[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8032 Introduced in House (IH)]
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117th CONGRESS
2d Session
H. R. 8032
To encourage the extraction and processing of rare earth metals in the
United States, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 13, 2022
Mr. Fitzpatrick (for himself and Mr. Gottheimer) introduced the
following bill; which was referred to the Committee on Armed Services,
and in addition to the Committees on Natural Resources, Ways and Means,
and Foreign Affairs, 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 encourage the extraction and processing of rare earth metals in the
United States, 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 ``Restoring Essential Energy and
Security Holdings Onshore for Rare Earths Act of 2022'' or the
``REEShore Act of 2022''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(A) the Committee on Armed Services, the Committee
on Foreign Relations, the Committee on Finance, and the
Select Committee on Intelligence of the Senate; and
(B) the Committee on Armed Services, the Committee
on Foreign Affairs, the Committee on Ways and Means,
and the Permanent Select Committee on Intelligence of
the House of Representatives.
(2) Processed or refined.--The term ``processed or
refined'' means any process by which raw rare earth metals are
changed, mixed, or otherwise manipulated to render the metal
usable for manufacturing everyday items, including computer
chips or circuit boards.
(3) Rare earth metals.--The term ``rare earth metals''
means beryllium, cerium, cobalt, dysprosium, erbium, europium,
gadolinium, graphite, holmium, lanthanum, lithium, lutetium,
manganese, neodymium, praseodymium, promethium, samarium,
scandium, tantalum, terbium, thulium, tungsten, ytterbium, and
yttrium.
SEC. 3. ESTABLISHMENT OF STRATEGIC RARE EARTH METAL AND RARE EARTH
METAL PRODUCTS RESERVE.
(a) Findings.--Congress finds that the storage of substantial
quantities of rare earth metals and rare earth metal products will--
(1) diminish the vulnerability of the United States to the
effects of a severe supply chain interruption; and
(2) provide limited protection from the short-term
consequences of an interruption in supplies of rare earth metal
products, particularly such products required for defense
manufacturing and use.
(b) Statement of Policy.--It is the policy of the United States to
provide for the establishment of a strategic rare earth metals and rare
earth metal products reserve.
(c) Report Required.--
(1) In general.--Not later than 270 days after the date of
the enactment of this Act, the Secretary of the Interior and
the Secretary of Defense shall jointly submit the appropriate
congressional committees a report describing--
(A) the strategic requirements of the United States
regarding stockpiles of rare earth metals and processed
and refined rare earth metal products; and
(B) the requirements for such metals and products
to support the United States for one year in the event
of a supply disruption.
(2) Considerations.--In developing the report required by
paragraph (1), the Secretary of the Interior and the Secretary
of Defense shall take into consideration the needs of the Armed
Forces of the United States, the defense industrial and
technology sectors, and any places, organizations, physical
infrastructure, or digital infrastructure designated as
critical to the national security of the United States.
(d) Implementation.--Not later than 3 years after submission of the
report required by subsection (c), the Secretary of the Interior shall
take such actions as are necessary to procure all types of rare earth
metals and processed and refined rare earth metal products in
appropriate quantities to support the strategic requirements described
in the report.
(e) Reassessment of Requirements.--The Secretary of the Interior
and the Secretary of Defense shall--
(1) jointly reassess the strategic requirements described
in paragraph (1) of subsection (c) and the considerations
described in paragraph (2) of that subsection; and
(2) not less frequently than annually, submit to the
appropriate congressional committees a report on--
(A) that reassessment; and
(B) describing any activities relating to the
establishment or use of a strategic rare earth metals
and rare earth metal products reserve during the
preceding year.
SEC. 4. DISCLOSURES CONCERNING RARE EARTH METALS BY CONTRACTORS OF
DEPARTMENT OF DEFENSE.
(a) Requirement.--The Secretary of Defense shall require that any
contractor that provides to the Department of Defense a system with a
rare earth metal permanent magnet disclose, along with delivery of the
system, the provenance of the magnet.
(b) Elements.--A disclosure under subsection (a) shall include an
identification of the country or countries in which--
(1) the rare earth metals used in the magnet were mined;
(2) the rare earth metals were refined into oxides;
(3) the rare earth metals were made into metals and alloys;
and
(4) the magnet was sintered or bonded and magnetized.
(c) Implementation of Supply Chain Tracking System.--If a
contractor cannot make the disclosure required by subsection (a) with
respect to a magnet, the Secretary shall require the contractor to
establish and implement a supply chain tracking system in order to make
the disclosure not later than 180 days after providing the magnet to
the Department of Defense.
(d) Report Required.--Not later than December 31, 2022, and
annually thereafter, the Secretary of Defense, after consultation with
the Secretary of Commerce and the Secretary of the Interior, shall
submit to the appropriate congressional committees a report that
includes--
(1) a summary of the disclosures made under this section;
(2) an assessment of the extent of reliance by the United
States on foreign countries, and especially countries that are
not allies of the United States, for rare earth metals;
(3) a determination with respect to which systems are of
the greatest concern for interruptions of rare earth metal
supply chains; and
(4) any suggestions for legislation or funding that would
mitigate supply chain security gaps.
SEC. 5. RESTRICTION ON USE OF CHINESE-MADE RARE EARTH METALS IN
MILITARY TECHNOLOGIES.
(a) In General.--The Secretary of Defense shall require that, for
any contract entered into or renewed on or after December 31, 2026, for
the procurement of a system the export of which is restricted or
controlled under the Arms Export Control Act (22 U.S.C. 2751 et seq.),
no rare earth metals processed or refined in the People's Republic of
China may be included in the system.
(b) Waiver.--The Secretary may waive the restriction under
subsection (a) upon a determination that--
(1) rare earth metals of sufficient quantity and quality
are not available at reasonable prices from sources outside of
the People's Republic of China; and
(2) such a waiver is in the interests of national security.
SEC. 6. COMPLIANCE WITH CONTRACTING REQUIREMENTS.
(a) In General.--Not later than September 30, 2022, and every 2
years thereafter, the Comptroller General of the United States shall
audit the extent of compliance or noncompliance with the requirements
of sections 4 and 5 of this Act, and section 2533c of title 10, United
States Code, through a random sampling of contracts entered into by the
Department of Defense during the 2-year period preceding the audit.
(b) Report Required.--Not later than 30 days after the completion
of an audit under subsection (a), the Comptroller General shall submit
to the appropriate congressional committees an assessment of--
(1) the inclusion by the Department of Defense of necessary
contracting clauses in relevant contracts; and
(2) compliance by contractors of the Department with
sections 4 and 5 of this Act and section 2533c of title 10,
United States Code.
(c) Referral.--The Comptroller General shall provide the Department
of Justice with the resources and authorities needed for any
enforcement actions against entities that have failed to comply with
the requirements of section 4 or 5 of this Act or section 2533c of
title 10, United States Code.
SEC. 7. INVESTIGATION OF UNFAIR TRADE PRACTICES.
(a) In General.--Not later than 90 days after the date of the
enactment of this Act, the United States Trade Representative, in
coordination with the Secretary of Commerce, shall initiate an
investigation under title III of the Trade Act of 1974 (19 U.S.C. 2411
et seq.) to determine whether acts, policies, and practices of the
Government of the People's Republic of China related to technology
transfer, intellectual property, or innovation with respect to rare
earth metal mining, separation, metallization, alloying, or magnet
manufacturing, or related processes, are acts, policies, and practices
described in subsection (a) or (b) of section 301 of that Act (19
U.S.C. 2411).
(b) Report Required.--
(1) In general.--Not later than 180 days after initiating
the investigation required by subsection (a), the Trade
Representative shall submit to the appropriate congressional
committees a report assessing the necessity of trade
enforcement actions to deter the Government of the People's
Republic of China from further interference in the rare earth
metals market.
(2) Elements.--The report required by paragraph (1) shall
include--
(A) a summary of actions taken by the Government of
the People's Republic of China to disrupt supply chains
for rare earth metals;
(B) a summary of the world market for rare earth
metals at each stage of the supply chain, including the
ability of producers in the United States and countries
that are allies of the United States to meet the
national security and commercial needs of the United
States;
(C) determinations with respect to whether further
action under title III of the Trade Act of 1974 (19
U.S.C. 2411 et seq.), section 232 of the Trade
Expansion Act of 1962 (19 U.S.C. 1862), or any other
provision of law is necessary to deter the Government
of the People's Republic of China from further
interference in the rare earth metals market; and
(D) recommendations for such other authorities as
the Secretary considers necessary to deter the
Government of the People's Republic of China from
further interference in the rare earth metals market.
SEC. 8. PRODUCTION IN AND USES OF RARE EARTH METALS BY UNITED STATES
ALLIES.
(a) Policy.--It shall be the policy of the United States to
encourage countries that are allies of the United States to eliminate
their dependence on non-allied countries for rare earth metals to the
maximum extent practicable.
(b) Report Required.--Not later than December 31, 2022, and
annually thereafter, the Secretary of Defense, in coordination with the
Secretary of State, shall submit to the appropriate congressional
committees a report--
(1) describing in detail the discussions of such
Secretaries with countries that are allies of the United States
concerning supply chain security for rare earth metals;
(2) assessing the likelihood of those countries
discontinuing the use of rare earth metals from the People's
Republic of China or other countries that such Secretaries deem
to be of concern; and
(3) assessing initiatives in other countries to increase
rare earth metals production capabilities.
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