I 
116TH CONGRESS 
1ST SESSION H. R. 4410 
To provide for the establishment of the Thorium-Bearing Rare Earth Refinery 
Cooperative, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 19, 2019 
Mr. TIPTON (for himself, Mr. GOSAR, Mr. SMITH of Missouri, Mr. STEWART, 
Mr. MCKINLEY, and Mr. YOHO) introduced the following bill; which was 
referred to the Committee on Armed Services, and in addition to the 
Committee on Energy and Commerce, 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 provide for the establishment of the Thorium-Bearing 
Rare Earth Refinery Cooperative, 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 ‘‘Rare Earth Coopera-
tive 21st Century Manufacturing Act’’ or the ‘‘RE-Coop 
21st Century Manufacturing Act’’. 
SEC. 2. FINDINGS; STATEMENT OF POLICY. 
(a) FINDINGS.—Congress finds the following: 
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(1) Rare earth elements are critical for ad-
vanced energy technologies, national defense, and 
other commercial and industrial applications. 
(2) The People’s Republic of China (referred to 
in this subsection as ‘‘China’’) has leveraged its mo-
nopoly control over the rare earth value chain to 
force corporations from the United States, Europe, 
Japan, and South Korea to transfer manufacturing 
facilities, technology, and jobs to China in exchange 
for secure supply contracts. 
(3) The increasingly aggressive mercantile be-
havior of China has led to involuntary transfers of 
technology, manufacturing, and jobs, which has re-
sulted in onerous trade imbalances with the United 
States and trading partners of the United States. 
(4) The Comptroller General of the United 
States has confirmed that the monopoly control of 
China over the rare earth value chain has resulted 
in vulnerabilities in the procurement of multiple 
United States weapons systems. 
(5) Direct links exist between rare earth min-
eralogy and thorium. 
(6) Thorium is a radioactive element commonly 
associated with the lanthanide elements in most rare 
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earth deposits located in the United States and else-
where. 
(7) Regulations regarding thorium represent a 
barrier to the development of a rare earth industry 
that is based in the United States. 
(8) Meeting the strategic national interest ob-
jectives of the United States and economic and envi-
ronmental goals are best achieved through the cre-
ation of a rare earth cooperative. 
(9) A rare earth cooperative could— 
(A) greatly increase the production of rare 
earth elements; 
(B) ensure environmental safety; and 
(C) lower the cost of the production and fi-
nancial risks faced by rare earth producers in 
the United States. 
(10) Historically, agricultural and electric co-
operatives have stood as one of the greatest success 
stories of the United States. 
(b) STATEMENT OF POLICY.—It is the policy of the 
United States to advance domestic refining of rare earth 
elements and the safe storage of thorium in anticipation 
of the potential future industrial uses of thorium, includ-
ing energy, because— 
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(1) thorium has a mineralogical association 
with valuable rare earth elements; 
(2) there is a great need to develop domestic re-
fining capacity to process domestic rare earth ele-
ment deposits; and 
(3) the economy of the United States would 
benefit from the rapid development and control of 
intellectual property relating to the commercial de-
velopment of technology utilizing thorium. 
SEC. 3. DEFINITIONS. 
In this Act: 
(1) ACTINIDE.—The term ‘‘actinide’’ means a 
natural element associated with any of the series of 
15 metallic elements between actinium, with atomic 
number 89, and lawrencium, with atomic number 
103, on the periodic table. 
(2) COOPERATIVE.—The term ‘‘Cooperative’’ 
means the Thorium-Bearing Rare Earth Refinery 
Cooperative established under section 4(a). 
(3) CORPORATION.—The term ‘‘Corporation’’ 
means the Thorium Storage, Energy, and Industrial 
Products Corporation established under section 5(a). 
(4) NATIONAL LABORATORY.—The term ‘‘Na-
tional Laboratory’’ has the meaning given the term 
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in section 2 of the Energy Policy Act of 2005 (42 
U.S.C. 15801). 
(5) RARE EARTH ELEMENT.—The term ‘‘rare 
earth element’’ means a natural element associated 
with— 
(A) the metallic element scandium, with 
atomic number 21, or yttrium, with atomic 
number 39; 
(B) 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; or 
(C) any of the series of 15 metallic ele-
ments between actinium, with atomic number 
89, and lawrencium, with atomic number 103, 
on the periodic table. 
SEC. 4. RARE EARTH REFINERY COOPERATIVE. 
(a) ESTABLISHMENT.—Not later than 60 days after 
the date of enactment of this Act, the Secretary of Com-
merce shall coordinate with any relevant Federal agencies 
to procure the issuance of a Federal charter for a privately 
funded, privately operated, and privately managed cooper-
ative with respect to rare earth elements, which— 
(1) shall— 
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dustry or other end-users of those prod-
ucts; or 
(ii) any of the resource suppliers of 
the Cooperative; 
(B) accept investment or funding from for-
eign governments, State agencies, or State- 
sponsored entities, including universities or re-
search institutions, subject to the approval of 
the Committee on Foreign Investment in the 
United States established under section 721(k) 
of the Defense Production Act of 1950 (50 
U.S.C. 4565(k)); 
(C) distribute finished goods and profits in 
proportion to investment; 
(D) on behalf of the owners of the Cooper-
ative, sell surplus finished goods on the open 
market; and 
(E) accept and process rare earth re-
sources, or other critical minerals, with elevated 
levels of thorium or uranium that are— 
(i) mined in the United States; 
(ii) from any domestic waste product, 
co-product, or byproduct of some other 
mined commodity; or 
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(iii) produced by any foreign supplier 
that has invested in the Cooperative. 
(b) SECURING RARE EARTHS.—The following mate-
rials shall be considered to be an unrefined and unproc-
essed ore, as defined in section 40.4 of title 10, Code of 
Federal Regulations, or any successor regulation: 
(1) Any material accepted by the Cooperative 
under subsection (a)(2)(E). 
(2) A thorium bearing rare earth ore that is— 
(A) a byproduct or coproduct of another 
mined commodity; and 
(B) sold and shipped under a supply agree-
ment with the Cooperative. 
(c) PRODUCERS OF RARE EARTHS.—A producer that 
acts under a supply contract with the Cooperative may, 
under the rules for unrefined and unprocessed ore under 
part 40 of title 10, Code of Federal Regulations, process, 
manage, and transport any material with respect to which 
the contract applies. 
(d) LIABILITY.—Notwithstanding any other provision 
of law or regulation— 
(1) the Federal Government shall not be liable 
for any activities of the Cooperative under this sec-
tion; and 
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(2) the Cooperative shall establish and secure 
sufficient financial surety bonding and other insur-
ance, consistent with private industry standards. 
SEC. 5. THORIUM STORAGE, ENERGY, AND INDUSTRIAL 
PRODUCTS CORPORATION. 
(a) ESTABLISHMENT.—Not later than 60 days after 
the date of enactment of this Act, the Secretary of Energy 
shall coordinate with relevant Federal agencies to procure 
the issuance of a Federal charter for a privately funded 
and privately operated corporation, which— 
(1) shall be known as the Thorium Storage, 
Energy, and Industrial Products Corporation; and 
(2) in accordance with all applicable laws, regu-
lations, and rules, shall— 
(A) on a preprocessing basis, assume liabil-
ity for and ownership of all thorium and 
mineralogically associated or related actinides 
and decay products contained within the rare 
earth element ores utilized by the Cooperative; 
(B) take physical possession and safely 
store all thorium-containing actinide byprod-
ucts, with the costs of the storage to be paid by 
the Cooperative; and 
(C) manage the sale of all valuable actinide 
and decay products, utilizing the proceeds for 
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the development of commercial uses and market 
for thorium, including energy. 
(b) THORIUM STORAGE.—The Corporation shall es-
tablish not less than 1 facility, each of which shall— 
(1) be known as a ‘‘Thorium Bank’’; 
(2) provide safe and long-term storage for all 
thorium produced as a byproduct in the production 
of rare earth elements for the Cooperative; and 
(3) hold and maintain financial surety bonding 
and insurance consistent with private industry 
standards. 
(c) INDUSTRIAL PRODUCTS.—The Corporation may 
establish not less than 1 division, each of which shall be 
known as an ‘‘Industrial Products Corporation’’, for the 
certification, licensing, insuring, and commercial develop-
ment of all nonenergy uses for thorium (including thorium 
isotopes and thorium daughter elements), including alloys, 
catalysts, medical isotopes, and other products. 
(d) ENERGY APPLICATIONS.—The Corporation may 
establish not less than 1 energy products, energy systems, 
or energy applications division for the certification, licens-
ing, insuring, commercial development, deployment, lease, 
and licensing of such products and services, including— 
(1) developing intellectual property; 
(2) acquiring technology; 
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(3) developing, manufacturing, operating, or 
leasing commercial thorium energy systems; and 
(4) developing, manufacturing, operating, or 
leasing related thermal processing systems. 
(e) INTERNATIONAL PARTNERSHIPS.— 
(1) IN GENERAL.—The Corporation may sell or 
distribute equity and establish partnerships with the 
United States. 
(2) FOREIGN INVESTORS.—Any foreign investor 
in the Corporation shall make a voluntary filing with 
the Committee on Foreign Investment in the United 
States established under section 721(k) of the De-
fense Production Act of 1950 (50 U.S.C. 4565(k)). 
(f) LIABILITY.—Notwithstanding any other provision 
of law or regulation— 
(1) the Federal Government shall not be liable 
for any activities of the Corporation under this sec-
tion; and 
(2) the Corporation shall establish and secure 
sufficient financial surety bonding and other insur-
ance, consistent with private industry standards, for 
the management and storage of radioactive materials 
and other waste and hazards. 
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SEC. 6. FEDERAL SUPPORT. 
(a) MEETINGS WITH RELEVANT PARTIES.—The Sec-
retary of Commerce and the Secretary of Defense shall 
provide initial assistance to the Cooperative, and the Sec-
retary of Energy and the Secretary of Defense shall pro-
vide initial assistance to the Corporation, by establishing 
peer-to-peer meetings with allies of the United States in 
the North Atlantic Treaty Organization, other allied for-
eign governments, Federal and State agencies, science and 
technology research institutions, and commercial users 
and consumers of rare earth elements and energy. 
(b) ELIGIBILITY FOR CERTAIN SUPPORT.— 
(1) GRANT AND LOAN PROGRAMS.—The Coop-
erative and the Corporation may apply for funding 
assistance provided by any relevant grant or loan 
program carried out by the Department of Energy, 
the Department of Defense, or the Department of 
Commerce, including, with respect to the Corpora-
tion— 
(A) the Small Modular Reactor Licensing 
Technical Support Program of the Department 
of Energy; and 
(B) any program of the Office of Advanced 
Reactor Technologies of the Department of En-
ergy. 
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(2) TECHNICAL AND DATA SUPPORT TO THE 
CORPORATION.—The National Laboratories shall 
provide technical and data support to the Corpora-
tion on parity with transfers made before the date 
of enactment of this Act by the National Labora-
tories to the Chinese Academy of Sciences and any 
other foreign agent or entity. 
(c) DEPARTMENT OF ENERGY POLICY.—The Sec-
retary of Energy shall adopt and execute a policy that pro-
motes the United States, acting in conjunction with the 
Corporation, as a global leader in thorium energy systems. 
SEC. 7. APPOINTMENT OF INITIAL OFFICERS. 
(a) IN GENERAL.—The Secretary of Commerce and 
the Secretary of Energy shall jointly appoint 2 citizens 
of the United States— 
(1) neither of whom may be an employee of, 
consultant to, advisor to, or affiliate of the United 
States Government; and 
(2) who shall act as the initial officers and 
Board of Directors of both the Cooperative and the 
Corporation. 
(b) QUALIFICATIONS.—The 2 individuals appointed 
under subsection (a) shall each have expertise in, and a 
history of promoting— 
(1) the development of a platform— 
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(A) that is based in the United States; 
(B) that is funded using multinational 
sources; and 
(C) the purpose of which is the develop-
ment of a fully integrated rare earth value 
chain; and 
(2) the commercial development of uses and 
markets for thorium, including energy. 
(c) RESPONSIBILITIES.—The individuals appointed 
under subsection (a) shall work with the Secretary of 
Commerce to develop corporate bylaws and terms of gov-
ernance for the Cooperative, and with the Secretary of En-
ergy to develop those bylaws and terms for the Corpora-
tion, which shall be set forth in a Memorandum of Under-
standing for each such entity that outlines specific obliga-
tions, commitments, limitations on sources of inter-
national investment, and goals that are specific to the na-
tional interests of the United States. 
(d) DURATION
OF SERVICE.—The individuals ap-
pointed under subsection (a) shall continue to serve in 
those roles for as long as provided under the terms of gov-
ernance developed under subsection (c). 
SEC. 8. OTHER PROVISIONS. 
(a) ANNUAL AUDITS.—The Cooperative and the Cor-
poration shall, on the date that is 180 days after the date 
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on which each such entity is established, and annually 
thereafter, submit to the Secretary of Commerce, the Sec-
retary of Energy, and the Secretary of Defense an audited 
report, which shall— 
(1) be conducted by an outside auditing firm; 
and 
(2) for the period covered by the report, evalu-
ate the progress and success of the Cooperative and 
the Corporation in meeting all targets and objectives 
established by the Secretary, in consultation with the 
heads of other relevant Federal agencies. 
(b) AUTHORITY OF THE SECRETARY OF DEFENSE.— 
The Secretary of Defense may monitor the output of the 
Cooperative and the Corporation with respect to the na-
tional security objectives set forth in the Memorandum of 
Understanding required for each entity under section 7(c). 
Æ 
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