Senate Subcommittee Considers Soda Ash Royalty Rate Extension Bill
The U.S. Senate Subcommittee on Public Lands and Forests held a hearing to consider S. 1144, which would extend the 2% royalty rate currently paid by soda ash producing companies operating on public lands. GPI Associate Member Company FMC Corporations testified in support of the legislation, and the GPI submitted a letter of support into the record.
As the majority of U.S. soda ash production occurs on public lands in the Green River Basin, passage of this bill is crucial. Without legislative action, the royalty rate will move to 6% in October. The current 2% rate assists GPI's soda ash industry partners and creates a more level playing field in the global soda ash market, where synthetically produced soda ash in China enjoys favorable rebates on its exports.
The American Natural Soda Ash Corporation estimates that the proposed five-year extension of the current 2% rate would provide soda ash producers certainty and confidence to expand production, while supporting thousands of existing jobs and contributing to $1 billion annually in exports.
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About the institute
The Glass Packaging Institute (GPI) is the trade association representing the North American glass container industry. Through GPI, glass container manufacturers speak with one voice to advocate industry standards, promote sound environmental policies and educate packaging professionals. GPI member companies manufacture glass containers for food, beverage, cosmetic and many other products. GPI also has associate members that represent a broad range of suppliers and closure manufacturers.
