Interior proposal seeks clearer guidelines for OCS energy projects

June 27, 2002
The Department of Interior has asked Congress to clarify that they have the authority to grant easements or rights-of-way for renewable energy and LNG facilities on the Outer Continental Shelf.

Maureen Lorenzetti
Washington Editor

WASHINGTON, DC, June 27 -- The Department of Interior has asked Congress to clarify that the Department of Interior has the authority to grant easements or rights-of-way for renewable energy and liquefied natural gas facilities on the Outer Continental Shelf.

In a June 20 letter to Vice-Pres. Dick Cheney, Interior Assistant Sec. of Land and Minerals Management Rebecca Watson said the legislation would "simplify permitting for energy production in an environmentally sound manner."

Watson said the legislation would establish a uniform permitting process, coordinated among all "appropriate" federal agencies for energy-related project approvals on the OCS.

Interior has clear authority over oil and gas related activities. But Interior officials say legislation is needed to ensure the department also oversees other traditional and non-traditional energy projects, including renewable energy projects such as solar, wind, and wave, as well as proposed offshore liquefied natural gas and compressed natural gas facilities.

Oil and gas applications
The draft bill also would authorize the Sec. of Interior to allow energy or non-energy related uses of existing OCS facilities and structures previously constructed for energy purposes such as offshore staging facilities to support deepwater oil and gas activities and offshore emergency medical facilities.

Interior's proposal, which has been blessed by the White House's Office of Management and Budget, is not meant to supersede existing authority of any other federal agency, such as the Army Corps of Engineers, or the Coast Guard, that may be involved with the permitting of some OCS projects, officials said.

However, some congressional sources that have looked at the proposed bill, which has not yet been introduced formally, say there is a provision that clearly establishes Interior as the "overarching authority" to oversee all OCS energy-related projects.

Public land experts, meanwhile, predicted that the Interior department may seek to include its proposal in one of several pieces of legislation now before Congress. Possible legislative vehicles include a pending homeland security measure or comprehensive energy legislation now before Senate and House negotiators. But given the unclear outcome of either bill, Interior's best bet may be to ask lawmakers to include its proposal in one of the 13 annual spending bills that Congress must pass before it concludes its session this fall, congressional sources predicted.