[House Report 113-389]
[From the U.S. Government Publishing Office]
113th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 113-389
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RESOURCE ASSESSMENT OF RARE EARTHS ACT OF 2013
_______
April 1, 2014.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
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Mr. Hastings of Washington, from the Committee on Natural Resources,
submitted the following
R E P O R T
[To accompany H.R. 981]
[Including cost estimate of the Congressional Budget Office]
The Committee on Natural Resources, to whom was referred
the bill (H.R. 981) to direct the Secretary of the Interior to
conduct a global rare earth element assessment, and for other
purposes, having considered the same, report favorably thereon
without amendment and recommend that the bill do pass.
PURPOSE OF THE BILL
The purpose of H.R. 981 is to direct the Secretary of the
Interior to conduct a global rare earth element assessment.
BACKGROUND AND NEED FOR LEGISLATION
H.R. 981, the Resource Assessment of Rare Earths Act of
2013, requires the Secretary of the Interior to direct the
United States Geological Survey (USGS) to conduct a
quantitative global rare earth element assessment.
The industrialization of China and India is driving demand
for non-fuel mineral commodities, sparking a period of resource
nationalism. China currently accounts for 80 percent of the
world's rare earth mineral supply. In 2010, China unofficially
embargoed rare earth mineral shipments to Japan and quietly
restricted exports to the U.S. and Europe.
Chinese representatives speaking at various meetings have
indicated they expect their country to be a net importer of
rare earths within a few years. China's reduction and stoppage
of rare-earth mineral element exports necessary for
telecommunications, military technologies, medical devices and
renewable energy technologies have spurred the development of
several pieces of legislation to deal with supply disruptions
of these important mineral commodities.
H.R. 981 directs USGS, in cooperation with other national
geological surveys, to conduct a three-year, comprehensive
global mineral assessment of rare earth elements; to conduct an
analysis, with the participation of the National Minerals
Information Center and in consultation with appropriate
agencies, of the rare earth elements supply chain and
associated processes and products, including mining,
processing, separation, metal production, alloy production, and
manufacturing of products sold to end users; and to report back
to Congress on its findings. Finally, the legislation
authorizes an appropriation of $10 million for the period of
fiscal years 2014 through 2016.
COMMITTEE ACTION
H.R. 981 was introduced on March 6, 2013, by Congressman
Henry C. ``Hank'' Johnson (D-GA). The bill was referred to the
Committee on Natural Resources, and within the Committee to the
Subcommittee on Energy and Mineral Resources. On March 21,
2013, the Subcommittee held a hearing on the bill. On May 15,
2013, the Full Natural Resources Committee met to consider the
bill. The Subcommittee on Energy and Mineral Resources was
discharged by unanimous consent. No amendments were offered,
and the bill was then adopted and ordered favorably reported to
the House of Representatives by unanimous consent.
COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS
Regarding clause 2(b)(1) of rule X and clause 3(c)(1) of
rule XIII of the Rules of the House of Representatives, the
Committee on Natural Resources' oversight findings and
recommendations are reflected in the body of this report.
COMPLIANCE WITH HOUSE RULE XIII
1. Cost of Legislation. Clause 3(d)(1) of rule XIII of the
Rules of the House of Representatives requires an estimate and
a comparison by the Committee of the costs which would be
incurred in carrying out this bill. However, clause 3(d)(2)(B)
of that rule provides that this requirement does not apply when
the Committee has included in its report a timely submitted
cost estimate of the bill prepared by the Director of the
Congressional Budget Office under section 402 of the
Congressional Budget Act of 1974. Under clause 3(c)(3) of rule
XIII of the Rules of the House of Representatives and section
403 of the Congressional Budget Act of 1974, the Committee has
received the following cost estimate for this bill from the
Director of the Congressional Budget Office:
H.R. 981--RARE Act of 2013
Summary: H.R. 981 would authorize the appropriation of $10
million for the United States Geological Survey (USGS) to
conduct a global assessment of rare earth elements (a group of
elements that are rarely found in high concentrations).
Assuming appropriation of the authorized amounts, CBO estimates
that implementing the legislation would cost $10 million over
the 2014-2016 period.
Enacting H.R. 981 would not affect direct spending or
revenues; therefore, pay-as-you-go procedures do not apply.
H.R. 981 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA)
and would not affect the budgets of state, local, or tribal
governments.
Estimated cost to the Federal Government: The estimated
budgetary impact of H.R. 981 is shown in the following table.
The costs of this legislation fall within budget function 300
(natural resources and environment).
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By fiscal year, in millions of dollars--
-------------------------------------------------------
2014 2015 2016 2017 2018 2014-2018
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CHANGES IN SPENDING SUBJECT TO APPROPRIATION
Authorization Level..................................... 10 0 0 0 0 10
Estimated Outlays....................................... 4 4 2 0 0 10
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Basis of estimate: For this estimate, CBO assumes that the
legislation will be enacted before the end of 2013 and that the
entire amount authorized to be appropriated over the 2014-2016
period would be appropriated in 2014. Estimated outlays are
based on historical spending patterns for similar USGS
activities.
H.R. 981 would require USGS to complete a global assessment
of rare earth elements over a three-year period. The assessment
would identify and quantify known deposits of rare earth
elements and determine the geological conditions necessary to
form such deposits. The assessment also would recommend future
geological research projects related to rare earth elements and
scarce minerals and analyze the process by which deposits of
rare earth elements are brought to market. Assuming
appropriation of the authorized amounts, CBO estimates that
implementing H.R. 981 would cost $10 million over the 2014-2018
period.
Pay-As-You-Go considerations: None.
Intergovernmental and private-sector impact: H.R. 981
contains no intergovernmental or private-sector mandates as
defined in UMRA and would not affect the budgets of state,
local, or tribal governments.
Estimate prepared by: Federal costs: Jeff LaFave; Impact on
state, local, and tribal governments: Melissa Merrell; Impact
on the private sector: Amy Petz.
Estimate approved by: Theresa Gullo, Deputy Assistant
Director for Budget Analysis.
2. Section 308(a) of Congressional Budget Act. As required
by clause 3(c)(2) of rule XIII of the Rules of the House of
Representatives and section 308(a) of the Congressional Budget
Act of 1974, this bill does not contain any new credit
authority or an increase or decrease in revenues or tax
expenditures. Assuming appropriation of the authorized amounts,
CBO estimates that implementing the legislation would cost $10
million over the 2014-2016 period.
3. General Performance Goals and Objectives. As required by
clause 3(c)(4) of rule XIII, the general performance goal or
objective of this bill is to direct the Secretary of the
Interior to conduct a global rare earth element assessment.
EARMARK STATEMENT
This bill does not contain any Congressional earmarks,
limited tax benefits, or limited tariff benefits as defined
under clause 9(e), 9(f), and 9(g) of rule XXI of the Rules of
the House of Representatives.
COMPLIANCE WITH PUBLIC LAW 104-4
This bill contains no unfunded mandates.
COMPLIANCE WITH H. RES. 5
Directed Rule Making. The Chairman does not believe that
this bill directs any executive branch official to conduct any
specific rule-making proceedings.
Duplication of Existing Programs. This bill does not
establish or reauthorize a program of the federal government
known to be duplicative of another program. Such program was
not included in any report from the Government Accountability
Office to Congress pursuant to section 21 of Public Law 111-139
or identified in the most recent Catalog of Federal Domestic
Assistance published pursuant to the Federal Program
Information Act (Public Law 95-220, as amended by Public Law
98-169) as relating to other programs.
PREEMPTION OF STATE, LOCAL OR TRIBAL LAW
This bill is not intended to preempt any State, local or
tribal law.
CHANGES IN EXISTING LAW
If enacted, this bill would make no changes in existing
law.