Hill looks to bolster Trump on minerals executive order

Zoom in: President Trump's executive order last week — citing the national energy emergency he declared — directs agencies to submit mineral projects that could get priority for accelerated permitting.

• It authorizes the U.S. International Development Finance Corp. — created to fund projects abroad — and other agencies to finance mineral developments using the Defense Production Act.

What we're watching: Hill Republicans will likely try to fund DPA loan authorities, either through reconciliation or the regular appropriations process, much as Democrats did with the IRA.

• "I've been trying to push us to think about other financing entities that we can look to, whether it's [Export-Import] bank, whether it's some of the other international funds," Sen. Lisa Murkowski told Axios.
• "Let's look to them as opportunities."
• Rep. Rob Wittman also has a bill that would create a federal minerals reserve. Natural Resources Chair Bruce Westerman told Axios that that bill "could possibly be something that would go on the NDAA."

Notably, Westerman said his proposal to get specific mining projects approved via reconciliation is still alive.

The other side: Sen. Martin Heinrich said the order is "sort of cheap and sloppy," especially combined with the administration's myriad actions to roll back spending and fire federal staff.

• "Generally, this is an administration that's going to try to do everything through executive orders and emergency authorities," Senate ENR's ranking member told Axios. "That's not how to actually create permanent, durable solutions to our challenges."

Between the lines: There's plenty that the administration could do on its own, said Morgan Bazilian, a public policy professor at the Colorado School of Mines.

• The permitting provision could benefit Minnesota's Twin Metals mine, which President Biden blocked because of concerns about water pollution and risks from sulfide mining near the Boundary Waters Canoe Area Wilderness.
• "You could actually see some movement for those projects that are on the fence or close to being ready to go," Bazilian said.

• But he added: "This is an executive order, not a piece of legislation, and so it's not clear how much money there is for this or where the money is coming from."

One particular concern that could draw pushback from environmental groups and Hill progressives is the EO's proposal to waive requirements that companies disclose the feasibility of extracting their mineral resources.

• "It's riskier investments with more public money," said Aaron Mintzes, senior policy counsel with Earthworks.

The big picture: The viability of U.S. mining projects also depends on global markets.

• Some prospective graphite developers, Westerman noted, "won't go in and build the mine because they know China can dump graphite on the global market and drive their project into the ground."
• Still, Murkowski said the order will make a difference for Alaska's gold miners.
• "I think these are all significant," she said. "You've got demand that is up, you've got prices that are increasing, and you've got positive political signals."