,,ii #aafth ,,congress #ast ,session ,s4 #bjic ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,july #aa1 #bjai ,mr4 ,rubio introduced the following bill2 which was read twice and referred to the ,committee on ,energy and ,natural ,resources ,a ,,bill ,to provide for the establishment of the ,thorium-,bearing ,rare ,earth ,refinery ,cooperative1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,rare ,earth ,cooperative #bast ,century ,manufacturing ,act or the ,,re-,coop #bast ,century ,manufacturing ,act4 #b4 ,findings2 statement of policy 7a7 ,findings ,congress finds the following3 7#a7 ,rare earth elements are critical for advanced energy technologies1 national defense1 and other commercial and industrial applications4 7#b7 ,the ,people's ,republic of ,china 7referred to in this subsection as ,china7 has leveraged its monopoly control over the rare earth value chain to force corporations from the ,united ,states1 ,europe1 ,japan1 and ,south ,korea to transfer manufacturing facilities1 technology1 and jobs to ,china in exchange for secure supply contracts4 7#c7 ,the increasingly aggressive mercantile behavior of ,china has led to involuntary transfers of technology1 manufacturing1 and jobs1 which has resulted in onerous trade imbalances with the ,united ,states and trading partners of the ,united ,states4 7#d7 ,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 systems4 7#e7 ,direct links exist between rare earth mineralogy and thorium4 7#f7 ,thorium is a radioactive element commonly associated with the lanthanide elements in most rare earth deposits located in the ,united ,states and elsewhere4 7#g7 ,regulations regarding thorium represent a barrier to the development of a rare earth industry that is based in the ,united ,states4 7#h7 ,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 cooperative4 7#i7 ,a rare earth cooperative could-- 7,a7 greatly increase the production of rare earth elements2 7,b7 ensure environmental safety2 and 7,c7 lower the cost of the production and financial risks faced by rare earth producers in the ,united ,states4 7#aj7 ,historically1 agricultural and electric cooperatives have stood as one of the greatest success stories of the ,united ,states4 7b7 ,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 thorium1 including energy1 because-- 7#a7 thorium has a mineralogical association with valuable rare earth elements2 7#b7 there is a great need to develop domestic refining capacity to process domestic rare earth element deposits2 and 7#c7 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 thorium4 #c4 ,definitions ,in this ,act3 7#a7 ,actinide ,the term actinide means a natural element associated with any of the series of #ae metallic elements between actinium1 with atomic number #hi1 and lawrencium1 with atomic number #ajc1 on the periodic table4 7#b7 ,cooperative ,the term ,cooperative means the ,thorium-,bearing ,rare ,earth ,refinery ,cooperative established under section #d7;a74 7#c7 ,corporation ,the term ,corporation means the ,thorium ,storage1 ,energy1 and ,industrial ,products ,corporation established under section #e7;a74 7#d7 ,national ,laboratory ,the term ,national ,laboratory has the meaning given the term in section #b of the ,energy ,policy ,act of #bjje 7#db ,u4,s4,c4 #aehja74 7#e7 ,rare earth element ,the term rare earth element means a natural element associated with-- 7,a7 the metallic element scandium1 with atomic number #ba1 or yttrium1 with atomic number #ci2 7,b7 any of the series of #ae metallic elements between lanthanum1 with atomic number #eg1 and lutetium1 with atomic number #ga1 on the periodic table2 or 7,c7 any of the series of #ae metallic elements between actinium1 with atomic number #hi1 and lawrencium1 with atomic number #ajc1 on the periodic table4 #d4 ,rare earth refinery cooperative 7a7 ,establishment ,not later than #fj days after the date of enactment of this ,act1 the ,secretary of ,commerce shall coordinate with any relevant ,federal agencies to procure the issuance of a ,federal charter for a privately funded1 privately operated1 and privately managed cooperative with respect to rare earth elements1 which-- 7#a7 shall-- 7,a7 be known as the ,thorium-,bearing ,rare ,earth ,refinery ,cooperative2 7,b7 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 ,states2 and 7,c7 produce products that use rare earth elements1 including metal powders 7such as rare earth oxides and rare earth salts1 including chlorides and nitrates71 metals containing rare earth elements1 alloys1 magnets1 and other value-added products using rare earth elements1 as required by-- 7i7 the owners of1 and investors in1 the ,cooperative2 and 7ii7 the defense industry of the ,united ,states2 and 7#b7 may-- 7,a7 accept domestic and international investment from-- 7i7 commercial or industrial users of products containing rare earth elements1 including trade groups or associations formed to act on behalf of the defense industry or other end-users of those products2 or 7ii7 any of the resource suppliers of the ,cooperative2 7,b7 accept investment or funding from foreign governments1 ,state agencies1 or ,state-sponsored entities1 including universities or research institutions1 subject to the approval of the ,committee on ,foreign ,investment in the ,united ,states established under section #gba7k7 of the ,defense ,production ,act of #aiej 7#ej ,u4,s4,c4 #defe7k772 7,c7 distribute finished goods and profits in proportion to investment2 7,d7 on behalf of the owners of the ,cooperative1 sell surplus finished goods on the open market2 and 7,e7 accept and process rare earth resources1 or other critical minerals1 with elevated levels of thorium or uranium that are-- 7i7 mined in the ,united ,states2 7ii7 from any domestic waste product1 co-product1 or byproduct of some other mined commodity2 or 7iii7 produced by any foreign supplier that has invested in the ,cooperative4 7b7 ,securing rare earths ,the following materials shall be considered to be an unrefined and unprocessed ore1 as defined in section #dj4d of title #aj1 ,code of ,federal ,regulations1 or any successor regulation3 7#a7 ,any material accepted by the ,cooperative under subsection 7a77#b77;,e74 7#b7 ,a thorium bearing rare earth ore that is-- 7,a7 a byproduct or coproduct of another mined commodity2 and 7,b7 sold and shipped under a supply agreement with the ,cooperative4 7c7 ,producers of rare earths ,a producer that acts under a supply contract with the ,cooperative may1 under the rules for unrefined and unprocessed ore under part #dj of title #aj1 ,code of ,federal ,regulations1 process1 manage1 and transport any material with respect to which the contract applies4 7d7 ,liability ,notwithstanding any other provision of law or regulation-- 7#a7 the ,federal ,government shall not be liable for any activities of the ,cooperative under this section2 and 7#b7 the ,cooperative shall establish and secure sufficient financial surety bonding and other insurance1 consistent with private industry standards4 #e4 ,thorium ,storage1 ,energy1 and ,industrial ,products ,corporation 7a7 ,establishment ,not later than #fj days after the date of enactment of this ,act1 the ,secretary of ,energy shall coordinate with relevant ,federal agencies to procure the issuance of a ,federal charter for a privately funded and privately operated corporation1 which-- 7#a7 shall be known as the ,thorium ,storage1 ,energy1 and ,industrial ,products ,corporation2 and 7#b7 in accordance with all applicable laws1 regulations1 and rules1 shall-- 7,a7 on a preprocessing basis1 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 ,cooperative2 7,b7 take physical possession and safely store all thorium-containing actinide byproducts1 with the costs of the storage to be paid by the ,cooperative2 and 7,c7 manage the sale of all valuable actinide and decay products1 utilizing the proceeds for the development of commercial uses and market for thorium1 including energy4 7b7 ,thorium storage ,the ,corporation shall establish not less than #a facility1 each of which shall-- 7#a7 be known as a ,thorium ,bank2 7#b7 provide safe and long-term storage for all thorium produced as a byproduct in the production of rare earth elements for the ,cooperative2 and 7#c7 hold and maintain financial surety bonding and insurance consistent with private industry standards4 7c7 ,industrial products ,the ,corporation may establish not less than #a division1 each of which shall be known as an ,industrial ,products ,corporation1 for the certification1 licensing1 insuring1 and commercial development of all nonenergy uses for thorium 7including thorium isotopes and thorium daughter elements71 including alloys1 catalysts1 medical isotopes1 and other products4 7d7 ,energy applications ,the ,corporation may establish not less than #a energy products1 energy systems1 or energy applications division for the certification1 licensing1 insuring1 commercial development1 deployment1 lease1 and licensing of such products and services1 including-- 7#a7 developing intellectual property2 7#b7 acquiring technology2 7#c7 developing1 manufacturing1 operating1 or leasing commercial thorium energy systems2 and 7#d7 developing1 manufacturing1 operating1 or leasing related thermal processing systems4 7e7 ,international partnerships 7#a7 ,in general ,the ,corporation may sell or distribute equity and establish partnerships with the ,united ,states4 7#b7 ,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 #gba7k7 of the ,defense ,production ,act of #aiej 7#ej ,u4,s4,c4 #defe7k774 7f7 ,liability ,notwithstanding any other provision of law or regulation-- 7#a7 the ,federal ,government shall not be liable for any activities of the ,corporation under this section2 and 7#b7 the ,corporation shall establish and secure sufficient financial surety bonding and other insurance1 consistent with private industry standards1 for the management and storage of radioactive materials and other waste and hazards4 #f4 ,federal support 7a7 ,meetings with relevant parties ,the ,secretary of ,commerce and the ,secretary of ,defense shall provide initial assistance to the ,cooperative1 and the ,secretary of ,energy and the ,secretary of ,defense shall provide initial assistance to the ,corporation1 by establishing peer-to-peer meetings with allies of the ,united ,states in the ,north ,atlantic ,treaty ,organization1 other allied foreign governments1 ,federal and ,state agencies1 science and technology research institutions1 and commercial users and consumers of rare earth elements and energy4 7b7 ,eligibility for certain support 7#a7 ,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 of ,energy1 the ,department of ,defense1 or the ,department of ,commerce1 including1 with respect to the ,corporation-- 7,a7 the ,small ,modular ,reactor ,licensing ,technical ,support ,program of the ,department of ,energy2 and 7,b7 any program of the ,office of ,advanced ,reactor ,technologies of the ,department of ,energy4 7#b7 ,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 entity4 7c7 ,department of ,energy policy ,the ,secretary of ,energy shall adopt and execute a policy that promotes the ,united ,states1 acting in conjunction with the ,corporation1 as a global leader in thorium energy systems4 #g4 ,appointment of initial officers 7a7 ,in general ,the ,secretary of ,commerce and the ,secretary of ,energy shall jointly appoint #b citizens of the ,united ,states-- 7#a7 neither of whom may be an employee of1 consultant to1 advisor to1 or affiliate of the ,united ,states ,government2 and 7#b7 who shall act as the initial officers and ,board of ,directors of both the ,cooperative and the ,corporation4 7b7 ,qualifications ,the #b individuals appointed under subsection 7a7 shall each have expertise in1 and a history of promoting-- 7#a7 the development of a platform-- 7,a7 that is based in the ,united ,states2 7,b7 that is funded using multinational sources2 and 7,c7 the purpose of which is the development of a fully integrated rare earth value chain2 and 7#b7 the commercial development of uses and markets for thorium1 including energy4 7c7 ,responsibilities ,the individuals appointed under subsection 7a7 shall work with the ,secretary of ,commerce to develop corporate bylaws and terms of governance for the ,cooperative1 and with the ,secretary of ,energy to develop those bylaws and terms for the ,corporation1 which shall be set forth in a ,memorandum of ,understanding for each such entity that outlines specific obligations1 commitments1 limitations on sources of international investment1 and goals that are specific to the national interests of the ,united ,states4 7d7 ,duration of service ,the individuals appointed under subsection 7a7 shall continue to serve in those roles for as long as provided under the terms of governance developed under subsection 7c74 #h4 ,other provisions 7a7 ,annual audits ,the ,cooperative and the ,corporation shall1 on the date that is #ahj days after the date on which each such entity is established1 and annually thereafter1 submit to the ,secretary of ,commerce1 the ,secretary of ,energy1 and the ,secretary of ,defense an audited report1 which shall-- 7#a7 be conducted by an outside auditing firm2 and 7#b7 for the period covered by the report1 evaluate the progress and success of the ,cooperative and the ,corporation in meeting all targets and objectives established by the ,secretary1 in consultation with the heads of other relevant ,federal agencies4 7b7 ,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 section #g7;c74