includes an 
individual, partnership, association, corporation, or-
ganization, or any other combination of individuals. 
(13) RARE EARTH ELEMENT.—The term ‘‘rare 
earth element’’ means a natural element associated 
with— 
(A) the metallic element scandium, with 
atomic number 21; 
(B) the metallic element yttrium, with 
atomic number 39; or 
(C) any of the series of 15 metallic ele-
ments between lanthanum, with atomic number 
57, and lutetium, with atomic number 71, on 
the periodic table. 
VerDate Sep 11 2014 
19:28 Apr 14, 2022
Jkt 029200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H7460.IH
H7460
pamtmann on DSKBC07HB2PROD with BILLS
(14) 
SECRETARY.—The 
term 
‘‘Secretary’’ 
means the Secretary of Energy. 
(15) STATE.—The term ‘‘State’’ means— 
(A) each of the several States of the 
United States; 
(B) the District of Columbia; 
(C) the Commonwealth of Puerto Rico; 
(D) Guam; 
(E) American Samoa; 
(F) the Commonwealth of the Northern 
Mariana Islands; 
(G) the Federated States of Micronesia; 
(H) the Republic of the Marshall Islands; 
(I) the Republic of Palau; and 
(J) the United States Virgin Islands. 
SEC. 3. RARE EARTH METALLURGY FINANCING. 
(a) FINANCIAL ASSISTANCE PROGRAM.— 
(1) IN GENERAL.—The Secretary shall establish 
in the Department of Energy a program to provide 
Federal financial assistance to covered entities to 
incentivize investment in covered facilities, subject to 
the availability of appropriations for that purpose. 
(2) PROCEDURE.— 
(A) IN GENERAL.—A covered entity seek-
ing financial assistance under this subsection 
VerDate Sep 11 2014 
19:28 Apr 14, 2022
Jkt 029200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H7460.IH
H7460
pamtmann on DSKBC07HB2PROD with BILLS
shall submit to the Secretary an application 
that describes the project for which the covered 
entity is seeking financial assistance. 
(B) ELIGIBILITY.—In order for a covered 
entity to qualify for financial assistance under 
this subsection, the covered entity shall dem-
onstrate to the Secretary, in the application 
submitted by the covered entity under subpara-
graph (A), that— 
(i) the covered entity has a docu-
mented interest in— 
(I) constructing a covered facil-
ity; or 
(II) expanding or technologically 
upgrading a facility owned by the cov-
ered entity to be a covered facility; 
and 
(ii) with respect to the project for 
which the covered entity is seeking finan-
cial assistance, the covered entity has— 
(I) been offered a covered incen-
tive; 
(II) made commitments to work-
er and community investment, includ-
ing through— 
VerDate Sep 11 2014 
19:28 Apr 14, 2022
Jkt 029200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H7460.IH
H7460
pamtmann on DSKBC07HB2PROD with BILLS
(aa) training and education 
benefits paid by the covered enti-
ty; and 
(bb) programs to expand 
employment opportunity for eco-
nomically disadvantaged individ-
uals; 
(III) secured commitments from 
regional educational and training enti-
ties and institutions of higher edu-
cation to provide workforce training, 
including programming for training 
and job placement of economically dis-
advantaged individuals; and 
(IV) an executable plan to sus-
tain a covered facility without addi-
tional Federal financial assistance 
under this subsection for facility sup-
port. 
(C) APPLICATION REVIEW.— 
(i) IN GENERAL.—The Secretary may 
not approve an application submitted by a 
covered entity under subparagraph (A)— 
(I) unless the Secretary— 
VerDate Sep 11 2014 
19:28 Apr 14, 2022
Jkt 029200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\BILLS\H7460.IH
H7460
pamtmann on DSKBC07HB2PROD with BILLS
(I) the covered entity has pre-
viously received financial assistance 
under this subsection; 
(II) the governmental entity of-
fering the applicable covered incentive 
has benefitted from financial assist-
ance previously provided under this 
subsection; 
(III) the covered entity has dem-
onstrated that the covered entity is re-
sponsive to the national security needs 
or requirements established by the in-
telligence community (or an agency 
thereof), the National Nuclear Secu-
rity Administration, or the Depart-
ment of Defense; 
(IV) if practicable, a consortium 
that is considered a covered entity in-
cludes a small business concern (as 
defined under section 3 of the Small 
Business Act (15 U.S.C. 632)), not-
withstanding section 121.103 of title 
13, Code of Federal Regulations (or 
successor regulations); and 
VerDate Sep 11 2014 
19:28 Apr 14, 2022
Jkt 029200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6201
E:\BILLS\H7460.IH
H7460
pamtmann on DSKBC07HB2PROD with BILLS
(V) the covered entity intends to 
produce finished products for use by 
the Department of Defense, the de-
fense industry of the United States, 
or critical energy infrastructure. 
(iii) PRIORITIZATION.—To the max-
imum extent practicable, the Secretary 
shall prioritize awarding financial assist-
ance under this subsection to a covered en-
tity that— 
(I) utilizes raw material feedstock 
sourced from 1 or more offtake agree-
ments with entities that are not for-
eign entities of concern; 
(II) utilizes raw material feed-
stock sourced from 2 or more— 
(aa) entities; 
(bb) offtake agreements; or 
(cc) geographic locations; 
(III) utilizes concentrated rare 
earth elements sourced from 2 or 
more— 
(aa) entities; 
(bb) offtake agreements; or 
VerDate Sep 11 2014 
19:28 Apr 14, 2022
Jkt 029200
PO 00000
Frm 00015
Fmt 6652
Sfmt 6201
E:\BILLS\H7460.IH
H7460
pamtmann on DSKBC07HB2PROD with BILLS
(cc) 
geographic 
locations; 
and 
(IV) intends to produce finished 
products for use by the Department of 
Defense, the defense industry of the 
United States, or critical energy infra-
structure. 
(D) RECORDS.— 
(i) IN GENERAL.—The Secretary may 
request records and information from a 
covered entity that submitted an applica-
tion under subparagraph (A) to review the 
status of a covered entity. 
(ii) REQUIREMENT.—The covered en-
tity shall provide the records and informa-
tion requested by the Secretary under 
clause (i). 
(3) AMOUNT.— 
(A) IN GENERAL.—The Secretary shall de-
termine the appropriate amount and funding 
type for each financial assistance award pro-
vided to a covered entity under this subsection. 
(B) LARGER
INVESTMENT.—The total 
Federal investment in any individual project re-
ceiving a financial assistance award under this 
VerDate Sep 11 2014 
19:28 Apr 14, 2022
Jkt 029200
PO 00000
Frm 00016
Fmt 6652
Sfmt 6201
E:\BILLS\H7460.IH
H7460
pamtmann on DSKBC07HB2PROD with BILLS
subsection shall not exceed $500,000,000, un-
less the Secretary, in consultation with the Sec-
retary of Defense and the Director of National 
Intelligence, recommends to the President, and 
the President certifies and reports to the appro-
priate committees of Congress, that a larger in-
vestment is necessary— 
(i) to significantly increase the pro-
portion of reliable domestic supply of fin-
ished rare earth products relevant for na-
tional security and economic competitive-
ness that can be met through domestic 
production; and 
(ii) to meet the needs of national se-
curity. 
(4) USE OF FUNDS.—A covered entity that re-
ceives a financial assistance award under this sub-
section may only use the financial assistance award 
amounts— 
(A) to finance the construction of a cov-
ered facility (including equipment) or the ex-
pansion or technological upgrade of a facility 
(including equipment) of the covered entity to 
be a covered facility, as documented in the ap-
plication submitted by the covered entity under 
VerDate Sep 11 2014 
19:28 Apr 14, 2022
Jkt 029200
PO 00000
Frm 00017
Fmt 6652
Sfmt 6201
E:\BILLS\H7460.IH
H7460
pamtmann on DSKBC07HB2PROD with BILLS
paragraph (2)(A), as determined necessary by 
the Secretary for purposes relating to the na-
tional security and economic competitiveness of 
the United States; 
(B) to support workforce development for 
a covered facility; 
(C) to support site development and tech-
nological upgrade for a covered facility; and 
(D) to pay reasonable costs relating to the 
operating expenses for a covered facility, includ-
ing specialized workforce, essential materials, 
and complex equipment maintenance. 
(5) CLAWBACK.— 
(A) MAJOR AWARDS.— 
(i) IN GENERAL.—For all financial as-
sistance awards of more than $10,000,000 
provided to covered entities under this sub-
section, the Secretary shall, at the time of 
making the award, determine the target 
dates by which a covered entity shall com-
mence and complete the applicable project. 
(ii) PROGRESSIVE
RECOVERY
FOR 
DELAYS.—If the covered entity receiving a 
financial assistance award of more than 
$10,000,000 under this subsection does 
VerDate Sep 11 2014 
19:28 Apr 14, 2022
Jkt 029200
PO 00000
Frm 00018
Fmt 6652
Sfmt 6201
E:\BILLS\H7460.IH
H7460
pamtmann on DSKBC07HB2PROD with BILLS
not complete the applicable project by the 
applicable target date determined under 
clause (i), the Secretary shall progressively 
recover up to the full amount of the award. 
(iii) WAIVER.—In the case of projects 
that do not meet the applicable target date 
determined under clause (i), the Secretary 
may waive the requirement to recover the 
financial award provided for the project 
under clause (ii) after making a formal de-
termination that circumstances beyond the 
ability of the covered entity to foresee or 
control are responsible for the delay. 
(iv) 
CONGRESSIONAL
NOTIFICA-
TION.— 
(I) IN GENERAL.—Not later than 
15 days after making a determination 
to recover an award under clause (ii), 
the Secretary shall notify the appro-
priate committees of Congress of the 
intent of the Secretary to recover the 
award. 
(II) WAIVERS.—Not later than 
15 days after the date on which the 
Secretary provides a waiver under 
VerDate Sep 11 2014 
19:28 Apr 14, 2022
Jkt 029200
PO 00000
Frm 00019
Fmt 6652
Sfmt 6201
E:\BILLS\H7460.IH
H7460
pamtmann on DSKBC07HB2PROD with BILLS