[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.
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