[House Report 111-644]
[From the U.S. Government Publishing Office]
111th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 111-644
======================================================================
RARE EARTHS AND CRITICAL MATERIALS REVITALIZATION ACT OF 2010
_______
September 28, 2010.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
_______
Mr. Gordon of Tennessee, from the Committee on Science and Technology,
submitted the following
R E P O R T
together with
ADDITIONAL VIEWS
[To accompany H.R. 6160]
[Including cost estimate of the Congressional Budget Office]
The Committee on Science and Technology, to whom was
referred the bill (H.R. 6160) to develop a rare earth materials
program, to amend the National Materials and Minerals Policy,
Research and Development Act of 1980, and for other purposes,
having considered the same, report favorably thereon with an
amendment and recommend that the bill as amended do pass.
CONTENTS
Page
I. Bill............................................................2
II. Purpose.........................................................5
III. Background and Need for the Legislation.........................5
IV. Hearing Summary.................................................7
V. Committee Actions..............................................10
VI. Summary of Major Provisions of the Bill........................11
VII. Section-by-Section Analysis....................................13
VIII. Committee Views................................................15
IX. Cost Estimate..................................................16
X. Congressional Budget Office Cost Estimate......................16
XI. Compliance With Public Law 104-4...............................16
XII. Committee Oversight Findings and Recommendations...............16
XIII. Statement on General Performance Goals and Objectives..........17
XIV. Constitutional Authority Statement.............................17
XV. Federal Advisory Committee Statement...........................17
XVI. Congressional Accountability Act...............................17
XVII. Earmark Identification.........................................17
XVIII.Statement on Preemption of State, Local, or Tribal Law.........17
XIX. Changes in Existing Law Made by the Bill, As Reported..........17
XX. Committee Recommendations......................................26
XXI. Additional Views...............................................27
XXII. Proceedings of the Full Committee Markup.......................30
I. Bill
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Rare Earths and
Critical Materials Revitalization Act of 2010''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
TITLE I--RARE EARTH MATERIALS
Sec. 101. Rare earth materials program.
Sec. 102. Rare earth materials loan guarantee program.
TITLE II--NATIONAL MATERIALS AND MINERALS POLICY, RESEARCH, AND
DEVELOPMENT
Sec. 201. Amendments to National Materials and Minerals Policy,
Research and Development Act of 1980.
Sec. 202. Repeal.
SEC. 2. DEFINITIONS.
In this Act:
(1) Appropriate congressional committees.--The term
``appropriate Congressional committees'' means the Committee on
Science and Technology of the House of Representatives and the
Committee on Commerce, Science, and Transportation and the
Committee on Energy and Natural Resources of the Senate.
(2) Department.--The term ``Department'' means the Department
of Energy.
(3) Rare earth materials.--The term ``rare earth materials''
means any of the following chemical elements in any of their
physical forms or chemical combinations:
(A) Scandium.
(B) Yttrium.
(C) Lanthanum.
(D) Cerium.
(E) Praseodymium.
(F) Neodymium.
(G) Promethium.
(H) Samarium.
(I) Europium.
(J) Gadolinium.
(K) Terbium.
(L) Dysprosium.
(M) Holmium.
(N) Erbium.
(O) Thulium.
(P) Ytterbium.
(Q) Lutetium.
(4) Secretary.--The term ``Secretary'' means the Secretary of
Energy.
TITLE I--RARE EARTH MATERIALS
SEC. 101. RARE EARTH MATERIALS PROGRAM.
(a) Establishment of Program.--
(1) In general.--There is established in the Department a
program of research, development, demonstration, and commercial
application to assure the long-term, secure, and sustainable
supply of rare earth materials sufficient to satisfy the
national security, economic well-being, and industrial
production needs of the United States.
(2) Program activities.--The program shall support activities
to--
(A) better characterize and quantify virgin stocks of
rare earth materials using theoretical geochemical
research;
(B) explore, discover, and recover rare earth
materials using advanced science and technology;
(C) improve methods for the extraction, processing,
use, recovery, and recycling of rare earth materials;
(D) improve the understanding of the performance,
processing, and adaptability in engineering designs of
rare earth materials;
(E) identify and test alternative materials that can
be substituted for rare earth materials in particular
applications;
(F) engineer and test applications that--
(i) use recycled rare earth materials;
(ii) use alternative materials; or
(iii) seek to minimize rare earth materials
content; and
(G) collect, catalogue, archive, and disseminate
information on rare earth materials, including
scientific and technical data generated by the research
and development activities supported under this
section.
(3) Improved processes and technologies.--To the maximum
extent practicable, the Secretary shall support new or
significantly improved processes and technologies as compared
to those currently in use in the rare earth materials industry.
(4) Expanding participation.--The Secretary shall encourage--
(A) multidisciplinary collaborations among program
participants; and
(B) extensive opportunities for students at
institutions of higher education, including
institutions listed under section 371(a) of the Higher
Education Act of 1965 (20 U.S.C. 1067q(a)).
(5) Consistency.--The program shall be consistent with the
policies and programs in the National Materials and Minerals
Policy, Research and Development Act of 1980 (30 U.S.C. 1601 et
seq.).
(6) International collaboration.--In carrying out the
program, the Secretary shall collaborate, to the extent
practicable, with the relevant directorates of the European
Commission to coordinate activities of mutual interest and
avoid duplication of effort.
(b) Plan.--
(1) In general.--Within 180 days after the date of enactment
of this Act and biennially thereafter, the Secretary shall
prepare and submit to the appropriate Congressional committees
a plan to carry out the program established under subsection
(a).
(2) Specific requirements.--The plan shall include a
description of--
(A) the research and development activities to be
carried out by the program during the subsequent 2
years;
(B) the expected contributions of the program to the
creation of innovative methods and technologies for the
efficient and sustainable provision of rare earth
materials to the domestic economy;
(C) the criteria to be used to evaluate applications
for loan guarantees under section 1706 of the Energy
Policy Act of 2005;
(D) any projects receiving loan guarantee support
under such section and the status of such projects;
(E) how the program is promoting the broadest
possible participation by academic, industrial, and
other contributors; and
(F) actions taken or proposed that reflect
recommendations from the assessment conducted under
subsection (c) or the Secretary's rationale for not
taking action pursuant to any recommendation from such
assessment for plans submitted following the completion
of the assessment under such subsection.
(3) Consultation.--In preparing each plan under paragraph
(1), the Secretary shall consult with appropriate
representatives of industry, institutions of higher education,
Department of Energy national laboratories, professional and
technical societies, and other entities, as determined by the
Secretary.
(c) Assessment.--
(1) In general.--After the program has been in operation for
4 years, the Secretary shall offer to enter into a contract
with the National Academy of Sciences under which the National
Academy shall conduct an assessment of the program under
subsection (a).
(2) Inclusions.--The assessment shall include the
recommendation of the National Academy of Sciences that the
program should be--
(A) continued, accompanied by a description of any
improvements needed in the program; or
(B) terminated, accompanied by a description of the
lessons learned from the execution of the program.
(3) Availability.--The assessment shall be made available to
Congress and the public upon completion.
SEC. 102. RARE EARTH MATERIALS LOAN GUARANTEE PROGRAM.
(a) Amendment.--Title XVII of the Energy Policy Act of 2005 (42
U.S.C. 16511 et seq.) is amended by adding at the end the following new
section:
``SEC. 1706. TEMPORARY PROGRAM FOR RARE EARTH MATERIALS REVITALIZATION.
``(a) In General.--As part of the program established in section 101
of the Rare Earths and Critical Materials Revitalization Act of 2010,
the Secretary is authorized to make guarantees under this title for the
commercial application of new or significantly improved 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 national 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;
``(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 minimize delay in
approving loan guarantee applications, consistent with appropriate
protection of taxpayer interests.
``(c) Cooperation.--To the maximum extent practicable, the Secretary
shall cooperate with appropriate private sector participants to achieve
a complete rare earth materials production capability in the United
States within 5 years after the date of enactment of the Rare Earths
and Critical Materials Revitalization Act of 2010.
``(d) Domestic Supply Chain.--In support of the objective in
subsection (c) to achieve a rare earth materials production capability
in the United States that includes the complete value chain described
in paragraphs (1) through (4) of subsection (a), the Secretary may not
award a guarantee for a project unless the project's proponent provides
to the Secretary an assurance that the loan or guarantee shall be used
to support the separation, recovery, preparation, or manufacturing of
rare earth materials in the United States for customers within the
United States unless insufficient domestic demand for such materials
results in excess capacity.
``(e) Sunset.--The authority to enter into guarantees under this
section shall expire on September 30, 2015.''.
(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.''.
TITLE II--NATIONAL MATERIALS AND MINERALS POLICY, RESEARCH, AND
DEVELOPMENT
SEC. 201. AMENDMENTS TO NATIONAL MATERIALS AND MINERALS POLICY,
RESEARCH AND DEVELOPMENT ACT OF 1980.
(a) Program Plan.--Section 5 of the National Materials and Minerals
Policy, Research and Development Act of 1980 (30 U.S.C. 1604) is
amended--
(1) by striking ``date of enactment of this Act'' each place
it appears and inserting ``date of enactment of the Rare Earths
and Critical Materials Revitalization Act of 2010'';
(2) in subsection (b), by striking ``Federal Coordinating
Council for Science, Engineering, and Technology'' and
inserting ``National Science and Technology Council,'';
(3) in subsection (c)--
(A) by striking ``the Federal Emergency'' and all
that follows through ``Agency, and'';
(B) by striking ``appropriate shall'' and inserting
``appropriate, shall'';
(C) by striking paragraph (1);
(D) in paragraph (2), by striking ``in the case'' and
all that follows through ``subsection,''
(E) by redesignating paragraph (2) as paragraph (1);
and
(F) by amending paragraph (3) to read as follows:
``(2) assess the adequacy, accessibility, and stability of
the supply of materials necessary to maintain national
security, economic well-being, and industrial production.'';
(4) by striking subsections (d) and (e); and
(5) by redesignating subsection (f) as subsection (d).
(b) Policy.--Section 3 of such Act (30 U.S.C. 1602) is amended--
(1) by striking ``The Congress declares that it'' and
inserting ``It''; and
(2) by striking ``The Congress further declares that
implementation'' and inserting ``Implementation''.
(c) Implementation.--Section 4 of such Act (30 U.S.C. 1603) is
amended--
(1) by striking ``For the purpose'' and all that follows
through ``declares that the'' and inserting ``The''; and
(2) by striking ``departments and agencies,'' and inserting
``departments and agencies to implement the policies set forth
in section 3''.
SEC. 202. REPEAL.
Title II of Public Law 98-373 (30 U.S.C. 1801 et seq.; 98 Stat.
1248), also known as the National Critical Materials Act of 1984, is
repealed.
II. Purpose
The purpose of H.R. 6160 is to develop a rare earth
materials program, to amend the National Materials and Minerals
Policy, Research and Development Act of 1980, and for other
purposes.
III. Background and Need for the Legislation
Rare earth materials, or rare earths, are critical
components of a broad range of technologies with applications
in important industrial sectors such as defense, manufacturing,
energy, transportation, optics and electronics. Weapons
guidance systems, petroleum refining catalysts, advanced
vehicle batteries, wind turbine motors, jet engines, miniature
disk drives and speakers, televisions and monitors, compact
fluorescent light bulbs, and optical cable are just a few
examples of technologies that cannot currently be made without
rare earths. And, demand for rare earths for these and other
technologies is only expected to increase. However, for the
past decade, the United States and the rest of the world have
been almost entirely dependent on China to supply rare earths.
With control of approximately 97 percent of the global
markets for rare earths, China holds a discrete but powerful
strategic and economic advantage over the rest of the world. On
September 1, 2009, the New York Times published an article
indicating that the Ministry of Industry and Information
Technology of the People's Republic of China had developed a
six-year plan for increasing limitations of exports of rare
earth minerals and materials to the rest of the world. News of
the plan intensified global concerns that it would become more
difficult and expensive to obtain these raw materials that are
vital to a number of industries. China later announced it would
cut its rare earth exports for the second half of 2010 by 72
percent, and there are indications that exports in near-term
will be limited to around half of total non-Chinese demand. At
the same time, China has stated clearly that foreign firms who
relocate their manufacturing capacity to China will have no
trouble procuring rare earth materials. Recent news that China
may have cut off rare earth supplies to Japan in retaliation
for the detention of a Chinese fisherman further highlighted
the potential instability of a global market for what have
quickly come to be recognized as critical raw materials.
The United States was at one time the world's leading
supplier of rare earths. But the mine in Mountain Pass,
California that was the Nation's lone source ceased production
in 2002. Further, facilities allowing the follow-on processing
necessary to convert the materials within the ores to the oxide
or metal forms required to produce magnets, batteries or other
technology system components do not exist within the United
States. Meanwhile, China is moving aggressively to consolidate
these and other capabilities for cutting-edge value-added
separation, refining, and manufacturing of rare earths within
China.
Further evidence of the shifting global control of rare
earths is the diminishing research and development conducted
within the U.S. government and industry on the range of issues
related to rare earths. Because of the role lanthanide elements
played in the first nuclear reactors, the federal government,
particularly the U.S. Department of Energy, developed an
extensive knowledge base around rare earth properties and
production methods. However, as U.S. industrial capacity in
rare earths diminished, this intellectual capital deteriorated.
Now, with the need to restore domestic capacity becoming
apparent, there is no pool of trained personnel available to
expedite the industry's revival.
The purpose of H.R. 6160 is to spur U.S. research,
development and education in rare earths; to help facilitate
investment in domestic production facilities across the entire
rare earths supply chain; to promote international
collaboration in the field; and to catalogue and disseminate
research results and other information on rare earths. Many
experts agree that actions are needed to expand the limited
capabilities left behind from the Nation's former world
leadership in these technologies, and to train the new
scientists and engineers who will restore our ability to
compete in the global market.
The U.S.'s mechanism for establishing a materials policy
and monitoring the materials industry has also significantly
diminished over the last three decades. The Congress passed the
National Materials and Minerals Policy, Research and
Development Act in 1980 to address concerns with bottlenecks in
the production of tungsten and the platinum group metals. That
law required both the Executive Office of the President and the
Cabinet Departments to identify, track, and act to avert
impacts on national security or the economy from a lack of
materials. Four years later, dissatisfied with the progress of
implementation, Congress passed the National Critical Materials
Act, creating a National Critical Materials Council to serve as
the President's primary advisers on materials issues and to
oversee implementation of the 1980 Act. The mechanisms set up
by the 1980 Act had since atrophied--the Committee on Materials
formerly constituted within the Office of Science and
Technology Policy no longer exist, the Bureau of Mines of the
Department of the Interior has been disbanded, and there is no
identifiable ``early warning'' system as called for in the law.
The National Critical Materials Council had little perceptible
input on U.S. materials policy, and was ultimately terminated
early in the Clinton administration.
This legislation, therefore, amends provisions in the 1980
National Materials and Minerals Policy, Research and
Development Act to remove obsolete provisions and require the
Executive Office of the President and the Cabinet agencies to
be attentive to the state of materials supply to meet the
Nation's various needs. Particularly important is the design
and maintenance of an ``early warning'' system to prevent the
U.S. from encountering emergency situations in regards to
supplies of materials like rare earths. Finally, given the
difficulties encountered by the National Critical Materials
Council in overcoming bureaucratic resistance within the White
House and the agencies, and the fact that its dissolution in
1993 has had very little effect on the Nation's national
materials policy, H.R. 6160 repeals the underlying 1984
statute. Doing so returns accountability for materials issues
to the Executive Office of the President and the Cabinet
agencies.
IV. Hearing Summary
At the direction of the Chair of the Committee on Science
and Technology, the Subcommittee on Information and Oversight
began an examination of the conditions in the rare earth
materials industry. The Subcommittee convened a hearing on
March 16, 2010, for the purpose of making information regarding
the rare earth materials situation available to the Members.
The hearing began with a presentation on the findings and
recommendations reached by the Committee on Critical Materials
Impacts on the U.S. Economy, established by the National
Research Council (NRC) in 2008 at the request of the U.S.
Geological Survey and the National Mining Association. Dr.
Stephen Freiman, a member of the NRC committee, presented the
conclusions of its final report entitled Minerals, Critical
Minerals and the U.S. Economy. His testimony focused heavily on
the committee's development of an analytical method to use in
determining those particular minerals posing critical problems
for the U.S. economy. To conduct such evaluations requires
knowledge of supply risk, which can increase if a major
producer cannot meet demand, if political considerations block
commerce, or if economic changes undercut the ability of
suppliers to remain in business. Dr. Freiman also noted that
this consideration can change over time; a particular firm at a
particular time may not have a materials crisis, but a
government considering the continued need for such minerals
over ensuing decades may indeed face problems. The other major
consideration in identifying minerals deserving possible action
is whether other materials can replace the need for the mineral
at issue. The concern may be mitigated if some other material
can provide equivalent performance or value.
The NRC committee's report described the outcome of
applying this methodology to particular cases that were
considered at risk in short to medium time frames. Eleven
minerals were chosen and evaluated, and the report cited not
only rare earths as ``critical'' but indicated that the United
States might face even greater problems from the platinum group
metals or indium.
Dr. Freiman also highlighted the report's focus on
enhancing the collection of information on materials to support
policymaking. The panel recommended consideration of an
organization equivalent to the Energy Information Adminstration
to support the analysis needed to identify critical materials.
While the U.S. Geological Survey's collection of data on supply
of materials is excellent, there is no parallel effort that
gathers the data needed to understand questions of demand. Such
information would be vital if the ``early warning'' function
required by the National Materials and Minerals Policy,
Research and Development Act of 1980 is to succeed.
The Subcommittee invited Dr. Stephen Duclos, the Manager
for Material Sustainability for the General Electric (GE)
Global Research Unit, to testify on how his company copes with
the kinds of problems posed by materials supply and demand.
Materials are fundamental to many GE lines of business. Dr.
Duclos indicated that GE adapted the analytical model described
by Dr. Freiman to meet the company's needs to identify its
materials supply risks. The company must consider price
volatility, dynamics in the markets, geopolitics and other
possible materials solutions in gauging threats to its
operations. Dr. Duclos indicated that research on other
materials that can be substituted into GE products and achieve
the same performance is of constant interest. Finding new
suppliers or revamping the production process to minimize need
for materials in tight supplies are other means GE uses to
minimize disruption. He warned, however, that given the time
needed to qualify suppliers or rework production lines, the
company must know of its problem as early as possible.
Accordingly, Dr. Duclos recommended that the Federal
Government enhance its ability to monitor and analyze change in
materials markets. A lead agency should be designated for these
responsibilities. Work to characterize the properties of
materials would pay off when supply limitations required the
consideration of alternatives. Collaborations between academia,
companies and government laboratories should focus on
developing alternative manufacturing methods that can reduce
the need for or replace a critical material. The government's
ability to sustain support for high-risk research and
development in recycling and substitution would be a valuable
contribution.
Asked to summarize the current state of research on rare
earths in the United States, Dr. Karl Gschneidner of the Ames
National Laboratory of the Department of Energy indicated that
separation and analytical chemistry, process and mechanical
metallurgy, and ceramics were no longer being studied in rare
earth applications. In contrast, China had created a large
research base at the Baotou Research Institute of Rare Earths
to support its production facilities nearby.
To contribute to restoring U.S. capacity in the rare earth
field, Dr. Gschneider recommended establishment of a National
Research Center on Rare Earths and Energy to conduct directed
basic research and collaborative projects funded by industry.
He also suggested a second center focused on applying rare
earths to reducing the energy needs in refrigeration, which
would reduce greenhouse gas emissions and eliminate the need
for fluorocarbon-based refrigerants.
In his testimony, Dr. Gschneidner noted that the Ames
Laboratory had just completed work on an improved production
method for the neodymium-iron-boron magnets of particular
interest to those currently concerned about rare earths issues.
The new technique reduced the cost of production and
environmental problems from production leftovers. Asked to
comment about transferring such technology to industry, he
cited communications through journal articles or at
conferences. Students who worked in the laboratory developing
the technology were particularly valuable conduits for carrying
knowledge into practice.
Mr. Mark Smith, Chairman and CEO of Molycorp Minerals, LLC
provided testimony from the perspective of a company
specializing in rare earths. Owner of the major U.S. mine
providing rare earths until it was closed in 2002, Molycorp
began developing a recovery plan when its analysis of the
market indicated that there might be an insufficient supply for
non-Chinese users between 2012 and 2014. The plan went beyond
simply restarting mining operations to include intermediate
steps such as separation and refining. The company also
determined that extending itself to production of permanent
magnets for wind turbines was important to fully participating
in the market.
Mr. Smith described some of the steps that had been taken
to realize Molycorp's plan. Since environmental concerns were
part of the reason for the mine's shutdown, the entire
production process was reviewed to minimize the use of acids
and water at the separation stage. Unable to find students who
had studied or worked with rare earths, the company created a
training program to develop its own workforce. In efforts to
find funding to cover what was expected to be a $500 million
investment, Molycorp approached financial institutions but
could not obtain a loan with conditions the company believed it
could repay. To reduce the risk in hopes of finding better
terms, Molycorp filed an application for a loan guarantee with
the Department of Energy. The Department rejected the request
because it did not believe the proposal complied with
requirements in the Energy Policy Act of 2005 governing the use
of the loan guarantee program.
Based on his experience, Mr. Smith advocated that Congress
reconsider the eligibility criteria for the loan guarantee
program. Research focused on improving our knowledge of the
rare earths and finding new applications for these materials
would also be useful. While he was encouraged that interagency
efforts in rare earths were being organized, he indicated that
speed was of the essence.
Finally, the hearing studied the actions being undertaken
by China in its quest to develop its economy for insight into
responses by the United States. Mr. Terry Stewart, Managing
Partner for Stewart and Stewart, provided testimony based on
his expertise in international trade policy.
Mr. Stewart indicated that the imposition of export quotas
limiting overseas shipments of rare earths was similar to steps
it had taken in other industrial segments. The goal, he said,
was to provide Chinese manufacturers with low-cost materials,
conferring a price advantage for the final product, or to offer
an incentive for a foreign firm to bring its manufacturing to
China and thereby spur development in provinces such as Inner
Mongolia. The United States and the European Union are
collaborating on a case before the World Trade Organization
dealing with other industrial materials; Mr. Stewart indicated
that a follow-on case concerning rare earths was being debated.
The Chinese Ministry of Industry and Information Technology
had prepared a development plan for the rare earths industry
covering the years 2009-2015 indicating that the country would
continue to reduce the amount of material allowed to leave
China. Mr. Stewart also quoted the plan's intent to build up
its technological capacity, expand into end-user products,
collect intellectual property and promote its own standards.
Like the previous witnesses, Mr. Stewart proposed greater U.S.
investments in research, diversifying sources of supply and
gaining a better understanding of the market. Unlike the
others, he recommended returning to the World Trade
Organization with a case arguing export constraints on rare
earths breached China's compliance with trade agreements.
V. Committee Actions
On September 20, 2010, the Committee on Science and
Technology notice draft text of the ``Rare Earths and Critical
Materials Revitalization Act of 2010'' for markup on September
23, 2010.
On September 22, 2010, the text was introduced as H.R. 6160
by Mrs. Dahlkemper, along with Mr. Lewis of California, Mr.
Coffman, Mr. Gordon, and Mr. Carnahan. The bill was referred to
the Committee on Science and Technology.
On September 23, 2010, the Committee on Science and
Technology met to consider H.R. 6160.
The following amendments were offered:
1. A manager's amendment offered by Mrs. Dahlkemper
striking the word ``technical'' from the description of loan
guarantee criteria described in the program plan; clarifying
that technologies supported by loan guarantees must represent a
significant advancement compared to technologies in use in the
``United States at the time the guarantee is issued''; and,
ensuring that ``accessibility'' of rare earth resources be
taken into consideration in the supply assessments required
under the National Materials and Minerals Policy, Research and
Development Act of 1980; The amendment was adopted by voice
vote.
2. An amendment offered by Mr. Olson striking provisions
requiring the establishment of, and reference to, a Research
and Development Information Center; and, inserting language in
the general program activities requiring the program to
collect, catalogue, archive, and disseminate information on
rare earth materials, including data generated by the program;
The amendment was adopted by voice vote.
3. An amendment offered by Mrs. Eddie Bernice Johnson to
clarify that actions to expand participation in the program
include Historically Black Colleges and Universities and other
Minority-Serving Institutions, as listed under section 371(a)
of the Higher Education Act of 1965; The amendment was adopted
by voice vote.
4. An amendment by Mr. Broun striking the section on
International Collaboration. The amendment was defeated by a
recorded vote of 9-14.
5. An amendment offered by Mr. Garamendi and Mr.
Rohrabacher ensuring that the Secretary will procure rare earth
materials in accordance with United States and international
law. The amendment was withdrawn.
6. An amendment offered by Mr. Rohrabacher striking the
Authorization of Appropriations and related provisions in the
bill. The amendment was adopted by voice vote.
7. An amendment offered by Mr. Rohrabacher and Mr.
Garamendi to ensure that loan guarantees be awarded to entities
only if the entity assures the Secretary that the loan or
guarantee will be used to support activities in the United
States, and for customers within the United States, unless
insufficient domestic demand exists. The amendment was agreed
to by voice vote.
8. An amendment offered by Mr. Broun limiting loan
guarantees to projects that are not currently being undertaken,
or likely to be undertaken, by the private sector. The
amendment was defeated by voice vote.
9. An amendment offered by Mrs. Biggert moving the year the
loan guarantee authority sunsets from 2018 to 2015. The
amendment was adopted by voice vote.
The Committee on Science and Technology favorably reported
H.R. 6160, as amended, by voice vote.
VI. Summary of Major Provisions of the Bill
The proposed bill is designed to establish within the
Department of Energy a program to support research,
development, demonstration and commercial applications of
advanced technologies for the purpose of restoring a globally
competitive rare earths industry in the United States. The bill
will also amend the overall law governing national materials
policy to rebuild a framework allowing identification and
management of risk in industries supplying economically
valuable materials such as rare earths.
Title I of the proposed Act establishes the program within
the Department of Energy. The first major element is to
invigorate support for research and development in the field of
rare earths. The Secretary is instructed to develop this
program to conduct research and development in all aspects of
the rare earths industry: obtaining the ores containing the
materials, separating the rare earths from the ores, converting
the rare earths into industrially useful forms, improving the
uses of rare earths in products, and recovering rare earths at
the end of their lifecycle for reuse (if possible). Work in the
program is expected to result in new processes and methods or
significant improvements in existing technologies. To capture
the full benefit of the new program, the Secretary is
instructed to develop an information-management capability to
capture the results from the research and development conducted
by the program and other relevant information, for use by
stakeholders.
The Department is expected to seek participation from
academic and industry participants for projects funded by the
research program to broaden knowledge in the United States
about the rare earths and their uses and to expand the Nation's
capacity to produce these materials. Multidisciplinary
collaborations among participants are encouraged. Meritorious
applications demonstrating opportunities for students from
universities (including Historically Black Colleges and
Universities and Minority-Serving Institutions) to obtain real-
world experience should also be supported.
The research program is expected to conform to policies and
priorities set forth by the National Materials and Minerals
Policy, Research and Development Act. Given that the last
national minerals research and development policy was issued in
1996, the rare earths program may have to anticipate the work
of the National Science and Technology Council in
reconstituting a national materials research and development
program.
The Secretary may reach out to counterpart agencies in
other countries sharing our concerns about adequate supplies of
rare earths to restore a well-functioning global marketplace
for rare earth materials.
The program plan governing the activities supported by the
research program is to be delivered by the Secretary six months
after the program is enacted into law. While preparing the
plan, the Secretary is expected to consult widely among
interested parties. The plan itself must describe the research
and development program during the next two years; how said
research and development will translate into sustainable
supply; how applications for loan guarantees will be evaluated
and a list of the loan guarantees in effect; and how the
program is drawing in more participants. This plan is to be
updated every two years.
After four years the Secretary is to ask the National
Academies to assess the progress and value of the program. The
resulting report is to include an explicit recommendation that
the program be continued or terminated. The Secretary is to
consider any recommendations resulting from the assessment and
include discussion of the disposition of such advice in the
next update of the program plan.
The second element of the program adds a new section to the
Department's existing loan guarantee program. Enacted as Title
XVII of the Energy Policy Act of 2005, the Department may offer
loan guarantees for projects that ``avoid, reduce or sequester
air pollutants or anthropogenic emissions of greenhouse
gases[,] and employ new or significantly improved technologies
as compared to commercial technologies in service in the United
States at the time the guarantee is issued.'' This proposed
bill adds a new section, making particular types of rare earths
production projects eligible for such support. Such guarantees
are subject to the existing requirements of Title XVII.
Additionally, this new section seeks to expedite action by
the Department and the industry by setting a goal to produce a
full rare earths production capability within five years and by
ending eligibility for guarantees on September 30, 2015. The
Secretary is expected to expedite approvals to the extent that
this does not conflict with protecting taxpayer interest.
Applicants for these guarantees must provide assurance to the
Secretary that the capabilities supported by this guarantee are
employed in the United States for the benefit of United States
firms until the Nation's demand for rare earth materials is
satisfied.
Finally, Title II of the proposed bill makes certain
amendments to the National Materials and Minerals Policy,
Research and Development Act of 1980. The amendments are
intended to reflect the changes that have occurred in the
intervening three decades; for example, the Federal
Coordinating Council for Science, Engineering and Technology
was replaced by the National Science and Technology Council by
President Clinton. The amendments also remove some obsolete
reporting requirements and allow flexibility to allow the
Secretary of Commerce to work with any other Cabinet agency
that can contribute to identifying and addressing concerns
about materials. A range of federal agencies are likely to play
greater roles in making policy in the area of international
collaboration and competition, or questions of intellectual
property access and protection.
The bill concludes by repealing the National Critical
Materials Act of 1984, reflecting the fact that the National
Critical Materials Council established by the law never
effectively carried out its responsibilities and has been
moribund since 1993. Repeal of the law returns accountability
for national materials issues to the Executive Office of the
President and existing Cabinet agencies.
VII. Section-by-Section Analysis
The purpose of the Rare Earths and Critical Materials
Revitalization Act of 2010 is to develop a rare earth materials
program and to amend the National Materials and Minerals
Policy, Research and Development Act of 1980 (30 U.S.C. 1601 et
seq.).
Section 1. Short title; Table of contents
Allows citation of the bill as the ``Rare Earths and
Critical Materials Revitalization Act of 2010'' and provides
the legislation's Table of Contents.
Section 2. Definitions
Defines the terms ``Appropriate Congressional Committees,''
``Center,'' ``Department,'' ``Rare Earth Materials,'' and
``Secretary'' as they are used in the bill.
TITLE I--RARE EARTH MATERIALS
SEC. 101. RARE EARTH MATERIALS PROGRAM.
(a) Establishment of Program.--
(1) In general.--The Department of Energy is
authorized to conduct research, development,
demonstration, and commercial application activities
that will restore a long-term, secure and sustainable
supply of rare earth materials to meet the needs of the
United States.
(2) Activities.--The program is to conduct activities
spanning the entire production cycle for rare earth
materials, to include: theoretical geochemical
research; apply advanced methods for locating and
recovering rare earths; find better technologies to
enable rare earth material production; understand and
improve the use of rare earths in product designs; seek
substitutes for rare earths; conduct projects to reduce
the use of rare earth materials or recycle these from
existing products; gather and disseminate relevant
information and assist stakeholders in using the
information; and facilitate information sharing and
collaboration.
(3) Improved processes and technologies.--The program
is to seek new or significantly improved processes and
technologies for the rare earth materials industry.
(4) Expanding participation.--The Secretary is
directed to seek multidisciplinary collaborations among
program beneficiaries and promote opportunities for
students at colleges and universities, including
Historically Black Colleges and Universities and other
Minority Serving Institutions listed under section
371(a) of the Higher Education Act of 1965.
(5) Consistency.--The program should be consistent
with the overall national materials research and
development program required by the National Materials
and Minerals Policy, Research and Development Act of
1980.
(6) International collaboration.--The Secretary may
seek to collaborate with other nations on activities of
mutual interest.
(b) Plan.--
(1) In general.--Within six months of the date of
enactment, and every two years thereafter, the
Secretary shall submit to the House Committee on
Science and Technology, the Senate Committee on
Commerce, Science and Transportation and the Senate
Committee on Energy and Natural Resources the plan
governing the rare earth materials program.
(2) Specific requirements.--The Secretary is required
to describe the following items in the plan: the
research and development activities expected during the
next two years; how these activities will lead to
improved methods and technologies in the domestic rare
earth materials industry; how applications for loan
guarantees will be evaluated; any loan guarantees
outstanding and their current status; the program's
efforts to expand participation; and responses to
recommendations from a National Academy of Sciences
assessment of the program after its fourth year of
operation.
(3) Consultation.--The Secretary is directed to
consult widely with those knowledgeable about rare
earths and associated industry when preparing the
program plan.
(c) Assessment.--The Secretary will contract with the
National Academy of Sciences to assess progress in the rare
earth materials program after four years, and make a
recommendation to the Secretary about the continued need for
the program.
SEC. 102. RARE EARTH MATERIALS LOAN GUARANTEE PROGRAM.
(a) Amendment.--Amends Title XVII of the Energy Policy Act
of 2005, which authorizes the Department of Energy to issue
loan guarantees for projects that ``avoid, reduce or sequester
air pollutants or anthropogenic emissions of greenhouse
gases[,] and employ new or significantly improved technologies
as compared to commercial technologies in service in the United
States at the time the guarantee is issued,'' to ensure that
certain projects involving rare earth materials are eligible
for consideration. The following new section is added to the
Energy Policy Act of 2005:
``SEC. 1706. TEMPORARY PROGRAM FOR RARE EARTH MATERIALS REVITALIZATION.
``(a) In General.--Authorizes the Department of Energy to
issue loan guarantees for the commercial application of
technologies that are new or significantly improved compared to
those currently in use in the United States for projects
involving the separation and recovery of rare earth materials
from ores and other sources; their preparation in oxide, metal,
alloy or other forms; or their application in improved magnets,
batteries, refrigeration and optical systems, electronics,
catalysis and other products and uses.
``(b) Timeliness.--The Secretary is directed to expedite
approval of loan guarantee applications insofar as the
interests of taxpayers remain protected.
``(c) Cooperation.--The Secretary is to work with the
private sector toward the goal that facilities covering all
phases of the production of rare earth minerals, from mining to
the manufacture of finished products, be operating within five
years of the bill's signing.
``(d) Domestic Supply Chain.--The Secretary can only award
loan guarantees to entities only if the entity assures the
Secretary that the loan or guarantee will be used to support
activities in the United States, and for customers within the
United States, unless insufficient domestic demand exists.
``(d) Sunset.--Loan guarantees under this program can be
issued only through September 30, 2015.''
(b) Table of Contents Amendment.--Amends the table of
contents for the Energy Policy Act of 2005 by inserting an
entry for the new Section 1706.
TITLE II--NATIONAL MATERIALS AND MINERALS POLICY, RESEARCH AND
DEVELOPMENT
SECTION 201. AMENDMENTS TO NATIONAL MATERIALS AND MINERALS POLICY,
RESEARCH AND DEVELOPMENT ACT OF 1980.
(a) Program Plan.--Amends Section 5 by replacing the
original date of enactment with the date of enactment of the
current bill; substituting the name of the National Science and
Technology Council for that of the defunct Federal Coordinating
Council for Science, Engineering and Technology; eliminating
mandatory consultation with the Federal Emergency Management
Administration, the secretaries of Interior and Defense, and
the Director of the Central Intelligence Agency by the
Secretary of Commerce in regard to certain requirements placed
on the latter secretary to report to Congress; eliminating a
requirement that the Secretary of Commerce report to Congress
within 3 months of enactment; eliminating certain duties
assigned to the secretaries of Interior and Defense; and makes
conforming and clarifying changes.
(b) Policy.--Amends Section 3 by making clarifying changes.
(c) Implementation.--Amends Section 4 by making clarifying
changes.
SECTION 202. REPEAL.
Repeals the National Critical Materials Act of 1984 (30
U.S.C. 1801; 98 Stat. 1248) because the council authorized
under the Act no longer exists.
VIII. Committee Views
The intent of the legislation is for the federal government
to provide a framework that fosters the growth of a diverse
domestic rare earths industry, and for that industry to become
robust enough to compete in the global marketplace while
meeting the economic, national security, and industrial needs
of the United States. This requires the Department of Energy,
in carrying out the activities authorized under this Act
through competitive processes, to encourage expansion of both
the number and types of entities involved in research,
development, demonstration, and commercial application of rare
earth materials and technologies in the United States.
The Committee believes that loan guarantees made available
under this act should be used to help U.S. companies secure
financing for projects from which the ultimate economic and
strategic benefit will remain in the U.S. To that end, an
amendment was adopted in the Full Committee requiring loan
guarantee applicants to provide assurance that the guarantee
will be used to support rare earth separation, recovery,
preparation, or manufacturing in the U.S., and for sale only to
customers in the U.S. The amendment allows for an exception in
the case of excess domestic capacity for production of rare
earths due to insufficient domestic demand, which should be
determined at the secretary's discretion. However, the
Committee acknowledges that a loan guarantee applicant might
not be able to provide total assurance that a rare earth-
bearing material or product will remain in the U.S. if that
material or product is sold by the applicant and proceeds
through the supply chain to become a finished good.
The Committee's view is that rare earth minerals be
procured in a manner consistent with human dignity and the rule
of law. An amendment was withdrawn by Mr. Garamendi and Mr.
Rohrabacher, by agreement of both Members because of the
concerns over the applicability of international law to U.S.
citizens.
IX. Cost Estimate
With respect to requirements of clause 3(d) of House rule
XIII, the Committee anticipates that a CBO cost estimate letter
on H.R. 6160 will address these issues when the bill proceeds
to consideration on the House floor.
X. Congressional Budget Office Cost Estimate
With respect to the requirements of clause 3(c)(2) of House
rule XIII and section 308(a) of the Congressional Budget Act of
1974 and with respect to requirements of clause 3(c)(3) of
House rule XIII and section 402 of the Congressional Budget Act
of 1974, the Committee anticipates that a CBO cost estimate
letter on H.R. 6160 will address these issues when the bill
proceeds to consideration on the House floor.
XI. Compliance With Public Law 104-4
H.R. 6160 contains no unfunded mandates.
XII. Committee Oversight Findings and Recommendations
The oversight findings and recommendations of the Committee
on Science and Technology are reflected in the body of this
report.
XIII. Statement on General Performance Goals and Objectives
Pursuant to clause 3(c) of House rule XIII, the goal of
H.R. 6160 is to develop a rare earth materials program, to
amend the National Materials and Minerals Policy, Research and
Development Act of 1980, and for other purposes.
XIV. Constitutional Authority Statement
Article I, section 8 of the Constitution of the United
States grants Congress the authority to enact H.R. 6160.
XV. Federal Advisory Committee Statement
H.R. 6160 does not establish nor authorize the
establishment of any advisory committee.
XVI. Congressional Accountability Act
The Committee finds that H.R. 6160 does not relate to the
terms and conditions of employment or access to public services
or accommodations within the meaning of section 102(b)(3) of
the Congressional Accountability Act (Public Law 104-1).
XVII. Earmark Identification
H.R. 6160 does not contain any congressional earmarks,
limited tax benefits, or limited tariff benefits as defined in
clause 9 of rule XXI.
XVIII. Statement on Preemption of State, Local, or Tribal Law
This bill is not intended to preempt any state, local, or
tribal law.
XIX. Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, existing law in which no change is
proposed is shown in roman):
ENERGY POLICY ACT OF 2005
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) * * *
(b) Table of Contents.--The table of contents for this Act is
as follows:
* * * * * * *
TITLE XVII--INCENTIVES FOR INNOVATIVE TECHNOLOGIES
* * * * * * *
Sec. 1706. Temporary program for rare earth materials revitalization.
* * * * * * *
TITLE XVII--INCENTIVES FOR INNOVATIVE TECHNOLOGIES
* * * * * * *
SEC. 1706. TEMPORARY PROGRAM FOR RARE EARTH MATERIALS REVITALIZATION.
(a) In General.--As part of the program established in
section 101 of the Rare Earths and Critical Materials
Revitalization Act of 2010, the Secretary is authorized to make
guarantees under this title for the commercial application of
new or significantly improved 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 national
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;
(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 minimize delay
in approving loan guarantee applications, consistent with
appropriate protection of taxpayer interests.
(c) Cooperation.--To the maximum extent practicable, the
Secretary shall cooperate with appropriate private sector
participants to achieve a complete rare earth materials
production capability in the United States within 5 years after
the date of enactment of the Rare Earths and Critical Materials
Revitalization Act of 2010.
(d) Domestic Supply Chain.--In support of the objective in
subsection (c) to achieve a rare earth materials production
capability in the United States that includes the complete
value chain described in paragraphs (1) through (4) of
subsection (a), the Secretary may not award a guarantee for a
project unless the project's proponent provides to the
Secretary an assurance that the loan or guarantee shall be used
to support the separation, recovery, preparation, or
manufacturing of rare earth materials in the United States for
customers within the United States unless insufficient domestic
demand for such materials results in excess capacity.
(e) Sunset.--The authority to enter into guarantees under
this section shall expire on September 30, 2015.
* * * * * * *
----------
NATIONAL MATERIALS AND MINERALS POLICY, RESEARCH AND DEVELOPMENT ACT OF
1980
* * * * * * *
DECLARATION OF POLICY
Sec. 3. [The Congress declares that it] It is the continuing
policy of the United States to promote an adequate and stable
supply of materials necessary to maintain national security,
economic well-being and industrial production, with appropriate
attention to a long-term balance between resource production,
energy use, a healthy environment, natural resources
conservation, and social needs. [The Congress further declares
that implementation] Implementation of this policy requires
that the President shall, through the Executive Office of the
President, coordinate the responsible departments and agencies
to, among other measures--
(1) * * *
* * * * * * *
IMPLEMENTATION OF POLICY
Sec. 4. [For the purpose of implementing the policies set
forth in section 3 and the provisions of section 5 of this Act,
the Congress declares that the] The President shall, through
the Executive Office of the President, coordinate the
responsible [departments and agencies,] departments and
agencies to implement the policies set forth in section 3 and
shall--
(1) * * *
* * * * * * *
PROGRAM PLAN AND REPORT TO CONGRESS
Sec. 5. (a) Within 1 year after the [date of enactment of
this Act] date of enactment of the Rare Earths and Critical
Materials Revitalization Act of 2010, the President shall
submit to the Congress--
(1) * * *
* * * * * * *
(b) In accordance with the provisions of the National Science
and Technology Policy, Organization, and Priorities Act of 1976
(42 U.S.C. 6601 et seq.), the Director of the Office of Science
and Technology Policy shall:
(1) through the [Federal Coordinating Council for
Science, Engineering, and Technology] National Science
and Technology Council, coordinate Federal materials
research and development and related activities in
accordance with the policies and objectives established
in this Act;
* * * * * * *
(c) The Secretary of Commerce, in consultation with [the
Federal Emergency Management Administration, the Secretary of
the Interior, the Secretary of Defense, the Director of the
Central Intelligence Agency, and] such other members of the
Cabinet as may be [appropriate shall] appropriate, shall--
[(1) within 3 months after the date of enactment of
this Act, identify and submit to the Congress a
specific materials needs case related to national
security, economic well-being and industrial production
which will be the subject of the report required by
paragraph (2) of this subsection;]
[(2)] (1) within 1 year after the [date of enactment
of this Act] date of enactment of the Rare Earths and
Critical Materials Revitalization Act of 2010, submit
to the Congress a report which assesses critical
materials needs [in the case identified in paragraph
(1) of this subsection,] and which recommends programs
that would assist in meeting such needs, including an
assessment of economic stockpiles; and
[(3) continually thereafter identify and assess
additional cases, as necessary, to ensure an adequate
and stable supply of materials to meet national
security, economic well-being and industrial production
needs.]
(2) assess the adequacy, accessibility, and stability
of the supply of materials necessary to maintain
national security, economic well-being, and industrial
production.
[(d) The Secretary of Defense, together with such other
members of the Cabinet as are deemed necessary by the
President, shall prepare a report assessing critical materials
needs related to national security and identifying the steps
necessary to meet those needs. The report shall include an
assessment of the Defense Production Act of 1950 (50 U.S.C.
App. 2061 et seq.), and the Strategic and Critical Materials
Stock Piling Act (50 U.S.C. App. 98 et seq.). Such report shall
be made available to the Congress within 1 year after enactment
of this Act and shall be revised periodically as deemed
necessary.
[(e) The Secretary of the Interior shall promptly initiate
actions to--
[(1) improve the capacity of the Bureau of Mines to
assess international minerals supplies;
[(2) increase the level of mining and metallurgical
research by the Bureau of Mines in critical and
strategic minerals; and
[(3) improve the availability and analysis of mineral
data in Federal land use decisionmaking.
A report summarizing actions required by this subsection shall
be made available to the Congress within 1 year after the
enactment of this Act.]
[(f)] (d) In furtherance of the policies of this Act, the
Secretary of the Interior shall collect, evaluate, and analyze
information concerning mineral occurrence, production, and use
from industry, academia, and Federal and State agencies.
Notwithstanding the provisions of section 552 of title 5,
United States Code, data and information provided to the
Department by persons or firms engaged in any phase of mineral
or mineral-material production or large-scale consumption shall
not be disclosed outside of the Department of the Interior in a
nonaggregated form so as to disclose data and information
supplied by a single person or firm, unless there is no
objection to the disclosure of such data and information by the
donor: Provided, however, That the Secretary may disclose
nonaggregated data and information to Federal defense agencies,
or to the Congress upon official request for appropriate
purposes.
* * * * * * *
----------
NATIONAL CRITICAL MATERIALS ACT OF 1984
(Title II of Public Law 98-373)
[TITLE II--NATIONAL CRITICAL MATERIALS ACT OF 1984
[SHORT TITLE
[Sec. 201. This title may be cited as the ``National
Critical Materials Act of 1984''.
[FINDINGS AND PURPOSES
[Sec. 202. (a) The Congress finds that--
[(1) the availability of adequate supplies of
strategic and critical industrial minerals and
materials continues to be essential for national
security, economic well-being, and industrial
production;
[(2) the United States is increasingly dependent on
foreign sources of materials and vulnerable to supply
interruption in the case of many of those minerals and
materials essential to the Nation's defense and
economic well-being;
[(3) together with increasing import dependence, the
Nation's industrial base, including the capacity to
process minerals and materials, is deterirating--both
in terms of facilities and in terms of a trained labor
force;
[(4) research, development, and technological
innovation, especially related to improved materials,
processing technologies, are important factors which
affect our long-term capability for economic
competitiveness, as well as for adjustment to
interruptions in supply of critical minerals and
materials;
[(5) while other nations have developed and
implemented specific long-term research and technology
programs to develop high-performance materials, no such
policy and program evolution has occurred in the United
States;
[(6) establishing critical materials reserves, by
both the public and private sectors and with proper
organization and management, represents one means of
responding to the geniune risks to our economy and
national defense from dependency on foreign sources;
[(7) there exists no single Federal entity with the
authority and responsibility for establishing critical
materials policy and for coordinating and implementing
that policy; and
[(8) the importance of materials to national goals
requires an organizational means for establishing
responsibilities for materials programs and for the
coordination, within and at a suitably high level of
the Executive Office of the President, with other
existing policies with the Federal Government.
[(b) It is the purpose of this title--
[(1) to establish a National Critical Materials
Council under and reporting to the Executive Office of
the President which shall--
[(A) establish responsibilities for and
provide for necessary coordination of critical
materials policies, including all facets of
research and technology, among the various
agencies and departments of the Federal
Government, and make recommendations for the
implementation of such policies;
[(B) bring the attention of the President,
the Congress, and the general public such
materials issues and concerns, including
research and development, as are deemed
critical to the economic and strategic health
of the Nation; and
[(C) ensure adequate and continuing
consultation with the private sector concerning
critical materials, materials research and
development, use of materials, Federal
materials policies, and related matters;
[(2) to establish a national Federal program for
advanced materials research and technology, including
basic phenomena through processing and manufacturing
technology; and
[(3) to stimulate innovation and technology
utilization in basic as well as advanced materials
industries.
[ESTABLISHMENT OF THE NATIONAL CRITICAL MATERIALS COUNCIL
[Sec. 203. There is hereby established a National Critical
Materials Council (hereinafter referred to as the ``Council'')
under and reporting to the Executive Office of the President.
The Council shall be composed of three members who shall be
appointed by the President and who shall serve at the pleasure
of the President. Members so appointed who are not already
Senate-confirmed officers of the Government shall be appointed
by and with the advice and consent of the Senate. The President
shall designate one of the members to serve as Chairman. Each
member shall be a person who, as a result of training,
experience, and achievement, is qualified to carry out the
duties and functions of the Council, with particular emphasis
placed on fields relating to materials policy or materials
science and engineering. In addition, at least one of the
members shall have a background in and understanding of
environmentally related issues.
[RESPONSIBILITIES AND AUTHORITIES OF THE COUNCIL
[Sec. 204. (a) It shall be the primary responsibility of
the Council--
[(1) to assist and advise the President in
establishing coherent national materials policies
consistent with other Federal policies, and making
recommendations necessary to implement such policies;
[(2) to assist in establishing responsibilities for,
and to coordinate, Federal materials-related policies,
programs, and research and technology activities, as
well as recommending to the Office of Management and
Budget budget priorities for materials activities in
each of the Federal departments and agencies;
[(3) to review and appraise the various programs and
activities of the Federal Government in accordance with
the policy and directions given in the National
Materials and Minerals Policy, Research and Development
Act of 1980 (30 U.S.C. 1601), and to determine the
extent to which such programs and activities are
contributing to the achievement of such policy and
directions;
[(4) to monitor and evaluate the critical materials
needs of basic and advanced technology industries and
the Government, including the critical materials
research and development needs of the private and
public sectors;
[(5) to advise the President of mineral and material
trends, both domestic and foreign, the implications
thereof for the United States and world economies and
the national security, and the probable effects of such
trends on domestic industries;
[(6) to assess through consultation with the
materials academic community the adequacy and quality
of materials-related educational institutions and the
supply of materials scientists and engineers;
[(7) to make or furnish such studies, analyses,
reports, and recommendations with respect to matters of
materials-related policy and legislation as the
President may request;
[(8)(A) to prepare a report providing a domestic
inventory of critical materials with projections on the
prospective needs of Government and industry for these
materials, including a long-range assessment, prepared
in conjunction with the Office of Science and
Technology Policy in accordance with the National
Materials and Minerals Policy, Research and Development
Act of 1980, and in conjunction with such other
Government departments or agencies as may be considered
necessary, of the prospective major critical materials
problems which the United States is likely to confront
in the immediate years ahead and providing advice as to
how these problems may best be addressed, with the
first such report being due on April 1, 1985, and (B)
review and update such report and assessment as
appropriate and report thereon to the Congress at least
biennially; and
[(9) to recommend to the Congress such changes in
current policies, activities, and regulations of the
Federal Government, and such legislation, as may be
considered necessary to carry out the intent of this
title and the National Materials and Minerals Policy,
Research and Development Act of 1980.
[(b) In carrying out its responsibilities under this
section the Council shall have the authority--
[(1) to establish such special advisory panels as it
considers necessary, with each such panel consisting of
representatives of industry, academia, and other
members of the private sector, not to exceed ten
members, and being limited in scope of subject and
duration; and
[(2) to establish and convene such Federal
interagency committees as it considers necessary in
carrying out the intent of this title.
[(c) In seeking to achieve the goals of this title and
related Acts, the Council and other Federal departments and
agencies with responsibilities or jurisdiction related to
materials or materials policy, including the National Security
Council, the Council on Environmental Quality, the Office of
Management and Budget, and the Office of Science and Technology
Policy, shall work collaboratively and in close cooperation.
[PROGRAM AND POLICY FOR ADVANCED MATERIALS RESEARCH AND TECHNOLOGY
[Sec. 205. (a) In addition to the responsibilities
described in section 204, the Council shall be responsible for
coordination with appropriate agencies and departments of the
Federal Government relative to Federal materials research and
development policies and programs. Such policies and programs
shall be consistent with the policies and goals described in
the National Materials and Minerals Policy, Research and
Development Act of 1980. In carrying out this responsibility
the Council shall--
[(1)(A) establish a national Federal program plan for
advanced materials research and development, recommend
the designation of the key responsibilities for
carrying out such research, and to provide for
coordination of this plan with the Office of Science
and Technology Policy, the Office of Management and
Budget, and such other Federal offices and agencies as
may be deemed appropriate, and (B) annually review such
plan and report thereon to the Congress;
[(2) review annually the materials research,
development, and technology authorization requests and
budgets of all Federal agencies and departments; and in
this activity the Council shall make recommendations,
in cooperation with the Office of Science and
Technology Policy, the Office of Management and Budget,
and all other Federal offices and agencies deemed
appropriate, to ensure close coordination of the goals
and directions of such programs with the policies
determined by the Council; and
[(3) assist the Office of Science and Technology
Policy in the preparation of such long-range materials
assessments and reports as may be required by the
National Materials and Minerals Policy, Research and
Development Act of 1980, and assist other Federal
entities in the preparation of analyses and reporting
relating to critical and advanced materials.
[(b) The Office of Management and Budget, in reviewing the
materials research, development, and technology authorization
requests of the various Federal departments and agencies for
any fiscal year, and the recommendations of the Council, shall
consider all of such requests and recommendations as an
integrated, coherent, multiagency request which shall be
reviewed by the Office of Management and Budget for its
adherence to the national Federal materials program plan in
effect for such fiscal year under subsection (a).
[INNOVATION IN BASIC AND ADVANCED MATERIALS INDUSTRIES
[Sec. 206. (a)(1) In order to promote the use of more cost-
effective, advanced technology and other means of providing for
innovation and increased productivity within the basic and
advanced materials industries, the Council shall evaluate and
make recommendations regarding the establishment of Centers for
Industrial Technology as provided in Public Law 96-480 (15
U.S.C. 3705).
[(2) The activities of such Centers shall focus on, but not
be limited to, the following generic materials areas:
corrosion; welding and joining of materials; advanced
processing and fabrication technologies; microfabrication; and
fracture and fatigue.
[(b) In order to promote better use and innovation of
materials in design for improved safety or efficiency, the
Council shall establish in cooperation with the appropriate
Federal agencies and private industry, an effective mechanism
for disseminating materials property data in an efficient and
timely manner. In carrying out this responsibility, the Council
shall consider, where appropriate, the establishment of a
computerized system taking into account, to the maximum extent
practicable, existing available resources.
[COMPENSATION OF MEMBERS AND REIMBURSEMENTS
[Sec. 207. (a) The Chairman of the Council, if not
otherwise a paid officer or employee of the Federal Government,
shall be paid at the rate not to exceed the rate of basic pay
provided for level II of the Executive Schedule. The other
members of the Council, if not otherwise paid officers or
employees of the Federal Government, shall be paid at a per
diem rate comparable to the rate not to exceed the rate of
basic pay provided for level III of the Executive Schedule.
[(b) Subject to existing law and regulations governing
conflicts of interest, the Council may accept reimbursement
from any private nonprofit organization or from any department,
agency, or instrumentality of the Federal Government, or from
any State or local government, for reasonable travel expenses
incurred by any member or employee of the Council in connection
with such member's or employee's attendance at any conference,
seminar, or similar meeting.
[POSITION AND AUTHORITIES OF EXECUTIVE DIRECTOR
[Sec. 208. (a) There shall be an Executive Director
(hereinafter referred to as the ``Director''), who shall be
chief administrator of the Council. The Director shall be
appointed by the Council full time and shall be paid at the
rate not to exceed the rate of basic pay provided for level III
of the Executive Schedule.
[(b) The Director is authorized--
[(1) to employ such personnel as may be necessary for
the Council to carry out its duties and functions under
this title, but not to exceed twelve compensated
employees;
[(2) to obtain the services of experts and
consultants in accordance with the provisions of
section 3109 of title 5, United States Code; and
[(3) to develop, subject to approval by the Council,
rules and regulations necessary to carry out the
purposes of this title.
[(c) In exercising his responsibilities and duties under
this title, the Director--
[(1) may consult with representatives of academia,
industry, labor, State and local governments, and other
groups; and
[(2) shall utilize to the fullest extent possible the
services, facilities, and information (including
statistical information) of public and private
agencies, organizations, and individuals.
[(d) Notwithstanding section 367(b) of the Revised Statutes
(31 U.S.C. 665(b)), the Council may utilize voluntary and
uncompensated labor and services in carrying out its duties and
functions.
[RESPONSIBILITIES AND DUTIES OF THE DIRECTOR
[Sec. 209. In carrying out his functions the Director shall
assist and advise the Council on policies and programs of the
Federal Government affecting critical and advanced materials
by--
[(1) providing the professional and administrative
staff and support for the Council;
[(2) assisting the Federal agencies and departments
in appraising the effectiveness of existing and
proposed facilities, programs, policies, and activities
of the Federal Government, including research and
development, which affect critical materials
availability and needs;
[(3) cataloging, as fully as possible, research and
development activities of the Government, private
industry, and public and private institutions; and
[(4) initiating Government and private studies and
analyses, including those to be conducted by or under
the auspices of the Council, designed to advance
knowledge of critical or advanced materials issues and
develop alternative proposals, including research and
development, to resolve national critical materials
problems.
[AUTHORITY
[Sec. 210. The Council is authorized--
[(1) to establish such internal rules and regulations
as may be necessary for its operation;
[(2) to enter into contracts and acquire materials
and supplies necessary for its operation to such extent
or in such amounts as are provided for in appropriation
Acts;
[(3) to publish, consistent with title 44 of the
United States Code, or arrange to publish critical
materials information that it deems to be useful to the
public and private industry to the extent that such
publication is consistent with the national defense and
economic interest;
[(4) to utilize such services or personnel as may be
provided to the Council on a nonreimbursable basis by
any agency of the United States, and
[(5) to exercise such authorities as may be necessary
and incidental to carrying out its responsibilities and
duties under this title.
[AUTHORIZATION OF APPROPRIATIONS
[Sec. 211. There are hereby authorized to be appropriated
to carry out the provisions of this title a sum not to exceed
$500,000 for the fiscal year ending September 30, 1985, and
such sums as may be necessary thereafter: Provided, That the
authority provided for in this title shall expire on September
30, 1992, unless otherwise authorized by Congress.
[DEFINITION
[Sec. 212. As used in this title, the term ``materials''
has the meaning given it by section 2(b) of the National
Materials and Minerals Policy, Research and Development Act of
1980.]
XX. Committee Recommendations
On September 23, 2010, the Committee on Science and
Technology favorably reported H.R. 6160 by voice vote and
recommended its enactment.
XXI. Additional Views
---------- --
--------
ADDITIONAL VIEWS OFFERED BY REPRESENTATIVES RALPH HALL, LAMAR SMITH,
DANA ROHRABACHER, JUDY BIGGERT, TODD AKIN, BOB INGLIS, MICHAEL McCAUL,
ADRIAN SMITH, PAUL BROUN AND PETE OLSON
Rare earth minerals, and the metals and alloys that result
from their processing are important components in a broad range
of high-tech products, from consumer electronics to wind
turbines, hybrid vehicles, and certain military and weapons
systems.
Growing demand for rare earth materials, combined with
recently announced export restrictions by China--the dominant
global source of rare earth mining and production activities--
has led to concerns the U.S. could face a potential supply
shortage in rare earth minerals as early as 2011.
H.R. 6160 is intended to address these concerns through the
establishment of a rare earth materials research and
development (R&D) program and authorization of loan guarantees
to support rare earth minerals mining, processing, and
production activities.
Notwithstanding the clear and significant potential for a
rare earth supply shortage, we question whether the activities
called for in H.R. 6160 provide the appropriate policy response
to this issue.
To the extent that a rare earth supply gap may present
national security concerns, we believe such concerns should be
addressed without delay, but through appropriate responsible
entities, notably the Department of Defense (DOD) and House and
Senate Armed Services committees. Accordingly, we note that DOD
plans to complete a national security evaluation of this issue
in the coming weeks.
With respect to commercial supply needs, we believe that
taxpayer subsidies in the form of loan guarantees should be
restricted to those areas not undertaken by the private sector.
Inappropriate entry into the competitive marketplace risks the
government favoring certain companies over others, ``picking
winners and losers'' and potentially crowding out further
private sector investment. This principle is particularly
important in the case of rare earths due to the aggressive
private pursuit of rare earth mining opportunities in response
to recent price increases. To this end, we offered an amendment
to ensure that loan guarantees were not given for projects that
already had obtained private sector funding; we regret the
Majority's rejection of this amendment.
We also regret the Majority's rejection of amendment
language to address concerns regarding the legislation's
international collaboration requirement. Specifically, H.R.
6160 directs the Secretary of Energy to ``coordinate
activities'' regarding rare earths with the European Commission
to ``avoid duplication of effort.'' We question the
appropriateness of avoiding duplication of effort as a foreign
policy objective related to a domestic supply issue, and we
object to language directing collaboration only with the
European Commission, to the exclusion of other key allies.
However, we are pleased that several other Republican
amendments to improve H.R. 6160 were approved with bipartisan
support, specifically amendments to: (1) eliminate funding
authorizations for R&D activities; (2) eliminate a rare earth
``R&D Information Center''; (3) limit loan guarantee support
for exportation of unprocessed rare earth materials necessary
to meet domestic demand; and (4) reduce the length of
authorization for rare earth loan guarantees from eight years
to five years.
Finally, we express our concern that this legislation was
not developed and advanced through regular order. The Energy
and Environment Subcommittee, which maintains jurisdiction over
the activities authorized in this bill, did not hold a
legislative hearing or markup, dramatically limiting Members'
opportunities to review this issue and consider improvements to
the legislation.
Despite these concerns, we recognize the importance of
ensuring a stable supply of rare earth materials and the
potential for a near-term supply shortage, and we remain
committed to working on this issue and this bill as it moves
through the legislative process.
Paul Broun.
Pete Olson.
Michael McCaul.
Lamar Smith.
Ralph Hall.
Adrian Smith.
Bob Inglis.
Judy Biggert.
Dana Rohrabacher.
Todd Akin.
ADDITIONAL VIEWS OFFERED BY REPRESENTATIVE PAUL BROUN
In light of China's actions to further increase an
international supply shortage of rare earth minerals, I
recognize the need for ensuring a stable domestic supply of
such resources. The bill's goals of advancing U.S. research and
development of rare earth minerals to increase domestic
production facilities are worthy. However, I regret that
another committee on which I serve, the House Committee on
Natural Resources, did not have the opportunity to hold any
hearings or mark up this bill to address rare earth matters
that may have been of jurisdictional interest.
Specifically, I hoped that the Natural Resources Committee
would have been able to debate assisting the streamlining of
mining permits, the identification of public lands which are
ripe for rare earth mineral development, and the necessity of
federal loan guarantees for private mining operations. Also,
the marked up bill appears duplicative to the research and
development efforts currently being developed by the U.S.
Geological Survey underscoring the need for feedback and input
from the Natural Resources Committee in discussions impacting
U.S. mining operations.
By failing to work with other Committees, this legislation
squanders an opportunity to positively restart an important
industry in America and does a disservice to the American
taxpayer by failing to address important gaps, while creating
unnecessary duplication.
Paul Broun.
XXII: PROCEEDINGS OF THE FULL COMMITTEE MARKUP ON H.R. 6160, THE RARE
EARTHS AND CRITICAL MATERIALS REVITALIZATION ACT OF 2010
----------
THURSDAY, SEPTEMBER 23, 2010
House of Representatives,
Committee on Science and Technology,
Washington, DC.
The Committee met, pursuant to call, at 10:07 a.m., in Room
2318 of the Rayburn House Office Building, Hon. Bart Gordon
[Chairman of the Committee] presiding.
Chairman Gordon. Good morning. The Committee will come to
order. Pursuit to notice the Committee on Science and
Technology meets to consider the following measures. H.R. 5866,
The Nuclear Energy Research and Development Act of 2010, and
H.R. 6160, The Rare Earth and Critical Materials Revitalization
Act of 2010.
Also I want to welcome our interns today. I think we have a
lot of interns here. They have come to see how sausage is made.
I think you will be pleased that we are doing it in a good way.
We will now proceed with the markup. Today we will consider
two important pieces of legislation that will help America
recapture a technological lead in a wide range of industries
critical to our economy, our national defense, and a clean and
secure energy future.
First, we will consider H.R. 5866, cosponsored by myself,
Subcommittee Chairman Baird, Ranking Member Hall, and
Subcommittee Ranking Member Inglis. This bill amends the Energy
Policy Act of 2005, to modernize and improve our Federal
nuclear energy R&D programs. Our Nation's 104 commercial
reactors today produce 20 percent of our electricity and 70
percent of our emission-free energy. If we are to increase our
energy independence and mitigate the effects of climate change,
nuclear must continue to be a part of our Nation's energy mix.
However, capital costs continue to rise for construction of
new plants and the question of how to manage the waste
byproducts of nuclear fission remains.
H.R. 5866 provides the programmatic architecture needed at
DOE to answer and solve these outstanding issues. This bill is
the result of a truly bipartisan effort over the past six
months, and I would like to thank Mr. Hall, Mr. Inglis, Dr.
Baird, as well as the Committee staff of both the majority and
the minority for their continued good work as we move this
legislation through the Committee and to the Floor.
The second bill on the roster is H.R. 6160, introduced by
the gentlewoman from Pennsylvania, Mrs. Dahlkemper, and
cosponsored by Mr. Carnahan, Mr. Jerry Lewis, Mr. Coffman, and
myself.
As the I&O Subcommittee hearing in March highlighted and
Mrs. Dahlkemper understands well, rare earths are an essential
component of the technologies in a wide range of emerging and
established industries, for everything for oil refining to
hybrid cars, wind turbines to weapon systems. And the demand
for rare earths is only expected to grow.
However, despite the fact that the U.S. at one time was the
global leader in this field, we are now 95 percent dependent on
China for rare earths. Making matters more urgent, China has
begun limiting production in the export of rare earths and
requiring that products using rare earth be manufactured in
China and largely for Chinese consumption. And for the ones of
you that have not had a chance to see the paper this morning, I
wanted you to see the front page of the New York Times business
section. The headline is, ``In Dispute, China Blocks Rare
Earths Exports to Japan.''
Now, let me just suggest that I suspect in the next few
days that Congress is going to take action on some concerns
about the Chinese currency, and with that action we could well
see next week that the headline could be, ``In Dispute, China
Blocks Rare Earth Mineral Exports to the United States.'' That
would be devastating to our economy as well as to our national
security.
This is clearly an untenable position for the U.S. I
believe it would be foolish to stake our national defense and
economic security on China's goodwill or hope that it will
choose to compete in a fair and open global marketplace for
rare earths. The stakes are simply too high. This is not the
first time the Committee has been concerned with competitive
implications of materials such as rare earths. In 1980, 30
years ago, this committee established a National Minerals and
Materials Policy. One core element in the legislation was the
call for support for a vigorous and comprehensive and
coordinated program for materials research and development.
Unfortunately, over successive Administrations the effort
to sustain the program fell apart. Now it is time to revise a
coordinated effort to level the global playing field in rare
earths.
Mrs. Dahlkemper's bill calls for increased research and
development to help address the Nation's rare earths shortage
and reinvigorates the national policy for critical materials.
With that I thank you for your attendance and participation
this morning and look forward to a productive markup.
[The prepared statement of Chairman Gordon follows:]
Prepared Statement of Chairman Bart Gordon
Today we will consider two important pieces of legislation that
will help America recapture a technological lead in a wide range of
industries critical to our economy, our national defense, and a clean
and secure energy future.
First, we will consider H.R. 5866 sponsored by myself and co-
sponsored by Subcommittee Chairman Baird, Ranking Member Hall and
Subcommittee Ranking Member Inglis.
This bill amends the Energy Policy Act of 2005 to modernize and
improve our Federal nuclear energy R&D programs. Our nation's 104
commercial reactors today produce 20 percent of our electricity and 70
percent of our emissions free energy.
If we are to increase our energy independence and mitigate the
effects of climate change, nuclear must continue to be a large part of
our nation's energy mix.
However, despite a strong record of safety and operating
efficiency, capital costs continue to rise for construction of new
plants, and the question of how to manage the waste byproducts of
nuclear fission remains.
H.R. 5866 provides the programmatic architecture needed at DOE to
answer and solve these outstanding issues.
This bill is the result of a truly bipartisan effort over the past
six months and I would like to thank Mr. Hall, Mr. Inglis, and Mr.
Baird, as well as the Committee Staff of both the Majority and
Minority, for their continued good work as we move this legislation
through the Committee and to the floor.
The second bill on the roster is H.R. 6160 introduced by the
gentlewoman from Pennsylvania, Mrs. Dahlkemper, and cosponsored by Mr.
Carnahan, Mr. Jerry Lewis, Mr. Coffman, and myself.
As the I&O Subcommittee hearing in March highlighted, and as Mrs.
Dahlkemper understands well, rare earths are an essential component of
technologies in a wide array of emerging and established industries.
For everything from oil refining to hybrid cars, wind turbines to
weapons systems, the demand for rare earths is only expected to grow.
However, despite the U.S. at one time being the global leader in
this field, we are now 95% dependent on China for rare earths. Making
matters more urgent, China has begun limiting production and export of
rare earths and requiring that products using rare earths be
manufactured in China, and largely for Chinese consumption.
This is clearly an untenable position for the U.S. I believe it
would be foolish to stake our national defense and economic security on
China's goodwill or a hope that it will choose to compete in a fair and
open global marketplace for rare earths.
This is not the first time the Committee has been concerned with
the competitive implications of materials such as rare earths. In
1980--30 years ago--this Committee established a national minerals and
materials policy. One core element in that legislation was the call to
support for ``a vigorous, comprehensive and coordinated program of
materials research and development.''
Unfortunately, over successive administrations, the effort to
sustain that program fell apart. Now, it is time to revive a
coordinated effort to level the global playing field in rare earths.
Mrs. Dahlkemper's bill calls for increased research and development
to help address the Nation's rare earth shortage, and reinvigorates the
national policy for critical materials.
With that, I thank you all for your attendance and participation
this morning, and I look forward to a productive markup.
Chairman Gordon. And I now recognize Mr. Hall to present
his opening statement.
Mr. Hall. Thank you for holding the markup of H.R. 5866,
the Nuclear Research Bill, and H.R. 6160, the Rare Earth and
Critical Materials Revitalization Act, and as this is expected
to be maybe our last markup of the 111th Congress, and at my
age I don't ever like to say this is our last vote or this is
our last day up here, this is our--my last day in Congress or
anything, but I want to take the opportunity really to thank
you personally for your service to the committee and your very
fair and bipartisan approach to working with us and the Members
of the Committee over the years. We all feel that way, and we
certainly wish you well.
The first bill we will consider authorizes the Nuclear
Energy R&D Program to the Department of Energy, and we are all
aware of the importance of nuclear energy to America's future.
It provides a safe, reliable, and cost-competitive source of
energy to meet future increases in electricity demand. And it
is not battled by a lot of the goofy people that are opposed to
a lot of the other types of energy that we have.
It is safe, and we should have been--other than having
about 20 percent, we ought to have somewhere closer to 50
percent nuclear outgo. It didn't happen, and there is a lot of
other things that we could look back for and repeat the words
from that famous poem, Maud Muller. The last sentence of it
said, ``Of all sad words of tongue or pen the saddest of these
it might have been.'' And if we would have worked harder on
nuclear and supported it more and looked more toward the proper
energy thrust of the future, I think we would be better off.
In the short term we need to license and build more
reactors or use an existing light water technology, but over
the longer term we need to advance the development and
licensing of new reactor designs, extend the life of the
existing reactor fleet, and address the serious issue of
managing waste and spent nuclear fuel. That is a big order.
Continued research and development is necessary to overcome
all of these challenges, and this bill will help us to get
through a comprehensive approach that authorizes existing R&D
activities at DOE with an emphasis on accelerating the
advancement and eventual licensing of small modular reactors.
It is a good bill. I thank the majority for working with us
throughout the summer to craft it, and I am pleased to join
Chairman Gordon, Energy Subcommittee Chairman Baird, and
Ranking Member Inglis as a cosponsor.
We--I know that the second bill we consider creates a
``Rare Earth Mineral,'' R&D Program at DOE and authorizes DOE
to make loan guarantees for mining, processing, and industrial
production of rare earth minerals. This is an important issue
that warrants our attention.
Rare earths are used in many different high-tech
applications, including certain military and weapons systems,
and China controls the bulk of world supply and recently
announced its intention to reduce exports, triggering concerns
that the U.S. could face a supply gap.
The obvious question we face is how best to address this
concern with respect to potential and national security
ramifications. I understand that the Department of Defense will
soon complete a study regarding its need for a domestic rare
earth supply capability, a question that appropriately will be
addressed by DOD and the Armed Services Committee.
With respect to commercial supply needs, it appears that
increased demand and actions by China have resulted in sharp
price increases for rare earth materials. Now, this in turn has
stimulated an immediate market response as companies around the
world are aggressively pursuing new rare earth mining and
progressing--processing opportunities. A suggestion that a
taxpayer subsidy for such activity may not be necessary.
Important questions remain unanswered because we have--
because we bypass regular order with this legislation, and
members have had only a brief opportunity consider this issue
and legislation. I am uncomfortable supporting passage of this
bill. I am not positive as to how I feel about the bill, but I
am very understanding that we have a problem that we probably
need to settle for ourselves without selecting one single
entity to support, that we get some competitive approach to it,
and with that I yield back the balance of my time.
Pardon. If I might retract that, I want to--if I have any
time left I want to yield it to Mr. Bilbray.
Mr. Bilbray. Mr. Chairman--thank you. I appreciate the
Ranking Member yielding. Look, I just want to--regardless of
the details of how we work this out, I want to thank the Chair
and the Ranking Member for raising these two issues, because I
think too often here in Washington and around this country we
talk about lofty ideas, things like clean air, clean,
affordable energy. We talk about electrification of automobiles
and more efficient use of what energy we have.
These two items you have brought up are those essential
things that are put on backburners and are not bothered with
because they may be politically hot, but they are the
foundations that are essential to lay if you are ever going to
see things like clean, affordable energy, if you are going to
see electrification of our fleets, and especially these two. It
is the fact that the nuclear power issue is one that has been a
third--political third rail, but you are brave enough to
address it, and I congratulate and thank you for the American
people on that.
And the issue of rare earths is one of those detailed
things that are essential. If you think about this, it is the
permanent magnet, high-efficiency electric motors that are
driving Priuses and our troop carriers are essential for this.
So if you believe in a clean, electrified fleet, then you have
got to be brave enough to stand up on rare earth. If you
believe in a clean air and want to address climate change, then
you got to be brave enough to stand up for next generation
nuclear.
And I appreciate the fact that, Mr. Chairman, that you have
been brave enough to be able to do that, and I hope that the
committee over at E and C and in Interior are brave enough to
stand up and talk frankly about this because we are not going
to see those great opportunities for the future if the
committees and this Congress aren't brave enough to do what you
are doing today.
And I want to yield back.
Mr. Hall. Mr. Chairman, I, too, appreciate your interest
and involving the committee in this very, very important issue.
I will continue to work with you on issues as we move forward.
I yield back. Thank you.
Chairman Gordon. We now will consider H.R. 6160, the Rare
Earth and Critical Materials Revitalization Act of 2010. I
recognize the gentlelady from Pennsylvania, Mrs. Dahlkemper,
for five minutes to describe the bill.
Mrs. Dahlkemper. Thank you, Mr. Chairman. I am speaking
today in support of my bipartisan bill, the Rare Earth and
Critical Materials Revitalization Act, and--if many of you are
like me--you probably didn't know a lot about rare earth
materials until recently. During a subcommittee hearing in this
room, when I did learn about them, I realized that we must do
something to address a growing gap between the United States
and China in the use and development of these materials.
Rare earth materials are used in defense, industrial uses,
energy, optics, and electronics. These materials go into our
iPods, speakers, disc drives, batteries for electric cars,
products that are all being currently manufactured in China
because we can't make them here. China currently accounts for
between 90 and 97 percent of the world's supply of rare earth
materials. General Electric, in my district, can use these
materials to make wind turbines, helping to give us greater
energy independence.
The National Association of Manufacturers has endorsed this
bill because of the importance of these materials to American
manufacturing. There materials don't, though, just go into
electronics and clean energy products, but they are also used
in all sorts of critical military-based technologies like
precision-guided weapons and night-vision goggles.
So we are not just talking about our energy security here
today, but we are also talking about our national security.
Just this summer China announced that it would cut its exports
for the second half of 2010, by 72 percent. At the same time
China has stated clearly that foreign firms who move their
manufacturing capacity onto Chinese soil will have no trouble
procuring rare earth materials.
Today we have an opportunity to begin the long process of
catching up with the Chinese and beginning to make these goods
in America again. We simply cannot depend on China or any other
country for such crucial material to our national security. If
China decides to stop selling those goods to us, we need to
have our own supply available.
I am thankful to the Chairman for the opportunity to bring
this bill up, and I urge all of my colleagues to support the
bill. Thank you.
Mr. Baird. [Presiding] Thank you, Mrs. Dahlkemper. I now
recognize Mr. Hall to present any remarks on the bill.
Mr. Hall. Thank you, Mr. Chairman, and I will be brief and
just reemphasize from my earlier statement. Ensuring a stable,
a very stable supply of rare earth minerals is very important
to our high tech economy and as it has just been said and our
national security. And this issue certainly warrants our close
review.
However, it is not clear whether the bill before us would
completely address the problem effectively, and they really
haven't had a chance to do that. There are a lot of unresolved
questions, and the fact that we didn't have time to undertake a
Full Committee or subcommittee hearing is not blamed on anybody
on this legislation. The lack of a subcommittee markup through
which to consider these questions is regrettable. I think we
really need it, but I look forward to the debate and the
discussion.
And I yield back.
Mr. Baird. Is there anyone else who wishes to be recognized
on the bill?
[The prepared statement of Mr. Miller follows:]
Prepared Statement of Representative Brad Miller
Mr. Chairman, I am pleased to see the Committee taking up the Rare
Earth and Critical Materials Revitalization Act. I know how much time
you've devoted to finding a solution that assures a long-term
sustainable supply of these valuable elements to meet our national
security and economic needs. I know this because I'm pleased that the
Investigations and Oversight Subcommittee, which I chair, has been
contributing to the preparation of this legislation and this markup.
In March, my Subcommittee held a hearing to examine the scope of
the rare earths problem for the United States. We learned of our heavy
dependence on China, which supplies almost the entire global demand. We
had testimony on the tightening limits on exports from China. Research
in the United States on rare earths has fallen off. And the head of the
company that wants to give us the ability to compete again told us that
he couldn't get a bank loan to carry out his plan. You spent a good
deal of time with us that day, Mr. Chairman.
I can see the influence of that hearing in the bill here today. The
bill sets up a research program that will look for new processes and
technologies to find, produce and use rare earths in ways that will
benefit industries as diverse as magnets, lighting, batteries,
communications and refining oil. Add neodymium to iron and boron and
you can get a magnet that guides smart bombs to their targets or puts
hard drives into computers that store more than we ever believed at a
cost that seemed too good to be true. If we are going to keep our leads
in high-technology industries, we will need these materials for years
to come.
I wanted to indicate my support for the bill and express the
satisfaction I have in the contributions my Subcommittee made in
helping you and Mrs. Dahlkemper bring it before us today. Mrs.
Dahlkemper has been a very diligent member of the Investigations and
Oversight Subcommittee, and I am pleased to see her offering this bill
today.
Mr. Baird. If not, I ask unanimous consent that the bill is
considered as read and open to amendment at any point and that
the members proceed with the amendments in the order of the
roster.
Without objection, so ordered.
Mr. Baird. The first amendment on the roster is a manager's
amendment offered by the gentlelady from Pennsylvania, Mrs.
Dahlkemper. Are you ready to proceed with your amendment, Mrs.
Dahlkemper?
Mrs. Dahlkemper. Yes, Mr. Chairman. I have an amendment at
the desk.
Mr. Baird. The clerk will report the amendment.
The Clerk. Amendment number 051, amendment to H.R. 6160
offered by Mrs. Dahlkemper of Pennsylvania.
Mr. Baird. I ask unanimous consent to dispense with the
reading.
Without objection, so ordered.
I recognize the gentlelady for five minutes to explain the
amendment.
Mrs. Dahlkemper. Thank you, Mr. Chairman. There are three
parts to the manager's amendment. The first item removes the
word ``technical'' from Section 101(c)(2)(C), which requires
the Secretary of Energy to include in the program plan a
description of the factors to be used when evaluating
applications for loan guarantees.
Use of the phrase ``technical criteria'' could be read to
say that the DOE would predetermine very specific design
requirements in project applications, something the government
is not necessarily well qualified to do. Removing technical
leaves the intent of the subparagraph intact and the discretion
to the Secretary as to how detailed the criteria may be.
In the second part we are making our language on the types
of projects eligible for loan guarantees consistent with the
other loan guarantee authorizations in Title 17 of the Energy
Policy Act of 2005. With the amendment the Secretary must
evaluate loan guarantee applications against technologies in
place at the time the application is being considered, so that
the funds go only to projects making significant advances in
technology.
This change was recommended by my colleagues across the
aisle, and I am happy to include it here.
And the last section, I would like at this point yield to
my friend from Ohio, Mr. Wilson, to explain that portion.
Mr. Baird. The gentleman is recognized.
Mr. Wilson. Thank you. Thank you, Chairman Gordon and
Congresswoman Dahlkemper. Thank you for addressing a concern of
mine in this manager's amendment.
By including the word ``accessibility'' in Section 201--an
article in today's New York Times highlights the fragile supply
chain of rare earth materials. In response to Japan's
detainment of a fishing captain, China has halted all exports
of rare earth elements to Japan.
American firms rely heavily on both Japan and China to
supply the magnets and other materials needed for hybrid cars
and systems vital to our national defense. If Japan no longer
has access to rare earth materials--minerals, pardon me--from
China, America would be entirely reliant on China for materials
necessary to our country's security. I am pretty sure that this
is a situation we don't want to get into.
Even before this latest incident, export quotas, embargoes,
and policies limiting supplies only to firms willing to
establish their manufacturing operations nearby leave open the
possibility that there might be a large source of rare earth
materials unavailable to firms in the United States.
Mr. Chairman and Congresswoman Dahlkemper, thank you for
ensuring that this accessibility issue remains as an important
component in the future assessments of rare earth materials.
Thank you.
[The prepared statement of Mr. Wilson follows:]
Prepared Statement of Representative Charles A. Wilson
I would like to thank Chairman Gordon and Congresswoman Dahlkemper
for addressing a concern of mine in this manager's amendment by
including the world ``accessibility'' in Section 201.
An article in today's New York Times highlights the fragile supply
chain for rare earth materials. In response to Japan's detainment of a
fishing captain, there are reports that China has halted all exports of
rare earth elements to Japan. Furthermore, Arnold Magnetic
Technologies, a company that employs 93 of my constituents in Marietta,
Ohio has already brought to my attention serious access issues with
regard to rare earth elements.
American firms rely heavily on both Japan and China to supply the
magnets and other materials needed for hybrid cars and systems vital to
our national defense. If Japan no longer has access to rare earth
minerals from China, America would be entirely reliant on China for
materials necessary to our country's security. I am pretty sure that is
a situation we do not want to get into.
Even before this latest incident, export quotas, embargoes and
policies limiting supplies only to firms willing to establish their
manufacturing operations nearby leave open the possibility that there
might be a large source of rare earth minerals unavailable to firms in
the United States.
Chairman and Congresswoman Dahlkemper, thank you for ensuring that
the accessibility issue remains an important component in future
assessments of rare earth materials.
Mrs. Dahlkemper. I want to thank the gentleman for his
contribution to his amendment, very much needed, and I yield
back.
Mr. Baird. The gentlelady yields back.
Is there further discussion on the amendment?
If no, the vote occurs on the amendment. All in favor, say
aye. Those opposed, no. The ayes have it. The amendment is
agreed to.
The second amendment on the roster is an amendment offered
by the gentleman from Texas, Mr. Olson. Mr. Olson, are you
ready to proceed?
Mr. Olson. I am, Mr. Chairman.
Mr. Baird. The clerk will report the amendment.
The Clerk. Amendment number 321, amendment to H.R. 6160
offered by Mr. Olson of Texas.
Chairman Gordon. I ask unanimous consent to dispense with
the reading.
Without objection, so ordered.
I guess we will go ahead and recognize the gentleman for
five minutes to explain the amendment.
Mr. Olson. Thank you, Mr. Chairman. The goal of my
amendment is to provide us with the flexibility going forward
to the benefit of the American taxpayers. The bill before us
authorizes $70 million over five years for R&D-related
activities, including the establishment of a new Department of
Energy Research and Development Information Center.
The importance of such a center, to the bill's overarching
goal to stabilize the supplies of rare earth materials, is
debatable. As a general rule, we should try to avoid statutory
creation of such centers unless the need is clear and
compelling. Centers are expensive, typically costing $5 million
or more per year to implement, and once established they have a
tendency to exist in perpetuity. It is easier to kill a vampire
than a new Federal Government program.
In response for requests for stakeholders comments and
legislation, the U.S. Magnet Materials Association expressed
concern about the creation of such a center, specifically
stating, and I quote, ``The U.S. MMA questions whether the
center is an appropriate information clearinghouse.'' We have
also heard concerns that this responsibility already exists at
the USGS. The bill also includes specific language requiring
the center to host annual conferences costing up to $375,000
to, ``promote information sharing and encourage new
collaborative activities.''
With our growing debt the justification for Congress to
spend tax dollars on an information sharing conference is
highly questionable. The American people want us to stop the
unnecessary growth of government, and these concerns have
prompted me to offer this amendment, and I ask for its support.
Reserve the balance of my time.
[The prepared statement of Mr. Olson follows:]
Prepared Statement of Representative Pete Olson
Mr. Chairman, I have an amendment at the desk and ask
for its immediate consideration.
Thanks Mr. Chairman. The goal of my amendment is to
provide us with flexibility going forward to the benefit of the
American taxpayer.
The bill before us authorizes $70 million over five
years for R&D-related activities, including establishment of a
new Department of Energy ``Research and Development Information
Center.''
The need importance of such a center to the bill's
overarching goal to stabilize domestic supplies of rare earth
materials is debatable.
As a general rule, we should try to avoid statutory
creation of such centers unless the need is clear and
compelling.
Centers are expensive--typically costing $5 million
or more per year to implement. And once established they have a
tendency to exist in perpetuity. It's easier to kill a vampire
than a government program.
In response to a request for stakeholder comments on
the legislation, the U.S. Magnet Materials Association
expressed concern about the creation of such a Center,
specifically stating ``the USMMA questions whether the Center
is an appropriate information clearinghouse.''
We've also heard concerns that this responsibility
already exists at the USGS.
The bill also includes specific language requiring
the Center to host annual conferences costing up to $375,000 to
``promote information sharing and encourage new collaborative
activities.''
With our growing debt, the justification for Congress
to spend tax dollars on an ``information sharing'' conference
is highly questionable.
The American people want us to stop unnecessary
spending.
These concerns have prompted me to offer this
amendment and I ask for its support.
Chairman Gordon. Thank you, Mr. Olson. We will support the
bill, but I would ask that you would work with us as we go to
the Floor if there is any fine tuning on it to make sure that
it doesn't go beyond your intention.
Mr. Olson. Happy to do that, Mr. Chairman. Thank you.
Chairman Gordon. Thank you, Mr. Olson.
Is there further discussion on the amendment?
Mrs. Dahlkemper is recognized.
Mrs. Dahlkemper. In the interest of moving forward I agree
with accepting the amendment, but I did want to just make a few
points that I think this amendment preserves a few of the
proposed R&D Information Center functions and leaves behind
really greatly-reduced information gathering functions.
And the R&D Information Center was intended to gather
domestic and international scientific materials pertaining to
rare earth materials in the same location and assist the
stakeholders in actually using this information. This is also
to be a location where researchers could gather to exchange
information, ideas, whether at conferences or in the normal
course of their work and collaborate on projects. And I think
centralizing the information and providing a locus for live
information exchange on rare earth was intended to help
resuscitate the U.S. research activity in the field of rare
earth.
But as I said, I am glad to hear that the gentleman is
going to work on language, and I hope we can find some way to
assure that this happens as we go forward.
I yield back.
Chairman Gordon. Mr. Hall is recognized.
Mr. Hall. Mr. Chairman, I thank you. I support Mr. Olson's
amendment to strike the rare earth R&D Information Center
created in the bill for these reasons.
The need for a center to conduct this activity is not as
clear as it could be, especially since the U.S. Geological
Service has responsibility for collecting similar data on
research supply generally.
Further, centers tend to be very expensive as was pointed
out by Mr. Olson and are difficult to terminate once they are
created. Mr. Olson's amendment addresses this by eliminating
this center and allowing DOE the discretion to support
information-sharing activities as necessary. As necessary by--
determined, I guess, by the Geological Service.
I urge its passage, and I yield back my time.
Chairman Gordon. Thank you, Mr. Hall. Is there further
discussion on the amendment?
If there is no further--Governor Garamendi is recognized.
Mr. Garamendi. Probably in this case it would be Deputy
Secretary Garamendi at the Department of Interior where we
oversaw the U.S. Geological Survey.
The point of this bill is to focus America's attention and
resources on the rare earth issue, which is of profound
importance, as has been pointed out by the author. There is
nothing in this bill that provides direction, support, money,
or opportunity for the U.S. Geological Survey to further engage
in this process and to play its role as correctly stated a
moment ago. The U.S. Geological Survey is the place in the
Federal Government where the focus on these materials where the
geology and the materials could be found.
If we are going to strike this section for the reasons
given, we really ought to provide some direction in the
legislation to direct the USGS to get on with the task and to
focus their attention to these rare earth issues. It is not in
the bill presently. I would ask the author to consider that as
she moves the bill along for the purposes of providing
directions to the U.S. Geological Survey to engage with the
Department and to carry out its ruling specifically on this
function.
Thank you, Mr. Chairman.
Chairman Gordon. Thank you. I would quickly point out that
we don't have jurisdiction in that area. That would be
Resources. However, Mr. Olson has agreed, and we always can
count on him to fulfill that, too. We will try to work through
this to be sure that we get the best bill possible.
Is there further discussion?
If there is no further discussion, then all in favor of the
amendment, say aye. Opposed, say no. The ayes have it. The
amendment is agreed to.
And now I ask unanimous consent to try to--the Chairman
asks unanimous consent to clear up one of his many mistakes and
that is that I did not recognize the gentlelady from Illinois,
although I was told that you had wanted to be recognized. I
have a short memory span, and it was right outside of that, and
so I ask unanimous consent that the gentlelady be able to
submit a statement for the record on the last bill.
Without objection, so ordered.
The third amendment on the roster is the amendment offered
by the gentlelady from Texas, Ms. Johnson. Are you ready to
proceed with your amendment?
Ms. Johnson. Yes, Mr. Chairman. I have an amendment at the
desk.
Chairman Gordon. The clerk will report the amendment.
The Clerk. Amendment number 131, amendment to H.R. 6160
offered by Ms. Eddie Bernice Johnson of Texas.
Chairman Gordon. I ask unanimous consent to dispense with
the reading.
Without objection, so ordered.
I recognize the gentlelady for five minutes to explain the
amendment.
Ms. Johnson. Thank you, Mr. Chairman and Ranking Member
Hall, for considering my amendment. It amends Section 4 on page
five in order to highlight the importance of collaborating and
outreaching.
Historically black colleges and universities have helped
the minority-serving institutions, and this--I am not
submitting as an affront. I am doing this because we have such
a lack of diversity in our national science enterprise and
although the majority of African-Americans in college do not
attend HBCUs, HBCUs graduate the majority of African-Americans
with doctorates in science, technology, engineering, and math.
And these institutions have gotten it right for some
reason. I would like to see outreach to these universities. We
should utilize every mind in this great Nation and do what we
can as legislators to encourage all Americans to enter these
fields. In order for our country to maintain its leadership and
innovation we must identify and break down the barriers that
are holding our country back from maintaining our diverse
workforce.
In 2010, we could no longer afford to ignore the glaring
statistics showing women and minorities are being left behind
in STEM disciplines. I will continue to address what I know as
a serious problem. Working together I believe we can achieve
our common goal for diversity and equity in sciences.
Mr. Chairman and Mr. Hall, I appreciate your considering
this straightforward, common-sense amendment, and I encourage
my colleagues to support this amendment, and I yield back the
balance of my time.
Chairman Gordon. Mr. Hall is recognized.
Mr. Hall. Thank you, Mr. Chairman. Ms. Johnson, I thank you
for this. This amendment simply clarifies that minority-serving
institutions should be among those to be included in the DOE
efforts to expand participation opportunities at universities
under the bill.
I support it, and I thank Ms. Johnson for offering it and
her continued leadership on this particular issue.
Thank you. I yield back.
Chairman Gordon. Thank you, Mr. Hall, and I concur that
this is an excellent amendment.
If there is no further discussion on the amendment, then
the vote occurs on the amendment. All in favor, say aye.
Opposed, no. The ayes have it. The amendment is agreed to.
The fourth amendment on the roster is the amendment offered
by the gentleman from Georgia, Dr. Broun. Are you ready to
proceed with your amendment?
Mr. Broun. Yes, Mr. Chairman. Thank you very much, and I
have an amendment at the desk.
Chairman Gordon. The clerk will report the amendment.
The Clerk. Amendment number 316, amendment to H.R. 6160
offered by Mr. Broun of Georgia.
Chairman Gordon. I ask unanimous consent to dispense with
the reading.
Without objection, so ordered.
I recognize the gentleman for five minutes to explain the
amendment.
Mr. Broun. Thank you, Mr. Chairman. Before I address my
amendment, I just want to mention that while there may be
appropriate pieces of this legislation that could help develop
domestic research as we desperately need, if this bill were to
move forward, it also should be considered at the Natural
Resources Committee, which has jurisdiction over the mining
operations that would be eligible for loans under this bill
that the Chairman just mentioned a minute ago.
Secondly, I hope that the Committee is in communication
with Natural Resources and discussing legislation to assist the
streamlining of mine permits and identification of public
lands, which are ripe for mineral developments.
Further, this bill we are considering today also appears to
be duplicative of the efforts currently being developed by the
U.S. Geological Survey, underscoring the importance of
including the Natural Resources Committee in any discussions
impacting U.S. mining operations.
Now, back to my amendment. This amendment strikes Section
101(a)(6) which requires the Secretary of DOE to, ``coordinate
activities of mutual interest and avoid duplication of
effort,'' with the European Commission.
While it makes sense to consult with allies on areas of
mutual strategic interest, the underlying bill language is
focused only on Europe and appears to go beyond traditional
interactions. The term activities is undefined, and therefore,
could include anything from trade policy to tax and regulatory
issues.
Further, why should we only coordinate with Europe? Most
non-Chinese rare earth mining efforts are concentrated in
Australia and Canada, two of our best allies. They certainly
shouldn't be excluded from any international consultations.
Striking this section will not permit the Secretary from
seeking advice with any country or Federal agency that the
Secretary believes would be helpful in regarding rare earth
mining, processing, production, or development issues.
Lastly, avoiding duplication of efforts should never be a
foreign policy objective. The U.S. is, of course, a sovereign
Nation with our own interests. We should never avoid pursuing
an activity out of concern for, ``duplication of effort,'' with
another country.
I urge the Committee to support this amendment, to allow
the Secretary the flexibility to discuss rare earth mining
issues with any entity that the Secretary believes ought to be
consulted.
Thank you, Mr. Chairman. I encourage adoption of this
amendment. I yield back.
[The prepared statement of Mr. Broun follows:]
Prepared Statement of Representative Paul C. Broun
Thank you, Mr. Chairman. I have an amendment at the
desk.
Before I address my Amendment, I just want to mention
that while there may be appropriate pieces of this legislation
that could help develop domestic research, if this bill were to
move forward, it should also be considered in the Natural
Resources Committee which has jurisdiction over the mining
operations that would be eligible for loans under this bill.
Secondly, I hope that the Committee is in communication with
Natural Resources and discussing legislation to assist the
streamlining of mining permits and identification of public
lands which are ripe for mineral developments.
Further, this bill we are considering today also
appears to be duplicative of the efforts currently being
developed by the U.S. Geological Survey underscoring the
importance of including the Natural Resources Committee in any
discussions impacting U.S. mining operations.
Back to my amendment: This amendment strikes Section
101(a)(6) which requires the Secretary of DOE to ``coordinate
activities of mutual interest and avoid duplication of effort''
with the European Commission. While it makes sense to consult
with allies on areas of mutual strategic interest, the
underlying bill language is focused only on Europe and appears
to go beyond traditional interactions.
The term ``Activities'' is undefined, and therefore,
could include anything from trade policy to tax and regulatory
issues. Further, why should we only coordinate with Europe?
Most non-Chinese rare earth mining efforts are concentrated in
Australia and Canada--two of our best allies. They certainly
shouldn't be excluded from any international consultations.
Striking this Section will not prohibit the Secretary
from seeking advice with any country or Federal agency the
Secretary believes would be helpful regarding rare earth mining
processing, production, or development issues.
Lastly, ``avoiding duplication of effort'' should
never be a foreign policy objective. The U.S. is, of course, a
sovereign nation with its own interests. We should never avoid
pursuing an activity out of concern for ``duplication of
effort'' with another country.
I urge the Committee to support this amendment to
allow the Secretary the flexibility to discuss rare earth
mining issues with any entity the Secretary believes ought to
be consulted. Thank you, Mr. Chairman.
Chairman Gordon. Thank you, Dr. Broun, and let me concur in
the sense that I agree with you. This amendment is too narrow.
We should have further collaboration. I think it is to the
benefit of all countries that aren't the monopoly here to get
as much information on the table so that we can move forward.
However, I will oppose this particular amendment because it
would take out this particular collaboration but would be happy
to work with you as we go to the Floor to expand it to
additional countries and also to take out the mandatory aspect
of it.
Is there further discussion?
Mr. Hall.
Mr. Hall. I want to offer my support for Dr. Broun's
amendment. I think he raises some very important concerns with
the bill's international collaboration requirement,
particularly given that the ultimate goal of this bill is to
address rare earth supply issues in the United States.
Further, it is not clear why a collaboration with the
European Commission ought to be singled out over any other
country or why avoiding ``duplication of effort''
internationally is an appropriate goal. I thank Dr. Broun for
offering the amendment. I urge you to pass it.
I yield back, sir.
Chairman Gordon. Is there further discussion on the
amendment?
If there is no further discussion, then the vote is on the
amendment. All in favor, say aye. Opposed, no.
Mr. Broun. Mr. Chairman.
Chairman Gordon. The--Dr. Broun--first of all, Dr. Broun,
the Chairman is uncertain as to the--I assume you are asking
for a recorded vote, and the Chairman hasn't ruled yet, and I
am uncertain as to that vote. It was a light yes and a light
no, so for that reason you are recognized to--we will call for
a recorded vote, if that is what you would like.
Mr. Broun. Well, if we pass the amendment, I am not going
to ask for a recorded vote. So I would like the Chairman to
rule because I heard more ayes than nos. So----
Chairman Gordon. Well, I guess when in doubt, then the
amendment fails. So----
Mr. Broun. Yes, Mr. Chairman. I request a recorded vote.
Chairman Gordon. A recorded vote is called for. The clerk
will call the roll.
The Clerk. Chairman Gordon?
Chairman Gordon. No.
The Clerk. Chairman Gordon votes no.
Mr. Costello?
[No response.]
The Clerk. Ms. Johnson?
Ms. Johnson. Aye.
The Clerk. Ms. Johnson votes aye.
Ms. Woolsey?
[No response.]
The Clerk. Mr. Wu?
[No response.]
The Clerk. Mr. Baird?
Mr. Baird. No.
The Clerk. Mr. Baird votes no.
Mr. Miller?
[No response.]
The Clerk. Mr. Lipinski?
Mr. Lipinski. No.
The Clerk. Mr. Lipinski votes no.
Ms. Giffords?
[No response.]
The Clerk. Ms. Edwards?
[No response.]
The Clerk. Ms. Fudge?
[No response.]
The Clerk. Mr. Lujan?
[No response.]
The Clerk. Mr. Tonko?
Mr. Tonko. No.
The Clerk. Mr. Tonko votes no.
Mr. Rothman?
Mr. Rothman. No.
The Clerk. Mr. Rothman votes no.
Mr. Matheson?
Mr. Matheson. No.
The Clerk. Mr. Matheson votes no.
Mr. Davis?
[No response.]
The Clerk. Mr. Chandler?
[No response.]
The Clerk. Mr. Carnahan?
[No response.]
The Clerk. Mr. Hill?
[No response.]
The Clerk. Mr. Mitchell?
[No response.]
The Clerk. Mr. Wilson?
Mr. Wilson. No.
The Clerk. Mr. Wilson votes no.
Mrs. Dahlkemper?
Mrs. Dahlkemper. No.
The Clerk. Mrs. Dahlkemper votes no.
Mr. Grayson?
[No response.]
The Clerk. Mrs. Kosmas?
[No response.]
The Clerk. Mr. Peters?
[No response.]
The Clerk. Mr. Garamendi?
Mr. Garamendi. No.
The Clerk. Mr. Garamendi votes no.
Mr. Hall?
Mr. Hall. Aye.
The Clerk. Mr. Hall votes aye.
Mr. Sensenbrenner?
[No response.]
The Clerk. Mr. Lamar Smith?
[No response.]
The Clerk. Mr. Rohrabacher?
Mr. Rohrabacher. Yes.
The Clerk. Mr. Rohrabacher votes aye.
Mr. Bartlett?
[No response.]
The Clerk. Mr. Ehlers?
Mr. Ehlers. Aye.
The Clerk. Mr. Ehlers votes aye.
Mr. Lucas?
[No response.]
The Clerk. Mrs. Biggert?
Mrs. Biggert. Aye.
The Clerk. Mrs. Biggert votes aye.
Mr. Akin?
[No response.]
The Clerk. Mr. Neugebauer?
[No response.]
Mr. Inglis?
Mr. Inglis. Aye.
The Clerk. Mr. Inglis votes aye.
Mr. McCaul?
Mr. McCaul. Aye.
The Clerk. Mr. McCaul votes aye.
Mr. Diaz-Balart?
[No response.]
The Clerk. Mr. Adrian Smith?
Mr. Smith of Nebraska. Aye.
The Clerk. Mr. Adrian Smith votes aye.
Mr. Broun?
Mr. Broun. Aye.
The Clerk. Mr. Broun votes aye.
Mr. Olson?
Mr. Olson. Aye.
The Clerk. Mr. Olson votes aye.
Chairman Gordon. How is Mr. Bilbray recorded?
The Clerk. Mr. Bilbray is not recorded.
Chairman Gordon. Does anyone wish to change--Mr. Lujan is--
--
The Clerk. Mr. Lujan is not recorded.
Mr. Lujan. I vote no.
The Clerk. Mr. Lujan votes no.
Chairman Gordon. Does anyone wish to change a vote?
Ms. Johnson is recognized.
Ms. Johnson. Change my vote.
The Clerk. Ms. Johnson wants to change her vote from aye to
no.
Chairman Gordon. Mr. Wu is recognized.
The Clerk. Mr. Wu is not recorded.
Mr. Wu. No.
The Clerk. Mr. Wu votes no.
Chairman Gordon. How is Ms. Woolsey recorded?
The Clerk. Ms. Woolsey is not recorded.
Ms. Woolsey. No.
The Clerk. Ms. Woolsey votes no.
Chairman Gordon. Does anyone else wish to change a vote?
Anyone else that has not voted?
If not then--oh, excuse me.
How is Ms. Fudge recorded?
The Clerk. Ms. Fudge is not recorded.
Ms. Fudge. No.
The Clerk. Ms. Fudge votes no.
Chairman Gordon. And how is Mr.--has Mr. Tonko been
recorded?
The Clerk. Yes. Mr. Tonko voted no.
Chairman Gordon. Okay. Is there anyone else then that
wishes to be recorded?
Seeing no one else, then the clerk will report the vote.
The Clerk. Mr. Chairman, nine Members vote aye, and 14
Members vote no.
Chairman Gordon. The amendment is opposed, and the
amendment fails.
The fifth amendment on the roster is an amendment offered
by the gentleman from California, Governor Garamendi. Are you
ready to proceed with your amendment?
Mr. Garamendi. Maybe we just ought to say Mr. Garamendi and
forget the rest of it. But, thank you, Mr. Chairman.
Given the discussion that we had in the previous
amendment----
Chairman Gordon. Excuse me. The clerk will report the
amendment.
The Clerk. Amendment number 033, amendment to H.R. 6160
offered by Mr. Garamendi of California and Mr. Rohrabacher of
California.
Chairman Gordon. I ask unanimous consent to dispense with
the reading.
Without objection, so ordered.
I recognize the gentleman for five minutes to explain the
amendment.
Mr. Garamendi. The discussion on the previous amendment
highlights the necessity for, or the reality actually, of
international cooperation and agreements and discussions with
regard to rare earths. Part of that discussion will undoubtedly
take us to the conflict zones of the world, specifically
Africa.
I think the Members of the Committee are well aware of what
are known as ``blood diamonds.'' The next blood diamond issue
is already in existence, which is the rare earth issues. Often
rare earth mining and extraction in Africa is, in fact, similar
to the blood diamond issue where it is used to fund conflicts
and horrendous activities by warring parties.
This amendment was intended to get to that issue. Because
of the concerns that many Members of the Committee have about
the underlying issue of conflict zones and in this case rare
earth fueling those conflicts, we put forth this amendment.
However, there are Members of this Committee and others
that are concerned about the relationship of the United States
to international law and other international treaties and
organizations.
So Mr. Rohrabacher and I, while we remain very concerned
about the issue underlying--that is, of rare earth fueling
conflicts, we don't want to get into a debate about the role of
the United States with regard to international law and the
like.
I, therefore, yield to Mr. Rohrabacher on this issue, and I
am sure he will express his concern on the underlying issue as
well as concern on the international relations issues.
Mr. Rohrabacher. Thank you very much, and let me just thank
my colleague for the cooperation that we have had on this. We
both share some very deep concerns about some of the, we might
say, collateral damage of America's efforts to procure those
resources that we need to maintain our standard of living in
this country.
And the gentleman is right on target and correct when he
mentions and draws our attention to those incredible violations
of human rights that are going on in Africa and in the
procurement of a number of minerals. It is something that
Americans should not in any way be furthering by our actions
both as consumers and as legislators here in the United States.
Let me point out that we also have a problem as the
Chairman mentioned in his opening remarks where we have this
New York Times article in dispute trying to block rare earth
exports to Japan, where you have the world's worst human rights
abuser, China, threatening that one--the one shining light of
democracy in Asia, Japan, threatening to do them great harm
because they are now dependent, Japan has this type of
dependency as we do on China. We should not be dependent,
especially dependent on countries that are utilizing their
power in their country to suppress their own population. This
amendment makes sure that at the very least whether it is the
Communist Chinese or whether it is in Africa that we do not
procure rare earth minerals in a way that it undermines human
rights standards throughout the world and our own human rights
commitment here in the United States.
The gentleman and I will be working on specific language. I
am concerned about making sure that we do not subject American
citizens to what I consider to be somewhat questionable
authority, you know, accumulations that we have in the name of
international law, and just to be clear about that to my
friend, to my colleague, the reason why I am very concerned
about say international law is some of these very same
countries that are human rights violators, if we set up a
system of human--of international law, the tribunals within
decades could well be controlled by countries that are human
rights abusers.
And we don't need that. What we need to do is make sure
that our own country maintains its standards, and I am--I will
be working with the gentleman to come up with a specific
language that will meet the objective of making sure that we
are not procuring these rare earth minerals in a way that it
undermines the respect for human rights and the standards that
we hold dear.
And so I would thank my colleague and join him, and we will
be working out that language.
Mr. Garamendi. Mr. Chairman, I thank you for the
opportunity to raise this issue, and I thank my colleague from
California in joining me. I suspect there are other Members of
the Committee who share the concerns that we have expressed.
However, the amendment as written raises tangential issues
that make it difficult for this specific language to proceed. I
will, therefore, withdraw the amendment and work with the
author and the Committee and others to make it clear that in
the acquisition of these rare earths that we do not violate or
do not in any way create more havoc in very dangerous and
unfortunate parts of the world. There are ways that it can be
done. We are working on some language, simply don't have it
together yet.
I would also just--I am sure the Committee Members are
aware that there are international programs underway, many of
them voluntary in the United States, and many of the American
companies are participants in those programs acquire these
materials from those places where it does not create further
conflict, and they acquire materials in a way that does not
create further conflict.
We will work on it. It is an important issue to all of us,
and therefore, I withdraw the amendment.
Chairman Gordon. Thank you, Governor. With unanimous
consent the amendment is withdrawn.
And the sixth amendment on the roster is an amendment
offered by the gentleman from California, Comrade Rohrabacher.
Are you ready to proceed with your amendment?
Mr. Rohrabacher. Yes. Thank you.
Chairman Gordon. The clerk will report the amendment.
The Clerk. Amendment number 053, amendment to H.R. 6160
offered by Mr. Rohrabacher of California.
Chairman Gordon. I ask unanimous consent to dispense with
the reading.
Without objection, so ordered.
I recognize the gentleman for five minutes to explain his
amendment.
Mr. Rohrabacher. This amendment is, I guess, described as
the fiscal responsibility amendment. We have to note that the
Department of Energy has received billions of dollars more over
the years from its baseline of 2007, and we did spend--our
Congress now we realize that the budget deficits are now
running at a rate that is becoming, how do you say, dangerous
for our society. I don't see how we can--and I don't know
anybody that thinks that we can sustain the level of deficit
spending that--at the rates that we are doing in the Federal
Government.
So with that--when you face that challenge of bringing down
this massive level of deficit spending in the Federal
Government at the same time recognizing that we have increased
the budget by billions of dollars over the baseline of 2007,
from the Department of Energy.
Also, we realized that every research project, especially
in the Department of Energy, should not be considered something
that is ongoing no matter what. I mean, at some point research
projects should actually be--the doors should be closed and
new--a new project should be looked at. So this is, I mean,
after hopefully successful research, but even if it is
unsuccessful, at some point the line has got to be drawn saying
we spent enough money on this, we have got to in order to
balance the budget or in order to spend money on other things,
we have got to prioritize the spending and shut down certain
areas and build up other areas.
That is what this amendment does. It insists that we start
prioritizing and that the people at the Department of Energy
prioritize and that this then--make sure that this legislation
does not add to the overall debt that our country is facing and
make sure that this is within the current budget levels.
Thank you very much.
Chairman Gordon. Thank you, Mr. Rohrabacher.
I will recommend that this amendment be accepted, not
because this is not very important research that should be
done, but I concur with you that I think there are existing
resources within the Department to carry this out.
If there is no further discussion on the amendment, all in
favor, say aye. Opposed, no. The ayes have it. The amendment is
agreed to.
I will point out that we are going to have about five
amendments around quarter after, and so but now we move onto
the ninth amendment on the roster. Or--excuse me. Mr.
Rohrabacher, do you have any additional amendments?
Mr. Rohrabacher. I will be withdrawing the next two
amendments that I was planning to based on the fact that they
are no longer necessary due to the passage of the first
amendment.
Chairman Gordon. So we then will move to the ninth
amendment on the roster, which is an amendment offered by the
gentleman from California, Mr. Rohrabacher. Are you ready to
proceed with your amendment?
Mr. Rohrabacher. Yes, I am.
Chairman Gordon. The clerk will report the amendment.
The Clerk. Amendment number 314, amendment to H.R. 6160
offered by Mr. Rohrabacher of California and Mr. Garamendi of
California.
Chairman Gordon. I ask unanimous consent to dispense with
the reading.
Without objection, so ordered.
I recognize the gentleman for five minutes to explain the
amendment.
Mr. Rohrabacher. All right. Thank you very much, Mr.
Chairman.
This amendment requires that loan guarantee recipients,
when we are talking about these rare earth materials, that
people receiving loan guarantees based on trying to find an
answer to this challenge, that we make sure that that money is
going to be used for the development of domestic processing
capabilities in the United States rather than to financing
methods that will actually be used by foreign corporations
and--or by entities that are now processing materials that are
coming from overseas.
I mean, what are we trying to do here? Why are we concerned
about these rare materials in the first place is because it
makes us vulnerable. Well, why should we be providing loan
guarantees that do not meet that problem, which is our
vulnerability to other countries if, indeed, we are not--if we
are dependent upon them for these rare earth materials.
So my amendment simply, and Mr. Garamendi has joined me in
this, and we just insist that we use this to develop our own
domestic capabilities within the United States rather than
spending our money and focusing it on things that will be used
overseas.
And I yield to my friend, Mr. Garamendi.
Mr. Garamendi. Thank you, Mr. Rohrabacher. The continued
collaboration between Mr. Rohrabacher and myself is going to
lead to the destruction of both of our reputations.
However, even in politics the--astronomy prevails and
occasionally the sun, the moon, and the earth line up, and you
have an eclipse, or an ellipse as the case might be. In this
case policies are lining up. We are very concerned on our side
about the American domestic production, manufacturing, and
where it is headed.
In this case this amendment is very much in line with what
we have been talking about and that is make it in America, and
therefore, I find this amendment to be appropriate and
delighted to work with Mr. Rohrabacher on making it in America.
Thank you.
Mr. Hall. Mr. Chairman.
Chairman Gordon. Mr. Hall is recognized.
Mr. Hall. This amendment would address a concern that has
been raised by some of the competitors to Molycorp. That is a
mining company that is pursuing a loan guarantee with the
Department of Energy. Specifically the concern is that raw
materials could be mined and then sent over to China for
processing, which would undermine the goal of the program to
address U.S. supply concerns and in the process amount to a
taxpayer subsidy of exports to China.
This amendment would require DOE to ensure that recipients
of loan guarantees under the program did not do this.
It is a good amendment. I support it, urge its passage.
Yield back.
Chairman Gordon. Dr. Baird is recognized.
Mr. Baird. Mr. Chairman, thank you. I support the intent,
but I want to make sure I understand the implications of it. So
the intent I get. I think the premise is if we have got
domestic supply needs, we want to make sure that the material
is coming to our domestic consumers rather than getting
exported.
Mr. Rohrabacher. Correct.
Mr. Baird. I get that. As I read it, though, help me
understand something. It sounds like we may be saying in this
amendment that it is not just about exporting the needed
material per se but exporting the technologies that are used to
separate the material.
In other words, let us suppose a U.S.--and I may be reading
it wrong, but let us suppose a U.S. manufacturer or engineer
develops a technology for separating material, and they want to
sell that technology to other countries. Are we saying they
can't sell the technology? Is that an unintended--I may be
reading it wrong.
Mr. Rohrabacher. That is not in the bill.
Mr. Baird. Okay.
Chairman Gordon. I would suggest, Dr. Baird, that this may
be one more area that we will--might need further collaboration
as we move forward toward the Floor.
Mr. Baird. Okay. I really want to look at that. I mean, I
am not going to oppose it at this point, but I want us to be
very careful about that, because I don't want to inadvertently
penalize a U.S. manufacturer because it says unless the
project's proponent guarantees or provides to the Secretary an
assurance that the loan or guarantee shall be used to support
the separation, recovery, preparation, or manufacturing of rare
earth materials in the United States for customers within the
United States, if we export the technology to manufacture
something, that is actually a net job gain to us.
So, anyway, I would just urge you to work on that. I won't
call for opposing it now, but I think we want to be very
careful that we don't hamstring U.S. manufacturers or engineers
for exporting the technology for separation, but if you are
really trying to protect the material per se and adequacy here,
and I am not sure. At least we want to clarify that in some
report language.
So I will yield back but----
Mr. Rohrabacher. I--I don't know, maybe just to suggest
that the intent of this legislation is to make sure that what
money is coming out of the U.S. taxpayers to provide loan
guarantees, et cetera, are used for the benefit of the American
people. That doesn't necessarily preclude that a company that
receives this loan will also not be able to do other things.
Mr. Baird. If I may, I think the gentleman may want to, in
some way, classify that the issue is making sure that there is
adequate supply of the material, not necessarily to limit the
export of the technologies that extract or purify the material.
And maybe the gentlemen will want to do that, but I am not
sure. That is going to----
Mr. Rohrabacher. Well, we would certainly be willing and I
can talk for myself, but I am sure my colleague can speak for
himself in this, but that would be acceptable in a report
language to clarify that.
Mr. Garamendi. I agree.
Chairman Gordon. Thank you. Since we are all in agreement
then I assume there is no further discussion.
All in favor of the amendment, say aye. Opposed, no. The
ayes have it, the amendment is agreed to.
The next amendment, the tenth amendment on the roster is an
amendment offered by the gentleman from Georgia, Dr. Broun. Are
you ready to proceed with your amendment?
Mr. Broun. Yes, Mr. Chairman. We will try again.
Chairman Gordon. The clerk will report the amendment.
The Clerk. Amendment number 315, amendment to H.R. 6160
offered by Mr. Broun of Georgia.
Chairman Gordon. I ask unanimous consent to dispense with
the reading.
Without objection, so ordered.
I recognize the gentleman for five minutes to explain the
amendment.
Mr. Broun. Thank you, Mr. Chairman. This amendment ensures
that the DOE loan guarantees to the rare earth industry do not
interfere with or crowd out private sector activity.
Specifically, it limits funding for rare earth projects to
those categories that the private sector is not currently
undertaking or likely to undertake due to excessive technical
or financial uncertainty.
Given recent reports describing the expected future
increase in demand for rare earth mining and processing,
China's export restrictions triggering rare earths price
increases and aggressive movement of private capital in the
rare earth operations. Why are we looking to subsidize
activities already being pursued in the private marketplace?
For example, a recent rare earths investor newsletter
describing the, ``largest rare earths mine in the world
discovered in Nebraska,'' stated that, ``a source close to the
venture capital community said that capital would not be a
problem.''
Similarly, Australian mine developer Lynus recently raised
$450 million to recover rare earth materials, and earlier stage
exploration ventures are underway throughout Canada and the
United States. On August 3, 2010, Molycorp based in Greenwood,
Colorado, raised $380 million through an initial public
offering to support the reopening of its Mountain Pass,
California, rare earths mining operation. Its stock price has
nearly doubled since the IPO and its current market
capitalization is now over $1.8 billion.
The private domestic and international capital marketplace
appears willing to invest in rare earth operations. Unless the
Department of Defense asserts that it has a strategic need to
ensure a stable supply of rare earth materials, taxpayers
should not subsidize these private market activities.
I urge the Committee to support this amendment to prevent
interference of taxpayer-funded subsidies with a private
capital marketplace for rare earth operations.
Thank you, Mr. Chairman, and I yield back.
[The prepared statement of Mr. Broun follows:]
Prepared Statement of Representative Paul C. Broun
Thank you, Mr. Chairman. I have an amendment at the
desk.
This amendment ensures that the DOE loan guarantees
to the rare earths' industry do not interfere with or crowd out
private sector activity. Specifically, it limits funding for
rare earth projects to those categories that the private sector
is not currently undertaking or likely to undertake due to
excessive technical or financial uncertainty.
Given recent reports describing the expected future
increase in demand for rare earth mining and processing,
China's export restrictions triggering rare earth price
increases, and an aggressive movement of private capital into
rare earth operations, why are we looking to subsidize
activities already being pursued in the private marketplace?
For example, a recent rare earth investor newsletter
describing the ``Largest Rare Earth Mine in the World
Discovered in Nebraska'' stated that ``a source close to the
venture capital community said ``capital wouldn't be a
problem.'' Similarly, Australian mine developer Lynas recently
raised $450 million to recover rare earth materials, and
earlier-stage exploration ventures are underway throughout
Canada and the United States. On August 3rd, 2010, Molycorp,
based in Greenwood, Colorado, raised $380 million through an
initial public offering (IPO) to support the reopening of its
Mountain Pass, California rare earth mining operation. Its
stock price has nearly doubled since the IPO, and its market
capitalization is now over $1.8 billion. The private domestic
and international capital marketplace appears willing to invest
in rare earth operations.
Unless the Department of Defense asserts it has a
strategic need to ensure a stable supply of rare earth
materials, taxpayers should not subsidize these private market
activities.
I urge the Committee to support this amendment to
prevent interference of tax-payer funded subsidies with the
private capital marketplace for rare earth operations. Thank
you, Mr. Chairman.
Chairman Gordon. Thank you, Dr. Broun, and thank you for
your consistency.
Sincerely, I really think this is a different situation
here. This is a national security issue. We are dealing with a
monopoly. We saw what has already happened here. In terms of
the projects that are coming in, you know, that is
hypothetical. Since you are dealing with a monopoly, they have
the ability to, at a later date, flood the market with
additional rare earths, bankrupt this private sector, and then
jack them up again.
This really is, I think, a national security issue. This is
not a free market situation. We are dealing with, again, a
virtual monopoly, and I think that we, for national security
purposes, need to move forward and make available--potentially
there could be a more artfully drawn way to this, and we will
be happy to work with you, but the intent is there, and it is
important.
And I yield to----
Mr. Broun. Would you yield?
Chairman Gordon. --the gentleman from Georgia.
Mr. Broun. Well, I appreciate that. The purpose of this
amendment is not to discourage our letting these contracts out
and not to discourage the research and development. The thing
about it is that if the private sector is going to pursue this,
why should we be spending Federal taxpayer funds when the
private sector is doing it? And I certainly don't support the
monopoly, and it is not--there has been a monopoly, and
certainly I appreciate the importance of us making sure that
China is not the only source of rare earth.
But we have a big resource in Nebraska, Mr. Smith's state,
and the thing is why should we be just pouring money into the--
and giving grants to the private sector when the marketplace
right now will allow those private resources to come to play in
the market, and we shouldn't be spending taxpayers' funds. So
that is the reason for the amendment, and to the extent that a
potential supply gap does raise national security concerns,
that is a question for the Department of Defense and Armed
Services Committee to consider, and in fact, the Department of
Defense is studying this issue, and Armed Services Committee,
the House and Senate expect to hold hearings on this issue in
the next couple of weeks.
And so I encourage that this amendment is passed just to
protect taxpayers' funds and not to spend it on companies that
are going to spend the funds themselves through the private
sector.
I yield back. Thank you.
Chairman Gordon. Thank you. Once again, I will point out
these are only guarantees, and again, only guarantees if
necessary to bring the private sector in.
If there is no further discussion, then the vote is on the
amendment. All in favor of the amendment, say aye. Opposed, no.
No. The no's appear to have it. The amendment is not
successful, and----
Mr. Broun. Mr. Chairman.
Chairman Gordon. --the eleventh amendment--Dr. Broun, I
respect you, and we will do whatever you want, but we are going
to have five votes.
Mr. Broun. I was just going to say I count very well, so I
was not going to ask for a recorded vote.
Chairman Gordon. You would have gotten it if you wanted it.
Mr. Broun. But thank you. I appreciate that, and I am sure
that is--thank you, Mr. Chairman.
Chairman Gordon. Thank you. So you think my hearing is
improving?
Mr. Broun. Mr. Chairman, enjoy doing count, too.
Chairman Gordon. The eleventh and final amendment on the
roster is the amendment offered by the gentlelady from
Illinois, Mrs. Biggert.
Mrs. Biggert. Yes.
Chairman Gordon. Are you ready to proceed with your
amendment?
Mrs. Biggert. Mr. Chairman, I have an amendment at the
desk.
Chairman Gordon. The clerk will report the amendment.
The Clerk. Amendment number 322, amendment to H.R. 6160
offered by Mrs. Biggert of Illinois.
Chairman Gordon. I ask unanimous consent to dispense with
the reading.
Without objection, so ordered.
I recognize the gentlelady for five minutes to explain the
amendment.
Mrs. Biggert. Thank you, Mr. Chairman. My amendment moves
the loan guarantee timeline up three years to be what was to be
consistent with the five-year authorization. As I understand
with the adoption of that amendment there is no years on the
authorization.
But I think that for oversight it is only sensible to
sunset the loan guarantee program earlier than eight years it
would have been to match the authorization. But with so many
industries depending on these sensitive materials, we can't
begin to understand what the domestic landscape for rare earth
elements will look like in 2013, much less 2018.
So with--my amendment will have the oversight ability to
make adjustments in a timely fashion and with better
understanding of the industry needs since we are not able to
discover those needs through the normal committee process.
So I would urge approval of that, and I yield back.
Chairman Gordon. Thank you, Mrs. Biggert. As usual you add
a sensible note to this discussion, and I would recommend that
we accept your amendment.
Is there further discussion on the amendment?
If there is no further discussion, the vote occurs on the
amendment. All in favor, say aye. Opposed, no. The ayes have
it. The amendment is agreed to.
Are there other amendments?
If no, then the vote----
Mr. Baird. Mr. Chairman, I just----
Chairman Gordon. Oh. Dr. Baird is recognized.
Mr. Baird [continuing]. Can't resist saying that I just
want to celebrate the passage of this law. For those of you who
remember the group Rare Earth, that would make a lot of sense
but obviously no one else remembers.
Chairman Gordon. But for those of you with a good sense of
humor, it might not.
Mr. Rohrabacher. I think I was sitting behind Mr. Baird at
that concert.
Chairman Gordon. All right. Once again, are there further
amendments?
If no, then the vote occurs on the bill, H.R. 6160, as
amended. All those in favor, say aye. All opposed, no. The ayes
have it. In the opinion of the Chair the ayes have it. The bill
passes, and I recognize myself--or I recognize Mrs. Dahlkemper
to offer a motion.
Mrs. Dahlkemper. Thank you, Mr. Chairman. Thank you for
this opportunity today, to you and the Ranking Member. I think,
you know, the current problem with rare earths is that we have
had little attention for the last 20 years, and I am glad that
we are able to move ahead today.
And I move that the Committee favorably reports H.R. 6160
as amended to the House with a recommendation that the bill do
pass.
Furthermore, I move that staff be instructed to prepare the
legislative report and make necessary technical and conforming
changes and that the Chairman take all necessary steps to bring
the bill before the House for consideration.
Chairman Gordon. The question is on the motion to report
the bill favorably. Those in favor of the motion will signify
by saying aye. The ayes have it. The bill is favorably
reported.
Without objection, the motion to consider is laid upon the
table. Members will have two subsequent calendar days in which
to submit supplemental minority or additional views for the
measure, and I want to thank you today for--I think we have
passed two very good national security, economic security
bills.
Let me also point out that I think a new indoor record was
set in that we now, over the last four years, have passed 147
bills and resolutions from this committee in a bipartisan
manner. So I thank you all for your cooperation.
And I want to thank Members for their attendance, and this
concludes this markup.
[Whereupon, at 12:15 p.m., the Committee was adjourned.]
Appendix:
----------
H.R. 6160, Section-by-Section Analysis, Amendment Roster
Section-by-Section Analysis of
H.R. 6160, the Rare Earths and Critical
Materials Revitalization Act of 2010
The purpose of the Rare Earths and Critical Materials
Revitalization Act of 2010 is to develop a rare earth materials program
and to amend the National Materials and Minerals Policy, Research and
Development Act of 1980 (30 U.S.C. 1601 et seq.).
Section 1. Short Title; Table of Contents
Allows citation of the bill as the ``Rare Earths and Critical
Materials Revitalization Act of 2010'' and provides the legislation's
Table of Contents.
Sec. 2. Definitions
Defines the terms ``Appropriate Congressional Committees,''
``Center,'' ``Department,'' ``Rare Earth Materials,'' and ``Secretary''
as they are used in the bill.
TITLE I--RARE EARTH MATERIALS
Sec. 101. Rare Earth Materials Program
(a) ESTABLISHMENT OF PROGRAM.--
(1) IN GENERAL.--The Department of Energy is authorized to
conduct research, development, demonstration, and commercial
application activities that will restore a long-term, secure
and sustainable supply of rare earth materials to meet the
needs of the United States.
(2) ACTIVITIES.--The program is to conduct activities spanning
the entire production cycle for rare earth materials, to
include: carrying out theoretical geochemical research;
applying advanced methods for locating and recovering rare
earths; finding better technologies to enable rare earth
material production; understanding and improving the use of
rare earths in product designs; seeking substitutes for rare
earths; and conducting projects to reduce the use of rare earth
materials or recycle these from existing products.
(3) IMPROVED PROCESSES AND TECHNOLOGIES.--The program is to
seek new or significantly improved processes and technologies
for the rare earth materials industry.
(4) EXPANDING PARTICIPATION.--The Secretary is directed to
seek multidisciplinary collaborations among program
beneficiaries and to promote opportunities for students at
colleges and universities to contribute to these
collaborations.
(5) CONSISTENCY.--The program should be consistent with the
overall national materials research and development program
required by the National Materials and Minerals Policy,
Research and Development Act of 1980.
(6) INTERNATIONAL COLLABORATION.--The Secretary should seek to
collaborate with appropriate Directorates of the European
Commission to maximize benefits and avoid duplication of
projects.
(b) RESEARCH AND DEVELOPMENT INFORMATION CENTER.--
(1) IN GENERAL.--The Secretary will conduct a competition to
select a Center that will collect the results from the projects
conducted by the rare earths materials program.
(2) ACTIVITIES.--The Center is to serve as the repository for
the information generated by the research and development
projects supported by the program; the staff is to assist
scientists and engineers in using the Center's data while
seeking other information to enhance the value of the Center's
collection and to provide advice to the Secretary regarding the
program's research and development activities; and the Center
is to host conferences to promote collaboration and information
sharing on rare earths. No more than 2.5 percent of funds
appropriated for the rare earths materials program may be used
to fund such conferences.
(c) PLAN.--
(1) IN GENERAL.--Within six months of the date of enactment,
and every two years thereafter, the Secretary shall submit to
the House Committee on Science and Technology, the Senate
Committee on Commerce, Science and Transportation and the
Senate Committee on Energy and Natural Resources the plan
governing the rare earth materials program.
(2) SPECIFIC REQUIREMENTS.--The Secretary is required to
describe the following items in the plan: the research and
development activities expected during the next two years; how
these activities will lead to improved methods and technologies
in the domestic rare earth materials industry; how applications
for loan guarantees will be evaluated; any loan guarantees
outstanding and their current status; the program's efforts to
expand participation; and responses to recommendations from a
National Academy of Sciences assessment of the program after
its fourth year of operation.
(3) CONSULTATION.--The Secretary is directed to consult widely
with those knowledgeable about rare earths and associated
industry when preparing the program plan.
(d) ASSESSMENT.--The Secretary will contract with the National
Academy of Sciences to assess progress in the rare earth materials
program after four years and to make a recommendation to the Secretary
about the continued need for the program.
(e) AUTHORIZATION OF APPROPRIATIONS.--The program is authorized $70
million over a five-year period ($10 million in year one and $15
million in the following four years). These funds remain available
until expended. To cover the cost of conducting the assessment by the
National Academy of Sciences, $700,000 is authorized from these funds.
Sec. 102. Rare Earth Materials Loan Guarantee Program
(a) AMENDMENT.--Amends Title XVII of the Energy Policy Act of 2005,
which authorizes the Department of Energy to issue loan guarantees for
projects that ``avoid, reduce or sequester air pollutants or
anthropogenic emissions of greenhouse gases[,] and employ new or
significantly improved technologies as compared to commercial
technologies in service in the United States at the time the guarantee
is issued,'' to ensure that certain projects involving rare earth
materials are eligible for consideration. The following new section is
added to the Energy Policy Act of 2005:
``SEC. 1706. TEMPORARY PROGRAM FOR RARE EARTH MATERIALS REVITALIZATION
``(a) IN GENERAL.--Authorizes the Department of Energy to issue
loan guarantees for the commercial application of technologies that are
new or significantly improved compared to those currently in use in the
United States for projects involving the separation and recovery of
rare earth materials from ores and other sources; their preparation in
oxide, metal, alloy or other forms; or their application in improved
magnets, batteries, refrigeration and optical systems, electronics,
catalysis and other products and uses.
``(b) TIMELINESS.--The Secretary is directed to expedite approval
of loan guarantee applications insofar as the interests of taxpayers
remain protected.
``(c) COOPERATION.--The Secretary is to work with the private
sector toward the goal that facilities covering all phases of the
production of rare earth minerals, from mining to the manufacture of
finished products, be operating within five years the bill's signing.
``(d) SUNSET.--Loan guarantees under this program can be issued
only through September 30, 2018.''
(b) TABLE OF CONTENTS AMENDMENT.--Amends the table of contents for
the Energy Policy Act of 2005 by inserting an entry for the new Section
1706.
TITLE II--NATIONAL MATERIALS AND MINERALS POLICY, RESEARCH AND
DEVELOPMENT
Sec. 201. Amendments to National Materials and Minerals Policy,
Research and Development Act of 1980
(a) PROGRAM PLAN.--Amends Section 5 by replacing the original date
of enactment with the date of enactment of the current bill;
substituting the name of the National Science and Technology Council
for that of the defunct Federal Coordinating Council for Science,
Engineering and Technology; eliminating mandatory consultation with the
Federal Emergency Management Administration, the secretaries of
Interior and Defense, and the Director of the Central Intelligence
Agency by the Secretary of Commerce in regard to certain requirements
placed on the latter secretary to report to Congress; eliminating a
requirement that the Secretary of Commerce report to Congress within 3
months of enactment; eliminating certain duties assigned to the
secretaries of Interior and Defense; and makes conforming and
clarifying changes.
(b) POLICY.--Amends Section 3 by making clarifying changes.
(c) IMPLEMENTATION.--Amends Section 4 by making clarifying changes.
Sec. 202. Repeal
Repeals the National Critical Materials Act of 1984 (30 U.S.C.
1801; 98 Stat. 1248) because the council authorized under the Act no
longer exists.