Soda Ash Royalty Reduction Act of 2004

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

Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days within which to revise and extend their remarks and include extraneous material on H.R. 4625.

Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, I would like to start by thanking the ranking member of the Committee on Resources, the gentleman from West Virginia (Mr. Rahall), for his kindness in waiving the rule that establishes the ratio of suspension bills and allowing me to bring this bill up today, rather than having to wait until a later day. I also want to thank the gentleman from West Virginia (Mr. Rahall) and his staff for all the courteous friendship and work that we have done on this bill.

Mr. Speaker, plainly stated, H.R. 4625 would help balance the unfair playing field in the world market and allow the United States trona producers to face growing competition from countries like China.

The United States soda ash industry, which until recently was the largest in the world, has operations in Wyoming, Colorado and California, with the bulk of the total production through four plants in the great State of Wyoming. The total estimated value of the industry is around $800 million.

If you read the papers or watch the news, you know that current economic indicators show that the Nation's economy on the whole is gaining momentum, but the hard-working men and women of Wyoming in the soda ash industry continue to lose their jobs to countries like China.

Seven hundred jobs have been lost in the Wyoming trona industry. The new, rosy economic numbers do not help these families put food on the table. They do not help them buy a new car or buy homes, and they do not help put their children through college. They do not help them sleep at night either. But this bill will provide reassurance for the 3,000 men and women who now work in the trona industry in Wyoming and the other States in the United States.

The future of the soda ash industry is being threatened by a number of factors, including China's announced plans to increase existing soda ash plant capacity by 600,000 tons this year and to construct another new plant that will produce 900,000 tons when completed. It is distressing indeed to consider this level of production, when we know how the Chinese exploit cheap labor and almost completely disregard environmental standards.

Furthermore, the domestic market for soda ash has been stagnant for

nearly 20 years, and little growth is expected in the foreseeable future to meet the demand for glass or glass packaging.

Add to all of this the rising energy costs, including a 150 percent increase in natural gas prices over the past 4 years, that have only made matters worse. The much-needed growth will have to be found in places like Asia and Australia, and that means we must take the Chinese head on and with every boost our government can give the soda ash industry.

In order to allow all U.S. soda ash producers to compete on a level playing field with the likes of China, India and synthetic producers around the world and, in turn, create jobs here in the United States, we need to promote a lower tax burden on the industry, a reduced royalty rate and more affordable energy costs that are such a crucial part of the economic mix.

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

H.R. 4625 reduces the royalty rate from 6 percent to 2 percent in order to help the industry achieve increased export growth and competitiveness in the emerging world market.

The hard-working men and women in the soda ash industry have my commitment to continue working to help open new markets and create the good-paying jobs that will help our communities grow and to push for a real energy policy for the Nation that will help smooth out some of the volatility in the natural gas markets by increasing domestic production.

Mr. Speaker, H.R. 4625 is supported by the majority and the minority of the committee, and I urge adoption of this bill.

U.S. Congress,

Congressional Budget Office,

Washington, DC, July 19, 2004.

Hon. Richard W. Pombo,

Chairman, Committee on Resources,

House of Representatives, Washington, DC.

Dear Mr. Chairman: The Congressional Budget Office has

prepared the enclosed cost estimate for H.R. 4625, the Soda

Ash Royalty Reduction Act of 2004.

If you wish further details on this estimate, we will be

pleased to provide them. The CBO staff contact is Megan

Carroll.

Sincerely,

Elizabeth M. Robinson

(For Douglas Holtz-Eakin, Director).

Enclosure.

H.R. 4625--Soda Ash Royalty Reduction Act of 2004

Summary: H.R. 4625 would provide royalty relief to

producers of sodium compounds and related products on federal

land. CBO estimates that enacting H.R. 4625 would increase

direct spending by $3 million in 2005 and $15 million over

the next five years (with no effect after 2009). Enacting the

bill would not affect revenues.

H.R. 4625 contains no intergovernmental or private-sector

mandates as defined in the Unfunded Mandates Reform Act

(UMRA). The royalty reduction required by the bill would

temporarily reduce federal payments to three states--Wyoming,

Colorado, and California--by about $3 million a year over the

2005-2009 period.

Estimated cost to the Federal Government: The estimated

budgetary impact of H.R. 4625 is shown in the following

table. The costs of this legislation fall within budget

function 300 (natural resources and environment).

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By fiscal year, in millions of dollars--

Mr. Speaker, I yield myself such time as I may consume.

I would like to thank the gentlewoman from Guam (Ms. Bordallo) for her work on this issue and for managing so many of the bills today. She certainly does a good job in the committee, and it is great working with her. Always having someone that we can have confidence in really helps move the process along.

Mr. Speaker, I yield back the balance of my time.

Mr. Speaker, I move to suspend the rules and pass the Senate bill (S. 1521) to direct the Secretary of the Interior to convey certain land to the Edward H. McDaniel American Legion Post No. 22 in Pahrump, Nevada, for the construction of a post building and memorial park for use by the American Legion, other veterans' groups, and the local community, as amended.

Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days within which to revise and extend their remarks and include extraneous material on S. 1521.

Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, Senate 1521, introduced by the Assistant Democratic Leader of the Senate, Senator Reid of Nevada, would direct the Secretary of the Interior to convey public land currently managed by the Bureau of Land Management in Pahrump, Nevada, to the Edward H. McDaniel American Legion Post No. 22, for the construction of a post building and memorial park for use by the American Legion, and other veterans' groups, and the local community.

The bill was subsequently amended by the Committee on Resources where six additional titles were added. However, four of the six additional titles contained language that has once passed this House, and would simply make technical changes to seven existing National Heritage Areas and one Heritage Trail Route.

Focusing then on the two remaining titles, title VI would temporarily set a royalty rate reduction upon the quantity or gross value of sodium compounds and related products at point of shipment to market from Federal lands over the next 5 years. It would also instruct the Secretary of the Interior to report to Congress on the effects of such royalty reduction, as well as to provide a recommendation of whether the reduced royalty rate should apply following the end of the 5-year period.

This is taken from the gentlewoman from Wyoming's (Mrs. Cubin's) bill, H.R. 4625, which has passed the House already.

Similarly, title VII provides for a 5-year royalty rate reduction upon the quantity or gross value of potassium compounds from the mineral sylvite at point of shipment to market from Federal lands over the next 5 years. As under the previous title, the Secretary of the Interior would again be required to recommend to Congress whether the reduced royalty rate should continue after the 5-year period. This is taken from H.R. 4984 authorized by the gentleman from New Mexico (Mr. Pearce).

Mr. Speaker, Senate bill 1521, as amended, is supported by the majority and the minority of the Committee on Resources. I urge adoption of the bill.

Mr. Speaker, I reserve the balance of my time.

Mr. Speaker, I have no further speakers on S. 1521, would urge adoption of the bill, and I yield back the balance of my time.

Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, I am pleased to rise in support of H.R. 4625, the Soda Ash Royalty Relief Act of 2004, authored by the gentlewoman from Wyoming (Mrs. Cubin).

Soda ash, a chemical produced from trona ore, means mining jobs in southwest Wyoming. These jobs, however, may disappear if we do not provide some measure of relief for our domestic trona producers who are fighting to stay competitive in today's global economy.

Simply put, Mr. Speaker, unfair competition from China threatens to dismantle the American soda ash industry. The pending bill would, for a limited time, enhance the competitiveness of our domestic producers by providing a royalty reduction on trona produced on Federal lands.

At a time when too many American jobs are being lost, we must do what is necessary to keep our workforce here at home strong and competitive. We, on this side of the aisle, have no objection to passage of this bill.

Mr. Speaker, I have no further speakers; and I yield back the balance of my time.

Mr. Speaker, I yield myself such time as I may consume.

The legislation we are considering is sponsored by Nevada Senator Harry Reid. Both Committee on Resources ranking member, the gentleman from West Virginia (Mr. Rahall) and myself have become very much aware of the bipartisan efforts among the Nevada delegation to secure public lands for various causes.

This is another one of those situations, and while we do not always agree with a particular Nevada land bill, when we can, we are always pleased to be of some of some small service to the distinguished senator.

As a member of the American Legion Auxiliary myself, I am always pleased to support any bill that is done on behalf of the American Legion. As such, we have no objections to passing Senate 1521, as amended by the House.

Mr. Speaker, I have no further speakers on this legislation, and I yield back the balance of my time.