[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 527 Introduced in House (IH)]

113th CONGRESS
  1st Session
                                H. R. 527

 To amend the Helium Act to complete the privatization of the Federal 
 helium reserve in a competitive market fashion that ensures stability 
   in the helium markets while protecting the interests of American 
                   taxpayers, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            February 6, 2013

 Mr. Hastings of Washington (for himself, Mr. Markey, Mr. Flores, and 
  Mr. Holt) introduced the following bill; which was referred to the 
                     Committee on Natural Resources

_______________________________________________________________________

                                 A BILL


 
 To amend the Helium Act to complete the privatization of the Federal 
 helium reserve in a competitive market fashion that ensures stability 
   in the helium markets while protecting the interests of American 
                   taxpayers, 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 ``Responsible Helium Administration 
and Stewardship Act''.

SEC. 2. DEFINITIONS.

    Section 2 of the Helium Act (50 U.S.C. 167) is amended--
            (1) in paragraph (1), by striking the semicolon at the end 
        and inserting a period;
            (2) in paragraph (2), by striking ``; and'' and inserting a 
        period; and
            (3) by adding at the end the following:
            ``(4) Federal helium reserve.--
                    ``(A) In general.--The term `Federal Helium 
                Reserve' means the Bureau of Land Management Cliffside 
                Gas Field and supporting infrastructure.
                    ``(B) Inclusions.--The term `Federal Helium 
                Reserve' includes--
                            ``(i) the Cliffside Gas Field helium 
                        storage reservoir; and
                            ``(ii) all associated infrastructure owned, 
                        leased, or managed under contract by the 
                        Secretary for storage, transportation, 
                        withdrawal, purification, or management of 
                        helium.
            ``(5) Qualifying domestic helium transaction.--The term 
        `qualifying domestic helium transaction'--
                    ``(A) except as provided in subparagraph (B), means 
                any new or newly negotiated agreement for the purchase 
                or sale of at least 15,000,000 standard cubic feet of 
                crude helium or bulk liquid helium delivered in the 
                United States in the most recent 2-fiscal-year period; 
                and
                    ``(B) does not include any purchase of crude helium 
                from the Secretary.
            ``(6) Tolling agreement.--The term `tolling agreement' 
        means an agreement between a helium refiner and another party 
        under which the helium refiner agrees to process the other 
        person's helium at an agreed upon price.''.

SEC. 3. SALE AND AUCTION OF CRUDE HELIUM.

    (a) In General.--Section 6 of the Helium Act (50 U.S.C. 167d) is 
amended to read as follows:

``SEC. 6. SALE OF HELIUM.

    ``(a) Phase A: Finalizing Debt Payoff.--
            ``(1) In general.--Subject to paragraph (2), the Secretary 
        shall offer for sale crude helium for Federal, medical, 
        scientific, and commercial uses in such quantities, at such 
        times, and under such conditions as the Secretary determines 
        necessary to carry out this subsection with minimum market 
        disruption.
            ``(2) Minimum quantity.--The Secretary shall offer for sale 
        during each fiscal year under paragraph (1) a quantity of crude 
        helium that is not less than the quantity of crude helium 
        offered for sale by the Secretary during fiscal year 2012.
            ``(3) Purchase by federal agencies.--Federal agencies, and 
        holders of 1 or more Federal research grants, may purchase 
        refined helium under this subsection for Federal, medical, and 
        scientific uses from persons who have entered into enforceable 
        contracts to purchase an equivalent quantity of crude helium 
        from the Secretary.
            ``(4) Prices and determinations.--Sales of crude helium by 
        the Secretary under this subsection shall be at prices 
        established by the Secretary that shall not be less than the 
        price in the last sale of crude helium from the Federal Helium 
        Reserve before the date of enactment of the Responsible Helium 
        Administration and Stewardship Act.
            ``(5) Duration.--This subsection applies during the 
        period--
                    ``(A) beginning on the date of enactment of the 
                Responsible Helium Administration and Stewardship Act; 
                and
                    ``(B) ending on the expiration of the one-year 
                period following such date of enactment.
    ``(b) Phase B: Maximizing Total Recovery of Helium and Increasing 
Returns to the American Taxpayer.--
            ``(1) In general.--The Secretary shall offer for sale at 
        auction, as described in subsection (d), crude helium for 
        Federal, medical, scientific, and commercial uses in such 
        quantities, at such times, and under such conditions as the 
        Secretary determines necessary--
                    ``(A) to maximize total recovery and conservation 
                of helium from the Federal Helium Reserve;
                    ``(B) to manage crude helium sales according to the 
                ability of the Secretary to extract and produce helium 
                from the Federal Helium Reserve;
                    ``(C) to respond to helium market supply and demand 
                and minimize market disruption; and
                    ``(D) to give priority to meeting the helium demand 
                of Federal users in the event of any disruption to the 
                Federal Helium Reserve.
            ``(2) Purchase by designated federal agencies and 
        grantees.--Any Federal agency, and any holder of 1 or more 
        Federal research grants, may purchase refined helium for 
        Federal, medical, research, and scientific uses from an 
        eligible person, at the minimum auction price or other price 
        designated by the Secretary. The Secretary shall then provide 
        an equivalent volume of crude helium to the eligible person as 
        if the eligible person was the successful bidder for the helium 
        at auction.
            ``(3) Eligible person.--For purposes of this subsection, 
        the term `eligible person' means a helium distributer who is 
        registered as such with the Secretary.
            ``(4) Duration.--This subsection applies during the 
        period--
                    ``(A) beginning on the expiration of the period 
                described in subsection (a)(5)(B); and
                    ``(B) ending on the date on which the volume of 
                recoverable crude helium at the Federal Helium Reserve 
                (other than privately owned quantities of crude helium 
                stored temporarily at the Federal Helium Reserve under 
                section 5 and this section) is 3,000,000,000 standard 
                cubic feet.
    ``(c) Phase C: Access for Federal Users.--
            ``(1) In general.--The Secretary may offer for sale crude 
        helium for Federal uses (including medical and scientific uses) 
        in such quantities, at such times, and under such conditions as 
        the Secretary determines necessary to carry out this 
        subsection.
            ``(2) Purchase by federal agencies and grantees.--Federal 
        agencies, and holders of 1 or more Federal research grants 
        related to helium or the use of helium, may purchase refined 
        helium under this subsection for Federal uses (including 
        medical and scientific uses) from persons who have entered into 
        enforceable contracts to purchase an equivalent quantity of 
        crude helium from the Secretary.
            ``(3) Effective date.--This subsection applies beginning on 
        the day after the date described in subsection (b)(4)(B).
    ``(d) Auction and Minimum Prices Determination.--
            ``(1) In general.--Sales of crude helium by the Secretary 
        under subsection (b) shall be conducted at auction under the 
        conditions described in this section and at no less than the 
        minimum price established by the Secretary.
            ``(2) Auction.--The Secretary shall conduct auctions of 
        crude helium in the Federal Helium Reserve as soon as practical 
        but no later than beginning 180 days after the first day of the 
        period described in subsection (b)(4), under the following 
        conditions:
                    ``(A) 60 percent of the volume of crude helium made 
                available in each auction shall be made available to 
                entities that can show the Secretary they have either 
                adequate refining capacity or tolling agreements for 
                refining in place, in accordance with the conditions 
                set forth in paragraph (3).
                    ``(B) 20 percent of the volume of crude helium made 
                available in each auction shall be made available to 
                any bidder, in accordance with the conditions set forth 
                in paragraph (3).
                    ``(C) In each auction after the first auction under 
                this subsection after the date of the enactment of the 
                Responsible Helium Administration and Stewardship Act, 
                the Secretary shall make available an additional volume 
                of crude helium, in an amount equivalent to the amount 
                made available under subparagraph (B) that the 
                Secretary certifies can be refined, through tolling 
                agreements or otherwise. Of such additional volume, a 
                person may not acquire in the auction a volume in 
                excess of the volume they demonstrate to the Secretary 
                they have the ability to refine through either refining 
                capacity or tolling agreements.
                    ``(D) The Secretary shall conduct such auctions at 
                such times as the Secretary determines necessary to 
                ensure a reliable supply of helium and a fair return to 
                taxpayers, but no less frequently than 2 times each 
                fiscal year.
                    ``(E) For purposes of the first auction under this 
                subsection after the date of the enactment of the 
                Responsible Helium Administration and Stewardship Act, 
                the Secretary may revise the percentage under 
                subparagraph (A) so as to make available for auction 
                100 percent of the volume of crude helium intended to 
                be offered.
                    ``(F) The Secretary may adjust the percentages and 
                amount specified in subparagraphs (A) through (C), 
                respectively, in any auction if the Secretary 
                determines the adjustment is necessary to--
                            ``(i) respond to market supply and demand 
                        and minimize market disruption; or
                            ``(ii) increase participation in helium 
                        auctions.
                    ``(G) Notwithstanding any other provision of this 
                subsection, for each fiscal year, the Secretary may not 
                offer a total volume of crude helium for sale under 
                this subsection that exceeds the lesser of--
                            ``(i) the projected maximum total 
                        production capacity of the Federal Helium 
                        Reserve during that fiscal year; and
                            ``(ii) the maximum refining capacity of 
                        persons connected by pipeline to the Federal 
                        Helium Reserve during that fiscal year.
            ``(3) Auction conditions.--
                    ``(A) Bidding method.--The Secretary shall conduct 
                each auction by sealed bid for predetermined volume 
                lots, unless the Secretary determines that an 
                alternative bidding method may result in more revenue 
                to the Federal Government.
                    ``(B) Bidder qualifications and limits.--In 
                carrying out an auction under subsection (b), the 
                Secretary--
                            ``(i) may accept bids only from persons the 
                        Secretary determines are seeking to purchase 
                        helium for their own use, for refining, or for 
                        delivery to users; and
                            ``(ii) may not award to a person more than 
                        30 percent of the total volume of crude helium 
                        offered in that auction, except that the 
                        Secretary may adjust such limitation based on 
                        the number of bidders in the auction.
                    ``(C) Storage fees.--In each auction the 
                Secretary--
                            ``(i) shall begin charging each winning 
                        bidder a storage fee for crude helium purchased 
                        by the bidder that remains in the Federal 
                        Helium Reserve, beginning on the date the 
                        Secretary receives payment of the purchase 
                        price for the helium; and
                            ``(ii) beginning 270 days after the date of 
                        the auction, shall charge increasing storage 
                        fees that will encourage the withdrawal of the 
                        helium no later than 2 years after the date of 
                        the auction.
            ``(4) Determination of minimum sale price.--The Secretary 
        shall make a determination of the minimum sale price for sales 
        described in paragraph (1) using--
                    ``(A) a confidential survey of qualifying domestic 
                helium transactions to which any holder of a contract 
                with the Secretary for the acceptance, storage, and 
                redelivery of crude helium in the Cliffside Gas Field 
                helium storage reservoir is a party;
                    ``(B) current market crude helium prices as 
                represented by the sale price at any auction held by 
                the Secretary in the preceding 2 years;
                    ``(C) the volume-weighted average cost among helium 
                refiners, producers, and liquefiers, in dollars per 
                thousand cubic feet, of converting gaseous crude helium 
                into bulk liquid helium; and
                    ``(D) the additional layer of cost and profit 
                associated with the sale or resale of bulk liquid 
                helium.
            ``(5) Authority of secretary.--The Secretary shall--
                    ``(A) require all persons that are parties to a 
                contract with the Secretary for the acceptance, 
                storage, and redelivery of crude helium to disclose, on 
                a strictly confidential basis in dollars per thousand 
                cubic feet, the weighted average price of all crude 
                helium and bulk liquid helium purchased, sold, or 
                processed by the persons in all qualifying domestic 
                helium transactions during the fiscal year;
                    ``(B) appoint a qualified independent third party 
                to perform data collection and analysis for the 
                purposes of the survey under paragraph (4)(A); and
                    ``(C) adopt such administrative policies and 
                procedures as the Secretary considers necessary and 
                reasonable to ensure robust protection of the 
                confidentiality of data submitted by private persons.
            ``(6) Changes in minimum price.--If the Secretary believes 
        that the minimum price as determined by the survey under 
        paragraph (4)(A) may not be reflective of the current market 
        value of helium, or if a higher minimum price may result in 
        greater conservation of the Federal crude helium resource, the 
        Secretary may change the minimum price charged for crude helium 
        sold under this section by up to 10 percent of the price 
        determined under paragraph (4). If at any sale in which the 
        minimum price is increased under this paragraph all crude 
        helium offered is sold at the increased price, the Secretary 
        shall consider that increased price to be the minimum price 
        determined under paragraph (4) for all future sales of crude 
        helium under this section unless that price is further changed 
        in accordance with this paragraph.
            ``(7) Ensuring fair acts and practices.--The Secretary may 
        issue such rules and regulations with respect to bidding, 
        transfer, and refining of helium produced from or held in the 
        Federal Helium Reserve as may be necessary to prevent unfair 
        acts and practices.
            ``(8) Auction records.--
                    ``(A) Furnishing records.--Every person 
                participating in auctions of helium from the Federal 
                Helium Reserve shall furnish to the Secretary on 
                request such records of transactions in helium auctions 
                as the Secretary may require to reconstruct bidding or 
                trading in the course of a particular inquiry or 
                investigation being conducted by the Secretary for 
                enforcement or surveillance purposes. In requiring 
                information pursuant to this paragraph, the Secretary 
                shall specify the information required, the period for 
                which it is required, and the time and date on which 
                the information must be furnished.
                    ``(B) Reporting requirements.--The Secretary may 
                issue rules to require persons participating in helium 
                auctions to file such reports as the Secretary 
                determines to be necessary for purposes of this Act.
                    ``(C) Recordkeeping requirements.--Rules under this 
                subsection may require specified persons to make and 
                keep for prescribed periods such records as the 
                Secretary determines are necessary or appropriate to 
                ensure that such persons can comply with reporting 
                requirements under this subsection.
                    ``(D) Limitation on disclosure of information.--
                Notwithstanding any other provision of law, the 
                Secretary shall not be compelled to disclose any 
                proprietary information required to be kept or reported 
                under this subsection. Nothing in this subsection 
                authorizes the Secretary to withhold information from 
                Congress, prevents the Secretary from complying with a 
                request for information from any other Federal 
                department or agency requesting information for 
                purposes within the scope of its jurisdiction, or 
                prevents the Secretary from complying with an order of 
                a court of the United States in an action brought by 
                the United States or by the Secretary.
    ``(e) Helium Production Fund.--
            ``(1) In general.--All amounts received under this Act 
        shall be credited to the Helium Production Fund, which shall be 
        available without fiscal year limitation for purposes 
        considered necessary by the Secretary to carry out this 
        subsection.
            ``(2) Administrative expenses.--Amounts in the Helium 
        Production Fund may be used by the Secretary to conduct helium 
        auctions and otherwise administer this Act.
            ``(3) Repayment amounts.--During the period described in 
        subsection (a)(4), amounts in the Helium Production Fund in 
        excess of amounts the Secretary considers necessary to conduct 
        helium auctions and otherwise administer this Act shall be paid 
        to the general fund of the Treasury and credited against all 
        amounts required to be repaid to the United States under this 
        Act as of October 1, 1995.
            ``(4) Capital investments and maintenance.--Amounts in the 
        Helium Production Fund in excess of amounts the Secretary 
        considers necessary to carry out paragraphs (1) through (3) may 
        be used to fund the following capital investments in upgrades 
        and maintenance at the Federal Helium reserve:
                    ``(A) Wellhead maintenance at the Cliffside Gas 
                Field helium storage reservoir.
                    ``(B) Capital investments in maintenance and 
                upgrades of facilities that pressurize the Cliffside 
                Gas Field helium storage reservoir.
                    ``(C) Capital investments in maintenance and 
                upgrades of equipment related to the storage, 
                withdrawal, transportation, purification, and sale of 
                crude helium at the Cliffside Gas Field helium storage 
                reservoir.
                    ``(D) Any other scheduled or unscheduled 
                maintenance of the Cliffside Gas Field helium storage 
                reservoir and helium pipeline.
            ``(5) Excess funds.--Amounts in the Helium Production Fund 
        in excess of amounts the Secretary considers necessary to carry 
        out paragraphs (1) through (4) shall be paid to the general 
        fund of the Treasury.
    ``(f) Extraction of Helium From Deposits on Federal Land.--All 
amounts received by the Secretary from the sale or disposition of crude 
helium on Federal land shall be paid to the general fund of the 
Treasury and credited against all amounts required to be repaid to the 
United States under this Act as of October 1, 1995.''.
    (b) Report.--Not later than 1 year after the date of enactment of 
this Act and annually thereafter, the Secretary of the Interior shall 
submit to the Committee on Natural Resources of the House of 
Representatives and the Committee on Energy and Natural Resources of 
the Senate a report describing all expenditures by the Bureau of Land 
Management for operation and maintenance of the Federal Helium Reserve 
(as that term is defined in the amendment made by section 2(3)), 
investments made by the Bureau for such reserve, and scheduled or 
unscheduled maintenance of such reserve or its infrastructure to be 
conducted by the Bureau.

SEC. 4. BLM TRANSPARENCY REQUIREMENTS TO FACILITATE MARKET AND SUPPLY 
              CHAIN INFORMATION.

    The Helium Act (50 U.S.C. 167 et seq.) is further amended by 
redesignating sections 15 through 17 as sections 17 through 19, and by 
inserting after section 14 the following:

``SEC. 15. PIPELINE ACCESS.

    ``(a) Annual Report.--The Secretary, acting through the Bureau of 
Land Management, shall make available on the Internet the current 
refining capacity on the Federal Helium Reserve pipeline, including--
            ``(1) refinery capacity and future capacity estimates;
            ``(2) ownership of federally auctioned helium held in the 
        Federal Helium Reserve;
            ``(3) volume of helium delivered to individual buyers 
        through such pipeline;
            ``(4) pipeline pressure constraints; and
            ``(5) other factors that will increase transparency for 
        persons interested in entering refining contracts with existing 
        refiners.
    ``(b) New Refining Capacity.--The Secretary shall take any 
applications for new refining capacity on the Federal Helium Reserve 
pipeline. To create more competition, any new refining capacity added 
to the Federal Helium Reserve pipeline system shall be granted access 
to crude helium that is equal to the access provided to existing 
refining facilities.
    ``(c) Access by Purchasers of Helium.--The Secretary shall manage 
Federal Helium Reserve pipeline access in a competitive manner to 
ensure that all persons purchasing helium have equal access to timing 
and delivery of the helium, subject to the capacity of the system.
    ``(d) Scheduling Deliveries.--The Secretary shall, to the greatest 
extent practicable, make the scheduling of crude helium deliveries 
through the Federal Helium Reserve pipeline open and transparent to all 
purchasers of helium through the auction process, and to the public if 
the Secretary believes that it is in the national interest.

``SEC. 16. BLM REPORTING REQUIREMENTS TO FACILITATE SUPPLY CHAIN 
              INFORMATION.

    ``(a) In General.--In order to provide the market with appropriate 
and timely information affecting the helium resource, the Director of 
the Bureau of Land Management shall establish, no later than 90 days 
after the date of enactment of the Responsible Helium Administration 
and Stewardship Act, a real-time reporting process, including reporting 
over the Internet, to provide data that will affect the helium 
industry, including such effects for all persons in such industry from 
crude helium suppliers to end users.
    ``(b) Included Information.--Information provided under this 
section shall include the following:
            ``(1) Annual maintenance schedules and quarterly updates 
        thereof, which shall be available on the Internet, to the 
        extent practicable, and shall include the following:
                    ``(A) The date and duration of planned shutdowns of 
                the Federal Helium Reserve pipeline.
                    ``(B) The nature of work to be undertaken, whether 
                routine, extended, or extraordinary.
                    ``(C) The anticipated impact on the helium supply.
                    ``(D) The efforts to minimize any impact on the 
                supply chain.
                    ``(E) Any concerns regarding maintenance of the 
                Federal Helium Reserve pipeline, pressure of such 
                pipeline, or deviation from normal operation of such 
                pipeline.
            ``(2) For each unplanned outage, the following:
                    ``(A) The beginning of the outage.
                    ``(B) The expected duration of outage.
                    ``(C) A description of the problem.
                    ``(D) The estimated impact on helium supply.
                    ``(E) A plan to correct problems, an estimate of 
                the potential timeframe for correction, and the 
                likelihood of plan success within the timeframe.
                    ``(F) Efforts to minimize negative impacts on the 
                helium supply chain.
                    ``(G) Updates on repair status and the anticipated 
                online date.
            ``(3) Minutes of meetings between the Bureau of Land 
        Management and the Cliffside Refiners Limited Partnership, 
        including--
                    ``(A) publication of the minutes of each meeting 
                between the Bureau of Land Management and the Cliffside 
                Refiners Limited Partnership, including attendees and 
                their affiliations, on the Internet site of the Bureau 
                within 1 week after the meeting; and
                    ``(B) indication in the minutes of any action taken 
                that could affect the supply or operating status 
                related to the Federal helium program.
            ``(4) Current predictions of the lifespan of the Federal 
        Helium Reserve, including how much longer such crude helium 
        supply will be available based on current and forecasted demand 
        and the projected maximum production capacity of the Federal 
        Helium Reserve for the following fiscal year.''.

SEC. 5. HELIUM RESOURCE ASSESSMENT AND HELIUM-3 SEPARATION.

    (a) Helium Gas Resource Assessment.--Not later than 2 years after 
the date of enactment of this Act, the Secretary of the Interior 
shall--
            (1) in coordination with appropriate heads of State 
        geological surveys--
                    (A) complete a national helium gas assessment that 
                identifies and quantifies the quantity of helium, 
                including the isotope helium-3, in each reservoir, 
                including assessments of the constituent gases found in 
                each helium resource, such as carbon dioxide, nitrogen, 
                and natural gas; and
                    (B) make available the modern seismic and 
                geophysical log data for characterization of the Bush 
                Dome Reservoir;
            (2) in coordination with appropriate international agencies 
        and the global geology community, complete a global helium gas 
        assessment that identifies and quantifies the quantity of the 
        helium, including the isotope helium-3, in each reservoir;
            (3) in consultation with the Secretary of Energy, acting 
        through the Administrator of the Energy Information 
        Administration, complete--
                    (A) an assessment of trends in global demand for 
                helium, including the isotope helium-3;
                    (B) a 10-year forecast of domestic demand for 
                helium across all sectors, including scientific and 
                medical research, commercial, manufacturing, space 
                technologies, cryogenics, and national defense; and
                    (C) an inventory of medical, scientific, 
                industrial, commercial, and other uses of helium in the 
                United States, including Federal and commercial helium 
                uses, that identifies the nature of the helium use, the 
                amounts required, the technical and commercial 
                viability of helium recapture and recycling in that 
                use, and the availability of material substitutes 
                wherever possible; and
            (4) submit to the Committee on Natural Resources of the 
        House of Representatives and the Committee on Energy and 
        Natural Resources of the Senate a report describing the results 
        of the assessments required under this subsection.
    (b) Helium-3 Separation.--
            (1) Interagency cooperation.--The Secretary of the Interior 
        shall cooperate with the Secretary of Energy, or a designee of 
        the Secretary of Energy, on any assessment or research relating 
        to the extraction and refining of the isotope helium-3 from 
        crude helium at the Federal Helium Reserve (as that term is 
        defined in the amendments made by section 2) or along the 
        Federal Helium Reserve pipeline system, including--
                    (A) gas analysis;
                    (B) infrastructure studies; and
                    (C) cooperation with private helium refiners.
            (2) Feasibility study.--The Secretary of the Interior shall 
        assess the feasibility of establishing a facility to separate 
        the isotope helium-3 from crude helium at--
                    (A) the Federal Helium Reserve; or
                    (B) an existing helium separation or purification 
                facility connected to the Federal Helium Reserve 
                pipeline system.
            (3) Report.--Not later than 1 year after the date of 
        enactment of this Act, the Secretary of the Interior shall 
        submit to the Committee on Natural Resources of the House of 
        Representatives and the Committee on Energy and Natural 
        Resources of the Senate a report that contains a description of 
        the results of the assessments conducted under this subsection.
                                 <all>