Summary: Comments were presented on H.R. 3877, a bill which would repeal the Helium Act and amend the Energy Policy and Conservation Act to provide a number of helium conservation initiatives. Under the law, the Secretary of Energy could buy all helium offered for sale at $1.00 per thousand cubic feet for storage in a National Helium reserve. Repurchase rights would remain with the gas producer. The Secretary would be responsible for managing and maintaining helium storage and related facilities in order to meet the objective of the bill. GAO supports the Subcommittee on Energy and Commerce's initiative toward the passage of legislation which would encourage helium conservation. However, GAO believes that any new helium policy legislation should contain specific language establishing Federal responsibility for meeting national helium needs. For this same reason, GAO would prefer to see the primary responsibility for Federal helium conservation remain with the Department of the Interior. GAO agrees that the Department of Energy should assume increased helium conservation responsibilities including the determination of energy-related helium demand and the assumption of funding responsibility for helium conserved for energy needs. GAO supports a number of the specific steps the bill would take or allow, including: (1) the write-off of the helium debt which would clear the way for future efforts to conserve helium; (2) permitting Federal agencies to purchase helium in the private market to provide an incentive to private producers; and (3) the setting of specific criteria defining future sales from the helium stockpile.
