[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 783 Introduced in Senate (IS)]

113th CONGRESS
  1st Session
                                 S. 783

 To amend the Helium Act to improve helium stewardship, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 23, 2013

  Mr. Wyden (for himself and Ms. Murkowski) introduced the following 
bill; which was read twice and referred to the Committee on Energy and 
                           Natural Resources

_______________________________________________________________________

                                 A BILL


 
 To amend the Helium Act to improve helium stewardship, 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 ``Helium Stewardship Act of 2013''.

SEC. 2. DEFINITIONS.

    Section 2 of the Helium Act (50 U.S.C. 167) is amended to read as 
follows:

``SEC. 2. DEFINITIONS.

    ``In this Act:
            ``(1) Cliffside field.--The term `Cliffside Field' means 
        the helium storage reservoir in which the Federal Helium 
        Reserve is stored.
            ``(2) Federal helium pipeline.--The term `Federal Helium 
        Pipeline' means the federally owned pipeline system through 
        which the Federal Helium Reserve may be transported.
            ``(3) Federal helium reserve.--The term `Federal Helium 
        Reserve' means helium reserves owned by the United States.
            ``(4) Federal helium system.--The term `Federal Helium 
        System' means--
                    ``(A) the Federal Helium Reserve;
                    ``(B) the Cliffside Field;
                    ``(C) the Federal Helium Pipeline; and
                    ``(D) all other infrastructure owned, leased, or 
                managed under contract by the Secretary for the 
                storage, transportation, withdrawal, purification, or 
                management of helium.
            ``(5) Federal user.--The term `Federal user' means a 
        Federal agency or extramural holder of one or more Federal 
        research grants using helium.
            ``(6) Low-btu gas.--The term `low-Btu gas' means a fuel gas 
        with a heating value of less than 250 Btu per standard cubic 
        foot measured as the higher heating value resulting from the 
        inclusion of noncombustible gases, including nitrogen, helium, 
        argon, and carbon dioxide.
            ``(7) Person.--The term `person' means any individual, 
        corporation, partnership, firm, association, trust, estate, 
        public or private institution, or State or political 
        subdivision.
            ``(8) Priority pipeline access.--The term `priority 
        pipeline access' means the first priority of delivery of crude 
        helium under which the Secretary schedules and ensures the 
        delivery of crude helium to a helium refinery through the 
        Federal Helium System.
            ``(9) Qualified bidder.--
                    ``(A) In general.--The term `qualified bidder' 
                means a person the Secretary determines is seeking to 
                purchase helium for their own use, refining, or 
                redelivery to users.
                    ``(B) Exclusion.--The term `qualified bidder' does 
                not include a person who was previously determined to 
                be a qualified bidder if the Secretary determines that 
                the person did not meet the requirements of a qualified 
                bidder under this Act.
            ``(10) Qualifying domestic helium transaction.--The term 
        `qualifying domestic helium transaction' means any agreement 
        entered into or renegotiated agreement during the preceding 1-
        year period in the United States for the purchase or sale of at 
        least 20,000,000 standard cubic feet of crude or pure helium to 
        which any holder of a contract with the Secretary for the 
        acceptance, storage, delivery, or redelivery of crude helium 
        from the Federal Helium System is a party.
            ``(11) Refiner.--The term `refiner' means a person with the 
        ability to take delivery of crude helium from the Federal 
        Helium Pipeline and refine the crude helium into pure helium.
            ``(12) Secretary.--The term `Secretary' means the Secretary 
        of the Interior.''.

SEC. 3. AUTHORITY OF SECRETARY.

    Section 3 of the Helium Act (50 U.S.C. 167a) is amended by adding 
at the end the following:
    ``(c) Extraction of Helium From Deposits on Federal Land.--All 
amounts received by the Secretary from the sale or disposition of 
helium on Federal land shall be credited to the Helium Production Fund 
established under section 6(d).''.

SEC. 4. STORAGE, WITHDRAWAL AND TRANSPORTATION.

    Section 5 of the Helium Act (50 U.S.C. 167c) is amended to read as 
follows:

``SEC. 5. STORAGE, WITHDRAWAL AND TRANSPORTATION.

    ``(a) In General.--If the Secretary provides helium storage, 
withdrawal, or transportation services to any person, the Secretary 
shall impose a fee on the person that accurately reflects the economic 
value of those services.
    ``(b) Minimum Fees.--The fees charged under subsection (a) shall be 
not less than the amount required to reimburse the Secretary for the 
full costs of providing storage, withdrawal, or transportation 
services.
    ``(c) Schedule of Fees.--Prior to sale or auction under subsection 
(a), (b), or (c) of section 6, the Secretary shall annually publish a 
standardized schedule of fees that the Secretary will charge under this 
section.
    ``(d) Treatment.--All fees received by the Secretary under this 
section shall be credited to the Helium Production Fund established 
under section 6(d).
    ``(e) New Storage.--In accordance with this section, the Secretary 
shall allow any person or qualified bidder to which crude helium is 
sold or auctioned under section 6 to store that helium in the Federal 
Helium Reserve.''.

SEC. 5. SALE OF CRUDE HELIUM.

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

``SEC. 6. SALE OF CRUDE HELIUM.

    ``(a) Phase A: Allocation Transition.--
            ``(1) In general.--The Secretary shall offer crude helium 
        for sale in such quantities, at such times, at not less than 
        the minimum price established under subsection (b)(7), and 
        under such terms and conditions as the Secretary determines 
        necessary to carry out this subsection with minimum market 
        disruption.
            ``(2) Federal purchases.--Federal users may purchase 
        refined helium with priority pipeline access under this 
        subsection from persons who have entered into enforceable 
        contracts to purchase an equivalent quantity of crude helium 
        from the Secretary.
            ``(3) Duration.--This subsection applies during the 
        period--
                    ``(A) beginning on the date of enactment of the 
                Helium Stewardship Act of 2013; and
                    ``(B) ending on September 30, 2014.
    ``(b) Phase B: Auction Implementation.--
            ``(1) In general.--The Secretary shall offer crude helium 
        for sale in quantities not subject to auction under paragraph 
        (2), at such times, at not less than the minimum price 
        established under paragraph (7), and under such terms and 
        conditions as the Secretary determines necessary--
                    ``(A) to maximize total recovery of helium from the 
                Federal Helium Reserve over the long term;
                    ``(B) to maximize the total financial return to the 
                taxpayer;
                    ``(C) to manage crude helium sales according to the 
                ability of the Secretary to extract and produce helium 
                from the Federal Helium Reserve;
                    ``(D) to give priority to meeting the helium demand 
                of Federal users in the event of any disruption to the 
                Federal Helium Reserve; and
                    ``(E) to carry out this subsection with minimum 
                market disruption.
            ``(2) Auction quantities.--For the period described in 
        paragraph (4) and consistent with the conditions described in 
        paragraph (8), the Secretary shall annually auction to any 
        qualified bidder a quantity of crude helium in the Federal 
        Helium Reserve equal to--
                    ``(A) for fiscal year 2015, 10 percent of the total 
                volume of crude helium made available for that fiscal 
                year; and
                    ``(B) for each subsequent fiscal year, a percentage 
                of the total volume of crude helium that is 10 
                percentage points greater than the percentage available 
                for the previous fiscal year, but not to exceed 100 
                percent.
            ``(3) Federal purchases.--Federal users may purchase 
        refined helium-with priority pipeline access and at the in-kind 
        price under this subsection from persons who have entered into 
        enforceable contracts to purchase an equivalent quantity of 
        crude helium from the Secretary.
            ``(4) Duration.--This subsection applies during the 
        period--
                    ``(A) beginning on October 1, 2014; 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.
            ``(5) Safety valve.--The Secretary may adjust the 
        quantities specified in paragraph (2)--
                    ``(A) downward, if the Secretary determines the 
                adjustment necessary--
                            ``(i) to minimize market disruptions that 
                        pose a threat to the economic well-being of the 
                        United States; and
                            ``(ii) only after submitting a written 
                        justification of the adjustment to the 
                        Committee on Energy and Natural Resources of 
                        the Senate and the Committee on Natural 
                        Resources of the House of Representatives; or
                    ``(B) upward, if the Secretary determines the 
                adjustment necessary to increase participation in crude 
                helium auctions or returns to the taxpayer.
            ``(6) Auction format.--The Secretary shall conduct each 
        auction using a method that maximizes revenue to the Federal 
        Government.
            ``(7) Prices.--The Secretary shall annually establish, as 
        applicable, sale and minimum auction prices under subsection 
        (a)(1) and paragraphs (1) and (2) using, if applicable and in 
        the following order of priority:
                    ``(A) The sale price of crude helium in auctions 
                held by the Secretary under paragraph (2).
                    ``(B) Price recommendations and disaggregated data 
                from a qualified, independent third party who has no 
                conflict of interest, who shall conduct a confidential 
                survey of qualifying domestic helium transactions.
                    ``(C) The volume-weighted average price of all 
                crude helium and pure helium purchased, sold, or 
                processed by persons in all qualifying domestic helium 
                transactions.
                    ``(D) The volume-weighted average cost of 
                converting gaseous crude helium into pure helium.
            ``(8) Terms and conditions.--
                    ``(A) In general.--The Secretary shall require all 
                persons that are parties to a contract with the 
                Secretary for the withdrawal, acceptance, storage, 
                transportation, delivery, or redelivery of crude helium 
                to disclose, on a strictly confidential basis--
                            ``(i) the volumes and associated prices in 
                        dollars per thousand cubic feet of all crude 
                        and pure helium purchased, sold, or processed 
                        by persons in qualifying domestic helium 
                        transactions;
                            ``(ii) the volumes and associated costs in 
                        dollars per thousand cubic feet of converting 
                        crude helium into pure helium; and
                            ``(iii) refinery capacity and future 
                        capacity estimates.
                    ``(B) Condition.--As a condition of sale or auction 
                to a refiner under subsection (a)(1) and paragraphs (1) 
                and (2), effective beginning 90 days after the date of 
                enactment of the Helium Stewardship Act of 2013, the 
                refiner shall make excess refining capacity of helium 
                available at commercially reasonable rates to--
                            ``(i) any person prevailing in auctions 
                        under paragraph (2); and
                            ``(ii) any person that has acquired crude 
                        helium from the Secretary from the Federal 
                        Helium Reserve by means other than an auction 
                        under paragraph (2) after the date of enactment 
                        of the Helium Stewardship Act of 2013.
            ``(9) Use of information.--The Secretary may use the 
        information collected under this Act--
                    ``(A) to approximate crude helium prices; and
                    ``(B) to ensure the recovery of fair value for the 
                taxpayers of the United States from sales of crude 
                helium.
            ``(10) Protection of confidentiality.--The Secretary shall 
        adopt such administrative policies and procedures as the 
        Secretary considers necessary and reasonable to ensure the 
        confidentiality of information submitted pursuant to this Act.
    ``(c) Phase C: Continued Access for Federal Users.--
            ``(1) In general.--The Secretary shall offer crude helium 
        for sale to Federal users in such quantities, at such times, at 
        not less than the minimum price established under subsection 
        (b)(7), and under such terms and conditions as the Secretary 
        determines necessary to carry out this subsection.
            ``(2) Federal purchases.--Federal users may purchase 
        refined helium with priority pipeline access under this 
        subsection 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) Helium Production Fund.--
            ``(1) In general.--All amounts received under this Act, 
        including amounts from the sale or auction of crude helium, 
        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 Act 
        (other than sections 16, 17, and 18), including capital 
        investments in upgrades and maintenance at the Federal Helium 
        System, including--
                    ``(A) well head maintenance at the Cliffside Field;
                    ``(B) capital investments in maintenance and 
                upgrades of facilities that pressurize the Cliffside 
                Field;
                    ``(C) capital investments in maintenance and 
                upgrades of equipment related to the storage, 
                withdrawal, transportation, purification, and sale of 
                crude helium from the Federal Helium Reserve;
                    ``(D) entering into purchase, lease, or other 
                agreements to drill new or uncap existing wells to 
                maximize the recovery of crude helium from the Federal 
                Helium System if the Secretary determines the actions 
                to be cost-effective; and
                    ``(E) any other scheduled or unscheduled 
                maintenance of the Federal Helium System.
            ``(2) Excess funds.--Any amounts in the Helium Production 
        Fund described in paragraph (1) that exceed the amounts that 
        the Secretary determines to be necessary to carry out paragraph 
        (1) shall be deposited in the general fund of the Treasury.
    ``(e) Minimum Quantity.--The Secretary shall offer for sale or 
auction during each fiscal year under subsections (a), (b), and (c) a 
quantity of crude helium that is the lesser of --
            ``(1) the quantity of crude helium offered for sale by the 
        Secretary during fiscal year 2012; and
            ``(2) the maximum total production capacity of the Federal 
        Helium System.
    ``(f) Maintenance of Helium Supply.--The Secretary shall minimize 
disruption in the supply of helium from the Federal Helium System 
during the transition between phases of helium sales under subsections 
(a), (b), and (c).''.

SEC. 6. INFORMATION, ASSESSMENT, RESEARCH, AND STRATEGY.

    The Helium Act (50 U.S.C. 167 et seq.) is amended--
            (1) by repealing section 15 (50 U.S.C. 167m);
            (2) by redesignating section 17 (50 U.S.C. 167 note) as 
        section 20; and
            (3) by inserting after section 14 (50 U.S.C. 167l) the 
        following:

``SEC. 15. INFORMATION.

    ``(a) Transparency.--The Secretary, acting through the Bureau of 
Land Management, shall make available on the Internet information 
relating to the Federal Helium System that includes--
            ``(1) continued publication of an open market and in-kind 
        price;
            ``(2) aggregated projections of excess refining capacity;
            ``(3) ownership of helium held in the Federal Helium 
        Reserve;
            ``(4) the volume of helium delivered to persons through the 
        Federal Helium Pipeline;
            ``(5) pressure constraints of the Federal Helium Pipeline;
            ``(6) an estimate of the projected date when 3,000,000,000 
        standard cubic feet of crude helium will remain in the Federal 
        Helium Reserve and the final phase described in section 6(c) 
        will begin;
            ``(7) the amount of the fees charged under section 5;
            ``(8) the scheduling of crude helium deliveries through the 
        Federal Helium Pipeline; and
            ``(9) other factors that will increase transparency.
    ``(b) Reporting.--Not later than 90 days after the date of 
enactment of the Helium Stewardship Act of 2013, to provide the market 
with appropriate and timely information affecting the helium resource, 
the Director of the Bureau of Land Management shall establish a timely 
and public reporting process to provide data that affects the helium 
industry, including--
            ``(1) annual maintenance schedules and quarterly updates, 
        that shall include--
                    ``(A) the date and duration of planned shutdowns of 
                the Federal Helium Pipeline;
                    ``(B) the nature of work to be undertaken on the 
                Federal Helium System, whether routine, extended, or 
                extraordinary;
                    ``(C) the anticipated impact of the work on the 
                helium supply;
                    ``(D) the efforts being made to minimize any impact 
                on the supply chain; and
                    ``(E) any concerns regarding maintenance of the 
                Federal Helium Pipeline, including the pressure of the 
                pipeline or deviation from normal operation of the 
                pipeline;
            ``(2) for each unplanned outage, a description of--
                    ``(A) the beginning of the outage;
                    ``(B) the expected duration of the outage;
                    ``(C) the nature of the problem;
                    ``(D) the estimated impact on helium supply;
                    ``(E) a plan to correct problems, including 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; and
                    ``(G) updates on repair status and the anticipated 
                online date;
            ``(3) monthly summaries of meetings and communications 
        between the Bureau of Land Management and the Cliffside 
        Refiners Limited Partnership, including a list of participants 
        and an indication of any actions taken as a result of the 
        meetings or communications; and
            ``(4) current predictions of the lifespan of the Federal 
        Helium System, including how much longer the crude helium 
        supply will be available based on current and forecasted demand 
        and the projected maximum production capacity of the Federal 
        Helium System for the following fiscal year.

``SEC. 16. HELIUM GAS RESOURCE ASSESSMENT.

    ``(a) In General.--Not later than 2 years after the date of 
enactment of the Helium Stewardship Act of 2013, the Secretary, acting 
through the Director of the United States Geological Survey, 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 coordination 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 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 Energy and Natural 
        Resources of the Senate and the Committee on Natural Resources 
        of the House of Representatives a report describing the results 
        of the assessments required under this paragraph.
    ``(b) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section such sums as are necessary.

``SEC. 17. LOW-BTU GAS SEPARATION AND HELIUM CONSERVATION.

    ``(a) Authorization.--The Secretary of Energy shall support 
programs of research, development, commercial application, and 
conservation (including the programs described in subsection (b))--
            ``(1) to expand the domestic production of low-Btu gas and 
        helium resources;
            ``(2) to separate and capture helium from natural gas 
        streams; and
            ``(3) to reduce the venting of helium and helium-bearing 
        low-Btu gas during natural gas exploration and production.
    ``(b) Programs.--
            ``(1) Membrane technology research.--The Secretary of 
        Energy, in consultation with other appropriate agencies, shall 
        support a civilian research program to develop advanced 
        membrane technology that is used in the separation of low-Btu 
        gases, including technologies that remove helium and other 
        constituent gases that lower the Btu content of natural gas.
            ``(2) Helium separation technology.--The Secretary of 
        Energy shall support a research program to develop technologies 
        for separating, gathering, and processing helium in low 
        concentrations that occur naturally in geological reservoirs or 
        formations, including--
                    ``(A) low-Btu gas production streams; and
                    ``(B) technologies that minimize the atmospheric 
                venting of helium gas during natural gas production.
            ``(3) Industrial helium program.--The Secretary of Energy, 
        working through the Advanced Manufacturing Office of the 
        Department of Energy, shall carry out a research program--
                    ``(A) to develop low-cost technologies and 
                technology systems for recycling, reprocessing, and 
                reusing helium for all medical, scientific, industrial, 
                commercial, aerospace, and other uses of helium in the 
                United States, including Federal uses; and
                    ``(B) to develop industrial gathering technologies 
                to capture helium from other chemical processing, 
                including ammonia processing.
    ``(c) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section such sums as are necessary.

``SEC. 18. HELIUM-3 SEPARATION.

    ``(a) Interagency Cooperation.--The Secretary shall cooperate with 
the Secretary of Energy, or a designee, on any assessment or research 
relating to the extraction and refining of the isotope helium-3 from 
crude helium at the Federal Helium Reserve or along the Federal Helium 
Pipeline, including--
            ``(1) gas analysis;
            ``(2) infrastructure studies; and
            ``(3) cooperation with refiners.
    ``(b) Feasibility Study.--The Secretary, in consultation with the 
Secretary of Energy, or a designee, may carry out a study to assess the 
feasibility of establishing a facility to separate the isotope helium-3 
from crude helium at--
            ``(1) the Federal Helium Reserve; or
            ``(2) an existing helium separation or purification 
        facility connected to the Federal Helium Pipeline.
    ``(c) Report.--Not later than 1 year after the date of enactment of 
the Helium Stewardship Act of 2013, the Secretary shall submit to the 
Committee on Energy and Natural Resources of the Senate and the 
Committee on Natural Resources of the House of Representatives a report 
that contains a description of the results of the assessments conducted 
under this section.
    ``(d) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section such sums as are necessary.

``SEC. 19. FEDERAL AGENCY HELIUM ACQUISITION STRATEGY.

    ``Not later than 2 years after the date of enactment of the Helium 
Stewardship Act of 2013, the Secretary (in consultation with the 
Secretary of Energy, the Secretary of Defense, the Director of the 
National Science Foundation, and the Director of the National 
Institutes of Health) shall submit to Congress a report that provides 
for Federal users--
            ``(1) an assessment of the consumption of, and projected 
        demand for, crude and refined helium;
            ``(2) a description of a 20-year Federal strategy for 
        securing access to crude helium;
            ``(3) an assessment of the effects of increases in the 
        price of refined helium and methods and policies for mitigating 
        any determined effects; and
            ``(4) a description of a process for prioritization of uses 
        that accounts for diminished availability of helium supplies 
        that may occur over time.''.

SEC. 7. CONFORMING AMENDMENTS.

    (a) Section 4 of the Helium Act (50 U.S.C. 167b) is amended by 
striking ``section 6(f)'' each place it appears in subsections (c)(3), 
(c)(4), and (d)(2) and inserting ``section 6(d)''.
    (b) Section 8 of the Helium Act (50 U.S.C. 167f) is repealed.

SEC. 8. EXISTING AGREEMENTS.

    This Act and the amendments made by this Act shall not in any 
manner affect or diminish the rights and obligations of the Secretary 
of the Interior and private parties under agreements in existence on 
the date of enactment of this Act, except to the extent that the 
agreements are renewed or extended after that date.

SEC. 9. REGULATIONS.

    The Secretary of the Interior shall promulgate such regulations as 
are necessary to carry out this Act and the amendments made by this 
Act, including regulations necessary to prevent unfair acts and 
practices.
                                 <all>