[House Report 112-248]
[From the U.S. Government Publishing Office]
112th Congress Report
HOUSE OF REPRESENTATIVES
1st Session 112-248
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NATIONAL STRATEGIC AND CRITICAL MINERALS POLICY ACT OF 2011
_______
October 14, 2011.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Hastings of Washington, from the Committee on Natural Resources,
submitted the following
R E P O R T
[To accompany H.R. 2011]
[Including cost estimate of the Congressional Budget Office]
The Committee on Natural Resources, to whom was referred
the bill (H.R. 2011) to require the Secretary of the Interior
to conduct an assessment of the capability of the Nation to
meet our current and future demands for the minerals critical
to United States manufacturing competitiveness and economic and
national security in a time of expanding resource nationalism,
and for other purposes, having considered the same, report
favorably thereon with amendments and recommend that the bill
as amended do pass.
The amendments are as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``National Strategic and Critical
Minerals Policy Act of 2011''.
SEC. 2. FINDINGS.
Congress finds that--
(1) the availability of minerals and metals is essential for
economic growth, national security, technological innovation,
and the manufacturing and agricultural supply chain;
(2) the exploration, production, processing, use, and
recycling of minerals contribute significantly to the economic
well-being, security, and general welfare of the Nation;
(3) the industrialization of China and India has driven
demand for nonfuel mineral commodities, sparking a period of
resource nationalism exemplified by China's reduction and
stoppage of exports of rare-earth mineral elements necessary
for telecommunications, military technologies, medical devices,
agricultural production, and renewable energy technologies;
(4) the United States has vast mineral resources but is
becoming increasingly dependent upon foreign sources;
(5) 25 years ago the United States was dependent on foreign
sources for 30 nonfuel mineral materials, 6 of which were
entirely imported to meet the Nation's requirements and another
16 of which were imported to meet more than 60 percent of the
Nation's needs;
(6) by 2010, United States import dependence for nonfuel
mineral materials more than doubled from 30 to 67 commodities,
18 commodities were imported entirely to meet the Nation's
requirements, and another 25 commodities required imports of
more than 50 percent;
(7) the United States lacks a coherent national policy to
assure the availability of minerals essential to manufacturing,
national economic well-being and security, agricultural
production, and global economic competitiveness; and
(8) the Nation's ability to compete and innovate requires
proper planning and preparation today to meet tomorrow's
mineral needs.
SEC. 3. CONGRESSIONAL DECLARATION OF POLICY.
(a) In General.--It is the continuing policy of the United States to
promote an adequate and stable supply of minerals to maintain our
Nation's economic well-being, security, and manufacturing, industrial,
energy, agricultural, and technological capabilities.
(b) Policy Goals.--Implementation of the policy set forth in
subsection (a) requires that the Federal Government coordinate the
Federal departments and agencies responsible for ensuring that supply,
to--
(1) facilitate the availability, development, and production
of domestic mineral resources to meet national needs, including
the demands of the Nation's manufacturing and agricultural
industries;
(2) promote and encourage the development of economically and
environmentally sound, safe, and stable domestic mining,
minerals, metals, processing, and minerals recycling
industries;
(3) establish an assessment capability for identifying the
mineral demands, supply, and needs of our Nation; and
(4) minimize duplication, needless paperwork, and delays in
the administration of Federal and State laws and regulations,
and issuance of permits and authorizations necessary to
explore, develop, and produce minerals and construct and
operate mineral-related facilities.
SEC. 4. SECRETARY OF THE INTERIOR REPORT ON ACCESS AND AUTHORIZATIONS
FOR MINERAL DEVELOPMENT.
(a) In General.--Not later than 180 days after the date of enactment
of this Act, the Secretary of the Interior, through the Bureau of Land
Management and the United States Geological Survey, and in consultation
with the Secretary of Agriculture (through the Forest Service Mineral
and Geology Management Division), the Secretary of Defense, the
Secretary of Commerce, and the heads of other appropriate Federal
agencies, shall prepare, submit to Congress, and make available to the
public a report that includes--
(1) an inventory of the nonfossil-fuel mineral potential of
lands under the jurisdiction of the Bureau of Land Management
and the Forest Service and an identification of all such lands
that have been withdrawn, segregated, or otherwise restricted
from mineral exploration and development;
(2) an assessment of--
(A) the mineral requirements to meet current and
emerging national security, economic, industrial
manufacturing, technological, agricultural, and social
needs;
(B) the Nation's reliance on foreign sources to meet
those needs; and
(C) the implications of mineral supply shortages or
disruptions;
(3) a detailed description of the time required to process
mineral applications, operating plans, leases, licenses,
permits, and other use authorizations for mineral-related
activities on lands under the jurisdiction of the Bureau of
Land Management and the Forest Service, and identification of
measures that would streamline the processing of such
applications, such as elimination of overlapping requirements
or set deadlines;
(4) an itemized list of all use authorizations referred to in
paragraph (3) for which applications are pending before the
Bureau of Land Management and the Forest Service, and the
length of time each of those applications has been pending;
(5) an assessment of the impact of litigation on processing
or issuing mineral exploration and mine permits, identification
of the statutes the litigation was brought under, and the cost
to the agency or the Federal Government, including for payments
of attorney fees;
(6) an update of the 2009 Economic Impact of the Department
of the Interior's Programs and Activities report to include
locatable minerals;
(7) an assessment of the Federal workforce with educational
degrees and expertise in economic geology, geochemistry,
mining, industrial minerals, metallurgy, metallurgical
engineering, and mining engineering, including--
(A) retirement eligibility and agency plans for
retention, recruitment, and succession planning;
(B) comparison of the existing Federal salaries and
recruitment and retention bonuses with the salaries,
recruitment incentives, and retention packages normally
offered in the mineral industry; and
(C) examination of the differences between Federal
and private financial packages for early-, mid-, and
late-career workers; and
(8) an inventory of rare earth element potential on the
Federal lands, and impediments or restrictions on the
exploration or development of those rare earth elements, and
recommendations to lift the impediments or restrictions while
maintaining environmental safeguards.
(b) Progress Reports.--Not later than one year after the date of
enactment of this Act, and each year thereafter for the following two
years, the Secretary of the Interior shall submit to Congress and make
available to the public a report that describes the progress made in
reaching the policy goals described in section 3(b), including--
(1) efforts to increase access to domestic supplies of
minerals, and facilitation of their production; and
(2) implementation of recommendations contained in--
(A) the National Research Council reports--
(i) Minerals, Critical Minerals, and the U.S.
Economy;
(ii) Managing Minerals for a Twenty-First
Century Military; and
(iii) the current workforce study authorized
in sections 385 and 1830 of the Energy Policy
Act of 2005 (119 Stat. 744, 1137);
(B) the Department of Energy Critical Minerals
Strategy I and II; and
(C) the Department of Defense assessment and plan for
critical rare earth elements in defense applications
required under section 843 of the National Defense
Appropriations Act for Fiscal Year 2011.
SEC. 5. NATIONAL MINERAL ASSESSMENT.
For the first National Mineral Assessment conducted after the date of
enactment of this Act, the United States Geological Survey shall
include mineral assessments for those mineral commodities important to
the Nation's energy infrastructure, manufacturing and agricultural
industries, and to the national defense. Priority should be given to
minerals that are critical based on the impact of a potential supply
restriction and the likelihood of a supply restriction.
SEC. 6. GLOBAL MINERAL ASSESSMENT.
The United States Geological Survey is directed to expand the current
Global Mineral Assessment to include mineral assessments for rare earth
elements and other minerals that are critical based on the impact of a
potential supply restriction and the likelihood of a supply
restriction. Assessments conducted under this section shall include an
analysis, developed with participation by the National Minerals
Information Center and in consultation with appropriate agencies, of
the rare earth elements or other critical minerals supply chain and
associated processes and products, including mining, processing,
recycling, separation, metal production, alloy production, and
manufacturing of products sold to end users. In conducting the
assessment, the United States Geological Survey should coordinate with
the heads of foreign geologic surveys when possible.
SEC. 7. DEFINITIONS.
In this Act--
(1) Inventory.--The term ``inventory'' means an accounting of
known mineral occurrences and mineral deposits, including
documentation of identified resources.
(2) Mineral assessment.--The term ``mineral assessment''
means an assessment of undiscovered mineral resources that
includes a qualitative assessment and a quantitative assessment
of such resources.
(3) Qualitative assessment.--The term ``qualitative
assessment'' means a geologic-based delineation (mapping) of
areas permissive for the occurrence of undiscovered mineral
resources, based on all available geotechnical data including
geology, geophysics, geochemistry, remote sensing, and mineral
localities data.
(4) Quantitative assessment.--The term ``quantitative
assessment'' means a probabilistic estimate of the quantity and
quality by tonnage and grade of undiscovered mineral resources
in areas delineated as permissive for occurrence in a
qualitative assessment.
SEC. 8. APPLICABILITY OF OTHER STATUTORY MINING POLICIES.
Nothing in this Act shall be construed as affecting any provision of
or requirement under the Mining and Minerals Policy Act of 1970 (30
U.S.C. 21a).
Amend the title so as to read:
A bill to require the Secretary of the Interior to
conduct an assessment of the capability of the Nation to meet
our current and future demands for the minerals critical to
United States manufacturing and agricultural competitiveness
and economic and national security in a time of expanding
resource nationalism, and for other purposes.
PURPOSE OF THE BILL
The purpose of H.R. 2011, as ordered reported, is to
require the Secretary of the Interior to conduct an assessment
of the capability of the Nation to meet our current and future
demands for the minerals critical to United States
manufacturing and agricultural competitiveness and economic and
national security in a time of expanding resource nationalism.
BACKGROUND AND NEED FOR LEGISLATION
Strategic and critical minerals are essential to our
economy, livelihood and national security. Renewable energy,
national defense equipment, agriculture and everyday items such
as televisions, telephones, computers and light bulbs are all
dependent on minerals. Currently the United States relies on
foreign sources for a majority of our non-fuel mineral
materials and, according to the United States Geological
Survey, is 100 percent dependent on foreign sources for rare
earth minerals.
Mining of mineral resources creates tangible value,
introducing new money into the Nation's economic system.
Additional tangible value is added to the raw mined product
through manufacturing, construction, and other uses. Harvesting
domestic mineral resources contributes to local economies, and
to the Nation's overall economic security.
According to the National Research Council, one of the
primary advantages the United States possesses over its
strongest industrial competitors is its domestic resource base.
The United States is among the world's largest producer of many
important metals and minerals, particularly copper, gold, lead,
molybdenum, silver, and zinc; and it still has substantial
domestic reserves of these metals. Yet U.S. mineral exploration
stagnated or declined during most of the 1990s and 2000s while
global mineral exploration trends were strongly positive.
In the early 1990s, the U.S. received 20 percent of the
worldwide exploration budget; today it hovers around eight
percent. Without increased domestic exploration, significant
declines in U.S. mineral production are unavoidable as current
reserves are exhausted.
The lack of exploration expenditures and other factors has
led to an increased import dependency for non-fuel mineral
materials. For example, 25 years ago the United States was
dependent on foreign sources for 30 non-fuel mineral materials,
six of which were entirely imported to meet the Nation's
requirements and another 16 of which were imported to meet more
than 60 percent of the Nation's needs. By 2010, U.S. import
dependence for non-fuel mineral materials more than doubled
from 30 to 67 commodities: 18 commodities were imported
entirely to meet the Nation's requirements, and another 25
commodities required imports of more than 50 percent.
Factors contributing to the decline in domestic mineral
exploration activities and other downward trends in the
domestic mining industry during the late 1990s are directly
related to the regulatory and administrative changes made
during that time, including revisions to the 3809 Regulations
and the Millsite and Ancillary Use Opinions.
Working through the permitting process also became more
cumbersome, as federal and state agencies with land management
and regulatory responsibilities over mineral exploration and
development projects worked at cross purposes to one another.
Legal challenges to Records of Decision by anti-mining groups
also contributed to the delays and uncertainties in obtaining
the necessary permits for exploration and development. Because
of these impediments, the United States is ranked 25th out of
25 major mining countries in permitting, averaging 7 to 10
years for final approval.
Currently the United States lacks a coherent national
policy to assure domestic availability of minerals essential
for national economic well-being, national security, and global
economic competitiveness. H.R. 2011 will help remedy this by
providing essential facts to help us strengthen and improve our
national mineral policy.
COMMITTEE ACTION
H.R. 2011 was introduced on May 26, 2011, by Congressman
Doug Lamborn (R-CO). The bill was referred to the Committee on
Natural Resources, and within the Committee to the Subcommittee
on Energy and Mineral Resources. On June 3, 2011, the
Subcommittee on Energy and Mineral Resources held a hearing on
the bill. On July 20, 2011, the Natural Resources Committee met
to consider the bill. The Subcommittee on Energy and Mineral
Resources was discharged by unanimous consent. Congressman
Steve Southerland (R-FL) and Congresswoman Kristi Noem (R-SD)
offered an amendment; the amendment was adopted by unanimous
consent. Congressman Doug Lamborn (R-CO) offered an amendment;
the amendment was adopted by unanimous consent. The bill, as
amended, was then ordered favorably reported to the House of
Representatives by unanimous consent.
SECTION-BY-SECTION ANALYSIS
Section 1. Short title
This Act may be cited as the ``National Strategic and
Critical Minerals Policy Act of 2011.''
Section 2. Findings
The bill includes the following findings: The
industrialization of China and India has driven demand for
nonfuel mineral commodities, sparking a period of resource
nationalism exemplified by China's reduction and stoppage of
exports of rare-earth mineral elements necessary for
telecommunications, military technologies, medical devices,
agricultural production, and renewable energy technologies. The
availability of minerals and metals is essential for economic
growth, national security, technological innovation,
agriculture, and the manufacturing supply chain. Exploration,
production, processing, use, and recycling of minerals
contribute significantly to the economic well-being, security,
and general welfare of the Nation.
Section 3. Congressional declaration of policy
It is the continuing policy of the United States to promote
an adequate and stable supply of minerals to maintain our
Nation's economic well-being, security, and manufacturing,
industrial, energy, agricultural, and technological
capabilities.
Section 4. Secretary of the Interior report on access and
authorizations for mineral development
Subsection (a) directs the Secretary of the Interior to
coordinate a government-wide inventory of the Nation's non-fuel
mineral resources and to identify any restrictions that may
inhibit development of the resources required to meet current
and future strategic and critical mineral needs.
These requirements are similar to Section 604 of the Energy
Policy and Conservation Act of 2000 (EPCA), as amended by
Section 364 of the Energy Policy Act of 2005, which required an
inventory of all onshore federal lands to identify U.S.
Geological Survey (USGS) estimates of the oil and gas resources
underlying federal lands and the extent and nature of any
restrictions or impediments to the development of the
resources.
The Department of the Interior owns the analytical tools
developed for the EPCA studies and can use those tools to
implement these provisions.
Subsection (a) further requires the Secretary of the
Interior to evaluate factors impacting domestic mineral
development, including workforce, access, permitting and
duplicative regulatory requirements, as well as identify areas
for improvement.
The section directs the Secretary of the Interior to
assemble the report within six months to include a specific
inventory of the rare earth element potential on federal lands,
impediments or restrictions on the exploration or development
of rare earth elements, and recommendations to lift the
impediments or restrictions while maintaining environmental
safeguards.
Finally, the section requires an annual progress report,
beginning one year after the date of enactment of the Act, for
the following two years, outlining the progress made in
reaching the policy goals described in the bill and National
Research Council, Department of Energy and Department of
Defense reports on aspects of domestic mineral policy.
Section 5. National Mineral Assessment
USGS is currently developing models to be used in its
upcoming National Mineral Assessment scheduled to begin in
Fiscal Year 2013. This section provides guidance to USGS on
what mineral commodities to focus on for the upcoming planned
assessment.
Section 6. Global Mineral Assessment
USGS is currently working on a Global Mineral Assessment.
This section directs USGS to expand its Global Mineral
Assessment to include ``rare earth elements and other minerals
that are critical based on the impact of a potential supply
restriction and the likelihood of a supply restriction.''
Section 7. Definitions
This section defines the following terms: ``inventory,''
``mineral assessment,'' and the components of a ``mineral
assessment''--``qualitative assessment'' and ``quantitative
assessment.'' These definitions were included to clarify the
requirements of Sections 4, 5 and 6.
Section 8. Applicability of other statutory mining policies
This section declares that this Act will not affect any
provision of the Mining and Minerals Policy Act of 1970 (30
U.S.C. 21a).
COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS
Regarding clause 2(b)(1) of rule X and clause 3(c)(1) of
rule XIII of the Rules of the House of Representatives, the
Committee on Natural Resources' oversight findings and
recommendations are reflected in the body of this report.
COMPLIANCE WITH HOUSE RULE XIII
1. Cost of Legislation. Clause 3(d)(1) of rule XIII of the
Rules of the House of Representatives requires an estimate and
a comparison by the Committee of the costs which would be
incurred in carrying out this bill. However, clause 3(d)(2)(B)
of that rule provides that this requirement does not apply when
the Committee has included in its report a timely submitted
cost estimate of the bill prepared by the Director of the
Congressional Budget Office under section 402 of the
Congressional Budget Act of 1974. Under clause 3(c)(3) of rule
XIII of the Rules of the House of Representatives and section
403 of the Congressional Budget Act of 1974, the Committee has
received the following cost estimate for this bill from the
Director of the Congressional Budget Office:
H.R. 2011--National Strategic and Critical Minerals Policy Act of 2011
Summary: H.R. 2011 would require the Secretary of the
Interior to assess the capability of the United States to meet
the demand for certain minerals used for manufacturing,
agricultural, and national security purposes. The bill also
would require the Secretary to complete a comprehensive report
related to domestic production of certain minerals.
Based on information provided by the United States
Geological Survey (USGS) and the Bureau of Land Management
(BLM), CBO estimates that implementing the legislation would
cost $18 million over the 2012-2016 period, assuming
appropriation of the necessary amounts. Enacting the bill would
not affect direct spending or revenues; therefore, pay-as-you-
go procedures do not apply.
H.R. 2011 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA)
and would not affect the budgets of state, local, or tribal
governments.
Estimated cost to the Federal Government: The estimated
budgetary impact of H.R. 2011 is shown in the following table.
The costs of this legislation fall within budget function 300
(natural resources and environment).
----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
-------------------------------------------------------
2012 2013 2014 2015 2016 2012-2016
----------------------------------------------------------------------------------------------------------------
CHANGES IN SPENDING SUBJECT TO APPROPRIATION
Mineral Assessments:
Estimated Authorization Level....................... 3 3 3 3 3 15
Estimated Outlays................................... 3 3 3 3 3 15
Mineral Report:
Estimated Authorization Level....................... 1 1 1 0 0 3
Estimated Outlays................................... 1 1 1 0 0 3
Total Proposed Changes:
Estimated Authorization Level................... 4 4 4 3 3 18
Estimated Outlays............................... 4 4 4 3 3 18
----------------------------------------------------------------------------------------------------------------
Basis of estimate: For this estimate, CBO assumes that the
legislation will be enacted near the end of 2011 and that the
necessary amounts will be appropriated for each fiscal year.
Estimated outlays are based on historical spending patterns for
similar USGS activities.
H.R. 2011 would require USGS to expand its ongoing global
mineral assessment and its upcoming national mineral assessment
to include certain minerals used for manufacturing,
agricultural, and national security purposes. USGS began
working on the global assessment in 2001, it will include
assessments of three mineral commodities, and will be completed
in 2012 under current law. The bill would require the agency to
complete a global assessment of at least six additional
commodities. Based on information from the agency regarding the
cost and time required to complete the ongoing global
assessment, CBO estimates that expanding that assessment would
cost about $3 million a year over the next 10 years and $15
million over the 2012-2016 period. Those amounts would be used
to pay for additional staff, contract costs, and international
travel.
The bill also would require the Department of the Interior
to gather data related to mineral production from multiple
federal agencies and to complete a report that would be updated
annually through 2014. Based on information regarding the costs
of similar activities and assuming appropriation of the
necessary amounts, CBO estimates that implementing this
provision would cost about $1 million a year over the 2012-2014
period. Those amounts would be used to develop data tracking
systems and to hire additional staff to gather, input, analyze,
and update the data.
Pay-As-You-Go considerations: None.
Intergovernmental and private-sector impact: H.R. 2011
contains no intergovernmental or private-sector mandates as
defined in UMRA and would not affect the budgets of state,
local, or tribal governments.
Estimate prepared by: Federal costs: Jeff LaFave; Impact on
state, local, and tribal governments: Melissa Merrell; Impact
on the private sector: Amy Petz.
Estimate approved by: Peter H. Fontaine, Assistant Director
for Budget Analysis.
2. Section 308(a) of Congressional Budget Act. As required
by clause 3(c)(2) of rule XIII of the Rules of the House of
Representatives and section 308(a) of the Congressional Budget
Act of 1974, this bill does not contain any new credit
authority, or an increase or decrease in revenues or tax
expenditures. Based on information provided by the United
States Geological Survey and the Bureau of Land Management, CBO
estimates that implementing the legislation would cost $18
million over the 2012-2016 period, assuming appropriation of
the necessary amounts. Enacting the bill would not affect
direct spending or revenues; therefore, pay-as-you-go
procedures do not apply.
3. General Performance Goals and Objectives. This bill does
not authorize funding and therefore, clause 3(c)(4) of rule
XIII of the Rules of the House of Representatives does not
apply.
EARMARK STATEMENT
This bill does not contain any Congressional earmarks,
limited tax benefits, or limited tariff benefits as defined
under clause 9(e), 9(f), and 9(g) of rule XXI of the Rules of
the House of Representatives.
COMPLIANCE WITH PUBLIC LAW 104-4
This bill contains no unfunded mandates.
PREEMPTION OF STATE, LOCAL OR TRIBAL LAW
This bill is not intended to preempt any State, local or
tribal law.
CHANGES IN EXISTING LAW
If enacted, this bill would make no changes in existing
law.