Spent Petroleum Catalyst Recycling and Critical Minerals and Metals Recovery Exemption Act

#7523 | HR Congress #119

Subjects:

Last Action: Referred to the House Committee on Energy and Commerce. (2/12/2026)

Bill Text Source: Congress.gov

Summary and Impacts
Original Text

Bill Summary

The "Spent Petroleum Catalyst Recycling and Critical Minerals and Metals Recovery Exemption Act" is a legislative proposal aimed at enhancing the domestic supply of vanadium, a critical mineral essential for various industries, including steel manufacturing, infrastructure, energy, and defense. The bill highlights the importance of reducing reliance on foreign sources of vanadium, particularly from countries like China and Russia, due to national security concerns.

Key provisions of the legislation include:

1. **Recycling Framework**: The bill emphasizes that vanadium can be effectively recovered from spent petroleum catalysts through legitimate recycling processes, which should not be classified as solid waste under the Solid Waste Disposal Act. This is crucial for promoting domestic metal recovery operations.

2. **Regulatory Exemptions**: It calls for revisions to existing Environmental Protection Agency (EPA) regulations to exempt facilities that recycle spent petroleum catalysts for metals recovery from certain waste management requirements, thereby reducing regulatory burdens while ensuring environmental safeguards are maintained.

3. **Clarification of Processes**: The legislation outlines specific processes for the recovery of vanadium and other metals, including de-oiling, thermal treatment, and metallurgical processes, which can occur at different facilities but still qualify for exemptions.

4. **Immediate Implementation**: The bill mandates that the EPA take swift action to establish these regulatory changes, bypassing typical notice and comment procedures to expedite the process.

Overall, the act aims to support the recovery of critical minerals domestically and ensure a resilient supply chain for U.S. industries while fostering environmentally friendly recycling practices.

Possible Impacts

Here are three examples of how the legislation described could affect people:

1. **Economic Opportunities in Domestic Manufacturing**: By promoting the domestic recovery of vanadium from spent petroleum catalysts, this legislation could create new job opportunities in industries related to recycling and metal recovery. Workers in manufacturing and refining sectors may benefit from increased job security and potential growth, particularly in regions where oil refineries and recycling facilities are located. This could lead to a boost in local economies and less reliance on foreign sources for critical minerals.

2. **Environmental Impact and Public Health**: The legislation emphasizes recycling spent petroleum catalysts, which may reduce environmental pollution associated with traditional waste disposal methods. By clarifying the regulations around hazardous waste, the bill seeks to encourage environmentally safe practices, potentially leading to cleaner air and reduced hazardous waste in landfills. This could contribute positively to public health outcomes for communities near recycling facilities and oil refineries.

3. **National Security and Economic Resilience**: The act aims to minimize dependence on foreign sources of critical minerals, particularly from geopolitical rivals. By ensuring a stable domestic supply of vanadium for essential industries such as defense and infrastructure, the legislation could enhance national security. This could also lead to a more resilient economy by protecting against supply chain disruptions that could arise from international conflicts or trade issues, ultimately benefiting consumers by stabilizing prices and availability of critical products.

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7523 Introduced in House (IH)]

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119th CONGRESS
  2d Session
                                H. R. 7523

 To ensure domestic sources of the critical mineral vanadium necessary 
for the steel, infrastructure, energy, and defense needs of the United 
                    States, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 12, 2026

Mr. Balderson introduced the following bill; which was referred to the 
                    Committee on Energy and Commerce

_______________________________________________________________________

                                 A BILL


 
 To ensure domestic sources of the critical mineral vanadium necessary 
for the steel, infrastructure, energy, and defense needs of the United 
                    States, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Spent Petroleum Catalyst Recycling 
and Critical Minerals and Metals Recovery Exemption Act''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) In accordance with Executive Order 14272 (90 Fed. Reg. 
        16437; relating to ensuring national security and economic 
        resilience through section 232 actions on processed critical 
        minerals and derivative products), it is vital to maintain a 
        supply of critical minerals for the domestic manufacturing and 
        defense industries to protect the United States from strategic 
        supply-chain threats of foreign economic and military enemies, 
        such as China and Russia. Vanadium, a critical mineral, can be 
        obtained domestically from recycling spent petroleum catalyst 
        to produce ferrovanadium--a critical component in high-strength 
        steel used across the United States steel, defense, 
        infrastructure, and energy sectors--thereby reducing dependence 
        on foreign sources, such as China and Russia.
            (2) Units that recover vanadium and other metals and 
        critical minerals from spent petroleum catalyst legitimately 
        recycle spent petroleum catalyst solely for metals recovery, 
        not for waste incineration or energy recovery. Those units can 
        include thermal treatment units (such as roasters) that recycle 
        spent petroleum catalyst into an intermediate product suitable 
        for metals recovery and metallurgical units (such as furnaces 
        and hydrometallurgical units) that recover the metals from 
        spent petroleum catalyst or intermediate products. When 
        legitimately recycled in that manner, spent petroleum catalyst 
        is eligible for exclusions from classification as a solid waste 
        under the Solid Waste Disposal Act (42 U.S.C. 6901 et seq.), 
        such as the transfer-based exclusion under section 261.4(a)(24) 
        of title 40, Code of Federal Regulations.
            (3) The recovery of metals, including vanadium, from spent 
        petroleum catalyst can be a 3-step process. First, oil 
        refineries partially reclaim the spent petroleum catalyst 
        through a de-oiling process, or other process, to reduce volume 
        and recover hydrocarbons. Second, thermal treatment, in a unit 
        such as a roaster, is utilized to recycle spent petroleum 
        catalyst by converting vanadium, other metals, or both from 
        sulfides to oxides to produce an intermediate product suitable 
        for metals recovery. Third, a metallurgical unit such as a 
        furnace or hydrometallurgical unit is used to recover the 
        vanadium or other valuable metals using spent petroleum 
        catalyst or the intermediate product. Those steps do not need 
        to occur at the same facility.
            (4) The notice of the Environmental Protection Agency 
        entitled ``Hazardous Waste Management System; Identification 
        and Listing of Hazardous Waste: Petroleum Refining Process 
        Wastes; Land Disposal Restrictions for Newly Identified Wastes; 
        and CERCLA Hazardous Substance Designation and Reportable 
        Quantities'' (60 Fed. Reg. 57747 (November 20, 1995)) stated 
        the following:
                    (A) De-oiling crude oil tank sediment--which 
                reduces waste volumes and recovers hydrocarbons--is 
                legitimate recycling exempt from the Solid Waste 
                Disposal Act (42 U.S.C. 6901 et seq.), analogous to 
                substantial partial reclamation of spent petroleum 
                catalyst.
                    (B) Units that recover vanadium and other metals 
                and critical minerals from spent petroleum catalyst are 
                analogous to smelting, melting, and refining furnaces, 
                which are conditionally exempt from the Boilers and 
                Industrial Furnaces (referred to in this section as 
                ``BIF'') requirements under the Solid Waste Disposal 
                Act (42 U.S.C. 6901 et seq.) because they recover 
                valuable materials.
                    (C) Units that recover vanadium and other metals 
                and critical minerals from spent petroleum catalyst 
                process hazardous waste solely for materials recovery 
                as opposed to destruction or energy recovery.
                    (D) Units that recover vanadium and other metals 
                and critical minerals from spent petroleum catalyst, 
                which recycle spent petroleum catalyst (which is a 
                commodity), should be exempt under the Solid Waste 
                Disposal Act (42 U.S.C. 6901 et seq.) to promote the 
                recovery of valuable materials.
                    (E) Units that recover vanadium and other metals 
                and critical minerals from spent petroleum catalyst are 
                already equipped with pollution controls comparable to 
                those required under BIF and further regulation may be 
                unnecessary.
            (5) Permits under title V of the Clean Air Act (42 U.S.C. 
        7661 et seq.) and other air permits and regulations already 
        enforce robust environmental safeguards, making the application 
        of the Solid Waste Disposal Act (42 U.S.C. 6901 et seq.) BIF 
        requirements to units that recover vanadium and other metals 
        and critical minerals from spent petroleum catalyst duplicative 
        and unnecessary.
            (6) Clarifying the regulations pursuant to section 3 will 
        encourage environmentally safe domestic recovery of metals and 
        critical minerals, including vanadium, from spent petroleum 
        catalyst to ensure access to an affordable, resilient, and 
        sustainable supply of processed critical minerals for United 
        States industry while avoiding unnecessary regulatory burdens, 
        as the Environmental Protection Agency proposed in the notice 
        described in paragraph (4).

SEC. 3. REGULATIONS.

    (a) In General.--As soon as practicable after the date of enactment 
of this Act, the Administrator of the Environmental Protection Agency 
shall promulgate a final rule to revise the regulations under subtitle 
C of the Solid Waste Disposal Act (42 U.S.C. 6921 et seq.) as follows:
            (1) Revise subsections (c) and (d) of section 266.100 of 
        title 40, Code of Federal Regulations, to expressly provide 
        that units reclaiming valuable metals, including critical 
        minerals (such as vanadium), from spent hydrotreating catalyst 
        (EPA Hazardous Waste No. K171) and spent hydrorefining catalyst 
        (EPA Hazardous Waste No. K172) from petroleum refining 
        operations are exempt from the Boilers and Industrial Furnaces 
        requirements under the Solid Waste Disposal Act (42 U.S.C. 6901 
        et seq.).
            (2) Clarify that the exemption described in paragraph (1) 
        applies to--
                    (A) thermal treatment units, including roasters, 
                that process the spent petroleum catalyst into an 
                intermediate product suitable for metals reclamation; 
                and
                    (B) metallurgical units, including furnaces and 
                hydrometallurgical units, that reclaim metals from 
                spent petroleum catalyst and intermediate products.
            (3) Clarify that the transfer-based exclusion under section 
        261.4(a)(24) of title 40, Code of Federal Regulations, can be 
        used when spent petroleum catalyst is sent to a third party for 
        metals reclamation.
    (b) Implementation.--
            (1) Immediate effectiveness.--Notwithstanding any other 
        provision of law, the final rule promulgated under subsection 
        (a) shall take effect on the date on which the final rule is 
        published in the Federal Register.
            (2) Exemption.--The rulemaking required under subsection 
        (a) shall be carried out without regard to the notice and 
        comment requirements under section 553 of title 5, United 
        States Code.
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