Legislation that would prevent the U.S. from going over a "helium cliff" cleared a final obstacle on September 26 and will go on to President Barack Obama for his signature.
The U.S. Senate on Thursday passed an amended version of the Helium Stewardship Act, which keeps alive the Federal Helium Reserve. The reserve was scheduled to shut down in the first week of October due to a requirement that the program's debt to the federal government be paid off.
Helium is used in a wide variety of industrial and medical applications, such as to cool MRI scanners. The reserve supplies 40% of U.S. and 30% of international demand for helium, and a disruption in deliveries could have had devastating consequences for helium users.
Both the Senate and U.S. House of Representatives had passed versions of the legislation, and the Senate's action on Thursday to approve a version with amendments from both houses of Congress was the final step in the legislative process, short of the president's signature.
The bill will allow the Federal Helium Reserve to continue operating in phases, preventing a shock to the market. Starting in August 2014, the legislation calls for the establishment of an auction for helium, with the auction handling a growing supply as time goes on. In the third phase, the reserve will only supply customers in the federal government, until 2021, when the government exits its involvement in helium supply entirely.
