US House Democrats this month are seeking to pass energy legislation that its supporters say does a better job of balancing public land management. The bill is an alternative to a GOP proposal supported by industry and opposed by environmental groups. It is uncertain how much of the Democratic bill would be included in a final House measure.
Nick Rahall (D-W.Va), the ranking Democrat on the House Committee on Resources, said, "The Democratic alternative to the Resources Committee Repub- lican energy bill recognizes the need for a coherent, comprehensive national energy policy. In contrast to the Republican approach, the Democratic alternative relies on the recognition that, under existing law, the vast majority of federal lands is currently available for energy development, and that concern for the environment and social needs are equally important to development of energy resources."
GOP leaders of the Republican-led House plan to mark up a series of energy bills this month focusing on supply, conservation, efficiency, and downstream issues. They then hope to have the full House consider all energy-related bills before the August recess.
Rahall's proposal is in response to a bill that Resources Chairman James Hansen (R-Utah) introduced earlier this month that offers deepwater royalty relief, expanded opportunities for royalty in-kind, and the opening of the Arctic National Wildlife Refuge coastal plain to drilling (OGJ Online, July 11, 2001).
The proposal also would include the Department of the Interior in the decision-making process to determine whether industry can develop "roadless" areas now managed by the US Forest Service.
Industry supports Hansen's proposal, while public land advocates and environmental groups oppose the bill. Rahall's bill is expected to win the endorsement of lawmakers in coastal areas, but it is uncertain how much of the proposal will be included in a final House bill.
The House Democrats' 48-page proposal seeks to encourage construction of an Alaskan natural gas pipeline through streamlined permitting. GOP lawmakers don't oppose that measure, although most energy bills from Republicans have been silent on the issue.
A pending Senate Democratic version includes a similar pipeline provision, however.
Another part of the bill designed to avoid federal power plant bottlenecks may also win bipartisan support. Rahall's bill would give additional authority to the administrator of the Western Area Power Administration "to take such actions as necessary to relieve power transmission constraints, including construction of new facilities, in accordance with all applicable provisions of federal law and in coordination with state authorities. Any new transmission capacity would be available to consumers on a nondiscriminatory basis." The Bonneville Power Administration has similar authority.
Other provisions
The alternative energy provisions are also relatively noncontroversial.
The bill calls on the Interior secretary to survey federal lands-except for federally protected areas-for wind power, geothermal, and ocean thermal resources that could be used for electricity generation.
Interior would survey directional drilling for oil and gas on federal lands in order to assess its benefits as a means of mitigating environmental impacts.
Rahall's proposal also encourages the Secretaries of Interior, Agriculture, and Commerce to incorporate energy-efficient technologies in public and administrative buildings under their jurisdiction and to use energy-efficient vehicles in natural resources management.
The bill would extend through June 30, 2012, the moratoriums on Outer Continental Shelf oil and gas leasing now included in annual Interior Appropriations bills so that Congress could forego an annual provision extending the drilling ban. Bill sponsors said the date is consistent with presidential determinations made in 1998.
The areas included in the moratoriums are the East Coast, eastern Gulf of Mexico, West Coast, and the North Aleutian area in Bristol Bay, Alas. Also included are national marine sanctuaries (most of which are included in areas subject to the annual appropriations moratoriums) and the Northwest Hawaiian Islands Coral Reef.
Royalty reform
A section of the bill sure to be opposed by industry and their supporters in Congress outlines royalty reform. The bill would triple existing fines and penalties for underreporting or short-changing royalty obligations to the government. The existing fines were last modified in 1982.
There are no provisions in the bill to renew or expand deepwater royalty relief in the Gulf of Mexico.
Finally, the bill would double funding of the Land and Water Conservation Fund (LWCF) from OCS oil and gas leasing activities to $1.8 billion/year through 2015. The provision also provides for receipts to be shared 50:50 between federal and state governments (as provided for in recent legislative proposals).
Bill sponsors note that since 1982, Interior has collected $110.4 billion from onshore and offshore leases. More than $16.3 billion of those resources have gone to fund LWCF.
The LWCF provision further represents the need to mitigate energy development through conservation programs.
