H. Rept. 111-644 - 111th Congress (2009-2010)
September 28, 2010, As Reported by the Science and Technology Committee

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House Report 111-644 - RARE EARTHS AND CRITICAL MATERIALS REVITALIZATION ACT OF 2010




[House Report 111-644]
[From the U.S. Government Printing 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.
<GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT>

    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:

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        H.R. 6160, Section-by-Section Analysis, Amendment Roster





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                     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.
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