WASHINGTON ALERT
Stephanie Salmon, Artemis Strategies; Jeff Hannapel & Christian Richter, The Policy Group, Washington, D.C.
Report Spotlights Critical Mineral Concerns I
THE PENTAGON URGES ACTION TO IMPROVE THE SUPPLY OF RARE EARTH MINERALS, BUT THE U.S. DEPARTMENT OF DEFENSE WILL HAVE FIRST DIBS IN A SHORTAGE.
n an October report on critical minerals, the U.S. Pentagon said it is “essential” to establish reli-
able, non-Chinese sources of rare earth minerals. Te Annual Industrial Capa- bilities Report to Congress is the first time the U.S. Department of Defense (DOD) publicly revealed its concern about the Asian giant’s near-monopoly on the minerals. Beyond the metalcasting industry’s
use of rare earth minerals as melt ad- ditives, they are widely used in defense equipment, from smart bombs to fighter jets. Defense uses account for about 7% of the global market, accord- ing to the report. Rare earth minerals are used more extensively in the clean- tech and refinery industries. In its report, the Pentagon rec-
ommended DOD develop a com- munications plan explaining defense products should receive higher priority
ON THE HILL
Senate Approves Bill to Retaliate Against China on Currency
On Oct. 11, the U.S. Senate approved legislation to retaliate against China’s undervalued currency. The Currency Exchange Rate Oversight Reform Act, which calls for the use of punitive tariffs to offset damages caused by Chinese currency manipulation, passed the Sen- ate in a 63-35 vote. The bill still must pass in the House, where Rep. Sander Levin (D-Mich.), the top Democrat on the Ways and Means Committee, has recruited 224 co-sponsors for a similar bill. Opponents of the bill argue that using tariffs to punish China for one element of the ongoing trade imbalance would damage U.S. business interests.
House Votes to Roll Back Boiler MACT Rule
The U.S. House of Representatives voted on Oct. 13 to scrap a U.S. Environ- mental Protection Agency (EPA) air toxics rule for industrial boilers and incinerators
28 | MODERN CASTING November 2011
and replace it several years from now with a less-stringent standard. Metalcasting in- dustry lobbyists were concerned the Boiler MACT rules as proposed would significantly raise energy prices and impact the reliability of America’s electricity supply. The measure would prevent EPA from proposing a new standard for at least 15 months and give manufacturers at least five years to comply with the standard after it is finalized, rather than the three provided for under the Clean Air Act.
The House-passed boiler bill, the EPA Regulatory Relief Act of 2011 (H.R. 2250), was approved 275-142, with 41 Democrats breaking ranks to vote for it.
Industry Asks EPA to Exclude Foundry Sand Disposal From Greenhouse Gas Rule
Metalcasting industry advocate the
American Foundry Society (AFS) has sub- mitted comments on the U.S. Environmental Protection Agency’s (EPA) Aug. 4 proposed amendments to the mandatory reporting of
greenhouse gases rule. The comments request that EPA considers excluding the disposal of foundry sand (i.e. green sand and chemically bonded sand) at industri- al landfills by metalcasting facilities from the mandatory reporting requirements because the materials are relatively inert and generate minimal greenhouse gas emissions.
Under the proposed amendment, facilities subject to the requirements would have to undertake substantial data collection and technical calcula- tions to determine whether reporting is required and the amount of emission that should be reported. The comments presented by AFS also requested clarifi- cation on the reporting requirements. Facilities subject to these new requirements must submit their first reports in March 2012 for the 2011 calendar year.
For additional information, contact Jeff Han- napel, AFS Washington office, at jhannapel@
thepolicygroup.com.
The rare earth element lanthanum is used by the metalcasting, defense, refinery and clean technology industries.
than commercial products if supply becomes tight.
Chinese officials have made it clear
the country intends to focus on internal needs for rare earths, meaning larger quotas in the future are unlikely. How- ever, analysts say the U.S. and other countries could increase production of
the key elements and become indepen- dent from China within several years, especially for light rare earths. In October, Molycorp Inc., Green-
wood Village, Colo., the main U.S. producer of rare earths, announced it is exploring deposits of heavy rare earths in hopes of helping meet global demand. Te company is one of several looking to reduce dependence on China for the elements. In Congress, the National Strate-
gic and Critical Minerals Policy Act of 2011 in the U.S. House of Represen- tatives and the Critical Minerals Policy Act of 2011 in the U.S. Senate would direct the U.S. Geological Survey to establish a list of minerals critical to the U.S. economy and set out policies to ensure the nation is able to meet its mineral needs.
To read the report, visit
www.acq.osd.mil/mibp/ docs/annual_ind_cap_rpt_to_congress-2011.pdf.
Photo courtesy of Jurii,
Wikipedia.org.
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