White House announces oil savings standards for heavy duty trucks, buses

- White House announces oil savings standards for heavy duty trucks, buses



Aug 9, 2011

The Obama administration announced new fuel efficiency and greenhouse gas pollution standards for work trucks, buses, and other heavy duty vehicles that it said will save American businesses who operate and own these commercial vehicles approximately $50B in fuel costs over the life of the program. Under the guidelines, trucks and buses built in 2014 through 2018 will reduce oil consumption by a projected 530M barrels and greenhouse gas pollution by approximately 270M metric tons.

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US House Panel to Draft Plan to Split Federal Oil Money with States

- US House Panel to Draft Plan to Split Federal Oil Money with States

Wednesday, July 27, 2011
Dow Jones Newswires
WASHINGTON
by Tennille Tracy

The House Natural Resources Committee plans to draft legislation that redirects a portion of federal oil royalties to coastal states, ramping up debate on an issue that has also intensified in the Senate.

Rep. Doc Hastings (R., Wash.), chairman of the Natural Resources Committee, said at a hearing Wednesday that he was "actively" reviewing proposals to share federal oil revenue with the states. He said his committee would take up legislation to address the issue after a summer recess.

"When it is all boiled down, a revenue-sharing proposal is, and must be, about fairness," Hastings said.

Hastings didn't say how much royalty revenue he wanted to steer toward the states. A proposal in the Senate directs 37.5% of federal oil royalties to the states. With the federal government reporting more than $5 billion in offshore royalty revenue in 2010, such a move would be a big win for coastal state governments.

Debate over revenue-sharing proposals has intensified in recent weeks as lawmakers look for ways to reduce spending and raise revenues as part of plans to increase the debt ceiling.

Opponents of revenue-sharing plans, often Democrats and lawmakers from non-coastal states, say it would be unwise for the federal government to give up billions of dollars of oil royalties at a time when it's struggling to claw its way out of debt.

Rep. Ed Markey (D., Mass.), the highest-ranking Democrat on the Natural Resources Committee, said Wednesday that a revenue-sharing plan would be a "big mistake" and that it's "just something [the federal government] can't afford."

"How can we even begin to discuss this subject right now?" Markey said.

Under current arrangements, states collect royalties from oil produced within the first three miles of a coastline. The federal government then collects most of the royalties on oil produced in the next three miles and lays claim to all of the royalties beyond that.

Supports of revenue sharing, often Republicans and coastal state representatives, say state officials will be incentivized to support more offshore oil production if they can collect a greater share of the royalties.

A battle over revenue sharing in the Senate has suspended action on a long-awaited bill that would strengthen safety standards for offshore oil drilling. At a committee-level markup last week, lawmakers blocked a vote on the bill after Sens. Mary Landrieu (D., La.) and Lisa Murkowski (R., Alaska) looked set to fail in their attempts to attach a revenue-sharing proposal to it.

Copyright (c) 2011 Dow Jones & Company, Inc.

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US House Votes to Streamline Clean-Air Permits for Oil-Drilling Projects

- US House Votes to Streamline Clean-Air Permits for Oil-Drilling Projects

Thursday, June 23, 2011
Dow Jones Newswires
WASHINGTON
by Tennille Tracy

The House of Representatives voted Wednesday to streamline the issuance of clean-air permits for offshore oil-drilling projects, representing another attempt by Republicans to pressure the Obama administration into speeding up domestic oil production.

The bill passed Wednesday night by a vote of 253-166, with votes falling largely along party lines. A majority of Democrats voted against the measure, saying it would strip regulators of their ability to determine whether drilling projects pollute the air and pose a risk to human health.

The bill is unlikely to pass the Senate, where Democrats hold control.

Introduced by Rep. Cory Gardner (R., Colo.), the bill seeks to resolve challenges faced by Royal Dutch Shell (RDSA, RDSA.LN) as it sought, and continues to seek, clean-air permits for drilling projects off the coast of Alaska.

Specifically, the bill requires the U.S. Environmental Protection Agency to either approve or deny clean-air permits within six months of receiving an application. It also requires opponents of the permits to file objections in a federal court, as opposed to a less-formal appeals board that is currently available to them.

Before passing the bill, the Republican-led House voted down 10 amendments offered by Democrats, many of whom were looking to overturn various segments of the underlying bill.

On Tuesday, the Obama administration came out against the bill and said it "could result in increased air pollution from [outer continental shelf] sources" and would "deprive citizens of an important avenue for challenging government action."

Wednesday's votes marks at least the fourth time this year that House Republicans have passed legislation aimed at expediting or expanding domestic oil production. With oil prices above $90 a barrel, Republicans have accused the Obama administration of discouraging oil production and have presented themselves as the party that would boost domestic drilling to bring down prices at the pump.

In May, the House passed a bill that forced the Interior Department to make decisions on offshore drilling permits within 30 days of receiving an application.

The bill that was passed Wednesday was developed in response to challenges faced by Shell in obtaining clean-air permits for exploratory drilling in the Beaufort and Chukchi seas. The company invested over $3 billion to prepare for the drilling, but regulatory hurdles and other challenges has prevented the company from moving forward.

In May, EPA assistant administrator for air and radiation Gina McCarthy said her agency was "very close" to granting three permits to Shell. Earlier, Shell executives had met with senior EPA officials and President Obama's top energy aides about the matter.

Wednesday's vote won the praise of the pro-business group Chamber of Commerce. By imposing deadlines on the EPA, the bill provides "companies a predictable approval timeline, rather than a costly stream of seemingly arbitrary delays," the chamber's executive vice president for government affairs, Bruce Josten, said in a letter to House lawmakers.

Copyright (c) 2011 Dow Jones & Company, Inc.

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House OKs Bill to Boost Drilling for Natural Gas

- House OKs Bill to Boost Drilling for Natural Gas

Wednesday, June 15, 2011
The News & Observer, Raleigh, N.C.
by Michael Biesecker

In a largely party-line vote, the state House approved a Republican-backed bill that rewrites state energy policy to promote and approve of drilling for natural gas on land and off the coast.

Supporters of Senate Bill 709 said drilling would create revenue for the cash-strapped state government and jobs for North Carolinians by creating a regulatory atmosphere that is more "pro business."

Republican lawmakers brushed aside concerns raised by Democrats about the potential for an offshore spill to negatively affect coastal tourism and the possible contamination of drinking wells through the use of a controversial gas drilling technique that relies on the hydraulic fracturing underground rock, known as fracking.

"It's time to get crackin' on frackin'," said an enthusiastic Rep. John Blust, a Greens boro Republican. "If we're worrying about tourism, do you think $4 a gallon gas is going to affect tourism? We need more fossil fuels in this country."

Democrats objected to the often-repeated GOP talking point that drilling for natural gas will reduce gasoline prices and reduce the nation's dependence on foreign oil. There are not believed to be sizable deposits of oil off the North Carolina coast.

After a study was quoted as saying that increased domestic oil production would have a negligible effect on gasoline prices, Blust countered that such economic analyses were produced by "wackos in an ivory tower."

An attempt by Rep. Pricey Harrison, a Greensboro Democrat, to amend the bill to add renewable energy sources such as wind power and wave power to the list of options for creating new energy was defeated.

Harrison pointed out that tourism generates many more jobs and revenue in the state than even the rosiest forecast for drilling.

"We have a tourism economy that depends on a clean coast," Harrison said.

Republican supporters countered that the bill designates the first $500 million the state earns through offshore drilling royalties to a special fund to clean up the environmental damage from any accident or spill.

The bill, a version of which has already passed the Senate, was approved 67-44.

Copyright (c) 2011, The News & Observer, Raleigh, N.C.

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House Panel Passes Bill to Streamline Issuance of Air Permits for Oil Drill

- House Panel Passes Bill to Streamline Issuance of Air Permits for Oil Drill

Thursday, June 02, 2011
Dow Jones Newswires
by Tennille Tracy

A bill to streamline the issuance of clean-air permits for offshore oil drilling cleared an important hurdle Thursday, with the Republican-controlled U.S. House energy committee voting to approve the measure.

The legislation aims to address challenges that Shell faced in securing air permits for exploratory drilling projects off the coast of Alaska. It also marks the latest effort by Republicans to expand or expedite offshore oil production.

The bill was approved by the House Energy and Commerce Committee by a vote of 34 to 14, with the majority of Democrats voting against the measure. Democrats said the bill would strip the Environmental Protection Agency of the ability to ensure clean-air standards would be met.

Thursday's committee vote clears the way for a vote on the floor of the House. While the bill would have a decent chance of passing the House, its fate in the Democrat-controlled Senate would be much more uncertain.

The legislation, introduced by Rep. Cory Gardner (R., Colo.), imposes a six-month deadline on the EPA to either approve or deny clean-air permits being sought. It also forces opponents to object to proposed drilling projects in federal court.

Unlike drilling projects in parts of the Gulf of Mexico, where the Interior Department is responsible for granting air permits, Arctic projects require approval from the EPA.

The EPA's process for approving Clean Air Act permits for offshore drilling came into focus after Shell struggled to secure clean-air permits for drilling projects in the Beaufort and Chukchi seas off Alaska. Shell has spent about $3.5 billion to explore and prepare for those projects, but legal challenges and regulatory hurdles have prevented the company from obtaining necessary approvals.

"It's time to either give the permits now or stop altogether," said Rep. Fred Upton (R., Mich.), chairman of the energy committee.

In May, the EPA's assistant administrator for air and radiation, Gina McCarthy, said the agency was "very close" to issuing three permits to Shell.

No exploratory drilling is currently being done off the coast of Alaska, although there are existing wells producing oil.

Copyright (c) 2011 Dow Jones & Company, Inc.

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House Passes Bill to Drill in Parks

- House Passes Bill to Drill in Parks

Friday, May 27, 2011
The Columbus Dispatch, Ohio
by Jim Siegel

With Ohio facing $500 million in backlogged capital projects at its state parks and gas prices still flirting with $4 a gallon, House Republicans say now is the time to allow oil and gas drilling in parks and other state-owned land.

After a three-hour debate, the House voted 54-41 yesterday for a bill that would create an Oil and Gas Leasing Commission to oversee the leasing of state-owned land for oil and gas drilling.

"It will not solve Ohio's problems or energy-price problems, but it is a component we cannot ignore," said Rep. John Adams, R-Sidney, the bill sponsor.

Republicans said House Bill 133 would create jobs and help lower energy prices. Oil and gas drillers are particularly interested in southeastern Ohio and Salt Fork State Park.

"If this gas boom takes off like we understand it is, there aren't going to be enough hotels. There aren't going to be enough houses. There aren't going to be enough restaurants to handle all of the people who are coming into this state," said Rep. Matt Huffman, R-Lima.

Two Republicans joined all Democrats in voting against the bill. Franklin County lawmakers broke along party lines.

Democrats argued that with 99.5 percent of Ohio already available for drilling, the bill is unnecessary. They also questioned the economic benefits, and argued it would cause significant damage to state parks, hurt tourism and harm the economy.

"We're not against drilling. We're against drilling in parks," said Rep. Robert F. Hagan, D-Youngstown, who went on to question whether Republicans were on drugs.

Democrats also suggested Republicans would face voter backlash over the bill in next year's elections. In response, Speaker William G. Batchelder, R-Medina, pointed to gas prices.

"I would say that causes people to have a different view than they might have at $2.50," he said.

Batchelder said the ongoing revenue stream for capital projects at Ohio parks is vital. "When you look at them, you can see it," he said of the lack of upkeep. "I think six members used the phrase 'pristine parks.' I don't know where they're going. I have not seen those."

State revenue estimates from oil and gas royalties range from a few hundred thousand dollars to about $9million, depending on factors such as the level of oil and gas production and market prices, according to the nonpartisan Legislative Service Commission.

The bill divides state land into four classes, which, Adams said, will deal with issues related to federal encumbrances or deed restrictions. Energy companies would have the greatest access to land in which the state clearly owns all the development rights.

Ohio owns the mineral rights to 34,590 acres in state parks, less than one-third of the land.

Republicans added an amendment yesterday that would ban drilling on state nature preserves, which Jack Shaner of the Ohio Environmental Council called a positive step. But he strongly opposes the bill.

"Ohio has always promised that its parks would remain a natural park, not an industrial park," he said, adding that the new leasing commission would be "too industry-cozy." He said the director of the Ohio Department of Natural Resources should have the final say on whether drilling is allowed in state parks.

Tracy Sabetta of the National Wildlife Federation of Ohio said she is concerned that the bill does not explicitly exempt Lake Erie from drilling. While a federal ban remains in place, there are efforts to repeal it, she said.

Rep. Dave Hall, R-Killbuck, said the bill essentially bans Lake Erie from drilling because of the way it is classified.

Gov. John Kasich's proposed state budget also would open state parks to drilling, but it left the Ohio Department of Natural Resources in control of the leasing process.

Both Hall and Batchelder said they prefer the House drilling language to what is in the budget. Laura Jones, spokeswoman for the Ohio Department of Natural Resources, said the office is "pleased with how our concerns (with the bill) have been addressed."

"It's very positive that the landholding agency is the entity entering into the lease as opposed to the commission," she said.

Copyright (c) 2011, The Columbus Dispatch, Ohio

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CEA Applauds House Vote to Develop Offshore Energy Resources

CEA Applauds House Vote to Develop Offshore Energy Resources

Thursday, May 05, 2011
Consumer Energy Alliance

New access to abundant energy resources offshore could soon be granted to American energy consumers thanks to historic legislation passed Thursday in the U.S. House of Representatives.

The bill, H.R. 1230, orders the Interior Department to conduct lease sales on four separate energy-rich tracts along our nation's Outer Continental Shelf (OCS) — two in the central Gulf of Mexico, one in the western Gulf, and one more than 50 miles off the coast of Virginia.

Following the vote, Consumer Energy Alliance (CEA) executive vice president Michael Whatley issued the following statement:

"Today's vote in the House essentially asks the administration to do what it should have done a long time ago. It compels the Interior Department to put in place a plan to get fair value for the taxpayer on the massive reserves of energy currently being held captive offshore — resources that are owned by all Americans and which our country needs access to now more than ever before.

"It's now incumbent on the Senate to follow suit, not only in view of the new jobs and additional revenues that such an action would create, but also with an eye on bringing more American energy online for consumers, lowering prices and reducing imports in the process."

Earlier this month, CEA launched a campaign designed to empower everyday Americans with the tools they need to ensure their voices are heard in Washington. The campaign, coined More Energy Now, also includes an online feature capturing the up-to-date status of America's growing reliance on foreign energy — along with a rolling counter of how much Americans are currently sending overseas to acquire the energy they need.

Consumer Energy Alliance (CEA) is a nonprofit, nonpartisan organization, comprised of more than 160 affiliate members, including energy consumers and producers, and tens of thousands of consumer advocates, that supports the thoughtful utilization of energy resources to help ensure improved domestic and global energy security, stable prices for consumers and balanced energy policy for America.

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House Panel Votes to Force More Oil Leases in U.S. Waters

House Panel Votes to Force More Oil Leases in U.S. Waters

Thursday, April 14, 2011
Dow Jones Newswires
by Ryan Tracy

A bill requiring the U.S. to open areas off the Virginia coast and in the Gulf of Mexico to oil and gas exploration cleared a key hurdle in the U.S. House Wednesday. The House Natural Resources Committee voted to approve the leasing measure, paving the way for a vote by the full House next month. Earlier Wednesday, the committee also voted to establish a 60-day maximum for the Interior Department to approve or deny offshore drilling permits. If Interior took longer, the permit would be deemed approved.

The bills are part of an effort by House Republicans to support domestic oil and gas production, which they have stepped up in recent months in the face of rising gasoline prices. Democrats have pushed back, saying that Congress should focus on providing incentives for non-traditional energy sources and reducing energy consumption.

All but two Democrats voted against the bills on offshore leasing. The bills' prospects are less certain in the Senate, where Democrats hold a majority.

One proposal approved Wednesday would override a decision last year from the Obama administration not to open the U.S. Atlantic Coast to offshore drilling. It directs the Interior Department to lease areas off the Virginia coast within one year after the bill becomes law.

The bills would also direct Interior to move forward with three new leases in the Gulf, declaring previous environmental reviews of those areas to be sufficient. The administration has delayed its Gulf leasing plans and is conducting new environmental reviews following the Deepwater Horizon disaster nearly one year ago.

"What we're attempting to do is provide some certainty to those who would give us American-made energy," said Rep. Doc Hastings (R., Wash.), chairman of the Natural Resources Committee, and a main sponsor of the bills.

During debate on the proposals, Rep. Rush Holt (D., N.J.) argued that Interior shouldn't move forward with new leases without a new environmental analysis based on lessons learned from the Deepwater Horizon. He said previous reviews had been "very clearly and woefully flawed." Rep. Doug Lamborn (R., Colo.) countered that further environmental reviews would take place as companies apply for permission to explore and drill new wells. Hastings noted that the legislation approved Wednesday requires Interior to conduct a safety review for each drilling permit. Still, Democrats criticized their counterparts for not taking up a bill that would implement recommendations of a presidential commission that studied last year's oil spill. Congress hasn't yet sent the president a bill in response to the disaster, which began with the explosion on a rig leased by BP on April 20.

A proposal to add safety regulations to the House bills, offered Wednesday by Rep. Ed Markey (D., Mass.), was voted down by the Republican majority. "This amendment would micromanage and dictate thorough safety standards" that should be established by the Interior Department, Lamborn said. The majority also rejected a host of proposals from lawmakers in coastal states designed to restrict exploration in the Pacific and Atlantic Oceans.

The legislation would also extend by one year leases impacted by the Obama administration's moratorium on drilling after the Deepwater Horizon disaster. The provision would apply to wells that weren't producing before April 30. It was added to the bill Wednesday in an amendment offered by Rep. Bill Flores (R., Texas).

Lawmakers briefly considered inserting a provision to require oil and natural gas facilities to use only equipment and materials produced in the U.S, but Rep. John Garamendi (D., Calif.) withdrew the amendment after other lawmakers said it was too inflexible. Some Republicans seemed open to the concept, however, and Garamendi said he might offer a different version at a later date.

Also Wednesday, the committee voted to require Interior to open up more resource-rich areas to exploration as part of its next five-year leasing plan. The full Republican-controlled House is expected vote on the bills next month.