Several of the provisions in the rule were set out in law by the Democrats’ Inflation Reduction Act. Such provisions:
Increase the government’s share of the profit of the oil that’s sold after being drilled on federal lands – raising the minimum royalty rate from 12.5 percent to 16.67 percent
Raise the rents charged to oil companies for drilling on that land
Increase the minimum bid companies can place to get leases on public lands.
The rule takes the additional step of increasing the amount companies must pay upfront as a bond to ensure that they clean up their oil and gas wells once the drilling process ends.
The administration described the changes as the first “comprehensive update” to the rules around drilling on federal lands since 1988.
The rule comes one day after the administration moved to cut costs for producing renewable energy on public land.
Read more in a full report atTheHill.com.
How policy will affect the energy and environment sectors now and in the future:
The Biden administration on Friday finalized lightbulb efficiency rules first proposed in late 2022.
People who frequently consume seafood may face a heightened risk of exposure to toxic “forever chemicals,” a study has found.
The Standing Rock Sioux Tribe has become the third tribal nation to ban South Dakota Gov. Kristi Noem (R) from its reservation land.
Branch out with a different read on The Hill:
Upcoming news themes and events we’re watching:
Next week
The House is slated to vote on six bills aiming to block energy efficiency rules for household appliances
Monday
The House is slated to take up bills aimed at researching abandoned oil wells and carbon sequestration, as well as oversight forclean energy demonstration projects receiving federal funds
Tuesday
Energy Secretary Jennifer Granholm is slated to appear before the
Senate Energy and Natural Resources Committee for a hearing on the department’s budget
Forest Service Chief Randy Moore will testify before the House Appropriations Committee in a hearing on the agency’s budget
The House Natural Resources Committee will mark up a series of bills including the America’s Wildlife Habitat Conservation Act
Wednesday
Biden officials with theBureau of Reclamation and Army Corps of Engineers will testify before the House Appropriations Committee during a budget hearing
The House Natural Resources Committee will hold a legislative hearing on a forest management bill
Thursday
The House Oversight Committee will hold a hearing on the Biden administration’s pause on new LNG export terminals. The head of the Energy Department’s Office of Fossil Energy and Carbon Management is slated to appear.
The House Natural Resources Committee will hold a hearing titled Assessing Solutions to Secure America’s Offshore EnergyFuture.
News we’ve flagged from other outlets touching on energy issues, the environment and other topics:
Maine Is a Warning for America’s PFAS Future (The Atlantic)
Climate target organisation faces staff revolt over carbon-offsetting plan (The Guardian)
What Others are Reading
Two key stories on The Hill right now:
You’re all caught up. See you Monday!
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