[Senate Report 113-83]
[From the U.S. Government Publishing Office]


                                                       Calendar No. 152
113th Congress  }                                            {   Report
                                 SENATE
 1st Session    }                                            {   113-83

======================================================================



 
                           HELIUM STEWARDSHIP

                                _______
                                

                 July 29, 2013.--Ordered to be printed

                                _______
                                

    Mr. Wyden, from the Committee on Energy and Natural Resources, 
                        submitted the following

                              R E P O R T

                         [To accompany S. 783]

    The Committee on Energy and Natural Resources, to which was 
referred the bill (S. 783) to amend the Helium Act to improve 
helium stewardship, and for other purposes, having considered 
the same, reports favorably thereon with an amendment and 
recommends that the bill, as amended, do pass.
    The amendment is as follows:
    Strike out all after the enacting clause and insert in lieu 
thereof the following:

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, enrichment, 
                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(e).''.

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, including capital investments in upgrades and maintenance at 
the Federal Helium System.
  ``(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(e).
  ``(e) Storage and Delivery.--In accordance with this section, the 
Secretary shall--
          ``(1) allow any person or qualified bidder to which crude 
        helium is sold or auctioned under section 6 to store helium in 
        the Federal Helium Reserve; and
          ``(2) establish a schedule for the transportation and 
        delivery of helium using the Federal Helium System that--
                  ``(A) ensures timely delivery of helium auctioned 
                pursuant to section 6(b)(2);
                  ``(B) ensures timely delivery of helium acquired from 
                the Secretary from the Federal Helium Reserve by means 
                other than an auction under section 6(b)(2) after the 
                date of enactment of the Helium Stewardship Act of 
                2013, including nonallocated sales; and
                  ``(C) provides priority access to the Federal Helium 
                Pipeline for in-kind sales for Federal users.
  ``(f) New Refining Capacity.--The Secretary shall consider any 
applications for access to the Federal Helium Pipeline in a manner 
consistent with the schedule for phasing out commercial sales and 
disposition of assets pursuant to section 6.''.

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 at the in-kind price 
        from the Secretary.
          ``(3) Duration.--This subsection applies during--
                  ``(A) the period beginning on the date of enactment 
                of the Helium Stewardship Act of 2013 and ending on 
                September 30, 2014; and
                  ``(B) any period during which the sale of helium 
                under subsection (b) is delayed or suspended.
  ``(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), 
        after completion of each auction, 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 under this subsection from 
        persons who have entered into enforceable contracts to purchase 
        an equivalent quantity of crude helium at the in-kind price 
        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, 
                        including nonallocated sales.
          ``(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 
        such prices required to reimburse the Secretary for the full 
        costs of the sales, 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 at the in-kind price 
        from the Secretary.
          ``(3) Effective date.--This subsection applies beginning on 
        the day after the date described in subsection (b)(4)(B).
  ``(d) Phase D: Disposal of Assets.--
          ``(1) In general.--Not earlier than 2 years after the date of 
        commencement of Phase C described in subsection (c) and not 
        later than January 1, 2023, the Secretary shall designate as 
        excess property and dispose of all facilities, equipment, and 
        other real and personal property, and all interests in the 
        same, held by the United States in the Federal Helium System.
          ``(2) Applicable law.--The disposal of the property described 
        in paragraph (1) shall be in accordance with subtitle I of 
        title 40, United States Code.
          ``(3) Proceeds.--All proceeds accruing to the United States 
        by reason of the sale or other disposal of the property 
        described in paragraph (1) shall be treated as funds received 
        under this Act for purposes of subsection (e).
          ``(4) Costs.--All costs associated with the sale and disposal 
        (including costs associated with termination of personnel) and 
        with the cessation of activities under this subsection shall be 
        paid from amounts available in the Helium Production Fund 
        established under subsection (e).
  ``(e) 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 
        determined to be necessary and cost effective 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; and
                  ``(E) any other scheduled or unscheduled maintenance 
                of the Federal Helium System.
          ``(2) Excess funds.--Amounts in the Helium Production Fund in 
        excess of amounts the Secretary determines to be necessary to 
        carry out paragraph (1) shall be paid to the general fund of 
        the Treasury and used to reduce the annual Federal budget 
        deficit.
          ``(3) Retirement of public debt.--Out of amounts paid to the 
        general fund of the Treasury under paragraph (2), the Secretary 
        of the Treasury shall use $51,000,000 to retire public debt.
  ``(f) 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; or
          ``(2) the maximum total production capacity of the Federal 
        Helium System.''.

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 $1,000,000.

``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 $3,000,000.

``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 and other potential sources, including--
          ``(1) gas analysis; and
          ``(2) infrastructure studies.
  ``(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--
          ``(1) establishing a facility to separate the isotope helium-
        3 from crude helium; and
          ``(2) exploring other potential sources of the isotope 
        helium-3.
  ``(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 $1,000,000.

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

  ``In anticipation of the implementation of Phase D described in 
section 6(d), and 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, the Administrator of the National 
Aeronautics and Space Administration, 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 helium;
          ``(3) a determination of a date prior to January 1, 2023, for 
        the implementation of Phase D as described in section 6(d) that 
        minimizes any potential supply disruptions for Federal users;
          ``(4) an assessment of the effects of increases in the price 
        of refined helium and methods and policies for mitigating any 
        determined effects; and
          ``(5) 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 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.

SEC. 10. AMENDMENTS TO OTHER LAWS.

  (a) Secure Rural Schools and Community Self Determination Program.--
          (1) Secure payments for states and counties containing 
        federal land.--
                  (A) Availability of payments.--Section 101 of the 
                Secure Rural Schools and Community Self-Determination 
                Act of 2000 (16 U.S.C. 7111) is amended by striking 
                ``2012'' each place it appears and inserting ``2013''.
                  (B) Elections.--Section 102(b) of the Secure Rural 
                Schools and Community Self-Determination Act of 2000 
                (16 U.S.C. 7112(b)) is amended--
                          (i) in paragraph (1)(A), by striking ``2012'' 
                        and inserting ``2013''; and
                          (ii) in paragraph (2)(B), by striking 
                        ``2012'' each place it appears and inserting 
                        ``2013''.
                  (C) Distribution of payments to eligible counties in 
                california.--Section 103(d)(2) of the Secure Rural 
                Schools and Community Self-Determination Act of 2000 
                (16 U.S.C. 7113(d)(2)) is amended by striking ``and 
                2012'' and inserting ``through 2013''.
          (2) Continuation of authority to conduct special projects on 
        federal land.--Title II of the Secure Rural Schools and 
        Community Self-Determination Act of 2000 is amended--
                  (A) in section 203(a)(1) (16 U.S.C. 7123(a)(1)), by 
                striking ``2012'' and inserting ``2013'';
                  (B) in section 204(e)(3)(B)(iii) (16 U.S.C. 
                7124(e)(3)(B)(iii)), by striking ``2012'' and inserting 
                ``2013'';
                  (C) in section 205(a)(4) (16 U.S.C. 7125(a)(4)), by 
                striking ``2011'' each place it appears and inserting 
                ``2012'';
                  (D) in section 207(a) (16 U.S.C. 7127(a)), by 
                striking ``2012'' and inserting ``2013''; and
                  (E) in section 208 (16 U.S.C. 7128)--
                          (i) in subsection (a), by striking ``2012'' 
                        and inserting ``2013''; and
                          (ii) in subsection (b), by striking ``2013'' 
                        and inserting ``2014''.
          (3) Continuation of authority to reserve and use county 
        funds.--Section 304 of the Secure Rural Schools and Community 
        Self-Determination Act of 2000 (16 U.S.C. 7144) is amended--
                  (A) in subsection (a), by striking ``2012'' and 
                inserting ``2013'' ; and
                  (B) in subsection (b), by striking ``2013'' and 
                inserting ``2014''.
          (4) Authorization of appropriations.--Section 402 of the 
        Secure Rural Schools and Community Self-Determination Act of 
        2000 (16 U.S.C. 7152) is amended by striking ``2012'' and 
        inserting ``2013''.
  (b) Abandoned Well Remediation.--Section 349 of the Energy Policy Act 
of 2005 (42 U.S.C. 15907) is amended by adding at the end the 
following:
  ``(i) Federally Drilled Wells.--Out of any amounts in the Treasury 
not otherwise appropriated, $50,000,000 shall be made available to the 
Secretary, without further appropriation and to remain available until 
expended, to remediate, reclaim, and close abandoned oil and gas wells 
on current or former National Petroleum Reserve land.''.
  (c) National Parks Maintenance Backlog.--Section 814(g) of the 
Omnibus Parks and Public Lands Management Act of 1996 (16 U.S.C. 1f) is 
amended by adding at the end the following:
          ``(4) Available funds.--Out of any amounts in the Treasury 
        not otherwise appropriated, $50,000,000 shall be made available 
        to the Secretary of the Interior, without further appropriation 
        and to remain available until expended, to pay the Federal 
        funding share of challenge cost-share agreements for deferred 
        maintenance projects and to correct deficiencies in National 
        Park Service infrastructure.
          ``(5) Cost-share requirement.--Not less than 50 percent of 
        the total cost of project for funds made available under 
        paragraph (4) to pay the Federal funding share shall be derived 
        from non-Federal sources, including in-kind contribution of 
        goods and services fairly valued.''.
  (d) Abandoned Mine Reclamation Fund.--Section 411(h) of the Surface 
Mining Control and Reclamation Act of 1977 (30 U.S.C. 1240a(h)) is 
amended by adding at the end the following:
          ``(6) Supplemental funding.--
                  ``(A) Waiver of limitation.--Notwithstanding 
                paragraph (5), the limitation on the total annual 
                payments to a certified State or Indian tribe under 
                this subsection shall not apply for fiscal year 2014.
                  ``(B) Limitation on waiver.--Notwithstanding 
                subparagraph (A), the total annual payment to a 
                certified State or Indian tribe under this subsection 
                for fiscal year 2014 shall not be more than 
                $75,000,000.
                  ``(C) Insufficient amounts.--If the total annual 
                payment to a certified State or Indian tribe under 
                paragraphs (1) and (2) is limited by subparagraph (B), 
                the Secretary shall--
                          ``(i) give priority to making payments under 
                        paragraph (2); and
                          ``(ii) use any remaining funds to make 
                        payments under paragraph (1).''.
  (e) Soda Ash Royalties.--Notwithstanding 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 of gross value of the output of sodium 
compounds and related products at the point of shipment to market from 
Federal land in the 2-year period beginning on the date of enactment of 
this Act shall be 4 percent.
  (f) Authorization Offset.--Section 207(c) of the Energy Independence 
and Security Act of 2007 (42 U.S.C. 17022(c)) is amended by inserting 
before the period at the end the following: ``, except that the amount 
authorized to be appropriated to carry out this section not 
appropriated as of the date of enactment of the Helium Stewardship Act 
of 2013 shall be reduced by $5,000,000''.

                         Purpose of the Measure

    The purpose of S. 783 is to amend the Helium Act to improve 
helium stewardship, and for other purposes.

                          Background and Need

    Helium is a naturally occurring resource that is typically 
extracted from natural gas and subsequently refined to higher 
purity grades for applications such as magnetic resonance 
imaging, semiconductor manufacturing, military aviation, 
research and development, pressurization and purging systems, 
leak detection, welding, and breathing mixtures.
    The Federal Government has played a significant role in the 
production, refining, and storage of helium for nearly a 
century. Recognizing the military importance of helium for use 
in lighter-than-air airships during World War I, Congress 
reserved to the Federal Government the ownership and the right 
to extract helium from all natural gas produced from the public 
lands leased under the Mineral Leasing Act in 1920. 30 U.S.C. 
181. In addition, in 1925, Congress authorized the Secretary of 
the Interior to acquire helium-bearing lands, explore for, 
procure, and conserve helium-bearing gas, and to construct and 
operate facilities for the production, storage, and 
purification of helium through the Department of the Interior's 
Bureau of Mines. Act of March 3, 1935, chapter 426, 43 Stat. 
1110. Pursuant to the Helium Act of 1925, the Bureau of Mines 
built the Cliffside Gasfield Facility near Amarillo, Texas, to 
produce helium from the Bush Dome Reservoir.
    Following World War II, helium gained new strategic 
importance in rocket development, space exploration, and 
scientific research. In 1960, Congress amended the Helium Act 
of 1925 to encourage private natural gas producers to extract 
crude helium and sell it to the Federal Government for storage 
in the Bush Dome Reservoir. Public Law 8-77, 74 Stat 918. The 
1960 amendments to the Helium Act also authorized the Bureau of 
Mines to borrow funds from the Treasury to buy helium for 
storage in the Federal Helium Reserve (Reserve), which the 
Bureau established in the Bush Dome Reservoir. The 1960 
amendments also required the Bureau to repay the loan by 1985. 
That deadline was later extended to 1995.
    The Bureau of Mines subsequently borrowed about $252 
million to buy helium for storage. In 1973, in the face of a 
large helium stockpile and flat-lined consumption, the United 
States Government ceased acquiring additional crude helium. For 
the next 20 years, annual consumption was matched by volumes of 
helium placed into storage at the Reserve, and volumes therein 
remained largely unchanged. Sales of helium were not sufficient 
to repay the debt. By 1991, the program's debt had ballooned to 
$1.3 billion, over $1 billion of which consisted of interest on 
the $252 million borrowed.
    In 1996, Congress enacted the Helium Privatization Act, 
Public Law 104-273, to address outstanding issues with the 
Reserve. The Privatization Act required the Bureau of Land 
Management (BLM), which assumed responsibility for the program 
after the Bureau of Mines was abolished in 1996, to sell off 
the crude helium remaining in the Reserve in order to repay the 
U.S. Treasury the $1.3 billion debt, and then close the Reserve 
to commercial sales. The debt will be repaid during fiscal year 
2013 and, as a consequence, the helium program will terminate 
sales of helium on October, 7, 2013, absent Congressional 
action, according to testimony and correspondence from the 
Department of the Interior to the Committee.
    The helium market has undergone several important changes 
since the Privatization Act was enacted. First, the majority of 
the Federal helium supply has been sold off. At current 
production rates, there is roughly five to six years of 
commercial supply remaining. Eventually, the helium supplies in 
the Reserve will become too depleted to be used, but for now it 
provides a critical source of supply during a global shortage. 
Second, while additional investments have been made in non-
Federal supplies in the U.S. and overseas, current market 
conditions indicate that demand is outstripping supply and 
leading to a worldwide shortage of helium. Foreign demand for 
helium has virtually doubled since 1996, and as of 2007, 
consumption of helium outside the United States surpassed 
domestic consumption.
    The Reserve continues to provide a ready supply of helium 
for defense, aerospace, and scientific research. The Reserve is 
connected by a Federal pipeline to private helium refiners 
spread throughout northern Texas, the Oklahoma panhandle, and 
southern Kansas. Today, the Reserve currently supplies 40 
percent of the domestic and 30 percent of global helium demand.
    If Congress does not extend operation of the Reserve, there 
will be significant disruption in many sectors of the economy, 
including everything from medical imaging equipment to 
semiconductor manufacturing. Additionally, and because BLM 
sales make up such a significant portion of global supplies, 
non-BLM sales are indexed to BLM prices. Therefore, significant 
volatility in BLM prices would be quickly passed through to the 
rest of the market.

                          Legislative History

    S. 783 was introduced on April 23, 2013, by Senator Wyden 
for himself and Senator Murkowski. Senators Blumenthal, Casey, 
Crapo, Flake, Gillibrand, Heinrich, King, Merkley, Risch, 
Schumer, and Whitehouse are cosponsors.
    The Committee on Energy and Natural Resources held a 
hearing on S. 783 on May 7, 2013. At its business meeting on 
June 18, 2013, the Committee ordered S. 783 to be favorably 
reported with an amendment in the nature of a substitute.
    Similar legislation (H.R. 527) was also introduced in the 
House of Representatives by Representative Hastings on February 
6, 2013. The House Energy and Commerce Committee reported H.R. 
527 on April 18, 2013 (H. Rept. 113-42), and the House of 
Representatives passed the bill on April 26, 2013.
    Similar legislation (S. 2374) was also introduced by 
Senator Bingaman on April 26, 2012, during the 112th Congress. 
S. 2374 was cosponsored by 22 Senators. The Committee held a 
hearing on the bill on May 10, 2012. S. Hrg. 112-540.

                        Committee Recommendation

    The Senate Committee on Energy and Natural Resources, in 
open business session on June 18, 2013, by voice vote of a 
quorum present, recommends that the Senate pass S. 783, if 
amended as described herein.

                          Committee Amendment

    During its consideration of the bill, the Committee adopted 
an amendment in the nature of a substitute. The amendment: (1) 
clarifies that all fees imposed by the Secretary should, at 
minimum, reimburse the Secretary for the full cost of services 
provided, including any capital investments; (2) ensures timely 
delivery of helium acquired from the Secretary by persons in an 
auction or acquired by means other than an auction, and 
provides priority pipeline access for in-kind sales; (3) 
directs the Secretary to consider any new application for 
access to the Federal Helium Pipeline; (4) allows the extension 
of helium sales under Phase A (section 6(a)) if helium sales 
under Phase B (section 6(b)) are delayed or suspended; (5) 
requires that all capital investments be determined by the 
Secretary to be both necessary and cost effective; (6) requires 
that any amounts in the Helium Production Fund in excess of the 
amounts necessary to carry out the revised Federal Helium 
Program be returned to the Treasury with $51,000,000 directed 
to debt reduction and any additional excess funds be used to 
reduce the Federal budget deficit; (7) adds a new Phase D 
(section 6(d)) that directs the Secretary to dispose of all 
Federal Helium Reserve assets by January 1, 2023 and at a time 
informed by the Federal Helium Strategy in section 19; (8) 
broadens the helium-3 study to include options beyond 
utilization of the Federal Helium Reserve; (9) adds the NASA 
Administrator to the Federal Helium Strategy in section 19; 
(10) adds authorization amounts to section 16, 17, and 18; (11) 
further defines the scope of protections for existing contracts 
and agreements by deleting the words ``in any manner'' from 
section 8; and (12) adds a new section 10, which: (a) provides 
a one-year extension of payments under the Secure Rural Schools 
and Community Determination Act at a 5 percent reduction from 
the level of payments made in 2013; (b) provides $50,000,000 to 
remediate abandoned oil and gas wells on current or former 
National Petroleum Reserve lands; (c) adds $50,000,000 in 
direct funding to address deferred National Parks Service 
maintenance with a dollar-for-dollar cost share with non-
Federal sources; (d) provides $60,000,000 to restore payments 
to states and Indian tribes certified under the Abandoned Mine 
Lands program for fiscal year 2014; and (e) reduces to 4 
percent, for two years, the royalty rate for soda ash 
production on Federal lands.

                       Section-by-Section Summary

    Section 1 provides a short title.
    Section 2 amends section 2 of the Helium Act to define the 
terms used in the Act as amended.
    Section 3 amends section 3 of the Helium Act to ensure that 
all amounts received by the Secretary from the sale or 
disposition of helium on Federal lands will be credited to the 
Helium Production Fund.
    Section 4 amends section 5 of the Helium Act to direct the 
Secretary to impose storage, withdrawal, and transportation 
fees that reflect the economic value of those services; 
annually publish a schedule of fees; allow any person or 
qualified bidder to store helium in the Federal Helium Reserve; 
set a schedule for the transportation and delivery of helium; 
and consider any new applications for access to the Federal 
Helium Pipeline. The purpose of requiring the BLM to establish 
a new schedule for use of the helium pipeline is to ensure that 
there is adequate access for helium sales conducted under the 
new procedures required by the amendments to the Helium Act. 
Nothing in the amendment is intended to in any way vitiate 
existing storage contracts or to strand private helium paid for 
and currently held in storage in the Federal Helium Reserve.
    Section 5 amends section 6 of the Helium Act to establish a 
four-phase system for sale and auction of crude helium from, 
and eventual closure of, the Reserve with minimum sales prices, 
maximum sales volumes, transparency requirements, information 
collection, priority pipeline access and in-kind prices for 
Federal users, protection of confidential information, and 
other relevant terms and conditions in all phases. The purpose 
of the four-phase program is to ensure the near-term stability 
of helium supplies and the establishment of market-based 
pricing, while phasing out the Federal Government's role in the 
helium supply chain.
    Subsection (a) establishes Phase A. During Phase A, BLM 
would continue to operate the Federal Helium System with 
minimal changes for one year (through September 30, 2014) in 
order to give BLM time to put new rules in place for conducting 
auctions, setting prices, and ensuring continuity of supply.
    Subsection (b) establishes Phase B. During Phase B, BLM is 
required to auction off increasing quantities in order to 
ensure that BLM helium prices reflect market value and that 
taxpayers receive a fair return. Beginning October 1, 2014, 
subsection (b) requires BLM to begin to auction off increasing 
amounts of helium--beginning at 10 percent a year--and to use 
price discovery associated with those auctions to help set the 
price for all BLM helium sales. The volume being auctioned 
increases steadily by an additional 10 percentage points 
annually. The bill provides a ``safety valve'' to allow for 
adjustment by the Secretary of the amounts auctioned or 
allocated if these proposed auction amounts are too high or too 
low to achieve the twin goals of stability of supply and fair 
return to taxpayers. Phase B ends when 3 billion standard cubic 
feet of helium remain in the Federal Helium Reserve.
    Beginning in Phase A and continuing through Phase B, the 
bill also provides that the helium refiners connected to the 
Federal Helium Reserve make excess refining capacity available 
to others at commercially reasonable rates as a condition of 
their continued participation in helium allocations and 
auctions. The intent of this requirement is to maximize 
participation in helium sales in Phases A and B. Without a way 
to have helium refined, there would be less or no interest in 
purchasing helium by parties other than the existing refiners. 
By making capacity available that is in excess of refiners' 
operational needs and at rates that are commercially reasonable 
in exchange for continued direct access to the un-auctioned 
Federal helium volumes, interest in purchasing helium should 
increase and price discovery should improve. In 2010, the 
National Academy of Sciences reported that U.S. refining 
capacity connected to the BLM system was some 4 billion cubic 
feet of refined liquid helium with refining usage at 82 
percent.
    Subsection (c) establishes Phase C. In Phase C, only 
Federal users would have access to the remaining helium. 
Because remaining Federal helium supplies in the Reserve are 
nonetheless limited, Phase C is not a permanent solution for 
Federal supplies and the bill requires development of a long-
term Federal helium procurement strategy in anticipation of an 
end to the In-Kind program and commencement of Phase D.
    Subsection (d) establishes Phase D. In Phase D, the Federal 
Government ceases to supply helium and disposes of its helium 
supply assets no later than January 1, 2023.
    Subsection (e)(1) requires that all amounts received under 
the Helium Act from the sale or auction of crude helium to be 
credited to the Helium Production Fund for purposes necessary 
and cost effective to carry out the Helium Act.
    Subsection (e)(2) requires amounts in the Helium Production 
Fund in excess of amounts necessary to carry out the Helium Act 
to be paid to the general fund of the Treasury and used to 
reduce the annual Federal budget deficit.
    Subsection (e)(3) requires the Secretary of the Treasury to 
use $51 million of the amounts paid to the general fund under 
subsection (e)(2) to retire public debt.
    Subsection (f) requires the Secretary of the Interior to 
offer for sale or auction during each fiscal year under 
subsections (a), (b), and (c) an amount of crude helium that is 
the lesser of the quantity of crude helium for sale during 
fiscal year 2012 or the maximum total production capacity of 
the Federal Helium System.
    Section 6 adds five new sections to the Helium 
Privatization Act of 1996 related to increasing the 
transparency of BLM's helium program and the helium market, as 
well as developing alternative supplies of helium within the 
U.S. and developing a long-term strategy for Federal 
procurement of helium.
    New section 15 of the Helium Act would increase the 
transparency of the Federal Helium Reserve by requiring the 
Secretary to make available on the Internet information 
including open market and in-kind prices, aggregated 
projections of excess refining capacity, helium ownership, 
crude helium delivery volumes and schedule, pressure 
constraints, projected date of Phase C commencement, and 
associated fees.
    New section 16 of the Helium Act would authorize the U.S. 
Geological Survey to complete a national helium gas assessment 
that quantifies crude helium resources and makes available 
seismic and geophysical log data for the Bush Dome Reservoir.
    New section 17 of the Helium Act would authorize the 
Secretary of Energy to support research, development, 
commercial application, and conservation to expand domestic 
production of low-Btu gas and helium resources, investigate new 
separation and capture techniques, develop low-cost 
technologies for recycling, reprocessing, and reusing helium.
    New section 18 of the Helium Act would require the 
Secretary of the Interior to cooperate with the Secretary of 
Energy to complete assessments or research relating to the 
extraction and refining of the isotope helium-3 from crude 
helium as well as study the feasibility of establishing a 
facility to separate helium-3 from crude helium and report to 
Congress on such activities.
    New section 19 would require the Secretary, within 2 years 
of enactment, to evaluate the helium needs of Federal users and 
provide to Congress a report on the consumption of, and 
projected demand for, crude and refined helium, a description 
of a 20-year Federal strategy for securing access to helium, a 
determination of a date for the implementation of Phase D, an 
assessment of the effects of increases in price of refined 
helium and methods and policies for mitigating any determined 
effects, as well as a description of a process for 
prioritization of uses that accounts for diminished 
availability of helium supplies that may occur over time.
    Section 7 makes a series of technical amendments to section 
4 of the Helium Act, and repeals section 8 of the Helium Act 
(relating to the elimination of the helium stockpile).
    Section 8 ensures the Helium Stewardship Act and the 
amendments made to the Helium Act by it will not affect or 
diminish the rights and obligations of existing agreements as 
of the date of enactment, except to the extent those agreements 
are renewed or extended after that date.
    Section 9 authorizes the Secretary of the Interior to 
promulgate regulations as necessary to carry out the Act.
    Section 10(a) authorizes a one-year extension of the Secure 
Rural Schools and Community Self-Determination Act at a 5 
percent reduction from the level of payments made in 2013.
    Subsection (b) makes $50,000,000 out of any amount in the 
Treasury not otherwise appropriated available to address 
deferred National Parks Service maintenance and requires that 
those Federal funds be matched dollar-for-dollar with non-
Federal sources.
    Subsection (c) makes $50,000,000 out of any amounts in the 
Treasury not otherwise appropriated available for the 
remediation of abandoned wells on Federal lands.
    Subsection (d) restores $60,000,000 in payments to states 
certified under the Abandoned Mine Lands program for fiscal 
year 2014.
    Subsection (e) reduces the royalty rate for soda ash 
production on Federal lands to 4 percent the value of the soda 
ash for two years from the date of enactment of the Act.
    Subsection (f) amends section 207(c) of the Energy 
Independence and Security Act of 2007 by reducing the 
authorization of appropriations for grants to encourage the 
production of advanced biofuels by $5,000,000.

                   Cost and Budgetary Considerations

    The following estimate of the costs of this measure has 
been provided by the Congressional Budget Office.

S. 783--Helium Stewardship Act of 2013

    Summary: S. 783 would reauthorize, establish, or modify 
several programs related to the management of federal lands and 
natural resources and would increase certain payments to 
localities. Major provisions of the legislation would:
           Authorize the Bureau of Land Management 
        (BLM) to retain proceeds from the sale of helium from 
        the Federal Helium Reserve to pay for the costs of 
        operating the reserve;
           Require BLM to sell federally owned assets, 
        including rights to any remaining gases, at the Federal 
        Helium Reserve by 2023;
           Provide funds to certain counties by 
        reauthorizing Secure Rural Schools payments through 
        2014;
           Raise the cap on payments to states under 
        the Abandoned Mine Lands program for 2014;
           Appropriate funds to remediate, reclaim, and 
        close abandoned oil and gas wells in Alaska;
           Provide funds to the National Park Service 
        (NPS) to improve infrastructure at parks; and
           Reduce the royalty rate on soda ash and 
        related mineral products from 6 percent to 4 percent 
        for two years following the enactment of the bill.
    CBO estimates that enacting S. 783 would reduce net direct 
spending by $51 million over the 2014-2023 period; therefore, 
pay-as-you-go procedures apply. Enacting S. 783 would not 
affect revenues.
    The bill also would authorize appropriations to conduct 
assessments of helium supplies, establish research and 
development programs related to helium, and administer the 
Secure Rural Schools program. In addition, S. 783 would require 
BLM to comply with certain reporting requirements. Assuming 
appropriation of the authorized and necessary amounts, CBO 
estimates that conducting those activities would cost $6 
million over the 2014-2018 period. Finally, the bill would 
reduce the amount authorized to be appropriated for an existing 
Department of Energy (DOE) grant program by $5 million. On net, 
CBO estimates that implementing those provisions would cost $1 
million over the 2014-2018 period.
    S. 783 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA).
    Estimated cost to the Federal Government: The estimated 
budgetary impact of S. 783 is shown in the following table. The 
costs of this legislation fall within budget functions 270 
(energy), 300 (natural resources and environment), and 800 
(general government).
    Basis of estimate: For this estimate, CBO assumes that S. 
783 will be enacted near the end of 2013 and that the 
authorized and necessary amounts will be appropriated for each 
fiscal year.

Direct spending

    CBO estimates that enacting S. 783 would reduce net direct 
spending by $51 million over the 2014-2023 period. We estimate 
that the provisions regarding the Federal Helium Reserve would 
increase net offsetting receipts by $495 million and that the 
costs to carry out the mandatory spending provisions in the 
bill would total $444 million over that period.

------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                           By fiscal year, in millions of dollars--
                                                             -----------------------------------------------------------------------------------------------------------------------------------
                                                                 2014       2015       2016       2017       2018       2019       2020       2021       2022       2023    2014-2018  2014-2023
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                   CHANGES IN DIRECT SPENDING
Helium Sales and Reserve Operations:
    Estimated Budget Authority..............................       -150       -105        -80        -55        -30         -5         25         20         20          5       -420       -355
    Estimated Outlays.......................................       -150       -105        -80        -55        -30         -5         25         20         20          5       -420       -355
Helium Reserve Asset Sales:
    Estimated Budget Authority..............................          0          0          0          0          0          0          0          0          0       -140          0       -140
    Estimated Outlays.......................................          0          0          0          0          0          0          0          0          0       -140          0       -140
Secure Rural Schools:
    Estimated Budget Authority..............................        270          0          0          0          0          0          0          0          0          0        270        270
    Estimated Outlays.......................................        243         27          0          0          0          0          0          0          0          0        270        270
Abandoned Mine Lands Payments:
    Estimated Budget Authority..............................         60          0          0          0          0          0          0          0          0          0         60         60
    Estimated Outlays.......................................         24         18         12          6          0          0          0          0          0          0         60         60
Abandoned Oil and Gas Wells:
    Budget Authority........................................         50          0          0          0          0          0          0          0          0          0         50         50
    Estimated Outlays.......................................         10         15         15         10          0          0          0          0          0          0         50         50
National Park Service Infrastructure:
    Budget Authority........................................         50          0          0          0          0          0          0          0          0          0         50         50
    Estimated Outlays.......................................         11         13         12          8          6          0          0          0          0          0         50         50
Soda Ash Royalty Reduction:
    Estimated Budget Authority..............................          7          7          0          0          0          0          0          0          0          0         14         14
    Estimated Outlays.......................................          7          7          0          0          0          0          0          0          0          0         14         14
    Total Changes, Direct Spending
        Estimated Budget Authority..........................        287        -98        -80        -55        -30         -5         25         20         20       -135         24        -51
        Estimated Outlays...................................        145        -25        -41        -31        -24         -5         25         20         20       -135         24        -51
 
                                                                          CHANGES IN SPENDING SUBJECT TO APPROPRIATION
Resource Assessments and Reports:
    Estimated Authorization Level...........................          5          *          *          *          *          *          *          *          *          *          5          6
    Estimated Outlays.......................................          5          *          *          *          *          *          *          *          *          *          5          6
Secure Rural Schools Program:
    Estimated Authorization Level...........................          *          *          0          0          0          0          0          0          0          0          *          *
    Estimated Outlays.......................................          *          *          0          0          0          0          0          0          0          0          *          *
Department of Energy Grant Program:
    Authorization Level.....................................         -5          0          0          0          0          0          0          0          0          0         -5         -5
    Estimated Outlays.......................................         -2         -1         -1         -1          0          0          0          0          0          0         -5         -5
    Total Changes, Discretionary Spending:
        Estimated Authorization Level.......................          *          *          *          *          *          *          *          *          *          *          1          1
        Estimated Outlays...................................          3         -1         -1         -1          *          *          *          *          *          *          1          1
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Note: Components may not sum to totals because of rounding; * = less than $500,000.

    Helium Sales and Reserve Operations. S. 783 would authorize 
BLM to retain proceeds from the sale of helium from the Federal 
Helium Reserve to pay for the costs of operating the reserve. 
Under current law, CBO expects that the agency's authority to 
retain those proceeds will end in 2013. After 2013, any funds 
necessary to operate the Federal Helium Reserve (and to sell 
helium) would need to be appropriated by the Congress. Thus, 
under current law, any offsetting receipts from those sales 
would be contingent on the appropriation of such funds.
    Because the bill would authorize BLM to retain proceeds 
from helium sales to cover the costs of operating the Federal 
Helium Reserve after 2013, CBO estimates that enacting the 
legislation would lead to additional helium sales, increasing 
net offsetting receipts by $355 million over the 2014-2023 
period.
    Under the bill, BLM would be authorized to sell helium to 
private entities for commercial uses until the volume of 
recoverable helium at the Federal Helium Reserve is drawn down 
to a specified level. After that date, BLM would be authorized 
to sell helium only to other federal entities for medical and 
scientific uses. Based on information provided by BLM, CBO 
expects that, under the legislation, commercial sales would 
cease at the end of fiscal year 2019. Over the 2014-2019 
period, we estimate that gross proceeds from the commercial 
sale of helium would total $585 million and the costs to 
operate the Federal Helium Reserve would total $160 million, 
resulting in a net increase in offsetting receipts totaling 
$425 million.
    Because CBO expects that BLM would no longer receive funds 
from the sale of helium to nonfederal sources after 2019, we 
expect that the agency would spend some of the proceeds 
remaining from earlier sales to fund the operation of the 
Federal Helium Reserve over the 2020-2023 period. Based on 
information provided by BLM, CBO estimates that the agency 
would spend about $70 million over that period to operate the 
reserve.
    Helium Reserve Asset Sales. S. 783 would require BLM to 
sell federally owned infrastructure at the Federal Helium 
Reserve as well as the pipeline system that connects several 
refineries to the reserve. The helium enrichment plant located 
at the reserve is privately owned and would not be sold under 
the bill. Based on information regarding the sale of similar 
gas storage facilities and pipelines, CBO estimates that 
enacting that provision would increase offsetting receipts from 
the sale of those assets by $15 million in 2023.
    CBO expects that the reserve would still contain 
significant quantities of helium and small amounts of natural 
gas early in 2023. Under the bill, the agency would be required 
to sell rights to those gases at that time. Based on 
information provided by BLM, CBO expects that the reserve would 
contain roughly 2 billion cubic feet of helium, which would 
probably be drawn from the reserve over a 10-year period, and 
nominal amounts of natural gas. CBO also expects that the 
average price of helium will be roughly $120 per thousand cubic 
feet (in 2023 dollars) over the 2023-2032 period. The current 
price of crude helium, as set by BLM for commercial sales, is 
$84 per thousand cubic feet. Taking into account the risks and 
high costs associated with operating a depleting reserve, CBO 
estimates that proceeds from the sale of helium and natural gas 
rights would increase offsetting receipts by $125 million in 
2023. The amount paid for such rights could be significantly 
higher or lower than estimated depending on the costs to 
extract the helium with existing technologies and the market 
price for crude helium at the time those rights are sold.
    Secure Rural Schools. S. 783 would reauthorize payments to 
certain counties in 2014 under the Secure Rural Schools 
program. Under current law, those counties would receive a 
portion of the receipts raised from logging and other 
activities on Forest Service and BLM lands. CBO estimates that 
payments to those counties under current law would total $59 
million in 2014. Under the bill, we estimate that payments to 
those counties would total $329 million over the 2014-2015 
period. Thus, CBO estimates that enacting this provision would 
cost $270 million over that period.
    Abandoned Mine Lands Payments. The bill would increase the 
cap on payments to states that have completed all of their 
high-priority coal mine reclamation projects. Under current 
law, payments to those states are capped at $15 million a year. 
S. 783 would increase that cap to $75 million for 2014. Because 
Wyoming is the only state that would receive a payment 
exceeding $15 million under that program if payments were 
uncapped and because CBO expects that without the cap Wyoming 
would be eligible for a payment in excess of $75 million, we 
estimate that enacting this provision would cost $60 million 
over the 2014-2017 period.
    Abandoned Oil and Gas Wells. The legislation would provide 
$50 million for the Secretary of the Interior to remediate, 
reclaim, and close abandoned oil and gas wells within the 
National Petroleum Reserve. The reserve consists of 23 million 
acres of federal land in northern Alaska and is currently open 
for commercial oil and gas leasing. CBO estimates that enacting 
this provision would cost $50 million over the 2014-2017 
period.
    National Park Service Infrastructure. S. 783 would provide 
$50 million to NPS for maintenance and infrastructure projects 
within national parks. Under the bill, the agency would use 
those funds to pay a portion of the costs of projects carried 
out in coordination with nonfederal entities. CBO estimates 
that enacting this provision would cost $50 million over the 
2014-2018 period.
    Soda Ash Royalty Reduction. The bill would require BLM to 
charge a 4 percent royalty on the value of soda ash and certain 
related minerals produced on federal lands for a two-year 
period following enactment of the legislation. That rate would 
be lower than the average rate expected under current law, 
which is about 6 percent over that period. That reduction in 
the rate would reduce offsetting receipts.
    Because CBO expects that royalty rates charged for the 
production of soda ash and related minerals on state and 
private lands will be higher than 4 percent, we also expect 
that, under the bill, the amount of such minerals produced on 
federal lands would be higher over the next two years than it 
would be under current law. However, CBO expects that the 
increase in production on federal lands would only partially 
reduce the loss of receipts from lowering the royalty rate. As 
a result, CBO estimates that enacting this provision would 
reduce net offsetting receipts from soda ash royalties by $14 
million over the 2014-2015 period.

Spending subject to appropriation

    S. 783 would authorize the appropriation of $4 million for 
the Department of the Interior (DOI) to conduct assessments 
that would quantify the amount of helium resources in the 
United States and worldwide. The legislation also would 
authorize the appropriation of $1 million for DOE to develop a 
research and development program aimed at expanding the 
production of helium and certain other gases in the United 
States and conserving helium by developing methods to recycle 
and reuse it. Assuming appropriation of the authorized amounts, 
CBO estimates that conducting those activities would cost $5 
million over the 2014-2018 period.
    The bill also would require BLM to comply with various 
reporting requirements related to helium production on federal 
lands. Based on information regarding the cost of similar 
activities, CBO estimates that complying with those 
requirements would have no significant impact on the federal 
budget over the 2014-2018 period and would cost roughly $1 
million over the 2014-2023 period, assuming appropriation of 
the necessary amounts.
    In addition, the bill would authorize such sums as 
necessary to be appropriated to administer the Secure Rural 
Schools program. Based on information provided by the Forest 
Service, CBO expects that carrying out the program would 
require one employee to act as an administrator. We estimate 
that the costs of employing that individual would total about 
$300,000 over the 2014-2015 period.
    Finally, the bill would reduce the amount authorized to be 
appropriated for a DOE grant program that funds efforts to 
develop biofuels that reduce greenhouse gas emissions. Based on 
the historical spending pattern for that program, CBO estimates 
that implementing that provision would reduce discretionary 
spending by $5 million over the 2014-2017 period, assuming 
appropriation actions consistent with the bill.
    Pay-As-You-Go considerations: The Statutory Pay-As-You-Go 
Act of 2010 establishes budget-reporting and enforcement 
procedures for legislation affecting direct spending or 
revenues. The net changes in outlays that are subject to those 
pay-as-you-go procedures are shown in the following table.

      CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR S. 783 AS ORDERED REPORTED BY THE SENATE COMMITTEE ON ENERGY AND NATURAL RESOURCES ON JUNE 18, 2013
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                             By fiscal year, in millions of dollars 2013--
                                              ----------------------------------------------------------------------------------------------------------
                                                2013   2014   2015    2016    2017    2018    2019    2020    2021   2022    2023   2013-2018  2013-2023
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                       NET INCREASE OR DECREASE (-) IN THE DEFICIT
Statutory Pay-As-You-Go Impact...............      0    145     -25     -41     -31     -24      -5      25     20     20     -135       24         -51
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Intergovernmental and private-sector impact: S. 783 
contains no intergovernmental or private-sector mandates as 
defined in UMRA. If enacted, state and local governments would 
receive about $330 million over the five-year period for 
schools, mine reclamation, and other activities. The royalty 
reduction required by the bill would reduce federal payments to 
Arizona, California, Colorado, New Mexico, Utah, and Wyoming by 
about $14 million over fiscal years 2014 and 2015.
    Previous CBO estimates: On April 5, 2013, CBO transmitted a 
cost estimate for H.R. 527, the Responsible Helium 
Administration and Stewardship Act, as ordered reported by the 
House Committee on Natural Resources on March 20, 2013. CBO 
estimates that enacting H.R. 527 would increase net offsetting 
receipts by $340 million over the 2014-2023 period and increase 
discretionary spending by $11 million over that period.
    On July 11, 2013, CBO transmitted a cost estimate for H.R. 
957, the American Soda Ash Competitiveness Act, as ordered 
reported by the House Committee on Natural Resources on May 15, 
2013. That bill would reduce the royalty rate on soda ash and 
related minerals to 2 percent over a five-year period.
    Estimate prepared by: Federal costs: Jeff LaFave; Impact on 
state, local, and tribal governments: Melissa Merrell; Impact 
on the private sector: Amy Petz.
    Estimate approved by: Theresa Gullo, Deputy Assistant 
Director for Budget Analysis.

                      Regulatory Impact Evaluation

    In compliance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee makes the following 
evaluation of the regulatory impact which would be incurred in 
carrying out the Helium Stewardship Act of 2013.
    The bill is not a regulatory measure in the sense of 
imposing Government established standards or significant 
economic responsibilities on private individuals and 
businesses, but rather providing financial support to private 
industry that may be voluntarily applied for.
    No personal information would be collected in administering 
programs authorized under the bill. Therefore, there would be 
no impact on personal privacy.

                   Congressionally Directed Spending

    S. 783, as reported, does not contain any congressionally 
directed spending items, limited tax benefits, or limited 
tariff benefits as defined in rule XLIV of the Standing Rules 
of the Senate.

                        Executive Communications

    The testimony provided by the Department of Interior on May 
7, 2013, at the Committee's hearing on the bill, and a letter 
from Secretary Salazar to Chairman Wyden, dated March 1, 2013, 
relating to the Federal Helium Reserve and the helium debt, 
follow:

Statement of Timothy R. Spisak, Deputy Assistant Director, Minerals and 
     Realty Management, Department of the Interior, Bureau of Land 
                               Management

    Mr. Chairman and members of the Committee, thank you for 
the opportunity to testify on S. 783, the Helium Stewardship 
Act, which would make various changes to the Helium 
Privatization Act of 1996, including establishing a phased 
approach to drawing down the Federal Helium Reserve. As 
indicated by a National Academy of Sciences (NAS) report 
published in early 2010, the market for helium has proven more 
volatile than expected over the last 15 years and the current 
law's requirement that the Bureau of Land Management (BLM) 
offer for sale nearly all of the Reserve by 2015 could pose a 
threat to the availability of this resource for future U.S. 
research, scientific, technical, biomedical, and national 
security users of helium. The Department supports S. 783 and 
welcomes the opportunity to improve the management of this 
valuable commodity.


                               background


    Helium is a critical, non-renewable natural resource that 
plays an important role in research, medical imaging, space 
exploration, military reconnaissance, fiber optics 
manufacturing, welding and commercial diving. According to the 
NAS, helium's best known property, being lighter than air, 
means ``that every unit of helium that is produced and used 
today will eventually escape the Earth's atmosphere and become 
one less unit available for use tomorrow.''
    The most common and economical way of capturing helium is 
by stripping it from natural gas during gas production. 
Geologic conditions in Texas, Oklahoma, and Kansas make the 
natural gas in these areas some of the most helium-rich in the 
United States, ranging from 0.5 to 1.5 percent of the gas 
extracted during production. The BLM plays a key role in the 
careful management and stewardship of the only significant 
long-term storage facility for crude helium in the world, known 
as the Federal Helium Reserve (Reserve), which supplies 
approximately 42 percent of domestic demand and approximately 
35 percent of global demand for crude helium.


                       the federal helium program


    Because of helium's potential to lift military 
reconnaissance devices high above battlefields, the Federal 
government's interest in the resource dates back to World War 
I. Recognizing this key military use for helium, the Mineral 
Leasing Act of 1920 reserved to the Federal government all 
helium produced on Federal lands--a reservation that remains in 
effect today. After World War I, recognition of the potential 
for helium recovery in the Texas Panhandle, Western Oklahoma, 
and Kansas area (collectively, the ``Hugoton'' field) led to 
the development of the Federal helium program focused in that 
area. In 1929, the Bureau of Mines built the Amarillo Helium 
Plant and Cliffside Gasfield Facility near Amarillo, Texas, to 
produce helium-bearing natural gas from a naturally occurring 
geologic field known as the Bush Dome Reservoir.
    After World War II, Federal use of helium shifted toward 
applications related to space exploration, and in 1960 Congress 
passed the Helium Amendment Act. This Act changed the program's 
mandate from exclusive government production of helium to 
conservation of the resource. This was to be accomplished by 
executing contracts with private natural gas producers to 
purchase extracted crude helium for the Federal government to 
store in the Bush Dome Reservoir. The Act granted the Bureau of 
Mines the authority to borrow funds from the U.S. Treasury to 
purchase the helium, with the expectation that the proceeds 
from future sales of helium would allow the BLM's predecessor 
agency in this area, the Bureau of Mines, to repay the debt. 
This borrowing authority, established by Congress in lieu of a 
direct appropriation, required the Bureau of Mines to repay the 
loan by 1985. Subsequent legislation extended the deadline to 
1995.
    Federal demands for helium rarely, if ever, met the 
expectations underlying the terms of the U.S. Treasury's loan 
to the Bureau of Mines. When the 1995 deadline to pay off the 
debt arrived, the $252 million the Bureau had spent on 
privately-produced helium had increased to $1.3 billion 
(principal and interest), and the Bureau of Mines appeared to 
have little prospect of repaying the debt. In his 1995 State of 
the Union address, President Bill Clinton stated that it was 
his Administration's goal to privatize the Federal helium 
program.
    Congress subsequently passed the Helium Privatization Act 
of 1996 (HPA), which required the BLM (which assumed 
jurisdiction over the program after the termination of the 
Bureau of Mines) to make available for sale the vast majority 
of the stockpile of crude helium. The mandate directed the BLM 
to begin selling helium no later than 2005, in order to avoid 
market disruption. The BLM was to make a consistent amount of 
helium available every year at a price based on the amount of 
remaining helium debt and the amount of helium in storage. When 
Congress passed the HPA, there was approximately 30.5 billion 
standard cubic feet (scf) of helium in storage in the Bush Dome 
Reservoir. The HPA mandated the BLM to make available for sale 
all of the helium in excess of a 600 million scf permanent 
reserve.
    Additionally, the HPA required the BLM to cease all helium 
production, refining, and marketing activities to effectively 
privatize the refined helium market in the United States. 
Finally, the Act provided for the NAS to review the impacts of 
the 1996 Act. The NAS published its first study in 2000, and 
released a follow-up report in 2010.


                      the blm's helium operations


    The BLM currently operates the Federal helium program with 
the primary goals of supplying helium to meet the Nation's 
needs of Federal helium users and paying off the ``helium 
debt.'' To this end, the BLM has paid approximately $1.33 
billion to the U.S. Treasury since 1995. This constitutes 
substantial progress toward eliminating the helium debt, which 
the HPA froze at approximately $1.37 billion. During FY 2012, 
the helium debt was reduced by an additional $180 million from 
Reserve sales, resulting in an outstanding balance of 
approximately $44 million at the end of the fiscal year.
    According to the HPA, once the helium debt is retired, the 
Helium Production Fund (used to fund the BLM's helium program 
operational expenses) would be dissolved and all future 
receipts would be deposited directly into the general fund of 
the U.S. Treasury. The BLM has generated enough revenue during 
this fiscal year through currently authorized helium sales to 
pay off the debt at the beginning of FY 2014.
    The BLM's current helium program, with a workforce of 51 
full-time equivalents (FTE), operates not only the original 
storage and pipeline system, but also a crude helium enrichment 
unit, owned by private industry refiners, that facilitates 
transmission of helium to private helium operations on the 
BLM's helium pipeline. The BLM is responsible for administering 
helium extracted from Federal resources, including management 
of fees and royalty contracts. These operations are not limited 
to the Hugoton gas field, but also occur in fields in Colorado, 
Wyoming, Utah, and any other state where producers extract 
helium from the Federal mineral estate. Additionally, the BLM 
is responsible for administering the sell-off of crude helium 
to private refiners. These sales make the most significant 
contributions toward paying off the helium debt. The agency 
also conducts domestic helium resource evaluation and reserve 
tracking to determine the extent of available helium resources.
    Another major part of the BLM's helium program is the ``In-
Kind'' program, which supplies helium to Federal agencies 
(e.g., the Department of Energy and the National Aeronautics 
and Space Administration) for operations and/or research. 
Before the Helium Privatization Act, Congress required Federal 
agencies to purchase their refined helium supplies from the 
Bureau of Mines. Under the current In-Kind program, Federal 
agencies purchase all of their refined helium from private 
suppliers who, in turn, are required to purchase a commensurate 
amount of crude helium from the Reserve. In FY 2012, Federal 
agencies purchased $10.3 million of helium through the In-Kind 
program.


                the national academy of sciences reports


    In 2000, the NAS published its first analysis of the 
impacts of the HPA. Its general finding was that the Act would 
not have an impact on helium users. Additionally, the NAS 
report concluded that because the price-setting mechanism was 
based on the amount of the helium debt, and not the market for 
helium, the government's significantly higher price would mean 
the helium refining industry would buy crude helium from the 
BLM only as a last resort for fulfilling private contracts. 
However, private helium refiners would still be required to 
purchase crude helium from the BLM under the In-Kind program.
    Over the course of the last decade, however, it has become 
apparent that assumptions underlying the 2000 NAS Report did 
not hold. First, the NAS's assumption that ``[t]he price of 
helium [would] probably remain stable through at least 2010'' 
has proven faulty. The market for helium has seen significant 
fluctuations on both the demand side--which dropped 
significantly in 2008 after peaking the prior year--and on the 
supply side, which experienced a significant decline in private 
supplies between 2006 and 2008. In the face of this volatility, 
prices for helium rose steadily over the course of the decade. 
By 2008, the market price for helium began to hover near the 
BLM's price, leading to greater withdrawals from the Reserve 
than the 2000 NAS Report anticipated.
    Another market impact that the 2000 NAS Report did not 
address was international supply and demand for helium. 
According to the U.S. Department of Commerce, domestic 
consumption of helium decreased 2.7 percent per year from 2000-
2007, while exports to the Pacific Rim grew 6.8 percent 
annually, exceeding the 5.1 percent growth rate in Europe. The 
international market also experienced supply issues because of 
refining capacity problems at plants in Qatar and Algeria, 
which would normally help supply both Europe and Asia.
    In early 2010, the NAS released a follow-up report on the 
BLM's management of the Reserve. The report, entitled ``Selling 
the Nation's Helium Reserve,'' focused on ``whether the 
interests of the United States have been well served by the 
[HPA] and, in particular, whether selling off the Reserve has 
had any adverse effect on U.S. scientific, technical, 
biomedical, and national security users of helium.''
    The 2010 NAS report, which identified some shortcomings of 
the 2000 report, takes a markedly different tone than the 2000 
report. This change in approach reflects the volatility of the 
helium market over the last decade. The NAS report analyzes the 
relationship between supply and demand for helium on a domestic 
and international basis, as well as the BLM's management of the 
Reserve under the HPA. The report concludes that the HPA 
mandated sell-off is negatively impacting the needs of both 
current and future users of helium in the United States. This 
conclusion is the driving force behind a series of 
recommendations in the report directed at the BLM and the 
United States Congress.


                     s. 783, helium stewardship act


    S. 783 addresses many of the concerns that the 2010 NAS 
report identified regarding the Federal government's 
involvement in the helium market. Most importantly, the bill 
would create a set of phased authorities for the BLM's 
management of the Reserve, establishing a ``glide path'' from 
the sales mandated under the HPA to a scenario where 3 billion 
scf of helium would be reserved solely for Federal users, grant 
holders, or contractors. This would accomplish the original 
goals of the HPA--the exit of the Federal government from the 
broader helium market and the paying off of the helium debt 
while protecting long-term supply interests for the Federal 
government. The Department supports S. 783 and the approach to 
gradually scale back the Federal helium program. The 
Administration would like to continue working with the 
Committee and sponsors on details of a technical nature.
    The bill stipulates three phases to the drawdown: ``Phase 
A: Allocation Transition;'' ``Phase B: Auction 
Implementation:'' and ``Phase C: Continued Access for Federal 
Users.'' Phase A would begin on the bill's date of enactment 
and end on September 30, 2014. During Phase A, the BLM would be 
required to sell crude helium in a manner that would result in 
minimum market disruption. The Department believes that this 
time period is reasonable to prepare the market for broader 
program reforms.
    Phase B would begin on October 1, 2014, and end when the 
volume of recoverable crude helium in the Reserve reaches 3 
billion scf. During Phase B, the BLM would balance factors 
involving the maximization of total recovery from the Reserve; 
the maximization of total financial return to the taxpayer; the 
amount of production capable from the Reserve; the demand of 
Federal users, grant holders, and contractors; and minimization 
of market disruption when determining the annual quantity of 
crude helium to offer for sale. Also during Phase B, the BLM 
would annually auction a percentage of the total crude helium 
offered for sale, beginning at 10 percent, and increasing by 10 
percent increments each subsequent year, up to a maximum of 100 
percent.
    This percentage would be subject to adjustment if necessary 
to minimize market disruptions that pose a threat to the 
economic well-being of the United States. The Department 
supports this phased approach to implementing an auction 
system, and believes that auctions can be implemented with 
minimal market disruption.
    Phase C would begin when the volume of recoverable crude 
helium in the Reserve reaches 3 billion scf and presumably last 
until all recoverable helium has been exhausted from the 
Reserve. During Phase C, the BLM would be authorized to sell 
crude helium only for use by Federal agencies contractors, and 
grant holders. The Department supports the provision to reserve 
the remaining volume for Federal use.
    Other significant aspects of S. 783 involve reauthorization 
of the Helium Production Fund and requirements that the BLM 
disclose certain information related to the Federal helium 
system. Reauthorization of the Helium Production Fund is 
consistent with the 2014 President's Budget, which includes a 
proposal to reauthorize the fund in combination with 
substantive reforms to BLM helium sales based on recent 
recommendations from the National Academy of Sciences. The 
Department and the BLM are committed to ensuring that the 
public receives a fair return on publicly owned energy and 
related resources. The Department and the BLM are also firmly 
committed to making information about how government operates 
more accessible, and consider transparency and open government 
a high priority. The Department looks forward to discussing 
these issues further with the sponsors and the Committee, and 
the Administration continues to evaluate any cost implications 
of this legislation.
    Furthermore, the bill would require the Secretary of the 
Interior to complete several reports and studies on helium. 
These include global and national helium gas resource 
assessments, and, in coordination with the Secretary of Energy, 
national forecasts and global trends of helium demand and an 
inventory of helium uses in the United States. The bill would 
also direct the Secretary of Energy to support several areas of 
helium separation-related research; allow the Secretary of the 
Interior, in consultation with the Secretary of Energy, to 
assess the feasibility of establishing a facility to separate 
the isotope helium-3; and direct the Secretary of the Interior, 
in consultation with various Federal agencies, to submit a 
report to Congress on a Federal Agency Helium Acquisition 
Strategy. The Department supports additional studies and 
research on helium, but defers to the Department of Energy 
regarding the research projects for which the Department of 
Energy would have the lead.
    Finally, the bill specifies that its provisions shall not 
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, and directs the Secretary 
to promulgate such regulations as are necessary. The Department 
supports the provision which honors existing agreements between 
the BLM and private parties.


                               conclusion


    Thank you for the opportunity to present testimony on S. 
783. The BLM welcomes further discussion about the Federal 
helium program and the BLM's role in meeting future helium 
needs for the country, especially for Federal agencies that 
depend on helium for scientific research, aerospace projects, 
and defense purposes. Since its formal discovery almost 120 
years ago, helium has proven to be an increasingly important 
natural resource. The expansion of helium-related technology 
and declining domestic reserves means the importance of helium 
as a strategic resource is likely to increase. The BLM 
continues to serve the country by effectively managing the 
Reserve, and working with natural gas producers to efficiently 
extract helium from natural gas. I would be happy to answer any 
questions the Committee may have.


                        Changes in Existing Law

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, changes in existing law made by 
the bill, as ordered reported, are shown as follows (existing 
law proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

                               HELIUM ACT


           Act of March 3, 1925, 43 Stat. 1110, as amended by


  Helium Act Amendments of 1960, Public Law 86-777, 74 Stat. 918, as 
                               amended by


  Helium Privatization Act of 1996, Public Law 104-273, 110 Stat. 3315


 AN ACT Authorizing the conservation, production, and exploitation of 
helium gas, a mineral resource pertaining to the national defense, and 
 to the development of commercial aeronautics, and for other purposes.

    Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, That this 
Act may be cited as the ``Helium Act''.

[SEC. 2. AS USED IN THIS ACT:

    [(1) The term ``Secretary'' means the Secretary of the 
Interior;
    [(2) The term ``person'' means any individual, corporation, 
partnership, firm, association, trust, estate, public or 
private institution, or State or political subdivision thereof; 
and
    [(3) The terms ``helium-bearing natural gas'' and ``helium-
gas mixture'' mean, respectively, natural gas and gas mixtures 
containing three-tenths of 1 per centum or more of helium by 
volume.]

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, 
                enrichment, 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.

           *       *       *       *       *       *       *


    (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(e).

SEC. 4. STORAGE, TRANSPORTATION AND WITHDRAWL OF CRUDE HELIUM.

           *       *       *       *       *       *       *


    (c) Disposal of Facilities.--

           *       *       *       *       *       *       *

          (3) Proceeds.--All proceeds accruing to the United 
        States by reason of the sale or other disposal of such 
        property shall be treated as moneys received under this 
        chapter for purposes of section [6(f)] 6(d) of this 
        title.
          (4) Costs.--All costs associated with such sale and 
        disposal (including costs associated with termination 
        of personnel) and with the cessation of activities 
        under subsection (b) of this section shall be paid from 
        amounts available in the helium production fund 
        established under section [6(f)] 6(d) of this title.

           *       *       *       *       *       *       *

    (d) Existing Contracts.--

           *       *       *       *       *       *       *

          (2) Costs.--Any costs associated with the termination 
        of contracts described in paragraph (1) shall be paid 
        from the helium production fund established under 
        section [6(f)] 6(d) of this title.

[SEC. 5. FEES FOR STORAGE, TRANSPORTATION, AND WITHDRAWAL.

    [(a) In General.--Whenever the Secretary provides helium 
storage withdrawal or transportation services to any person, 
the Secretary shall impose a fee on the person to reimburse the 
Secretary for the full costs of providing such storage, 
transportation, and withdrawal.
    [(b) Treatment.--All fees received by the Secretary under 
subsection (a) of this section shall be treated as moneys 
received under this Act for purposes of section 167d(f).]

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, including capital investments in 
upgrades and maintenance at the Federal Helium System.
    (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(e).
    (e) Storage and Delivery.--In accordance with this section, 
the Secretary shall--
          (1) allow any person or qualified bidder to which 
        crude helium is sold or auctioned under section 6 to 
        store helium in the Federal Helium Reserve; and
          (2) establish a schedule for the transportation and 
        delivery of helium using the Federal Helium System 
        that--
                  (A) ensures timely delivery of helium 
                auctioned pursuant to section 6(b)(2);
                  (B) ensures timely delivery of helium 
                acquired from the Secretary from the Federal 
                Helium Reserve by means other than an auction 
                under section 6(b)(2) after the date of 
                enactment of the Helium Stewardship Act of 
                2013, including non-allocated sales; and
                  (C) provides priority access to the Federal 
                Helium Pipeline for in-kind sales for Federal 
                users.
    (f) New Refining Capacity.--The Secretary shall consider 
any applications for access to the Federal Helium Pipeline in a 
manner consistent with the schedule for phasing out commercial 
sales and disposition of assets pursuant to section 6.
    [Sec. 6. (a) The Department of Defense, the Atomic Energy 
Commission, and other agencies of the Federal Government, to 
the extent that supplies are readily available, shall purchase 
all major requirements of helium from persons who have entered 
into enforceable contracts to purchase an equivalent amount of 
crude helium from the Secretary.
    [(b) The Secretary is authorized to sell crude helium for 
Federal, medical, scientific, and commercial uses in such 
quantities and under such terms and conditions as he 
determines. Except as may be required by reason of subsection 
(a) of this section, sales of crude helium under this section 
shall be in amounts as the Secretary determines, in 
consultation with the helium industry, necessary to carry out 
this subsection with minimum market disruption.
    [(c) Sales of crude helium by the Secretary shall be at 
prices established by him which shall be adequate to cover all 
costs incurred in carrying out the provisions of this chapter 
and to repay to the United States by deposit in the Treasury, 
all funds required to be repaid to the United States as of 
October 1, 1995 under this section (referred to in this 
subsection as ``repayable amounts''). The price at which crude 
helium is sold by the Secretary shall not be less than the 
amount determined by the Secretary by--
          [(1) dividing the outstanding amount of such 
        repayable amounts by the volume (in million cubic feet) 
        of crude helium owned by the United States and stored 
        in the Bureau of Mines Cliffside Field at the time of 
        the sale concerned, and
          [(2) adjusting the amount determined under paragraph 
        (1) by the Consumer Price Index for years beginning 
        after December 31, 1995.
    [(d) Extraction of Helium From Deposits on Federal Lands.--
All moneys received by the Secretary from the sale or 
disposition of helium on Federal lands shall be paid to the 
Treasury and credited against the amounts required to be repaid 
to the Treasury under subsection (c).
    [(e)(1) All moneys received under this chapter, including 
moneys from sale of helium or other products resulting from 
helium operations and from the sale of excess property shall be 
credited to the helium production fund, which shall be 
available without fiscal year limitation, for carrying out the 
provisions of this chapter, including any research relating to 
helium carried out by the Department of the Interior. Amounts 
accumulating in said fund in excess of amounts the Secretary 
deems necessary to carry out this chapter and contracts 
negotiated hereunder shall be paid to the Treasury and credited 
against the amounts required to be repaid to the Treasury under 
subsection (c) of this section.
    [(2)(A) Within 7 days after the commencement of each fiscal 
year after the disposal of the facilities referred to in 
section 167b(c) of this title, all amounts in such fund in 
excess of $2,000,000 (or such lesser sum as the Secretary deems 
necessary to carry out this chapter during such fiscal year) 
shall be paid to the Treasury and credited as provided in 
paragraph (1).
    [(B) On repayment of all amounts referred to in subsection 
(c) of this section, the fund established under this section 
shall be terminated and all moneys received under this chapter 
shall be deposited in the general fund of the Treasury.]

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 at the in-kind price from the 
        Secretary.
          (3) Duration.--This subsection applies during--
                  (A) the period beginning on the date of 
                enactment of the Helium Stewardship Act of 2013 
                and ending on September 30, 2014; and
                  (B) any period during which the sale of 
                helium under subsection (b) is delayed or 
                suspended.
    (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 under this 
        subsection from persons who have entered into 
        enforceable contracts to purchase an equivalent 
        quantity of crude helium at the in-kind price 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, 
                        including nonallocated sales.
          (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 such prices required to reimburse the 
        Secretary for the full costs of the sales, 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 at the in-kind price from the 
        Secretary.
          (3) Effective date.--This subsection applies 
        beginning on the day after the date described in 
        subsection (b)(4)(B).
    (d) Phase D: Disposal of Assets.--
          (1) In general.--Not earlier than 2 years after the 
        date of commencement of Phase C described in subsection 
        (c) and not later than January 1, 2023, the Secretary 
        shall designate as excess property and dispose of all 
        facilities, equipment, and other real and personal 
        property, and all interests in the same, held by the 
        United States in the Federal Helium System.
          (2) Applicable law.--The disposal of the property 
        described in paragraph (1) shall be in accordance with 
        subtitle I of title 40, United States Code.
          (3) Proceeds.--All proceeds accruing to the United 
        States by reason of the sale or other disposal of the 
        property described in paragraph (1) shall be treated as 
        funds received under this Act for purposes of 
        subsection (e).
          (4) Costs.--All costs associated with the sale and 
        disposal (including costs associated with termination 
        of personnel) and with the cessation of activities 
        under this subsection shall be paid from amounts 
        available in the Helium Production Fund established 
        under subsection (e).
    (e) 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 determined to be necessary and 
        cost effective 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; and
                  (E) any other scheduled or unscheduled 
                maintenance of the Federal Helium System.
          (2) Excess funds.--Amounts in the Helium Production 
        Fund in excess of the amounts the Secretary determines 
        to be necessary to carry out paragraph (1) shall be 
        paid to the general fund of the Treasury and used to 
        reduce the annual Federal budget deficit.
          (3) Retirement of public debt.--Out of amounts paid 
        to the general fund of the Treasury under paragraph 
        (2), the Secretary of the Treasury shall use 
        $51,000,000 to retire public debt.
    (f) 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.

           *       *       *       *       *       *       *


[SEC. 15. REPORT ON HELIUM.

    [(a) NAS Study and Report.--Not later than three years 
before the date on which the Secretary commences offering for 
sale crude helium under section 167f of this title, the 
Secretary shall enter into appropriate arrangements with the 
National Academy of Sciences to study and report on whether 
such disposal of helium reserves will have a substantial 
adverse effect on United States scientific, technical, 
biomedical, or national security interests.
    [(b) Transmission to Congress.--Not later than 18 months 
before the date on which the Secretary commences offering for 
sale crude helium under section 167f of this title, the 
Secretary shall transmit to the Congress--
          [(1) the report of the National Academy under 
        subsection (a) of this section;
          [(2) the findings of the Secretary, after 
        consideration of the conclusions of the National 
        Academy under subsection (a) of this section and after 
        consultation with the United States helium industry and 
        with heads of affected Federal agencies, as to whether 
        the disposal of the helium reserve under section 167f 
        of this title will have a substantial adverse effect on 
        the United States helium industry, United States, 
        helium market or United States, [1] scientific, 
        technological, biomedical, or national security 
        interests; and
          [(3) if the Secretary determines that selling the 
        crude helium reserves under the formula established in 
        section 167f of this title will have a substantial 
        adverse effect on the United States helium industry, 
        the United States helium market or United States 
        scientific, technological, biomedical, or national 
        security interest, the Secretary shall make 
        recommendations, including recommendations for proposed 
        legislation, as may be necessary to avoid such adverse 
        effects.]

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 $1,000,000.

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 $3,000,000.

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 and other potential sources, 
including--
          (1) gas analysis; and
          (2) infrastructure studies.
    (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--
          (1) establishing a facility to separate the isotope 
        helium-3 from crude helium; and
          (2) exploring other potential sources of the isotope 
        helium-3.
    (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 $1,000,000.

SEC. 19. FEDERAL AGENCY HELIUM ACQUISITION STRATEGY.

    In anticipation of the implementation of Phase D described 
in section 6(d), and 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, the 
Administrator of the National Aeronautics and Space 
Administration, 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 helium;
          (3) a determination of a date prior to January 1, 
        2023, for the implementation of Phase D as described in 
        section 6(d) that minimizes any potential supply 
        disruptions for Federal users;
          (4) an assessment of the effects of increases in the 
        price of refined helium and methods and policies for 
        mitigating any determined effects; and
          (5) a description of a process for prioritization of 
        uses that accounts for diminished availability of 
        helium supplies that may occur over time.
    Sec. [17] 20. If any provision of this Act, or the 
application of such provision to any person or circumstance, is 
held invalid, the remainder of this Act or the application of 
such provision to persons or circumstances other than those as 
to which it is held invalid, shall not be affected thereby.

   SECURE RURAL SCHOOLS AND COMMUNITY SELF-DETERMINATION ACT OF 2000


 Public Law 106-393, as amended by section 601(a) of the Tax Extenders 
 and Alternative Minimum Tax Relief Act of 2008, Division C of Public 
                              Law 110-343


 AN ACT To restore stability and predictability to the annual payments 
made to States and counties containing National Forest System lands and 
public domain lands managed by the Bureau of Land Management for use by 
   the counties for the benefit of public schools, roads, and other 
purposes.

           *       *       *       *       *       *       *


  TITLE I--SECURE PAYMENTS FOR STATES AND COUNTIES CONTAINING FEDERAL 
                                 LANDS

SEC. 101. SECURE PAYMENTS FOR STATES CONTAINING FEDERAL LAND.

    (a) State Payment.--For each of fiscal years 2008 through 
[2012] 2013, the Secretary of Agriculture shall calculate for 
each eligible State an amount equal to the sum of the products 
obtained by multiplying--
          (1) the adjusted share for each eligible county 
        within the eligible State; by
          (2) the full funding amount for the fiscal year.
    (b) County Payment.--For each of fiscal years 2008 through 
[2012] 2013, the Secretary of Interior shall calculate for each 
eligible county that received a 50-percent payment during the 
eligibility period an amount equal to the product obtained by 
multiplying-
          (1) the 50-percent adjusted share for the eligible 
        county; by
          (2) the full funding amount for the fiscal year.

SEC. 102. PAYMENTS TO STATES AND COUNTIES.

           *       *       *       *       *       *       *


    (b) Election To Receive Payment Amount.--
          (1) Election; submission of results.--
                  (A) In general.--The election to receive a 
                share of the State payment, the county payment, 
                a share of the payment and the 25-percent 
                payment, the 50-percent payment, or a share of 
                the 25-percent payment and the 50-percent 
                payment, as applicable shall be made at the 
                discretion of each affected county by August 1, 
                [2012] 2013 (or as soon thereafter as the 
                Secretary concerned determines as practicable), 
                and August 1 of each fiscal year thereafter, in 
                accordance with paragraph (2), and transmitted 
                to the Secretary concerned by the Governor of 
                each eligible State.

           *       *       *       *       *       *       *

          (2) Duration of election.--

           *       *       *       *       *       *       *

                  (B) Full funding amount.--If a county elects 
                to receive a share of the State payment or the 
                county payment in [2012] 2013, the election 
                shall be effective for all subsequent fiscal 
                years through fiscal year [2012] 2013.

           *       *       *       *       *       *       *


SEC. 103. TRANSITION PAYMENTS TO STATES.

           *       *       *       *       *       *       *


    (d) Distribution of Payments in California.--

           *       *       *       *       *       *       *

          (2) The shares of the eligible counties of the State 
        payment for California under section 7112 of this title 
        for each of the fiscal years 2011 [and 2012] through 
        2013.

           *       *       *       *       *       *       *


TITLE II--SPECIAL PROJECTS ON FEDERAL LAND

           *       *       *       *       *       *       *


SEC. 203. SUBMISSION OF PROJECT PROPOSALS.

    (a) Submission of Project Proposals to Secretary 
Concerned.--
          (1) Projects funded using project funds.--No later 
        than September 30 for fiscal year 2008 (or as soon 
        thereafter as the Secretary concerned determines is 
        practicable), and each September 30 thereafter for each 
        succeeding fiscal year through fiscal year [2012] 2013, 
        each resource advisory committee shall submit to the 
        Secretary concerned a description of any projects that 
        the resource advisory committee proposes the Secretary 
        undertake using any project funds reserved by eligible 
        counties in the area in which the resource advisory 
        committee has geographic jurisdiction.

           *       *       *       *       *       *       *


SEC. 204. EVALUATION AND APPROVAL OF PROJECTS BY SECRETARY CONCERNED.

           *       *       *       *       *       *       *


    (e) Implementation of Approved Projects.--

           *       *       *       *       *       *       *

          (3) Merchantable timber contracting pilot program.--

           *       *       *       *       *       *       *

                  (B) Annual percentages.--Under the pilot 
                program, the Secretary concerned shall ensure 
                that, on a nationwide basis, not less than the 
                following percentage of all approved projects 
                involving the sale of merchantable timber are 
                implemented using separate contracts:

           *       *       *       *       *       *       *

                          (iii) For each of fiscal years 2010 
                        through [2012] 2013, 50 percent.

           *       *       *       *       *       *       *


SEC. 205. RESOURCE ADVISORY COMMITTEES.

    (a) Establishment and Purpose of Resource Advisory 
Committees.--

           *       *       *       *       *       *       *

          (4) Existing advisory committees.--
                  (A) In general.--An advisory committee that 
                meets the requirements of this section, a 
                resource advisory committee established before 
                September 29, [2011] 2012, or an advisory 
                committee determined by the Secretary concerned 
                before September 29, [2011] 2012 to meet the 
                requirements of this section may be deemed by 
                the Secretary concerned to be a resource 
                advisory committee for the purposes of this 
                title.
                  (B) Charter.--A charter for a committee 
                described in subparagraph (A) that was filed on 
                or before September 29, [2011] 2012, shall be 
                considered to be filed for purposes of this 
                title.

           *       *       *       *       *       *       *


SEC. 207. AVAILABLITY OF PROJECT FUNDS.

    (a) Submission of Proposed Projects to Obligated Funds.--By 
September 30, 2008 (or as soon thereafter as the Secretary 
concerned determines is practicable), and each September 30 
thereafter for each succeeding fiscal year through fiscal year 
[2012] 2013, a resource advisory committee shall submit to the 
Secretary concerned pursuant to section 203(a)(1) of this title 
a sufficient number of project proposals that, if approved, 
would result in the obligation of at least the full amount of 
the project funds reserved by the participating county in the 
preceding fiscal year.

           *       *       *       *       *       *       *


SEC. 208. TERMINATION OF AUTHORITY.

    (a) In General.--The authority to initiate projects under 
this subchapter shall terminate on September 30, [2012] 2013.
    (b) Deposits in the Treasury.--Any project funds not 
obligated by September 30, [2013] 2014, shall be deposited in 
the Treasury of the United States.

           *       *       *       *       *       *       *


TITLE III--COUNTY FUNDS

           *       *       *       *       *       *       *


SEC. 304. TERMINATION OF AUTHORITY.

    (a) In General.--The authority to initiate projects under 
this subchapter terminates on September 30, [2012] 2013.
    (b) Availability.--Any county funds not obligated by 
September 30, [2013] 2014, shall be returned to the Treasury of 
the United States.

           *       *       *       *       *       *       *


TITLE IV--MISCELLANEOUS PROVISIONS

           *       *       *       *       *       *       *


SEC. 402. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated at such sums as are 
necessary to carry out this Act for each of fiscal years 2008 
through [2012] 2013.

                       ENERGY POLICY ACT OF 2005


                     Public Law 109-58, as amended


   AN ACT To ensure jobs for our future with secure, affordable, and 
reliable energy.

           *       *       *       *       *       *       *


TITLE III--OIL AND GAS

           *       *       *       *       *       *       *


Subtitle E--Production Incentives

           *       *       *       *       *       *       *


SEC. 349. ORPHANED, ABANDONED, OR IDELED WELLS ON FEDERAL LANDS.

           *       *       *       *       *       *       *


    (h) Authorization of Appropriations.--

           *       *       *       *       *       *       *

    (i) Federally Drilled Wells.--Out of any amounts in the 
Treasury not otherwise appropriated, $50,000,000 shall be made 
available to the Secretary, without further appropriation and 
to remain available until expended, to remediate, reclaim, and 
close abandoned oil and gas wells on current or former National 
Petroleum Reserve land.

           *       *       *       *       *       *       *


           *       *       *       *       *       *       *


         OMNIBUS PARKS AND PUBLIC LANDS MANAGEMENT ACT OF 1996


                     Public Law 104-333, as amended


AN ACT To provide for the administration of certain Presidio properties 
at minimal cost to the Federal taxpayer, and for other purposes.

           *       *       *       *       *       *       *


TITLE VIII--MISCELLANEOUS ADMINISTRATIVE AND MANAGEMENT PROVISIONS

           *       *       *       *       *       *       *


SEC. 814. NATIONAL PARK SERVICE ADMINISTRATIVE REFORM.

           *       *       *       *       *       *       *


    (g) Challenge Cost-Share Agreement Authority.--

           *       *       *       *       *       *       *

          (4) Available funds.--Out of any amounts in the 
        Treasury not otherwise appropriated, $50,000,000 shall 
        be made available to the Secretary of the Interior, 
        without further appropriation and to remain available 
        until expended, to pay the Federal funding share of 
        challenge cost-share agreements for deferred 
        maintenance projects and to correct deficiencies in 
        National Park Service infrastructure.
          (5) Cost-share requirement.--Not less than 50 percent 
        of the total cost of project for funds made available 
        under paragraph (4) to pay the Federal funding share 
        shall be derived from non-Federal sources, including 
        in-kind contribution of goods and services fairly 
        valued.

           *       *       *       *       *       *       *


           SURFACE MINING CONTROL AND RECLAMATION ACT OF 1977


                            Public Law 95-87


  AN ACT To provide for the cooperation between the Secretary of the 
Interior and the States with respect to the regulation of surface coal 
  mining operations, and the acquisition and reclamation of abandoned 
mines, and for other purposes.

           *       *       *       *       *       *       *


TITLE IV--ABANDONDED MINE RECLAMATION

           *       *       *       *       *       *       *


SEC. 411. CERTIFICATION

           *       *       *       *       *       *       *


    (h) Payments to States and Indian Tribes.--

           *       *       *       *       *       *       *

          (6) Supplemental funding.--
                  (A) Waiver of limitation.--Notwithstanding 
                paragraph (5), the limitation on the total 
                annual payments to a certified State or Indian 
                tribe under this subsection shall not apply for 
                fiscal year 2014.
                  (B) Limitation on waiver.--Notwithstanding 
                subparagraph (A), the total annual payment to a 
                certified State or Indian tribe under this 
                section for fiscal year 2014 shall not be more 
                than $75,000,000.
                  (C) Insufficient amounts.--If the total 
                annual payment to a certified State or Indian 
                tribe under paragraphs (1) and (2) is limited 
                by subparagraph (B), the Secretary shall--
                          (i) give priority to making payments 
                        under paragraph (2); and
                          (ii) use any remaining funds to make 
                        payments under paragraph (1).

           *       *       *       *       *       *       *


              ENERGY INDEPENDENCE AND SECURITY ACT OF 2007


                     Public Law 110-140, as amended


AN ACT To move the United States toward greater energy independence and 
   security, to increase the production of clean renewable fuels, to 
 protect consumers, to increase the efficiency of products, buildings, 
and vehicles, to promote research on and deploy greenhouse gas capture 
  and storage options, and to improve the performance of the Federal 
Government, and for other purposes.

           *       *       *       *       *       *       *


TITLE II--ENERGY SECURITY THROUGH INCREASED PRODUCTION OF BIOFUELS

           *       *       *       *       *       *       *


SEC. 207. GRANTS FOR PRODUCTION OF ADVANCED BIOFUELS.

           *       *       *       *       *       *       *


    (c) Authorization of Appropriations.--There is authorized 
to be appropriated to carry out this section $500,000,000 for 
the period of fiscal years 2008 through 2015, except that the 
amount authorized to be appropriated to carry out this section 
not appropriated as of the date of enactment of the Helium 
Stewardship Act of 2013 shall be reduced by $5,000,000.

           *       *       *       *       *       *       *


                                  
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