[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4410 Introduced in House (IH)]
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116th CONGRESS
1st Session
H. R. 4410
To provide for the establishment of the Thorium-Bearing Rare Earth
Refinery Cooperative, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 19, 2019
Mr. Tipton (for himself, Mr. Gosar, Mr. Smith of Missouri, Mr. Stewart,
Mr. McKinley, and Mr. Yoho) introduced the following bill; which was
referred to the Committee on Armed Services, and in addition to the
Committee on Energy and Commerce, for a period to be subsequently
determined by the Speaker, in each case for consideration of such
provisions as fall within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To provide for the establishment of the Thorium-Bearing Rare Earth
Refinery Cooperative, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Rare Earth Cooperative 21st Century
Manufacturing Act'' or the ``RE-Coop 21st Century Manufacturing Act''.
SEC. 2. FINDINGS; STATEMENT OF POLICY.
(a) Findings.--Congress finds the following:
(1) Rare earth elements are critical for advanced energy
technologies, national defense, and other commercial and
industrial applications.
(2) The People's Republic of China (referred to in this
subsection as ``China'') has leveraged its monopoly control
over the rare earth value chain to force corporations from the
United States, Europe, Japan, and South Korea to transfer
manufacturing facilities, technology, and jobs to China in
exchange for secure supply contracts.
(3) The increasingly aggressive mercantile behavior of
China has led to involuntary transfers of technology,
manufacturing, and jobs, which has resulted in onerous trade
imbalances with the United States and trading partners of the
United States.
(4) The Comptroller General of the United States has
confirmed that the monopoly control of China over the rare
earth value chain has resulted in vulnerabilities in the
procurement of multiple United States weapons systems.
(5) Direct links exist between rare earth mineralogy and
thorium.
(6) Thorium is a radioactive element commonly associated
with the lanthanide elements in most rare earth deposits
located in the United States and elsewhere.
(7) Regulations regarding thorium represent a barrier to
the development of a rare earth industry that is based in the
United States.
(8) Meeting the strategic national interest objectives of
the United States and economic and environmental goals are best
achieved through the creation of a rare earth cooperative.
(9) A rare earth cooperative could--
(A) greatly increase the production of rare earth
elements;
(B) ensure environmental safety; and
(C) lower the cost of the production and financial
risks faced by rare earth producers in the United
States.
(10) Historically, agricultural and electric cooperatives
have stood as one of the greatest success stories of the United
States.
(b) Statement of Policy.--It is the policy of the United States to
advance domestic refining of rare earth elements and the safe storage
of thorium in anticipation of the potential future industrial uses of
thorium, including energy, because--
(1) thorium has a mineralogical association with valuable
rare earth elements;
(2) there is a great need to develop domestic refining
capacity to process domestic rare earth element deposits; and
(3) the economy of the United States would benefit from the
rapid development and control of intellectual property relating
to the commercial development of technology utilizing thorium.
SEC. 3. DEFINITIONS.
In this Act:
(1) Actinide.--The term ``actinide'' means a natural
element associated with any of the series of 15 metallic
elements between actinium, with atomic number 89, and
lawrencium, with atomic number 103, on the periodic table.
(2) Cooperative.--The term ``Cooperative'' means the
Thorium-Bearing Rare Earth Refinery Cooperative established
under section 4(a).
(3) Corporation.--The term ``Corporation'' means the
Thorium Storage, Energy, and Industrial Products Corporation
established under section 5(a).
(4) National laboratory.--The term ``National Laboratory''
has the meaning given the term in section 2 of the Energy
Policy Act of 2005 (42 U.S.C. 15801).
(5) Rare earth element.--The term ``rare earth element''
means a natural element associated with--
(A) the metallic element scandium, with atomic
number 21, or yttrium, with atomic number 39;
(B) any of the series of 15 metallic elements
between lanthanum, with atomic number 57, and lutetium,
with atomic number 71, on the periodic table; or
(C) any of the series of 15 metallic elements
between actinium, with atomic number 89, and
lawrencium, with atomic number 103, on the periodic
table.
SEC. 4. RARE EARTH REFINERY COOPERATIVE.
(a) Establishment.--Not later than 60 days after the date of
enactment of this Act, the Secretary of Commerce shall coordinate with
any relevant Federal agencies to procure the issuance of a Federal
charter for a privately funded, privately operated, and privately
managed cooperative with respect to rare earth elements, which--
(1) shall--
(A) be known as the Thorium-Bearing Rare Earth
Refinery Cooperative;
(B) coordinate the establishment of a fully
integrated United States value chain with respect to
rare earth elements to serve the national security
needs of the United States and the needs of industry in
the United States; and
(C) produce products that use rare earth elements,
including metal powders (such as rare earth oxides and
rare earth salts, including chlorides and nitrates),
metals containing rare earth elements, alloys, magnets,
and other value-added products using rare earth
elements, as required by--
(i) the owners of, and investors in, the
Cooperative; and
(ii) the defense industry of the United
States; and
(2) may--
(A) accept domestic and international investment
from--
(i) commercial or industrial users of
products containing rare earth elements,
including trade groups or associations formed
to act on behalf of the defense industry or
other end-users of those products; or
(ii) any of the resource suppliers of the
Cooperative;
(B) accept investment or funding from foreign
governments, State agencies, or State-sponsored
entities, including universities or research
institutions, subject to the approval of the Committee
on Foreign Investment in the United States established
under section 721(k) of the Defense Production Act of
1950 (50 U.S.C. 4565(k));
(C) distribute finished goods and profits in
proportion to investment;
(D) on behalf of the owners of the Cooperative,
sell surplus finished goods on the open market; and
(E) accept and process rare earth resources, or
other critical minerals, with elevated levels of
thorium or uranium that are--
(i) mined in the United States;
(ii) from any domestic waste product, co-
product, or byproduct of some other mined
commodity; or
(iii) produced by any foreign supplier that
has invested in the Cooperative.
(b) Securing Rare Earths.--The following materials shall be
considered to be an unrefined and unprocessed ore, as defined in
section 40.4 of title 10, Code of Federal Regulations, or any successor
regulation:
(1) Any material accepted by the Cooperative under
subsection (a)(2)(E).
(2) A thorium bearing rare earth ore that is--
(A) a byproduct or coproduct of another mined
commodity; and
(B) sold and shipped under a supply agreement with
the Cooperative.
(c) Producers of Rare Earths.--A producer that acts under a supply
contract with the Cooperative may, under the rules for unrefined and
unprocessed ore under part 40 of title 10, Code of Federal Regulations,
process, manage, and transport any material with respect to which the
contract applies.
(d) Liability.--Notwithstanding any other provision of law or
regulation--
(1) the Federal Government shall not be liable for any
activities of the Cooperative under this section; and
(2) the Cooperative shall establish and secure sufficient
financial surety bonding and other insurance, consistent with
private industry standards.
SEC. 5. THORIUM STORAGE, ENERGY, AND INDUSTRIAL PRODUCTS CORPORATION.
(a) Establishment.--Not later than 60 days after the date of
enactment of this Act, the Secretary of Energy shall coordinate with
relevant Federal agencies to procure the issuance of a Federal charter
for a privately funded and privately operated corporation, which--
(1) shall be known as the Thorium Storage, Energy, and
Industrial Products Corporation; and
(2) in accordance with all applicable laws, regulations,
and rules, shall--
(A) on a preprocessing basis, assume liability for
and ownership of all thorium and mineralogically
associated or related actinides and decay products
contained within the rare earth element ores utilized
by the Cooperative;
(B) take physical possession and safely store all
thorium-containing actinide byproducts, with the costs
of the storage to be paid by the Cooperative; and
(C) manage the sale of all valuable actinide and
decay products, utilizing the proceeds for the
development of commercial uses and market for thorium,
including energy.
(b) Thorium Storage.--The Corporation shall establish not less than
1 facility, each of which shall--
(1) be known as a ``Thorium Bank'';
(2) provide safe and long-term storage for all thorium
produced as a byproduct in the production of rare earth
elements for the Cooperative; and
(3) hold and maintain financial surety bonding and
insurance consistent with private industry standards.
(c) Industrial Products.--The Corporation may establish not less
than 1 division, each of which shall be known as an ``Industrial
Products Corporation'', for the certification, licensing, insuring, and
commercial development of all nonenergy uses for thorium (including
thorium isotopes and thorium daughter elements), including alloys,
catalysts, medical isotopes, and other products.
(d) Energy Applications.--The Corporation may establish not less
than 1 energy products, energy systems, or energy applications division
for the certification, licensing, insuring, commercial development,
deployment, lease, and licensing of such products and services,
including--
(1) developing intellectual property;
(2) acquiring technology;
(3) developing, manufacturing, operating, or leasing
commercial thorium energy systems; and
(4) developing, manufacturing, operating, or leasing
related thermal processing systems.
(e) International Partnerships.--
(1) In general.--The Corporation may sell or distribute
equity and establish partnerships with the United States.
(2) Foreign investors.--Any foreign investor in the
Corporation shall make a voluntary filing with the Committee on
Foreign Investment in the United States established under
section 721(k) of the Defense Production Act of 1950 (50 U.S.C.
4565(k)).
(f) Liability.--Notwithstanding any other provision of law or
regulation--
(1) the Federal Government shall not be liable for any
activities of the Corporation under this section; and
(2) the Corporation shall establish and secure sufficient
financial surety bonding and other insurance, consistent with
private industry standards, for the management and storage of
radioactive materials and other waste and hazards.
SEC. 6. FEDERAL SUPPORT.
(a) Meetings With Relevant Parties.--The Secretary of Commerce and
the Secretary of Defense shall provide initial assistance to the
Cooperative, and the Secretary of Energy and the Secretary of Defense
shall provide initial assistance to the Corporation, by establishing
peer-to-peer meetings with allies of the United States in the North
Atlantic Treaty Organization, other allied foreign governments, Federal
and State agencies, science and technology research institutions, and
commercial users and consumers of rare earth elements and energy.
(b) Eligibility for Certain Support.--
(1) Grant and loan programs.--The Cooperative and the
Corporation may apply for funding assistance provided by any
relevant grant or loan program carried out by the Department of
Energy, the Department of Defense, or the Department of
Commerce, including, with respect to the Corporation--
(A) the Small Modular Reactor Licensing Technical
Support Program of the Department of Energy; and
(B) any program of the Office of Advanced Reactor
Technologies of the Department of Energy.
(2) Technical and data support to the corporation.--The
National Laboratories shall provide technical and data support
to the Corporation on parity with transfers made before the
date of enactment of this Act by the National Laboratories to
the Chinese Academy of Sciences and any other foreign agent or
entity.
(c) Department of Energy Policy.--The Secretary of Energy shall
adopt and execute a policy that promotes the United States, acting in
conjunction with the Corporation, as a global leader in thorium energy
systems.
SEC. 7. APPOINTMENT OF INITIAL OFFICERS.
(a) In General.--The Secretary of Commerce and the Secretary of
Energy shall jointly appoint 2 citizens of the United States--
(1) neither of whom may be an employee of, consultant to,
advisor to, or affiliate of the United States Government; and
(2) who shall act as the initial officers and Board of
Directors of both the Cooperative and the Corporation.
(b) Qualifications.--The 2 individuals appointed under subsection
(a) shall each have expertise in, and a history of promoting--
(1) the development of a platform--
(A) that is based in the United States;
(B) that is funded using multinational sources; and
(C) the purpose of which is the development of a
fully integrated rare earth value chain; and
(2) the commercial development of uses and markets for
thorium, including energy.
(c) Responsibilities.--The individuals appointed under subsection
(a) shall work with the Secretary of Commerce to develop corporate
bylaws and terms of governance for the Cooperative, and with the
Secretary of Energy to develop those bylaws and terms for the
Corporation, which shall be set forth in a Memorandum of Understanding
for each such entity that outlines specific obligations, commitments,
limitations on sources of international investment, and goals that are
specific to the national interests of the United States.
(d) Duration of Service.--The individuals appointed under
subsection (a) shall continue to serve in those roles for as long as
provided under the terms of governance developed under subsection (c).
SEC. 8. OTHER PROVISIONS.
(a) Annual Audits.--The Cooperative and the Corporation shall, on
the date that is 180 days after the date on which each such entity is
established, and annually thereafter, submit to the Secretary of
Commerce, the Secretary of Energy, and the Secretary of Defense an
audited report, which shall--
(1) be conducted by an outside auditing firm; and
(2) for the period covered by the report, evaluate the
progress and success of the Cooperative and the Corporation in
meeting all targets and objectives established by the
Secretary, in consultation with the heads of other relevant
Federal agencies.
(b) Authority of the Secretary of Defense.--The Secretary of
Defense may monitor the output of the Cooperative and the Corporation
with respect to the national security objectives set forth in the
Memorandum of Understanding required for each entity under section
7(c).
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