In addition to party favors, helium is an irreplaceable and non-renewable element in the global high-tech economy.  It is used in medical imaging (MRI), industrial welding, and semiconductor manufacture, as well as in advanced research applications like particle physics and rocket propulsion.  Currently, the US Government owns and operates the world’s only helium reserve as well as a pipeline connecting it to a private network of industrial suppliers and refineries. This public-private partnership supplies nearly one third of total global demand.

Under current law, the US Helium Reserve will sell in a straight-line manner (a prescribed amount each year) at prices set by 1996 legislation (which is currently approximately half of market value) until the remaining debt is paid to the US Treasury.  At that time, the facility’s operating fund will be dissolved into the US Treasury with no method to administer the remaining Federal or private helium held in the reserve.  In response to this issue, HR 527 was proposed on February 6th of this year.  Some subtleties (e.g. auction special case caveats) are omitted in favor of relaying the essence of the legislation.

Legislative Review

• 1925 – Helium Act (50 U.S.C. Ch. 10) established US Helium Reserve in Amarillo, TX
• 1960 – Helium Act Amendments (PL 86–777) authorized pipeline and crude helium purchase
• 1996 – Helium Privatization Act (PL 104-273) initiated reserve sell-off and closure by January 1, 2015

This is the state of current law.  The goal is to privatize the full helium market vertical and repay a $1.4b infrastructure debt.  Repayment and therefore shut down of the reserve is ahead of schedule and projected for Fall 2013.

• 2012 – Helium Stewardship Act (S 2374)

The market for helium has proven more volatile than expected and without the reserve’s stabilizing influence, there is fear of price spikes and shortages that will negatively impact industries and researchers alike.  This bill introduced by Sen. Bingaman (D-NM) was left in committee as the 113th session closed, but new Energy & Natural Resources Committee Chairman Ron Wyden (D-OR) has publically made resolving this issue a priority early this year.

• 2013 – Responsible Helium Administration and Stewardship Act (HR 527)

Introduced on Feb. 6th by House Natural Resources Committee Chairman Doc Hastings (R-WA), the bill proposes a smooth transition for the reserve to a limited role and authorizes it to continue in a self-sustainable way to federal users.  It has been received as a non-partisan issue and is co-sponsored by Reps. Flores (R-TX), Holt (D-NJ) and Markey (D-MA).

Responsible Helium Administration and Stewardship Act
In all three phases, this legislation authorizes federal users (defined as agencies and holders at least one federal grant related to the use of helium) to purchase refined helium from private industry that is contracted to purchase equal quantities of crude helium from the reserve.  This purchase method is referred to as “in-kind” helium distribution.  Additionally, the Secretary of the Interior will be referred to as “The Secretary” for brevity.

Phase 1:  Finalizing Debt Payoff
For one year after the date of enactment, no real change is made while the debt is paid off.  The Secretary may sell crude helium from the reserve to any buyer in amounts at least that offered in FY 2012 and at a price that is at least that of FY 2012.

Phase 2:  Maximizing Total Recovery of He and Increasing Returns to the American Taxpayer
At the conclusion of Phase 1, and until the federal stockpile is 3 billion cubic feet of crude helium, The Secretary will sell crude helium to refineries  at auction in quantities set by The Secretary with price minima determined by a confidential survey of transactions, current market prices and cost analyses.

Phase 3:  Access for Federal Users
Once Phase 2 ends, the sole role of the reserve will be catering to federal users as mentioned above.

Avenue for Revenue
All income received under this act will be collected into the Helium Production Fund which will (in order of priority) finance the administration of the above outlined activities, pay off the Treasury debt, make capital investments to reserve and pipeline infrastructure, and supply revenue to the US Treasury.  Provided the debt is indeed paid off early in the first year of enactment, the Federal Helium Reserve stands to provide tangible income to the US Government in addition to retaining a strategic supply of helium, and a force for market stability.

Today a friend sent me the following video from the makers of PhD Comics.  I think the video is quite good and worth spreading but I will preface with the fact that the message is a bit biased against the publishers, in my opinion.  For more of my thoughts on the subject, check out my previous post on the topic.

As member of The Optical Society’s Public Policy Committee, I am working on the following statement on behalf of the society’s membership:

OSA promotes the dissemination of knowledge in the field of optics and photonics through its publishing, meetings, and educational outreach initiatives.  This broad portfolio of activities provides an effective means for the latest research in optical science and engineering to reach the broadest audience.  As a non-profit scientific publisher with over 95 years of experience, OSA adds value to the processes of research and development through:

• Peer review in expert editorial boards
• Editing and composition services
• Cataloging and indexing
• Hosting readily accessible and interoperable internet content

The cost of these activities, and their ongoing improvement, is supported by subscriptions to standard journals and author fees from open access journals. The revenues generated by OSA’s publishing activities fund the cost of providing open access publishing activities and maintaining scientific programs to ensure a fair and vital peer review process.

Yesterday, a Republican-sponsored bill on the floor of the US House of Representatives was voted down.  This is nothing new, especially in the current, highly partisan political landscape.  However, the reason this bill is of note is that both sides of the isle have spoken out about their support of the effort and the essential nature of its theme: enabling international students with advanced degrees in STEM fields (science, technology, engineering, and mathematics) to more readily earn their green card and remain in the US as members of the high-technology workforce.

I have chosen to write about this specific case for two reasons, first it is an effort I see as important, and second because it is a prime example of politics getting in the way of governance.  Yesterday, two bills existed in the House regarding this piece of policy, one written by a Democrat and another written by a Republican.  Today, one bill is defeated, and the other not likely to see the light of day until next year.  The feature that distinguishes the two bills is how a new group of green cards for these STEM graduates would fit in with the annual immigration allowance.  Republicans believe we must continue to cap this annual number and so the diversity visa lottery allotment was set to be eliminated by their bill and reallocate 55,000 green card opportunities per year to those earning advanced degrees in STEM fields.  The lottery, enacted in 1990, enables those from nations without strong ties to, and therefore underrepresented populations in the US (commonly refugees) to gain admittance by luck of the draw.  Democrats, particularly those representing the interests of ethnic minorities are strong proponents of the lottery program and therefore seek through their bill to simply enlarge the immigration pie and add the 55,000 STEM degree green card spots on top of existing law.

There are many arguments for and against the two points of view:

• The US should not eliminate hope of immigration for those with little hope to begin with.
• Those entering on the lottery have higher unemployment rates and frequently do not integrate well.
• There are just over one million legal immigrants per year to the US and 55,000 more is negligible when it comes to attracting the best and brightest minds.
• The US is facing historic unemployment rates and should keep immigration numbers down in order to recover.

I will not get into my opinions because, to be honest, I am not educated enough on the topic to make declarative statements.  The real problem here is that this effort is a shining example of how our leaders have simply become unable to cooperate.  Garnering a 257-158 majority of votes (62%), the Republican bill was shot down because it was pushed through to a vote by the majority party under suspension of the rules just two days after it was introduced.  As exciting as this swift legislative action is, it was very likely politically motivated due to the election season, eliminated the ability to amend and compromise, and mandated a 2/3 vote to pass.

The Senate is pushing for the House to present them a bill on this topic, so there is hope something will emerge Congress.  We as a constituency will, however, need to help keep the issue alive through the coming election so that those who our nation has trained may more readily stay and contribute to our continued technological leadership.

A bipartisan effort in the US capitol seeks to open public access to federally funded research results.  Legislation was pursued and enacted in the biomedical sciences due to the strong connections between medical treatment and cutting edge research.  The NIH therefore established PubMed as a free access portal for all NIH funded research results.  Now, as the whole federal research portfolio is under scrutiny, all the players have valid concerns.  Citizens’ tax-investment entitles them to scholarly returns.  Publisher subscription prices overburden libraries.  Publishers, alternatively, incur real costs, especially high end and widely distributed issues.  Additionally, many publishers operate as not-for-profit professional societies and add significant value to their fields by facilitating peer review, disseminating research results, and promoting the field.

In sum, three stake holders exist: consumers (citizens), librarians (universities), and publishers (professional societies).  The consumers feel entitled to the content; libraries feel they pay too much for the content; and publishers demand compensation from someone.  Open access is, therefore, a tricky proposition and which will likely demand compromise between publishers and government.