[Congressional Record Volume 151, Number 7 (Monday, January 31, 2005)] [Senate] [Page S649] From the Congressional Record Online through the Government Publishing Office [www.gpo.gov] By Mr. THOMAS: S. 203. A bill to reduce temporarily the royalty required to be paid for sodium produced on Federal lands, and for other purposes; to the Committee on Energy and Natural Resources. Mr. THOMAS. Mr. President, I rise today to introduce the ``Soda Ash Royalty Reduction Act of 2005,'' a bill to limit the Federal royalty on soda ash. This legislation, if passed, will put people back to work in my State and address the important issue of maintaining a strong and financially sound manufacturing base in this country. It will keep jobs in America and give workers a fighting chance to compete globally. The State of Wyoming accounts for 85 percent of the natural soda ash produced in the United States. The health of the domestic soda ash industry is now at issue. This legislation goes a long way towards assisting the domestic industry to be competitive on a global basis. The bill reduces an excessive tax on natural American soda ash; a tax that is significantly impairing the ability of U.S. exported soda ash to compete in important global markets; a tax that has helped create 30 percent decline in employment in this industry in Wyoming since 1997. The current 6 percent royalty on each ton of domestically produced soda ash was imposed in 1995 at a time when our exports of this important commodity, primarily used in the manufacture of glass were rising to record levels. It was a windfall tax that recognized the industry's significant expansion. Over the last decade, export growth has been severely impacted, as several trading partners erected various barriers to U.S. soda ash, often to protect their own less efficient domestic producers. One of the most aggressive countries has been China. As recently as 1990, China imported over one million tons of soda ash annually from the U.S. Today, China exports two million tons from plants that produce a synthetic grade of this important commodity. The Chinese produce soda ash in far less efficient factories with limited attention to environmental or safety concerns. The average wage of a Chinese worker in these plants is less than $5 a day. By contrast Wyoming soda ash workers can earn on average $35 an hour. Chinese soda ash producers, which are largely state owned, also benefit from direct and indirect forms of state support, as well as the benefits of a fixed exchange rate. As a result of these actions, China has supplanted the United States as the world's largest exporter of soda ash. Wyoming soda ash producers remain the most efficient in the world and have been constantly improving their productivity over the last several years. It is an industry that is reinventing itself to meet the demands of fierce global competition. My legislation restores the original royalty the Federal Government imposed on soda ash in the Mineral Leasing Act of 1920. That act set a 2 percent royalty on soda ash mined on Federal leases. We would temporarily resume that royalty rate consistent with the Federal Land Policy and Management Act of 1976 that requires the Secretary of the Interior to receive ``fair market value'' for the use of public lands and their resources. In other words, the legislation simply adjusts what was a windfall tax back to its original level. The legislation is overdue and keeps our Nation's commitment to U.S. based manufacturing and jobs. The U.S. soda ash industry has been a good partner with the Federal Government, providing additional revenue when business was flourishing. Now that the industry is fighting for its survival, the Federal Government has the opportunity to be a responsible partner and ease its tax burden so it can survive and provide the thousands of jobs that are so important to my State. ______