[Congressional Record (Bound Edition), Volume 150 (2004), Part 12]
[House]
[Pages 16140-16141]
[From the U.S. Government Publishing Office, www.gpo.gov]




                 SODA ASH ROYALTY REDUCTION ACT OF 2004

  Mrs. CUBIN. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 4625) to reduce temporarily the royalty required to be paid 
for sodium produced on Federal lands, and for other purposes.
  The Clerk read as follows:

                               H.R. 4625

       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 ``Soda Ash Royalty Reduction 
     Act of 2004''.

     SEC. 2. FINDINGS.

       The Congress finds the following:
       (1) The combination of global competitive pressures, flat 
     domestic demand, and spiraling costs of production threaten 
     the future of the United States soda ash industry.
       (2) Despite booming world demand, growth in United States 
     exports of soda ash since 1997 has been flat, with most of 
     the world's largest markets for such growth, including 
     Brazil, the People's Republic of China, India, the countries 
     of eastern Europe, and the Republic of South Africa, have 
     been closed by protectionist policies.
       (3) The People's Republic of China is the prime competitor 
     of the United States in soda ash production, and recently 
     supplanted the United States as the largest producer of soda 
     ash in the world.
       (4) Over 700 jobs have been lost in the United States soda 
     ash industry since the Department of the Interior increased 
     the royalty rate on soda ash produced on Federal land, in 
     1996.
       (5) Reduction of the royalty rate on soda ash produced on 
     Federal land will provide needed relief to the United States 
     soda ash industry and allow it to increase export growth and 
     competitiveness in emerging world markets, and create new 
     jobs in the United States.

     SEC. 3. REDUCTION IN ROYALTY RATE ON SODA ASH.

       Notwithstanding section 102(a)(9) of the Federal Land 
     Policy Management Act of 1976 (43 U.S.C. 1701(a)(9)), section 
     24 of the Mineral Leasing Act (30 U.S.C. 262), and the terms 
     of any lease under that Act, the royalty rate on the quantity 
     or gross value of the output of sodium compounds and related 
     products at the point of shipment to market from Federal land 
     in the 5-year period beginning on the date of the enactment 
     of this Act shall be 2 percent.

     SEC. 4. STUDY.

       After the end of the 4-year period beginning on the date of 
     the enactment of this Act, and before the end of the 5-year 
     period beginning on that date, the Secretary of the Interior 
     shall report to the Congress on the effects of the royalty 
     reduction under this Act, including--
       (1) the amount of sodium compounds and related products at 
     the point of shipment to market from Federal land during that 
     4-year period;
       (2) the number of jobs that have been created or maintained 
     during the royalty reduction period;
       (3) the total amount of royalty paid to the United States 
     on the quantity or gross value of the output of sodium 
     compounds and related products at the point of shipment to 
     market produced during that 4-year period, and the portion of 
     such royalty paid to States; and
       (4) a recommendation of whether the reduced royalty rate 
     should apply after the end of the 5-year period beginning on 
     the date of the enactment of this Act.

  The SPEAKER pro tempore. Pursuant to the rule, the gentlewoman from 
Wyoming (Mrs. Cubin) and the gentlewoman from Guam (Ms. Bordallo) each 
will control 20 minutes.
  The Chair recognizes the gentlewoman from Wyoming (Mrs. Cubin).


                             General Leave

  Mrs. CUBIN. Mr. Speaker, I ask unanimous consent that all Members may 
have 5 legislative days within which to revise and extend their remarks 
and include extraneous material on H.R. 4625.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentlewoman from Wyoming?
  There was no objection.
  Mrs. CUBIN. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I would like to start by thanking the ranking member of 
the Committee on Resources, the gentleman from West Virginia (Mr. 
Rahall), for his kindness in waiving the rule that establishes the 
ratio of suspension bills and allowing me to bring this bill up today, 
rather than having to wait until a later day. I also want to thank the 
gentleman from West Virginia (Mr. Rahall) and his staff for all the 
courteous friendship and work that we have done on this bill.
  Mr. Speaker, plainly stated, H.R. 4625 would help balance the unfair 
playing field in the world market and allow the United States trona 
producers to face growing competition from countries like China.
  The United States soda ash industry, which until recently was the 
largest in the world, has operations in Wyoming, Colorado and 
California, with the bulk of the total production through four plants 
in the great State of Wyoming. The total estimated value of the 
industry is around $800 million.
  If you read the papers or watch the news, you know that current 
economic indicators show that the Nation's economy on the whole is 
gaining momentum, but the hard-working men and women of Wyoming in the 
soda ash industry continue to lose their jobs to countries like China.
  Seven hundred jobs have been lost in the Wyoming trona industry. The 
new, rosy economic numbers do not help these families put food on the 
table. They do not help them buy a new car or buy homes, and they do 
not help put their children through college. They do not help them 
sleep at night either. But this bill will provide reassurance for the 
3,000 men and women who now work in the trona industry in Wyoming and 
the other States in the United States.
  The future of the soda ash industry is being threatened by a number 
of factors, including China's announced plans to increase existing soda 
ash plant capacity by 600,000 tons this year and to construct another 
new plant that will produce 900,000 tons when completed. It is 
distressing indeed to consider this level of production, when we know 
how the Chinese exploit cheap labor and almost completely disregard 
environmental standards.
  Furthermore, the domestic market for soda ash has been stagnant for 
nearly 20 years, and little growth is expected in the foreseeable 
future to meet the demand for glass or glass packaging.
  Add to all of this the rising energy costs, including a 150 percent 
increase in natural gas prices over the past 4 years, that have only 
made matters worse. The much-needed growth will have to be found in 
places like Asia and Australia, and that means we must take the Chinese 
head on and with every boost our government can give the soda ash 
industry.
  In order to allow all U.S. soda ash producers to compete on a level 
playing field with the likes of China, India and synthetic producers 
around the world and, in turn, create jobs here in the United States, 
we need to promote a lower tax burden on the industry, a reduced 
royalty rate and more affordable energy costs that are such a crucial 
part of the economic mix.

                              {time}  1530

  The U.S. soda ash industry pays in the ballpark of $100 million in 
taxes to Federal, State, and local governments. Due to the growth of 
China's soda ash exports, it is essential that we provide temporary 
relief to the soda ash industry in the form of royalty rate reduction. 
This reduction is intended not to

[[Page 16141]]

increase the bottom line on soda ash companies; it is intended entirely 
to grow the market and increase the number of jobs.
  H.R. 4625 reduces the royalty rate from 6 percent to 2 percent in 
order to help the industry achieve increased export growth and 
competitiveness in the emerging world market.
  The hard-working men and women in the soda ash industry have my 
commitment to continue working to help open new markets and create the 
good-paying jobs that will help our communities grow and to push for a 
real energy policy for the Nation that will help smooth out some of the 
volatility in the natural gas markets by increasing domestic 
production.
  Mr. Speaker, H.R. 4625 is supported by the majority and the minority 
of the committee, and I urge adoption of this bill.

                                                    U.S. Congress,


                                  Congressional Budget Office,

                                    Washington, DC, July 19, 2004.
     Hon. Richard W. Pombo,
     Chairman, Committee on Resources,
     House of Representatives, Washington, DC.
       Dear Mr. Chairman: The Congressional Budget Office has 
     prepared the enclosed cost estimate for H.R. 4625, the Soda 
     Ash Royalty Reduction Act of 2004.
       If you wish further details on this estimate, we will be 
     pleased to provide them. The CBO staff contact is Megan 
     Carroll.
           Sincerely,
                                             Elizabeth M. Robinson
                              (For Douglas Holtz-Eakin, Director).
       Enclosure.
     H.R. 4625--Soda Ash Royalty Reduction Act of 2004
       Summary: H.R. 4625 would provide royalty relief to 
     producers of sodium compounds and related products on federal 
     land. CBO estimates that enacting H.R. 4625 would increase 
     direct spending by $3 million in 2005 and $15 million over 
     the next five years (with no effect after 2009). Enacting the 
     bill would not affect revenues.
       H.R. 4625 contains no intergovernmental or private-sector 
     mandates as defined in the Unfunded Mandates Reform Act 
     (UMRA). The royalty reduction required by the bill would 
     temporarily reduce federal payments to three states--Wyoming, 
     Colorado, and California--by about $3 million a year over the 
     2005-2009 period.
       Estimated cost to the Federal Government: The estimated 
     budgetary impact of H.R. 4625 is shown in the following 
     table. The costs of this legislation fall within budget 
     function 300 (natural resources and environment).

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                              By fiscal year, in millions of dollars--
                                           -------------------------------------------------------------------------------------------------------------
                                               2005       2006       2007       2008       2009       2010       2011       2012       2013       2014
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               CHANGES IN DIRECT SPENDING
 
Estimated budget authority................          3          3          3          3          3          0          0          0          0          0
Estimated outlays.........................          3          3          3          3          3          0          0          0          0          0
--------------------------------------------------------------------------------------------------------------------------------------------------------

       Basis of estimate: H.R. 4625 would reduce the federal 
     royalty rate for sodium compounds and related materials 
     produced on federal land over the 2005-2009 period. Based on 
     information from the Minerals Management Service about the 
     amount of royalties expected to be generated by production of 
     those materials under current law, CBO estimates that this 
     bill would reduce federal receipts by $6 million in 2005 and 
     $30 million over the next five years. Those forgone receipts 
     would be partially offset by a corresponding decrease in 
     direct spending for payments to the states in which they are 
     generated. Hence, CBO estimates that the next increase in 
     direct spending under H.R. 4625 would total $3 million in 
     2005 and $15 million over the 2005-2009 period.
       Intergovernmental and private-sector impact: H.R. 4625 
     contains no intergovernmental or private-sector mandates as 
     defined in UMRA. The royalty reduction required by the bill 
     would temporarily reduce federal payments to three states--
     Wyoming, Colorado, and California--by about $3 million a year 
     over the 2005-2009 period.
       Estimate prepared by: Federal Costs: Megan Carroll, Impact 
     on State, Local, and Tribal Governments: Theresa Gullo, 
     Impact on the Private Sector: Crystal Taylor.
       Estimate approved by: Peter H. Fontaine, Deputy Assistant 
     Director for Budget Analysis.

  Mr. Speaker, I reserve the balance of my time.
  Ms. BORDALLO. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I am pleased to rise in support of H.R. 4625, the Soda 
Ash Royalty Relief Act of 2004, authored by the gentlewoman from 
Wyoming (Mrs. Cubin).
  Soda ash, a chemical produced from trona ore, means mining jobs in 
southwest Wyoming. These jobs, however, may disappear if we do not 
provide some measure of relief for our domestic trona producers who are 
fighting to stay competitive in today's global economy.
  Simply put, Mr. Speaker, unfair competition from China threatens to 
dismantle the American soda ash industry. The pending bill would, for a 
limited time, enhance the competitiveness of our domestic producers by 
providing a royalty reduction on trona produced on Federal lands.
  At a time when too many American jobs are being lost, we must do what 
is necessary to keep our workforce here at home strong and competitive. 
We, on this side of the aisle, have no objection to passage of this 
bill.
  Mr. Speaker, I have no further speakers; and I yield back the balance 
of my time.
  Mrs. CUBIN. Mr. Speaker, I yield myself such time as I may consume.
  I would like to thank the gentlewoman from Guam (Ms. Bordallo) for 
her work on this issue and for managing so many of the bills today. She 
certainly does a good job in the committee, and it is great working 
with her. Always having someone that we can have confidence in really 
helps move the process along.
  Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore (Mr. Stearns). The question is on the motion 
offered by the gentlewoman from Wyoming (Mrs. Cubin) that the House 
suspend the rules and pass the bill, H.R. 4625.
  The question was taken; and (two-thirds having voted in favor 
thereof) the rules were suspended and the bill was passed.
  A motion to reconsider was laid on the table.

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