| 1 | 1 | | Stricken language would be deleted from and underlined language would be added to present law. |
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| 2 | 2 | | *CRH339* 04/14/2025 2:33:21 PM CRH339 |
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| 3 | 3 | | State of Arkansas 1 |
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| 4 | 4 | | 95th General Assembly A Bill 2 |
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| 5 | 5 | | Regular Session, 2025 SENATE BILL 645 3 |
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| 6 | 6 | | 4 |
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| 7 | 7 | | By: Senator Crowell 5 |
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| 8 | 8 | | 6 |
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| 9 | 9 | | 7 |
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| 10 | 10 | | For An Act To Be Entitled 8 |
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| 11 | 11 | | AN ACT TO AMEND THE LAW CONCERNING NATURAL RESOURCES; 9 |
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| 12 | 12 | | TO CONDUCT A STUDY RELATED TO CRITICAL MINERALS; AND 10 |
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| 13 | 13 | | FOR OTHER PURPOSES. 11 |
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| 14 | 14 | | 12 |
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| 15 | 15 | | 13 |
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| 16 | 16 | | Subtitle 14 |
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| 17 | 17 | | TO CONDUCT A STUDY RELATED TO CRITICAL 15 |
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| 18 | 18 | | MINERALS. 16 |
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| 19 | 19 | | 17 |
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| 20 | 20 | | BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 18 |
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| 21 | 21 | | 19 |
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| 22 | 22 | | SECTION 1. DO NOT CODIFY. Legislative findings — Study. 20 |
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| 23 | 23 | | (a) The General Assembly finds that: 21 |
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| 24 | 24 | | (1) Critical minerals are essential for various industries, 22 |
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| 25 | 25 | | including without limitation energy, defense, and technology; 23 |
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| 26 | 26 | | (2) Ensuring energy independence for the United States requires 24 |
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| 27 | 27 | | a diversified approach, including without limitation supply chain 25 |
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| 28 | 28 | | diversification and capital investment attractiveness in value -added 26 |
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| 29 | 29 | | manufacturing; 27 |
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| 30 | 30 | | (3) Lithium recovery projects are recognized as essential to the 28 |
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| 31 | 31 | | continued growth and development of Arkansas's critical energy resources and 29 |
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| 32 | 32 | | the prosperity of its citizens; 30 |
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| 33 | 33 | | (4) Global demand for lithium is expected to quadruple by 2030, 31 |
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| 34 | 34 | | necessitating proactive efforts to support domestic lithium production to 32 |
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| 35 | 35 | | reduce reliance on foreign imports and bolster energy security; 33 |
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| 36 | 36 | | (5) Encouraging lithium recovery will provide economic benefits 34 |
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| 37 | 37 | | to Arkansas, attract investment, create jobs, and strengthen the state’s 35 |
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| 38 | 38 | | industrial and manufacturing base; 36 SB645 |
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| 39 | 39 | | |
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| 40 | 40 | | 2 04/14/2025 2:33:21 PM CRH339 |
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| 41 | 41 | | (6) Reducing statutory and regulatory roadblocks, including 1 |
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| 42 | 42 | | those related to state and local taxes, permit fees, payments, 2 |
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| 43 | 43 | | infrastructure, and workforce development, will create an optimal economic 3 |
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| 44 | 44 | | ecosystem to support lithium recovery and related industries; and 4 |
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| 45 | 45 | | (7) Arkansas's first -mover advantage is being threatened by an 5 |
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| 46 | 46 | | increase of lithium exploration and development opportunities in Louisiana, 6 |
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| 47 | 47 | | Texas, and other states where policymakers are enacting incentives and taking 7 |
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| 48 | 48 | | steps to provide regulatory certainty. 8 |
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| 49 | 49 | | (b)(1) The General Assembly shall conduct a study to evaluate the 9 |
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| 50 | 50 | | state’s national and global competitiveness in attracting lithium recovery 10 |
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| 51 | 51 | | projects and related value -added manufacturing and supply -chain activities. 11 |
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| 52 | 52 | | (2) The study required under subdivision (b)(1) of this section 12 |
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| 53 | 53 | | shall: 13 |
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| 54 | 54 | | (A) Assess the competitiveness of Arkansas using a matrix 14 |
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| 55 | 55 | | consistent with factors utilized by companies engaged in lithium recovery and 15 |
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| 56 | 56 | | related activities; 16 |
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| 57 | 57 | | (B) Identify potential developmental impediments, 17 |
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| 58 | 58 | | including without limitation state and local taxes, permit fees, payments, 18 |
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| 59 | 59 | | regulatory burdens, and other government -induced or imposed activities; 19 |
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| 60 | 60 | | (C) Evaluate infrastructure needs, including without 20 |
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| 61 | 61 | | limitation rail, roads, water supply, and electricity transmission and 21 |
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| 62 | 62 | | distribution necessary for lithium recovery and processing projects; 22 |
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| 63 | 63 | | (D) Examine workforce availability and training programs 23 |
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| 64 | 64 | | to ensure a skilled labor force to support the lithium industry; and 24 |
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| 65 | 65 | | (E) Provide recommendations to enhance Arkansas’s 25 |
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| 66 | 66 | | attractiveness for investment in lithium recovery and associated value -added 26 |
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| 67 | 67 | | manufacturing. 27 |
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