[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8272 Introduced in House (IH)]
<DOC>
117th CONGRESS
2d Session
H. R. 8272
To encourage the extraction and processing of rare earth elements and
critical minerals in the United States, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 1, 2022
Ms. Slotkin (for herself and Mr. Waltz) introduced the following bill;
which was referred to the Committee on Armed Services, and in addition
to the Committee on Financial Services, 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 elements and
critical minerals 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 and the
Committee on Energy and Natural Resources of the
Senate; and
(B) the Committee on Armed Services and the
Committee on Energy and Commerce of the House of
Representatives.
(2) Covered critical mineral.--The term ``covered critical
mineral'' means--
(A) antimony;
(B) beryllium;
(C) cobalt;
(D) graphite;
(E) lithium;
(F) manganese;
(G) nickel;
(H) tantalum;
(I) tungsten; or
(J) vanadium.
(3) Rare earth element.--The term ``rare earth element''
means--
(A) cerium;
(B) dysprosium;
(C) erbium;
(D) europium;
(E) gadolinium;
(F) holmium;
(G) lanthanum;
(H) lutetium;
(I) neodymium;
(J) praseodymium;
(K) promethium;
(L) samarium;
(M) scandium;
(N) terbium;
(O) thulium;
(P) ytterbium; or
(Q) yttrium.
(4) Rare earth or covered critical mineral product.--The
term ``rare earth or covered critical mineral product'' means a
finished, semi-finished, or other intermediate good or
component, including a battery or permanent magnet, that
contains a rare earth element or covered critical mineral.
SEC. 3. EXPANSION OF NATIONAL DEFENSE STOCKPILE REQUIREMENTS AND
CAPACITY RELATING TO RARE EARTH ELEMENTS AND COVERED
CRITICAL MINERALS.
(a) Findings.--Congress finds that increasing the storage of
substantial quantities of rare earth elements, covered critical
minerals, and rare earth or covered critical mineral products in the
National Defense Stockpile will--
(1) diminish the vulnerability of the United States to the
effects of severe disruptions to the supply chains for such
elements, minerals, and products; and
(2) provide limited protection from the consequences of an
interruption in supplies of such elements, minerals, and
products, particularly such elements, minerals, and products
required to meet the needs of the Armed Forces and the defense
industrial and technology sectors.
(b) Statement of Policy.--It is the policy of the United States to
expand and maintain a strategic reserve of rare earth elements, covered
critical minerals, and rare earth or covered critical mineral products.
(c) Declaration of Purposes.--Section 2 of the Strategic and
Critical Materials Stock Piling Act (50 U.S.C. 98a) is amended by
adding at the end the following:
``(d) The quantities of rare earth elements, covered critical
minerals, and rare earth or covered critical mineral products
stockpiled under this Act should be sufficient to sustain the United
States Armed Forces and the defense industrial and technology sectors
of the United States for a period of not less than 3 years during a
national emergency situation that would necessitate total mobilization
of the economy of the United States for a sustained conventional global
war of indefinite duration.''.
(d) National Emergency Planning Assumptions for Rare Earth Elements
and Covered Critical Minerals.--Section 14 of the Strategic and
Critical Materials Stock Piling Act (50 U.S.C. 98h-5) is amended--
(1) in subsection (b), in the second sentence, by striking
``The Secretary shall base'' and inserting ``Except as provided
in subsection (c), the Secretary shall base'';
(2) by redesignating subsections (c), (d), and (e) as
subsections (d), (e), and (f), respectively; and
(3) by inserting after subsection (b) the following:
``(c) The Secretary shall base the Secretary's recommendations
under subsection (a)(1) with respect to stockpile requirements for rare
earth elements, covered critical minerals, and rare earth or covered
critical mineral products on a national emergency situation that would
last for a period of not less than 3 years and necessitate total
mobilization of the economy of the United States for a sustained
conventional global war of indefinite duration.''.
(e) Limited Acquisition Authority.--The Strategic and Critical
Materials Stock Piling Act (50 U.S.C. 98 et seq.) is amended--
(1) in section 3(c)(2) (50 U.S.C. 98b(c)(2)), by striking
``The President'' and inserting ``In the case of acquisitions
of materials the cost of which exceeds the amount specified in
section 5(a)(3), the President'';
(2) in section 5(a) (50 U.S.C. 98d(a))--
(A) in paragraph (1), in the first sentence, by
inserting ``under the authority of paragraph (3) or''
after ``Except for acquisitions made''; and
(B) by adding at the end the following:
``(3) The Secretary of Defense may acquire materials determined to
be strategic and critical under section 3(a), including rare earth
elements, covered critical minerals, and rare earth or covered critical
mineral products, without regard to the requirement of the first
sentence of subsection (a) if the cost of the materials does not exceed
$10,000,000.'';
(3) in section 10(c) (50 U.S.C. 98h-1(c))--
(A) in paragraph (2), by striking ``all
acquisitions and disposals'' inserting ``acquisitions
of materials the cost of which exceeds the amount
specified in section 5(a)(3) and all disposals''; and
(B) in paragraph (3)(A), by striking ``all
acquisitions and disposals'' and inserting
``acquisitions described in paragraph (2) and all
disposals''; and
(4) in section 11(b)(3) (50 U.S.C. 98h-2(b)(3))--
(A) by inserting ``(A)'' before ``Any proposed
expenditure''; and
(B) by adding at the end the following:
``(B) Subparagraph (A) does not apply with respect to acquisitions
of materials the cost of which does not exceed the amount specified in
section 5(a)(3).''.
(f) Definitions.--Section 12 of the Strategic and Critical
Materials Stock Piling Act (50 U.S.C. 98h-3) is amended by adding at
the end the following:
``(4) The term `covered critical mineral' means--
``(A) antimony;
``(B) beryllium;
``(C) cobalt;
``(D) graphite;
``(E) lithium;
``(F) manganese;
``(G) nickel;
``(H) tantalum;
``(I) tungsten; or
``(J) vanadium.
``(5) The term `rare earth element' means--
``(A) cerium;
``(B) dysprosium;
``(C) erbium;
``(D) europium;
``(E) gadolinium;
``(F) holmium;
``(G) lanthanum;
``(H) lutetium;
``(I) neodymium;
``(J) praseodymium;
``(K) promethium;
``(L) samarium;
``(M) scandium;
``(N) terbium;
``(O) thulium;
``(P) ytterbium; or
``(Q) yttrium.
``(6) The term `rare earth or covered critical mineral
product' means a finished, semi-finished, or other intermediate
good or component, including a battery or permanent magnet,
that contains a rare earth element or covered critical
mineral.''.
(g) Authorization of Appropriations.--
(1) In general.--There are authorized to be appropriated
for the National Defense Stockpile Transaction Fund under
section 9 of the Strategic and Critical Materials Stock Piling
Act (50 U.S.C. 98h)--
(A) for fiscal year 2023, $253,500,000;
(B) for fiscal year 2024, $266,175,000;
(C) for fiscal year 2025, $279,484,000;
(D) for fiscal year 2026, $293,458,000; and
(E) for fiscal year 2027, $308,131,000.
(2) Supplement not supplant.--The amounts authorized to be
appropriated by paragraph (1) shall supplement and not supplant
other amounts authorized to be appropriated for the National
Defense Stockpile Transaction Fund.
SEC. 4. DISCLOSURES CONCERNING RARE EARTH ELEMENTS AND COVERED CRITICAL
MINERALS BY CONTRACTORS OF DEPARTMENT OF DEFENSE.
(a) Requirement.--Beginning on the date that is 30 months after the
date of the enactment of this Act, the Secretary of Defense shall
require that any contractor that provides to the Department of Defense
a system with a permanent magnet that contains rare earth elements or
covered critical minerals 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) any rare earth elements and covered critical minerals
used in the magnet were mined;
(2) such elements and minerals were refined into oxides;
(3) such elements and minerals 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 system described in that subsection, 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 system to the Department of Defense.
(d) Waivers.--
(1) In general.--The Secretary may waive a requirement
under subsection (a) or (c) with respect to a system described
in subsection (a) for a period of not more than 180 days if the
Secretary certifies to the appropriate congressional committees
that--
(A) the continued procurement of the system is
necessary to meet the demands of a national emergency
declared under section 201 of the National Emergencies
Act (50 U.S.C. 1621); or
(B) the contractor cannot currently make the
disclosure required by subsection (a) but is making
significant efforts to comply with the requirements of
that subsection.
(2) Waiver renewals.--The Secretary--
(A) may renew a waiver under paragraph (1)(A) as
many times as the Secretary considers appropriate; and
(B) may not renew a waiver under paragraph (1)(B)
more than twice.
(e) Briefing Required.--Not later than 30 days after the submission
of each report required by section 6(c), the Secretary of Defense shall
provide to the appropriate congressional committees a briefing 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 elements and
covered critical minerals;
(3) a determination with respect to which systems described
in subsection (a) are of the greatest concern for interruptions
of supply chains with respect to rare earth elements and
covered critical minerals; and
(4) any suggestions for legislation or funding that would
mitigate security gaps in such supply chains.
SEC. 5. EXPANSION OF RESTRICTIONS ON PROCUREMENT OF MILITARY AND DUAL-
USE TECHNOLOGIES BY CHINESE MILITARY COMPANIES.
Section 1211 of the National Defense Authorization Act for Fiscal
Year 2006 (Public Law 109-163; 119 Stat. 3461), as most recently
amended by section 1296 of the National Defense Authorization Act for
Fiscal Year 2017 (Public Law 114-328; 130 Stat. 2562), is further
amended--
(1) in the section heading, by striking ``communist chinese
military companies'' and inserting ``chinese military
companies'';
(2) in subsection (a), by inserting after ``military
company'' the following: ``, any Chinese military company, or
any Non-SDN Chinese military-industrial complex company'';
(3) by amending subsection (b) to read as follows:
``(b) Goods and Services Covered.--
``(1) In general.--For purposes of subsection (a), and
except as provided in paragraph (2), the goods and services
described in this subsection are goods and services--
``(A) on the munitions list of the International
Traffic in Arms Regulations; or
``(B) on the Commerce Control List that--
``(i) are classified in the 600 series; or
``(ii) contain rare earth elements or
covered critical minerals.
``(2) Exceptions.--Goods and services described in this
subsection do not include goods or services procured--
``(A) in connection with a visit by a vessel or an
aircraft of the United States Armed Forces to the
People's Republic of China;
``(B) for testing purposes; or
``(C) for purposes of gathering intelligence.'';
and
(4) in subsection (e)--
(A) by striking paragraph (3);
(B) by redesignating paragraphs (1) and (2) as
paragraphs (3) and (6), respectively;
(C) by inserting before paragraph (3), as
redesignated by subparagraph (B), the following:
``(1) The term `Chinese military company' has the meaning
given that term by section 1260H(d)(1) of the William M. (Mac)
Thornberry National Defense Authorization Act for Fiscal Year
2021 (Public Law 116-283; 10 U.S.C. 113 note).
``(2) The term `Commerce Control List' means the list
maintained by the Bureau of Industry and Security and set forth
in Supplement No. 1 to part 774 of the Export Administration
Regulations.'';
(D) by inserting after paragraph (3), as so
redesignated, the following:
``(4) The term `covered critical mineral' means--
``(A) antimony;
``(B) beryllium;
``(C) cobalt;
``(D) graphite;
``(E) lithium;
``(F) manganese;
``(G) nickel;
``(H) tantalum;
``(I) tungsten; or
``(J) vanadium.
``(5) The term `Export Administration Regulations' has the
meaning given that term in section 1742 of the Export Control
Reform Act of 2018 (50 U.S.C. 4801).''; and
(E) by adding at the end the following:
``(7) The term `Non-SDN Chinese military-industrial complex
company' means any entity on the Non-SDN Chinese Military-
Industrial Complex Companies List--
``(A) established pursuant to Executive Order 13959
(50 U.S.C. 1701 note; relating to addressing the threat
from securities investments that finance Communist
Chinese military companies), as amended before, on, or
after the date of the enactment of the Restoring
Essential Energy and Security Holdings Onshore for Rare
Earths Act of 2022; and
``(B) maintained by the Office of Foreign Assets
Control of the Department of the Treasury.
``(8) The term `rare earth element' means--
``(A) cerium;
``(B) dysprosium;
``(C) erbium;
``(D) europium;
``(E) gadolinium;
``(F) holmium;
``(G) lanthanum;
``(H) lutetium;
``(I) neodymium;
``(J) praseodymium;
``(K) promethium;
``(L) samarium;
``(M) scandium;
``(N) terbium;
``(O) thulium;
``(P) ytterbium; or
``(Q) yttrium.''.
SEC. 6. REVIEW OF COMPLIANCE WITH CONTRACTING REQUIREMENTS.
(a) In General.--Not later than one year after the date of the
enactment of this Act, and periodically thereafter until the
termination date specified in subsection (e), the Comptroller General
of the United States shall assess the extent of the efforts of the
Department of Defense to comply with the requirements of--
(1) section 4;
(2) section 1211 of the National Defense Authorization Act
for Fiscal Year 2006, as amended by section 5 of this Act; and
(3) section 4872 of title 10, United States Code.
(b) Briefing Required.--The Comptroller General shall periodically,
until the termination date specified in subsection (e), provide to the
appropriate congressional committees a briefing on the results of the
assessments conducted under subsection (a) that includes an assessment
of--
(1) the inclusion by the Department of Defense of necessary
contracting clauses in relevant contracts to meet the
requirements described in paragraphs (1), (2), and (3) of
subsection (a); and
(2) the efforts of the Department of Defense to assess the
compliance of contractors with such clauses.
(c) Report Required.--The Comptroller General shall, not less
frequently than every 2 years until the termination date specified in
subsection (e), submit to the appropriate congressional committees a
report on the results of the assessments conducted under subsection (a)
that includes an assessment of--
(1) the inclusion by the Department of Defense of necessary
contracting clauses in relevant contracts to meet the
requirements described in paragraphs (1), (2), and (3) of
subsection (a); and
(2) the efforts of the Department of Defense to assess the
compliance of contractors with such clauses.
(d) Referral.--If, in conducting an assessment under subsection
(a), the Comptroller General determines that a contractor has failed to
comply with any of the requirements described in paragraphs (1), (2),
and (3) of subsection (a), the Comptroller General shall refer the
matter to the Department of Justice, relevant Inspectors General, or
other enforcement agencies, as appropriate, for further examination and
possible enforcement actions.
(e) Termination.--The requirements of this section shall terminate
on the date that is 10 years after the date of the enactment of this
Act.
SEC. 7. SUPPORT FOR DOMESTIC RARE EARTH ELEMENT AND COVERED CRITICAL
MINERAL PRODUCERS AND PROCESSORS.
(a) Authorization of Appropriations.--
(1) In general.--There are authorized to be appropriated to
the Defense Production Act Fund under section 304 of the
Defense Production Act of 1950 (50 U.S.C. 4534) for each of
fiscal years 2023 through 2027, $750,000,000 for activities of
the Department of Defense pursuant to section 108 and title III
of the Defense Production Act of 1950 (50 U.S.C. 4518 and 4531
et seq.).
(2) Rare earth elements and covered critical minerals.--Of
the amount authorized to be appropriated by paragraph (1) for a
fiscal year, not less than $250,000,000 shall be available to
meet the requirements of the Department of Defense for rare
earth elements and covered critical minerals.
(b) Increase in Limitation on Cost of Defense Production Act
Projects for Rare Earth Elements and Covered Critical Minerals.--
Section 303(a)(6) of the Defense Production Act is amended--
(1) in subparagraph (B)--
(A) by striking ``If the taking'' and inserting the
following:
``(i) In general.--If the taking'';
(B) by inserting ``(except as provided in clause
(ii))'' after ``$50,000,000''; and
(C) by adding at the end the following:
``(ii) Exception for rare earth elements
and covered critical minerals.--If the taking
of any action under this subsection to correct
a domestic industrial base shortfall in rare
earth elements, covered critical minerals, or
rare earth or covered critical mineral products
(as those terms are defined in section 2 of the
REEShore Act of 2022) would cause the aggregate
outstanding amount of all such actions for such
shortfall to exceed $100,000,000, the action or
actions may be taken only after the 30-day
period following the date on which the
Committee on Banking, Housing, and Urban
Affairs of the Senate and the Committee on
Financial Services of the House of
Representatives have been notified in writing
of the proposed action.''; and
(2) in subparagraph (C)--
(A) by striking ``If the taking'' and inserting the
following:
``(i) In general.--If the taking'';
(B) by inserting ``(except as provided in clause
(ii))'' after ``$50,000,000''; and
(C) by adding at the end the following:
``(ii) Exception for rare earth elements
and covered critical minerals.--If the taking
of any action or actions under this section to
correct an industrial resource shortfall in
rare earth elements, covered critical minerals,
or rare earth or covered critical mineral
products (as those terms are defined in section
2 of the REEShore Act of 2022) would cause the
aggregate outstanding amount of all such
actions for such industrial resource shortfall
to exceed $100,000,000, no such action or
actions may be taken, unless such action or
actions are authorized to exceed such amount by
an Act of Congress.''.
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