Manchin Questions Witnesses About Administration Throttling Energy Production on Federal Lands and Waters
Washington, DC – Today, the U.S. Senate Energy and Natural Resources Committee held a hearing to examine opportunities for Congress to reform the process for permitting electric transmission lines, pipelines, and energy production on federal lands. During the hearing’s second panel, Chairman Joe Manchin (D-WV) discussed the balance between oil and gas and renewable production in theInflation Reduction Act(IRA), and how the Administration — despite requirements in the IRA to not throttle back oil and gas production — is finding ways to cut back on energy production on Federal lands and waters.
“Continued production of these federal resources is incredibly beneficial, not just to our energy security but also to fund Western state priorities like education and national priorities like the Land and Water Conservation Fund. I have been concerned about efforts by the Administration to throttle back oil and gas leasing and production, so I made sure that theInflation Reduction Acttied the ability to issue wind and solar leases to whether or not Interior is holding significant oil and gas lease sales, both on- and offshore. And because that’s now the law, the unprecedented delay in finalizing the next five-year offshore oil and gas plan is now putting both offshore wind and offshore oil & gas at risk,” said Chairman Manchin.
“On top of that, just last week, the Administration and environmental groups released a voluntary settlement agreement—negotiated behind closed doors—that would take 11 million acres in the Gulf off the table from leasing and impose restrictions that only apply to oil and gas leaseholders. If the settlement agreement goes through, you’ll have oil and gas vessels barred from operating at night or restricted to slow speeds while commercial shipping, passenger vessels, and fisherman would be completely unaffected. I don’t know if there is a better example of this Administration’s targeting of American energy production than this—a domestic energy provider literally held back while a tanker ship importing foreign crude can cruise on by, unrestricted,” continued Chairman Manchin.
Chairman Manchin questioned all the witnesses on provisions in theInflation Reduction Actthat require the Administration to hold significant oil and gas lease sales, otherwise solar and wind on Federal lands and waters cannot proceed.
“Onshore, the administration cannot sign agreements for more than 20 wind and solar projects currently under review because they have not yet met the IRA’s oil and gas lease sale requirements. Do you all work with both sides of the aisle here and have you had conversations with people who are protesting, objecting, stopping and suing that they’re basically shooting themselves in the foot? The advocates who want no oil and gas leases at all, or coal production whatsoever, do they know it’s all tied inextricably [to renewables]?”asked Chairman Manchin.
“I don’t believe there is that level of understanding of the provisions of the IRA and how they’re going to impact the future when leasing, both onshore and offshore. We’re trying to make sure we educate everybody on that and we’re trying to make sure there’s some urgency around moving forward with the oil and gas sales so nothing is impeded as we move forward. The competition for the money behind these projects is global. We don’t want to lose that, we don’t want to see that go to other parts of the world. We want that here in the U.S. and that’s what we’re trying to convey,”said Mr. Erik G. Milito, President, National Ocean Industries Association.
“Do you all believe it [the IRA] was a balanced approach to how we produce energy in our country and having an energy policy that would work?”asked Chairman Manchin.
“It was a balanced approach and it was a very good start. I think I would divide the folks that I’m talking about in my testimony into two camps: those that want to have a serious discussion about infrastructure for all sources of energy, of which Wyoming provides every source, and that those that don’t, they just want to spend time in the courtroom,”replied Mr. Pete Obermueller, President, Petroleum Association of Wyoming.
Chairman Manchin also questioned witnesses about the need to balance energy with other uses on federal lands.
“I’m concerned about proposals which would restrict Interior from withholding any areas from leasing—because many of our federal lands are managed for multiple-use, which includes hunting, fishing, hiking, off-road vehicles, timber, grazing, and more. There is a big difference between land being ‘available for leasing’ versus land that must be leased upon request.What are your suggestions for legislation that ensures producers aren’t only offered unwanted acreage, but also protects other uses on federal lands?”asked Chairman Manchin.
“I think again, to your point, we can strike a balance there,”replied Mr. Obermueller.
The second panel featured witnesses from National Ocean Industries Association, Petroleum Association of Wyoming, and Invenergy.
To watch a video of Senator Manchin’s opening remarks, please click here.
To watch a video of Senator Manchin’s questioning, please click here.
To watch the hearing in full, please click here.
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