Washington
DC Office
307 Dirksen Senate
Office Building
Washington, D.C. 20510
Phone: 202-224-6441
Fax: 202-224-1724
Wyoming Office
P.O. Box 22201
Casper, WY 82602
307-261-6413
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Contact: Cameron Hardy
202-224-6441 |
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Congress Passes Soda Ash Royalty Relief
Thomas bill to increase Wyoming industry’s global competitiveness |
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September 29th, 2006 - WASHINGTON – Senator Thomas is announcing the passage today of S. 203, his bill to reduce the royalty on soda ash from 6 to 2 percent in order to make the industry more competitive in the global market. The measure now heads to the President’s desk.
“Maintaining a strong soda ash industry is critical to the economy in Southwest Wyoming. We put this bill together with Wyoming producers to strengthen jobs in the state. This legislation fortifies the Wyoming soda ash industry’s position against global competitors in Asia,” Senator Craig Thomas said.
“Passage of this legislation is a tremendous victory for Wyoming’s soda ash producers and the state as a whole. With expanded production overseas, and particularly in China, Wyoming’s producers need this equalizer as our trade representatives work to ensure fair trade exists. This legislation will help ensure that Wyoming’s soda ash industry continues to thrive,” Senator Mike Enzi said.
“Reducing the soda ash royalty has been a major priority of the Wyoming delegation for several years now," said Representative Barbara Cubin. “I have successfully pushed royalty reduction legislation through the House four times over the past three years, and I could not be more pleased this bill will finally be heading to the President. His signature will be a win for all Wyoming families that rely on the trona industry to put food on the table.”
The bill, authored by Thomas, and supported by the delegation and industry in Wyoming, ensures that Wyoming's soda ash industry remains competitive in the global market. Similar legislation authored by Rep. Cubin passed the U.S. House in both 2005 and 2006.
The Thomas bill restores the original royalty the federal government imposed on soda ash in the Mineral Leasing Act of 1920. The reduction will last for five years.
The move will resume the 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.
The current 6 percent royalty on each ton of soda ash was imposed in 1995 at a time when exports were rising to record levels. It was a windfall tax that recognized the industry’s significant expansion and future outlook. Over the last decade, the export growth that created the windfall in the 1990s was severely curtailed, as several trading partners erected barriers to U.S. soda ash, often to protect their own, less efficient, domestic producers.
“The federal government has the opportunity to be a responsible partner and ease its tax burden so the industry can remain strong while protecting thousands of jobs in Wyoming,” the delegation said.
In April of 2004, Senator Thomas held a field hearing in Rock Springs to discuss the impact of international trade barriers on the Wyoming soda ash industry. Thomas noted during the hearing that Wyoming’s soda ash industry has taken a hit because of severe trade barriers. Thomas is the Chairman of the International Trade Subcommittee.
The higher tax created a 30 percent decline in employment in this industry in Wyoming beginning in 1997.
The delegation made several attempts, through amendments and free-standing bills, to address royalty relief for the soda ash industry. However, the royalty relief package continually faced objections in both houses of Congress before being resolved today.
“Without the support and effort by the soda ash companies and their employees, getting this legislation through Congress would have been even more difficult. Our strong coalition helped everyone stay focused and put this royalty relief in place,” the delegation said.
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current Press Release |
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