S.Amdt. 1443

SA 1443. Mr. RUBIO submitted an amendment intended to be proposed to
amendment SA 1407 submitted by Ms. Murkowski and intended to be
proposed to the bill S. 2657, to support innovation in advanced
geothermal research and development, and for other purposes; which was
ordered to lie on the table; as follows:

At the appropriate place, insert the following:

SEC. ___. RARE EARTH REFINERY COOPERATIVE AND INDUSTRIAL
PRODUCTS CORPORATION.

(a) Findings; Statement of Policy.--
(1) Findings.--Congress finds the following:
(A) Rare earth elements are critical for advanced energy
technologies, national defense, and other commercial and
industrial applications.
(B) The People's Republic of China (referred to in this
paragraph as ``China'') has leveraged its monopoly control
over the rare earth value chain to force corporations from
the United States, Europe, Japan, and South Korea to transfer
manufacturing facilities, technology, and jobs to China in
exchange for secure supply contracts.
(C) The increasingly aggressive mercantile behavior of
China has led to involuntary transfers of technology,
manufacturing, and jobs, which has resulted in onerous trade
imbalances with the United States and trading partners of the
United States.
(D) The Comptroller General of the United States has
confirmed that the monopoly control of China over the rare
earth value chain has resulted in vulnerabilities in the
procurement of multiple United States weapons systems.
(E) Direct links exist between rare earth mineralogy and
thorium.
(F) Thorium is a radioactive element commonly associated
with the lanthanide elements in most rare earth deposits
located in the United States and elsewhere.
(G) Regulations regarding thorium represent a barrier to
the development of a rare earth industry that is based in the
United States.
(H) Meeting the strategic national interest objectives of
the United States and economic and environmental goals are
best achieved through the creation of a rare earth
cooperative.
(I) A rare earth cooperative could--
(i) greatly increase the production of rare earth elements;
(ii) ensure environmental safety; and
(iii) lower the cost of the production and financial risks
faced by rare earth producers in the United States.
(J) Historically, agricultural and electric cooperatives
have stood as one of the greatest success stories of the
United States.
(2) Statement of policy.--It is the policy of the United
States to advance domestic refining of rare earth elements
and the safe storage of thorium in anticipation of the
potential future industrial uses of thorium, including
energy, because--
(A) thorium has a mineralogical association with valuable
rare earth elements;
(B) there is a great need to develop domestic refining
capacity to process domestic rare earth element deposits; and
(C) the economy of the United States would benefit from the
rapid development and control of intellectual property
relating to the commercial development of technology
utilizing thorium.
(b) Definitions.--In this section:
(1) Actinide.--The term ``actinide'' means a natural
element associated with any of the series of 15 metallic
elements between actinium, with atomic number 89, and
lawrencium, with atomic number 103, on the periodic table.
(2) Cooperative.--The term ``Cooperative'' means the
Thorium-Bearing Rare Earth Refinery Cooperative established
under subsection (c)(1).
(3) Corporation.--The term ``Corporation'' means the
Thorium Storage, Energy, and Industrial Products Corporation
established under subsection (d)(1).
(4) National laboratory.--The term ``National Laboratory''
has the meaning given the term in section 2 of the Energy
Policy Act of 2005 (42 U.S.C. 15801).
(5) Rare earth element.--The term ``rare earth element''
means a natural element associated with--
(A) the metallic element scandium, with atomic number 21,
or yttrium, with atomic number 39;
(B) any of the series of 15 metallic elements between
lanthanum, with atomic number 57, and lutetium, with atomic
number 71, on the periodic table; or
(C) any of the series of 15 metallic elements between
actinium, with atomic number 89, and lawrencium, with atomic
number 103, on the periodic table.
(c) Rare Earth Refinery Cooperative.--
(1) Establishment.--Not later than 60 days after the date
of enactment of this Act, the Secretary of Commerce shall
coordinate with any relevant Federal agencies to procure the
issuance of a Federal charter for a privately funded,
privately operated, and privately managed cooperative with
respect to rare earth elements, which--
(A) shall--
(i) be known as the Thorium-Bearing Rare Earth Refinery
Cooperative;
(ii) coordinate the establishment of a fully integrated
United States value chain with respect to rare earth elements
to serve the national security needs of the United States and
the needs of industry in the United States; and
(iii) produce products that use rare earth elements,
including metal powders (such as rare earth oxides and rare
earth salts, including chlorides and nitrates), metals
containing rare earth elements, alloys, magnets, and other
value-added products using rare earth elements, as required
by--

(I) the owners of, and investors in, the Cooperative; and
(II) the defense industry of the United States; and

(B) may--
(i) accept domestic and international investment from--

(I) commercial or industrial users of products containing
rare earth elements, including trade groups or associations
formed to act on behalf of the defense industry or other end-
users of those products; or
(II) any of the resource suppliers of the Cooperative;

(ii) accept investment or funding from foreign governments,
State agencies, or State-sponsored entities, including
universities or research institutions, subject to the
approval of the Committee on Foreign Investment in the United
States established under section 721(k) of the Defense
Production Act of 1950 (50 U.S.C. 4565(k));
(iii) distribute finished goods and profits in proportion
to investment;
(iv) on behalf of the owners of the Cooperative, sell
surplus finished goods on the open market; and
(v) accept and process rare earth resources, or other
critical minerals, with elevated levels of thorium or uranium
that are--

(I) mined in the United States;
(II) from any domestic waste product, co-product, or
byproduct of some other mined commodity; or
(III) produced by any foreign supplier that has invested in
the Cooperative.

(2) Securing rare earths.--The following materials shall be
considered to be an unrefined and unprocessed ore, as defined
in section 40.4 of title 10, Code of Federal Regulations, or
any successor regulation:
(A) Any material accepted by the Cooperative under
paragraph (1)(B)(v).
(B) A thorium bearing rare earth ore that is--
(i) a byproduct or coproduct of another mined commodity;
and
(ii) sold and shipped under a supply agreement with the
Cooperative.
(3) Producers of rare earths.--A producer that acts under a
supply contract with the Cooperative may, under the rules for
unrefined and unprocessed ore under part 40 of title 10, Code
of Federal Regulations, process, manage, and transport any
material with respect to which the contract applies.
(4) Liability.--Notwithstanding any other provision of law
or regulation--

[[Page S1419]]

(A) the Federal Government shall not be liable for any
activities of the Cooperative under this subsection; and
(B) the Cooperative shall establish and secure sufficient
financial surety bonding and other insurance, consistent with
private industry standards.
(d) Thorium Storage, Energy, and Industrial Products
Corporation.--
(1) Establishment.--Not later than 60 days after the date
of enactment of this Act, the Secretary shall coordinate with
relevant Federal agencies to procure the issuance of a
Federal charter for a privately funded and privately operated
corporation, which--
(A) shall be known as the Thorium Storage, Energy, and
Industrial Products Corporation; and
(B) in accordance with all applicable laws, regulations,
and rules, shall--
(i) on a preprocessing basis, assume liability for and
ownership of all thorium and mineralogically associated or
related actinides and decay products contained within the
rare earth element ores utilized by the Cooperative;
(ii) take physical possession and safely store all thorium-
containing actinide byproducts, with the costs of the storage
to be paid by the Cooperative; and
(iii) manage the sale of all valuable actinide and decay
products, utilizing the proceeds for the development of
commercial uses and market for thorium, including energy.
(2) Thorium storage.--The Corporation shall establish not
less than 1 facility, each of which shall--
(A) be known as a ``Thorium Bank'';
(B) provide safe and long-term storage for all thorium
produced as a byproduct in the production of rare earth
elements for the Cooperative; and
(C) hold and maintain financial surety bonding and
insurance consistent with private industry standards.
(3) Industrial products.--The Corporation may establish not
less than 1 division, each of which shall be known as an
``Industrial Products Corporation'', for the certification,
licensing, insuring, and commercial development of all
nonenergy uses for thorium (including thorium isotopes and
thorium daughter elements), including alloys, catalysts,
medical isotopes, and other products.
(4) Energy applications.--The Corporation may establish not
less than 1 energy products, energy systems, or energy
applications division for the certification, licensing,
insuring, commercial development, deployment, lease, and
licensing of such products and services, including--
(A) developing intellectual property;
(B) acquiring technology;
(C) developing, manufacturing, operating, or leasing
commercial thorium energy systems; and
(D) developing, manufacturing, operating, or leasing
related thermal processing systems.
(5) International partnerships.--
(A) In general.--The Corporation may sell or distribute
equity and establish partnerships with the United States.
(B) Foreign investors.--Any foreign investor in the
Corporation shall make a voluntary filing with the Committee
on Foreign Investment in the United States established under
section 721(k) of the Defense Production Act of 1950 (50
U.S.C. 4565(k)).
(6) Liability.--Notwithstanding any other provision of law
or regulation--
(A) the Federal Government shall not be liable for any
activities of the Corporation under this subsection; and
(B) the Corporation shall establish and secure sufficient
financial surety bonding and other insurance, consistent with
private industry standards, for the management and storage of
radioactive materials and other waste and hazards.
(e) Federal Support.--
(1) Meetings with relevant parties.--The Secretary of
Commerce and the Secretary of Defense shall provide initial
assistance to the Cooperative, and the Secretary and the
Secretary of Defense shall provide initial assistance to the
Corporation, by establishing peer-to-peer meetings with
allies of the United States in the North Atlantic Treaty
Organization, other allied foreign governments, Federal and
State agencies, science and technology research institutions,
and commercial users and consumers of rare earth elements and
energy.
(2) Eligibility for certain support.--
(A) Grant and loan programs.--The Cooperative and the
Corporation may apply for funding assistance provided by any
relevant grant or loan program carried out by the Department,
the Department of Defense, or the Department of Commerce,
including, with respect to the Corporation--
(i) the Small Modular Reactor Licensing Technical Support
Program of the Department; and
(ii) any program of the Office of Advanced Reactor
Technologies of the Department.
(B) Technical and data support to the corporation.--The
National Laboratories shall provide technical and data
support to the Corporation on parity with transfers made
before the date of enactment of this Act by the National
Laboratories to the Chinese Academy of Sciences and any other
foreign agent or entity.
(3) Department of energy policy.--The Secretary shall adopt
and execute a policy that promotes the United States, acting
in conjunction with the Corporation, as a global leader in
thorium energy systems.
(f) Appointment of Initial Officers.--
(1) In general.--The Secretary of Commerce and the
Secretary shall jointly appoint 2 citizens of the United
States--
(A) neither of whom may be an employee of, consultant to,
advisor to, or affiliate of the United States Government; and
(B) who shall act as the initial officers and Board of
Directors of both the Cooperative and the Corporation.
(2) Qualifications.--The 2 individuals appointed under
paragraph (1) shall each have expertise in, and a history of
promoting--
(A) the development of a platform--
(i) that is based in the United States;
(ii) that is funded using multinational sources; and
(iii) the purpose of which is the development of a fully
integrated rare earth value chain; and
(B) the commercial development of uses and markets for
thorium, including energy.
(3) Responsibilities.--The individuals appointed under
paragraph (1) shall work with the Secretary of Commerce to
develop corporate bylaws and terms of governance for the
Cooperative, and with the Secretary to develop those bylaws
and terms for the Corporation, which shall be set forth in a
Memorandum of Understanding for each such entity that
outlines specific obligations, commitments, limitations on
sources of international investment, and goals that are
specific to the national interests of the United States.
(4) Duration of service.--The individuals appointed under
paragraph (1) shall continue to serve in those roles for as
long as provided under the terms of governance developed
under paragraph (3).
(g) Other Provisions.--
(1) Annual audits.--The Cooperative and the Corporation
shall, on the date that is 180 days after the date on which
each such entity is established, and annually thereafter,
submit to the Secretary of Commerce, the Secretary, and the
Secretary of Defense an audited report, which shall--
(A) be conducted by an outside auditing firm; and
(B) for the period covered by the report, evaluate the
progress and success of the Cooperative and the Corporation
in meeting all targets and objectives established by the
Secretary, in consultation with the heads of other relevant
Federal agencies.
(2) Authority of the secretary of defense.--The Secretary
of Defense may monitor the output of the Cooperative and the
Corporation with respect to the national security objectives
set forth in the Memorandum of Understanding required for
each entity under subsection (f)(3).
______