H.R. 1399 would require the Department of the Interior (DOI) to charge a 2 percent royalty on the value of sodium compounds and related products produced on federal lands for a five-year period following enactment. Under current law, the royalty rate is about 6 percent. About half of the royalties collected by the federal government are paid to the states where the minerals are produced. Thus, enacting the bill would reduce both offsetting receipts, which would have the effect of increasing direct spending, and the subsequent payments to states stemming from those royalties.
CBO estimates that enacting H.R. 1399 would increase net direct spending by $50 million over the 2018-2027 period. Because the bill would affect direct spending pay-as-you-go procedures apply. Enacting the bill would not affect revenues.
Enacting H.R. 1399 would not increase net direct spending or on-budget deficits by more than $2.5 billion in any of the four consecutive 10-year periods beginning in 2028.
H.R. 1399 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act.
