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Monday, December 23, 2024

Ciscomani introduces bill seeking parity between critical materials and minerals

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Congressman Juan Ciscomani | Official U.S. House headshot

Congressman Juan Ciscomani | Official U.S. House headshot

U.S. Congressman Juan Ciscomani (AZ-06) has introduced a new legislative effort aimed at aligning the definitions and benefits of Critical Materials, as defined by the Department of Energy (DOE), with those of Critical Minerals, as defined by the U.S. Geological Survey (USGS). The legislation, H.R. 8446, titled the Critical Mineral Consistency Act, seeks to add the DOE’s list of Critical Materials to USGS’ list of Critical Minerals. This alignment aims to eliminate confusion between the two definitions and extend similar benefits to both categories.

Ciscomani's initiative is supported by Western Caucus Chairman Dan Newhouse (WA-04) and fellow Arizona Congressman Eli Crane (AZ-02).

“With both critical minerals and critical materials playing such a key role in everything from energy to national security, we need to ensure our federal agencies are operating with the same understanding of what we need to prioritize,” said Ciscomani. “This legislation ensures parity between critical minerals versus critical materials while bolstering America’s supply chain for strategic resources for a more resilient future.”

Chairman Newhouse also emphasized the importance of securing domestic mineral supply chains for energy and national security: “One of the challenges to unleashing the full potential of American mining is the confusion between the Department of Energy’s ‘critical materials’ list and the Department of Interior’s ‘critical minerals’ list. As Chairman of the Congressional Western Caucus, I would like to thank Rep. Ciscomani for his leadership on legislation to ensure consistency in the two agencies’ designations and provide clarity to American mining.”

The bill has garnered support from several organizations including Transformer Manufacturing Association of America (TMAA), Zero Emission Transportation Association (ZETA), National Electric Manufacturers Association (NEMA), Business Council for Sustainable Energy (BCSE), Copper Development Association (CDA), and National Mining Association (NMA).

Adam Estelle, President & CEO of CDA, expressed his support: “Congratulations and thank you Rep. Ciscomani for introducing this important legislation, supported by us and several clean energy and electrification associations. We recognize that a strong domestic supply chain for ALL DOE Critical Materials is essential, and this Act will go a long way to supporting those industries here in the United States.”

Background information highlights that while both DOE's Critical Materials and USGS's Critical Minerals have statutory definitions that are similar, their methodologies differ significantly. The USGS finalized its methodology in 2022 using older data from 2015-2018 focused solely on supply aspects. Conversely, DOE announced its list in 2023 considering both essentiality and supply risk with projections into short- and medium-term futures.

Examples such as copper, electrical steel, silicon, and silicon carbide fall under DOE’s definition but not under USGS’s definition. Currently, USGS's Critical Minerals receive greater benefits compared to DOE's Critical Materials including clean energy tax credits, financing support, and access to Fast-41 Permitting Dashboard.

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