[Congressional Record Volume 159, Number 58 (Thursday, April 25, 2013)]
[House]
[Pages H2323-H2327]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
RESPONSIBLE HELIUM ADMINISTRATION AND STEWARDSHIP ACT
General Leave
Mr. HASTINGS of Washington. Mr. Speaker, I ask unanimous consent that
all Members may have 5 legislative days in which to revise and extend
their remarks and include extraneous material on the bill H.R. 527.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Washington?
There was no objection.
The SPEAKER pro tempore. Pursuant to House Resolution 178 and rule
XVIII, the Chair declares the House in the Committee of the Whole House
on the state of the Union for the consideration of the bill, H.R. 527.
The Chair appoints the gentleman from Kansas (Mr. Yoder) to preside
over the Committee of the Whole.
{time} 1403
In the Committee of the Whole
Accordingly, the House resolved itself into the Committee of the
Whole House on the state of the Union for the consideration of the bill
(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, with Mr. Yoder in the
chair.
The CHAIR. Pursuant to the rule, the bill is considered read the
first time.
The gentleman from Washington (Mr. Hastings) and the gentleman from
New Jersey (Mr. Holt) each will control 30 minutes.
Mr. HASTINGS of Washington. Mr. Chairman, I yield myself as much time
as I may consume.
Today, I rise in support of H.R. 527. This bill is necessary to
protect our economy from the impending helium shortage and to inject
free-market principles into our Federal helium program.
The Federal Helium Reserve was first created after World War I, when
we imagined a world where blimps would be the future of air travel and
vital to our national security efforts. Although this effort took a
different course, that didn't stop the Federal Government from spending
money on this program and stockpiling helium continuously through the
1980s. By the 1990s, it became clear that the Reserve had a declining
usefulness and had racked up a $1.3 billion debt.
In response, Congress in 1996 passed legislation to implement reforms
to the program and require the sale and privatization of the Reserve by
2015, or when the debt was paid off, whichever came first.
However, since this original decision to close the Reserve, both the
demand and uses for helium have dramatically changed. This has created
a situation where the Reserve's debt will be paid off sooner than
expected--nearly 2 years earlier--in October of this year. But, while
the debt will have been paid off, there will still be helium in the
Reserve. By law then, the current Federal helium program will end and
the Bureau of Land Management, or BLM, will no longer have the
authority to sell the remaining 11 billion cubic feet of helium. It's
important to note, too, Mr. Chairman, that the Reserve contains half of
our U.S. domestic supply and 30 percent of the world's helium supply.
If Congress fails to act before October, we will artificially drop
the helium supply and cause a global helium shortage that will cost
jobs and severely disrupt our economy. Despite what many think, helium
is not just used for party balloons. It is essential to our 21st
century economy. Without helium we wouldn't have lifesaving MRI
machines, computer chips, fiber optic cables, or other devices used for
defense needs.
The bill before us today is truly a bipartisan plan that I'm pleased
to have worked on with the lead Democrat on the Natural Resources
Committee, Mr. Markey from Massachusetts, as well as our other
colleagues on the committee, Mr. Flores of Texas and Mr. Holt of New
Jersey.
First, this bill would implement a new operating system for the
Federal Helium Reserve over the next decade that would include
semiannual auctions. This will ensure that we prevent a helium shortage
and that the Reserve stays open until nearly all of the helium supply
is sold.
{time} 1410
Second, it will build on the reforms made in 1996 and inject more
free market principles into the sales process to get a better and
fairer return for American taxpayers.
Over the last decade, the Federal Government has been selling helium
from the Reserve significantly below market price. As you can see from
this chart--and this is based on BLM data--the new demands for helium
have caused the market price to rise much higher than the Federal
Government's pricing formula and much faster than BLM's ability to
track market prices.
So, as a result, this has cost taxpayers tens of millions of dollars.
This has been confirmed by reports and testimony from both the
Government Accountability Office, the GAO, and the Department of the
Interior Inspector General. The big gap is right here. This is what we
are selling it for, and this is what the market price is.
In addition, the current program restricts sales to only a few
companies through an allotment system that is essentially an oligarchy
for Federal helium. Nearly 100 percent of our helium supply is being
put into the hands of four refiners that directly benefit from the low
Federal pricing formula while other competitors are locked out. The
current cheap price of helium gives an unfair market advantage to these
handful of companies.
Implementing semiannual helium auctions will inject much-needed
competition into the program and help establish a fair market price for
helium. According to the CBO, this bill will bring in over $340 million
to the Treasury over the next 10 years. The bill also includes
important reforms to increase transparency and to prevent supply
disruptions.
Now, Mr. Chairman, over 20 groups representing the end users of
refined helium--and these are high-tech manufacturers of
semiconductors, aerospace technologies, medical devices, chemicals,
fiber optics, and scientific research--all have called for the passage
of this legislation. Although this bill enjoys broad bipartisan
support, I do want to take a moment to directly address some concerns
that have been raised throughout this legislative process.
First, doing nothing is not an option. While I recognize that many
people don't believe that the Federal Government should be in the
helium business--and I would agree--we must recognize the realities of
our current situation. Helium is too essential to our economy to
essentially cut off the valve at the Reserve. We need this bill to
protect our economy from severe disruptions and to provide additional
time for the new development of alternative domestic helium resources
so that our country and economy are prepared for when the Reserve does
close. However, this bill will make sure that we are building on the
reforms of the 1996 act and that we are managing and selling the helium
in a more responsible manner.
Second, maintaining the status quo is not an option. Under conditions
in the current law, the entire program comes to an end this October.
Simply authorizing the continuation of the current program does nothing
to address the current issues with the Federal pricing formula and the
need to implement free market reforms. We cannot keep selling helium to
a handful of companies. Instead, we need an open helium market that
encourages more bidders, more competition, and more accurate pricing in
order to get the best return for the taxpayers.
What we need then, Mr. Chairman, is no more lucrative handouts, no
more government picking winners. What we need is good ole American
competition.
[[Page H2324]]
Finally, this bill will do absolutely nothing to interfere with
private business contracts, and it will not create instability within
the helium market. With or without this legislation, the existing
helium program and existing contracts all will end in October of this
year. This bill violates no contracts because none will exist when
certain conditions in current law expire, which we think will be this
October. This is why Congress must act before October to establish a
new helium program to finalize the sell-off of the helium from the
Reserve.
The bill will protect our economy from a harmful helium shortage and
implement much-needed reforms to update the Federal Helium Program so
that it better reflects the uses and demands for helium in the year
2013.
Mr. Chairman, this is a good bill, and it's a bipartisan bill. I'm
glad I had support in working with my colleagues across the aisle on
the committee, and I urge the passage of this legislation.
With that, I reserve the balance of my time.
Mr. HOLT. Mr. Chairman, I yield myself such time as I may consume.
I rise in support of H.R. 527, and I begin by commending and thanking
Chairman Hastings for his outstanding bipartisan leadership on this
legislation and on other things before the committee. This bill was
drafted in close cooperation with the Democratic minority, and I thank
the chairman of the committee. He worked with Ranking Member Markey and
me and with Representative Flores; and we've put together, I think, a
solid piece of legislation. The legislation is an example of how we can
work together. I wish it were moving faster on the floor today and
tomorrow, but it is a cooperative undertaking.
As the chairman said, helium is critical for magnetic resonance
imaging, MRI machines; for NASA rocket operation; for high-tech
manufacturing; and for all sorts of scientific research. For many of
these applications, there is no replacement for helium with its truly
unique properties. Farsighted legislators established a Federal
stockpile many decades ago, which was good; and as important uses of
helium were recognized over the decades, we can be thankful that the
stockpile existed.
The frenzy of privatization under the Gingrich era in Congress has
now made this legislation necessary. Our Nation's Federal Helium
Reserve supplies nearly half of the helium used in the United States;
and if Congress fails to pass this legislation, by the end of the
current fiscal year, the Interior Department's authority to continue
operating the Reserve will expire. If this is allowed to happen, nearly
half of America's helium supply would be cut off overnight, creating
truly a crisis in health care, in research, in electronic
manufacturing, and in many other areas. That's the immediate problem
that this legislation would solve; but there is a second, potentially
more severe, problem to be addressed.
At the current withdrawal rates, we have only 5 to 7 years of helium
available from the Reserve. Reviews by the National Academy of
Sciences, by the Government Accountability Office, and by the Interior
Department Inspector General's Office have all concluded that we are
not selling the Nation's helium at market prices. Since Federal helium
comprises such an enormous percentage of the global supply, with the
price set and controlled by the Interior Department as required under
the guidelines established some years back, the global price of helium
is artificially low.
The current system isn't just a bad deal for taxpayers; it has also
distorted the global helium market. If we continue to avoid a solution,
as some have advocated, we could find ourselves facing even more severe
helium shortages and price spikes when the Federal Reserve is largely
exhausted a few years from now and when there may be insufficient
alternative supplies to turn to.
That's why we must reform our Nation's helium policy, put the market-
based signals in place that will help provide an incentive to bring new
supplies on line. The failure to enact reforms of the helium program,
such as those contained in this legislation, could mean an increased
reliance on insecure and irregular helium supplies from Russia,
Algeria, Qatar, and other foreign sources. It could mean higher prices
for American industry and for researchers.
There have already been interruptions in supply. National labs have
testified before our committee that helium deliveries necessary for
their research have already been subject to interruptions.
{time} 1420
The bipartisan legislation before us today would address both of
these impending crises. H.R. 527 would extend the life of the Federal
Helium Reserve past the end of this year and ensure a fair return to
taxpayers on this federally-owned resource. It would generate more than
$300 million for American taxpayers as estimated by the Congressional
Budget Office. The bill will increase competition, transparency, and
participation in helium markets, which will help shift commercial
helium reliance from the Reserve to private sources.
The principles of this bill are consistent with the recommendations
made by the National Academy of Sciences in 2010 to improve the helium
program by expanding participation and openness in helium markets.
It will protect Federal users, such as NASA and the National Labs, as
well as the scientific community by ensuring that they have priority
access to this federally-owned resource in the short term and exclusive
access in the longer term.
This bill was created with input from the Department of the Interior,
the White House Office of Science and Technology Policy, and many
scientific researchers. It has the support of the American Physical
Society and many other groups and many helium users, such as
corporations like General Electric, Siemens, Philips, Intel, Applied
Materials, Dow Chemical, IBM, Texas Instruments, and many others. It's
a product of close work between the majority and the minority members
of the committee.
Again, I thank the majority for providing that collaboration with us.
It's a good bill. It provides a workable solution to a real problem. I
urge its adoption.
I wish we could deal with this bill promptly and all the amendments
promptly. We could be done in less than an hour, and then we could turn
our attention to other concerns that Americans have, such as jobs and
education, training for workers, a conference committee to reconcile
the differences between the House and the Senate budget resolutions,
removing the thoughtless sequester that the majority imposed on the
country affecting air traffic control and food inspections and Head
Start slots and medical research and many other things. But instead, we
will postpone the consideration of the amendments until tomorrow, I'm
sorry to say, and eat up valuable time that we could spend dealing with
America's pressing problems. Nevertheless, I look forward to the
passage of this bill, and I urge my colleagues to support it.
With that, I reserve the balance of my time.
Mr. HASTINGS of Washington. Mr. Chairman, I'm very pleased to yield 2
minutes to the gentleman from Virginia (Mr. Wittman), a valuable member
of the Natural Resources Committee.
Mr. WITTMAN. Mr. Chairman, I rise in support of H.R. 527, the
Responsible Helium Administration and Stewardship Act.
H.R. 527 is important legislation for our Nation's high-tech,
defense, medical, and scientific industries. It will ensure the
continued operation of and sales of helium from the Federal Helium
Reserve, providing a stable and secure supply of a critical material
for the next several years.
This legislation represents a significant step forward in addressing
the concerns associated with the helium supply from the Federal Helium
Reserve. This also creates a situation where we have a reliable source
of helium that's critical to the strategic interests of this Nation.
This bill also provides for the continued operation of the Reserve
and the sale of helium to private entities, thereby helping to ensure a
stable and secure supply of helium in the near term.
It provides price transparency through clear reporting requirements
[[Page H2325]]
for both the Bureau of Land Management and for those who purchase
helium. And for many industries throughout the United States, this
reliability and transparency is absolutely critical.
H.R. 527 is important and is urgently needed to address this Nation's
helium supply in making sure, too, that we keep in mind the
implications it has for both our national and our homeland security.
I'd like to applaud Chairman Hastings and Ranking Member Markey for
their work on this bill, and I urge my colleagues to support it.
Mr. HOLT. Mr. Chairman, I yield 3 minutes to the gentleman from
Georgia (Mr. Johnson).
Mr. JOHNSON of Georgia. I thank the gentleman.
Mr. Chairman, like a kid at a carnival, I rise in full support of
H.R. 527, the Responsible Helium Administration and Stewardship Act of
2013.
Mr. Chairman, I'm relieved, and I'm sure that the American people are
relieved as well, that Congress is finally going to do something about
one of the most pressing issues of the day, that is, we've got to
ensure access to helium for all.
Surely, those harmed by sequestration and those harmed by the
Republican failure to appoint budget conferees appreciate the House
spending 2 full legislative days on this most critical issue. The
American people certainly understand the fact that 48 hours of this
House's precious time was necessary to pass such a noncontroversial
bill.
I'm pleased to support this bill, which shows that this Tea Party
Congress will make the tough choice to keep children's birthday parties
on schedule and give industries that rely on helium the lift that they
deserve. Imagine, Mr. Chairman, a world without balloons. How can we
make sure that there is not the injustice of there being no helium for
comedians to get that high-pitched voice that we all hold near and dear
to our hearts? Imagine a world without balloons. To date, the House has
chosen to just simply float above it all.
Finally, we are going to do something for the American people, and we
should all pat ourselves on the back for that. Too often lately, this
body has sat deflated, not for a lack of hot air, mind you, but
seriously, ladies and gentlemen, unlike a noble element, this House has
failed to act on Americans' real concerns.
There are serious reasons to support this bill, and I do look forward
to supporting it. The substance of this bill is not the focus of my
sarcasm today, Mr. Chairman. My point is that America would be much
better off if this Tea Party Republican Congress brought to the floor
issues that mean the most to Americans, like appointing a conference
committee to work out a budget with the Senate.
The CHAIR. The time of the gentleman has expired.
Mr. HOLT. If the gentleman needs more time, I gladly yield an
additional 30 seconds.
Mr. JOHNSON of Georgia. Sadly, Republicans are just blowing in the
wind and can't seem to tether themselves down to take on such an
important task. They float off in different directions unable to
appoint conferees to negotiate with the Senate.
Yesterday, despite the gravity of the matter, the Tea Party
Republicans couldn't even agree on their own health care bill, which
was named the Helping Sick Americans Now Act. With a title like that,
I'm helium flabbergasted that they could not pass that bill.
{time} 1430
Yesterday we spent all day debating that bill, and today after their
failure to pass it, they've pretty much decided that sick Americans can
wait. We need laughing gas because of the inability of the Republican
House to deal with the difficult issues. It's real sad; we need some
laughing gas. The sequestration is delaying flights and harming our
economy.
The CHAIR. The time of the gentleman has again expired.
Mr. HOLT. I yield an additional 15 seconds to the gentleman.
Mr. JOHNSON of Georgia. With sequestration delaying flights and
harming our economy, our Nation needs a little gas. Say what you will,
but this is just the best thing that we can do here. So I'd like to
float a simple idea: stop wasting our time. Let's get to the business
that is meaningful for Americans. I support this bill.
Mr. HASTINGS of Washington. Mr. Chairman, I want to ask my friend
from New Jersey, I have at this point no further requests for time. One
additional speaker may be coming, but I'm prepared to close.
Mr. HOLT. We have at least one more speaker, and my closing.
Mr. HASTINGS of Washington. I reserve the balance of my time.
Mr. HOLT. I yield 3 minutes to the gentleman from New York (Mr.
Tonko) who counts among his constituents many who work in technical
industries and laboratories who depend on helium and understand that
although there are a lot of easy jokes about helium, this is a serious
matter. It is a serious matter that we should move along with promptly.
Mr. TONKO. Mr. Chairman, I thank Representative Holt. I want to thank
Chairman Hastings and Representative Markey and Representative Holt and
other members of the Natural Resources Committee for working
steadfastly together to bring this important bill to the floor.
The Federal Helium Reserve was created in 1925, long before today's
many uses of helium were envisioned. Now this element has become an
essential ingredient to our Nation's research, medical, technology,
manufacturing, space, and defense activities. Helium is used in welding
and in the manufacturing of fiber optic cable and semiconductors.
Medical imaging has become a vital tool in the health care system, and
every MRI requires helium. The list of applications for this element is
long and touches many important industries.
When the current law passed in 1996, the situation with respect to
helium's value and usage was quite different, and there was an
expectation that additional private sources of helium would be
developed and then of course enter the market. For a variety of
reasons, that has not yet happened on a sufficient enough scale to
ensure a stable supply of helium to meet our national demand for this
basic element.
The Federal Government, through the Bureau of Land Management, needs
to remain engaged in this market for an additional period of time. The
United States reserve is about 40 percent of the worldwide supply of
helium. The many industries and research institutions that rely on
helium cannot afford a disruption in its supply.
The national storage facility is unique, and there are many
characteristics of the helium market that are distinctly different from
the markets of most commodities. These factors are likely the reasons a
more robust private supply of helium has not yet emerged to replace our
Federal Government's role. H.R. 527 provides additional time to phase
down the Federal Government's role in the helium market and to allow a
private market to develop.
There is no substitute for helium in many of its crucial
applications. Passage of this legislation is critical to maintaining
high-wage, high-skilled jobs in my district, the 20th Congressional
District of New York, throughout New York State for that matter, and in
many other States across our great country. It is essential that we
work with the Senate to get a law signed this year to provide certainty
to helium suppliers and users.
I recognize there are some who are uncomfortable with certain aspects
of this legislation. It is not a perfect bill, and if the expected
development of private supplies of helium does not occur, we need to
revisit this issue in the future.
For the present, though, this bill offers a reasonable compromise
that keeps helium flowing onto the market, and that is what we need
now. I urge my colleagues to support H.R. 527 and maintain a reliable
supply of this vital ingredient for the sake of research and industry.
Mr. HASTINGS of Washington. Mr. Chairman, I'm pleased to yield 3
minutes to the gentleman from Colorado (Mr. Lamborn), the chairman of
the subcommittee dealing with this issue.
Mr. LAMBORN. I thank the chairman of the full committee for allowing
me to speak. I rise in strong support of H.R. 527, the Responsible
Helium Administration and Stewardship Act.
[[Page H2326]]
Our House Natural Resources Committee passed this bipartisan
legislation by voice vote, and I encourage my colleagues in the full
House to do the same. The Responsible Helium Administration and
Stewardship Act adds free market reforms to the current system. The
current system allows a small number of companies to have access to and
benefit from the taxpayer resource, which is helium, but it's a good
thing to broaden the base of those who are most benefiting from this
resource.
There is currently some instability in the marketplace for American
companies that are the end users of helium. These companies employ
thousands of Americans, and they rely upon a dependable supply of
helium for their business every day. This includes defense companies,
medical companies, manufacturing companies, and a variety of users.
Numerous government reports--from the Department of Interior
Inspector General to the Government Accountability Office to the
National Academy of Sciences--have all come to the same conclusion: we
need to reform the current system.
The current system allows a select group of companies to buy a
critical Federal resource at significantly below market value to the
exclusion of other companies. There are historical reasons how this
situation developed, but we have to look to the future and what's best
for the economy moving forward.
As a result, the American people are potentially being denied tens or
even hundreds of millions of dollars of additional revenue because this
Federal taxpayer resource is sometimes being sold at under-market
values.
It should be noted that over 20 organizations and end-user companies
representing high-tech manufacturers of semiconductors, aerospace
technologies, life-saving medical devices, chemicals, fiber optic, and
scientific researchers who require helium as an essential part of their
daily business support this bill. H.R. 527 will ensure that these
industries employing thousands of Americans and vital to the United
States can obtain a reliable and secure source of helium while ensuring
American taxpayers that they receive the best possible market value for
this taxpayer resource.
H.R. 527 will end the current allotment system and add free market
components to the BLM helium program. This will increase transparency
between companies and the BLM and ensure that purchasers of helium will
have timely access to the pipeline to ensure delivery of the helium
that they have purchased.
This bill is supported by the ITI, and I urge your support of this
legislation.
Information Technology
Industry Council,
Washington, DC, April 25, 2013.
Hon. John Boehner,
Speaker of the House, House of Representatives, Washington,
DC.
Hon. Nancy Pelosi,
Democratic Leader, House of Representatives, Washington, DC.
Dear Speaker Boehner and Leader Pelosi: On behalf of the
Information Technology Industry Council (ITI), I write to
express the importance of H.R. 527, the Responsible Helium
Administration and Stewardship Act to the high-tech industry.
ITI supports the passage of H.R. 527 and we will consider
scoring votes in support of final passage of the bill in our
113th Congressional Voting Guide.
Helium is critical to a variety of advanced, high-tech
manufacturing processes, as well as cutting-edge scientific
research. It is irreplaceable in many of these processes, as
there is no known substitute. The Federal Government controls
40% of the world's helium supply, and without Congress
enacting legislation by the end of this fiscal year, the
Federal Government's authority to sell helium to the private
sector will expire. Such a supply disruption would be
catastrophic to the private sector entities that require
helium for their manufacturing processes. H.R. 527 would
prevent such a problematic situation by ensuring the Federal
Government has authority to continue selling helium to the
private sector through an auction process.
The United States' information technology industry is the
strongest in the world, driving economic growth, creating new
businesses, and generating jobs. On behalf of ITI's member
companies, I thank you for bringing this legislation to the
floor to prevent any possible helium supply disruptions, and
urge you and your colleagues to pass H.R. 527, the
Responsible Helium Administration and Stewardship Act.
Sincerely,
Dean C. Garfield,
President and CEO.
Mr. HOLT. Mr. Chairman, I appreciate the comments of the gentleman
from Colorado, the chair of the Energy and Mineral Subcommittee. He
reiterates the important uses of helium, and I would add that any
American patient or doctor who uses MRIs, which depend on helium, or
any American who uses modern electronics whose manufacture depends on
helium, or anyone who depends on so many other things for which helium
is essential, should be grateful that decades ago farsighted
legislators created the stockpile to preserve helium.
We now have before us the need to make sure that helium isn't sold at
fire-sale prices. We need to make sure that we have a reliable supply
for these important uses. We need to make sure that the Interior
Department is not forced out of the business prematurely. The Interior
Department has expressed support for the approach taken by this
legislation.
Again, I commend and thank the chairman for his bipartisan leadership
to bring this sensible legislation to the floor. I hope that the other
body will act quickly and follow our lead and pass this legislation so
we do not experience supply disruptions and price spikes later this
year. I urge passage of this bill.
I yield back the balance of my time.
{time} 1440
Mr. HASTINGS of Washington. Mr. Chairman, I yield myself such time as
I may consume.
Mr. Chairman, as has been pointed out on both sides, this is a very
important piece of legislation. Our free economy is made up of a lot of
different parts, and it's hard--as a matter of fact, it's impossible--
to regulate all of those parts. The market does it a whole lot better.
But in this situation, because of past actions of Congress, there was
a stockpile of Federal helium, and it became more and more valuable;
but market prices weren't being got for that available commodity. This
issue addresses that until the markets can catch up in several years in
order to make sure there is a supply of helium.
And I'm glad to have worked in a bipartisan way with my colleagues on
the Natural Resources Committee. We'll deal with the amendment process
tomorrow. That's why we have a rule. There are several Members who
wanted to improve, from their point of view, this piece of legislation,
and you can't do that, obviously, on a suspension calendar, as has been
suggested. You have to go through the rule process, and we will do that
tomorrow.
So, in the meantime, Mr. Chairman, I urge adoption of this
legislation, and I yield back the balance of my time.
Mr. VAN HOLLEN. Mr. Chair, I rise in support of the Responsible
Helium Administration and Stewardship Act, a bipartisan bill that will
prevent a global helium shortage that could limit high-tech
manufacturing and critical scientific research.
Recognizing the value of our helium resources, the government
established a Federal Helium Reserve in the 1960s. In 1996, Congress
enacted legislation to privatize the Reserve and sell off its supply.
Unfortunately, that sale has been conducted at below-market rates even
as demand for helium, which is critical for hospitals, manufacturing,
and research, has increased. Moreover, under that 1996 law, the Reserve
will have to stop operations this October, cutting our domestic supply
by nearly half and causing a worldwide shortage.
Today's legislation creates a new, auction-based program for selling
helium from the Reserve, preventing the shortage and ensuring that
taxpayers get fair value for this resource. It's a common sense
solution to a serious problem and I urge my colleagues to support it.
Ms. JACKSON LEE. Mr. Chair, I rise today in support of H.R. 527, the
``Responsible Helium Administration and Stewardship Act,'' which will
renew the Department of the Interior's (DOI) authority to continue
operating the Federal Helium Reserve beyond this fiscal year.
I want to thank Chairman Hastings and Ranking Member Markey for their
hard work in shepherding this legislation, which enjoys strong
bipartisan support, to the floor.
Mr. Chair, I support H.R. 527 because it is an important first step
in updating our nation's helium policy by increasing transparency and
[[Page H2327]]
fostering competitive helium markets, while providing a better return
for American taxpayers.
Currently, the United States is the largest helium producer in the
world. The most recent data from the United States Geological Survey
indicates that at over 20 billion cubic meters, the total helium
reserves and resources of the United States represents roughly 40
percent of the world's helium supply.
Helium is primarily used in magnetic resonance imaging (MRI) devices
in hospitals, but is also used as a coolant for superconductors, as
well as in cryogenics, welding, chromatography, and various other uses.
The Federal Helium Reserve is a strategic reserve located at the
Cliffside Storage Facility in Potter County, Texas, near the city of
Amarillo. Created in 1925, its original function was to ensure supplies
of helium to the federal government for defense, research, and medical
purposes.
Through the Helium Privatization Act of 1996, the Federal Helium
Reserve evolved to serve four purposes: (1) operating and maintaining a
helium storage reservoir and pipeline system view map; (2) providing
crude helium gas by contract with private companies; (3) evaluating the
Nation's helium-bearing gas fields; and (4) providing responsible
access to federal land for managed recovery and disposal of helium.
While the Interior Department currently has the authority to continue
funding and operating the Federal Helium Reserve, this authority is set
to expire at the end of this fiscal year. Upon expiration, and absent
Congressional action, our national supply of helium faces severe
turmoil in the form of substantial price increases and market
disruptions for American consumers and businesses.
Moreover, the Federal Helium Reserve, which constitutes a large
portion of the global supply, is instrumental in controlling price. The
large quantity of helium in the reserves means that the Interior
Department effectively determines prices paid for helium around the
world.
Numerous reports indicate that the Interior Department may be selling
helium at below market value, which may have the effect of stifling
private investment in new helium supplies. As a result, we risk facing
a shortage in coming years as helium supplies diminish.
H.R. 527 addresses this problem by transitioning helium sales to a
competitive auction system, thus ensuring a steady supply of helium and
allowing users to bid on crude helium from the reserve. Consequently,
the law of supply and demand would dictate price rather than having the
price controlled by a central authority.
Ideally, I would have liked to see more discretion afforded to the
Secretary of the Interior in this bill, particularly with respect to
the minimum price charged for crude helium.
The bill requires the Secretary to make a determination as to the
minimum sale price at auctions in accordance with various factors,
including a confidential survey of domestic helium transactions with
the reserve, as well as recent market prices as reflected by auction
sales.
Currently under the bill, the Secretary would have the discretion to
adjust the minimum price by up to 10 percent if the survey is not
reflective of the current market value of helium or if a higher minimum
price may result in greater conservation of helium.
However, market fluctuations in recent years have often been in
excess of 10 percent. Providing the Secretary with greater discretion
to adjust the minimum price in accordance recent trends is desirable to
ensure that prices track market value as closely as possible.
In my view, the bill would be improved if the Secretary's discretion
were enlarged to authorize adjustments to the minimum price by an
amount not to exceed 20 percent.
But taken as a whole, H.R. 527 is a positive step in the right
direction. And I want to express my appreciation again to Chairman
Hastings and Ranking Member Markey for their good work.
Mr. Chair, I urge my colleagues in joining me in voting for H.R. 527,
``Responsible Helium Administration and Stewardship Act.''
Mr. PAULSEN. Mr. Chair, I rise in support of this important
legislation which will ensure U.S. manufacturers of medical devices,
computer chips, and balloons continue to have reliable access to
helium. Helium is a critical element to the manufacturing and operation
of these innovative and competitive industries and their products.
The Federal Helium Reserve is scheduled to close this year. If that
should happen, a global helium shortage would disrupt business in these
industries and could cause the loss of thousands of American jobs.
In my home state of Minnesota, a large balloon company continues to
manufacture their products here in the United States. They depend on
reliable access to helium not only to stay in business, but also to
continue research and development, innovative engineering,
manufacturing, and quality control for their balloon products.
But a helium shortage would negatively impact more than just balloon
manufacturing. It would also harm the high tech and medical device
communities as well. Approximately 250,000 Americans are employed in
the manufacturing of computer chips using helium. These chips are used
in GPS, smart phones, and MRI machines. Helium is also used to cool the
magnets in MRI machines.
We must pass this legislation to prevent major shocks to these
important industries. I urge my colleagues in the Senate to act soon to
ensure critical access to helium for the medical device, IT, and
balloon industries and to protect these American jobs.
The CHAIR. All time for general debate has expired.
Mr. HASTINGS of Washington. Mr. Chairman, I move that the Committee
do now rise.
The motion was agreed to.
Accordingly, the Committee rose; and the Speaker pro tempore (Mr.
Bridenstine) having assumed the chair, Mr. Yoder, Chair of the
Committee of the Whole House on the state of the Union, reported that
that Committee, having had under consideration the bill (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, had come to no resolution thereon.
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