On July 30, 2010, the U.S. House of Representatives passed two oil spill bills before adjourning for its summer recess: the Consolidated Land, Energy and Aquatic Recourses Act of 2010 (H.R. 3534 or the “CLEAR Act”) and the Offshore Oil and Gas Worker Whistleblower Protection Act of 2010 (H.R. 5851).  The CLEAR Act would eliminate OPA’s $75 million liability cap on economic damages, lift the moratorium on offshore drilling for companies that comply with certain safety standards, create new Department of Interior agencies, and impose an annual conservation fee of $2 per barrel on oil produced from federal leases.  H.R. 5851 seeks to add protections for offshore workers who report safety violations.  

Senate Democrats may consider their companion bill, the Clean Energy Jobs and Oil Company Accountability Act of 2010 (S. 3663), in September when the Senate reconvenes after its August recess.

Yesterday the U.S. House of Representatives passed two bills focusing on oil spill response. The first, H.R. 2693, reinforces current efforts to research methods of mitigating the effects of oil spills and establishing a committee of executive branch officials to direct these research efforts. The second bill, H.R. 5716, focuses on researching safety measures for deepwater oil and gas wells.

On June 30, the Department of the Interior announced its decision to delay public hearings on the expansion of offshore drilling to an unspecified date.  
 
The same day, according to BNA [subscription required], Secretary Salazar welcomed the prospect of an organic statute to govern the Interior Department and its new offshore energy agencies before a hearing of the House Natural Resources Committee.

In testimony before the U.S. House Natural Resources Committee, Randall Luthi, president of the National Ocean Industries Association (NOIA), said that members of his organization “stand ready to provide information, expertise, and self critique of offshore operations, equipment, procedures and practices.”  Luthi went on to note that the offshore energy industry is assisting the investigations to determine the cause of and respond to potential effects of the BP spill in the Gulf of Mexico.

Noting that “America’s need for domestic energy has not changed and OCS development remains a vital part of our overall national energy picture,” National Ocean Industries Association Chairman Burt Adams urged members of Congress to proceed with caution regarding any legislation on offshore exploration and production activity.

The six U.S. senators from California, Oregon, and Washington have proposed a bill called the West Coast Ocean Protection Act that would prohibit oil and natural gas exploration and production on the U.S. OCS off the coasts of California, Oregon, and Washington. The senators sponsoring the bill include Sens. Barbara Boxer (D-CA), Diane Feinstein (D-CA), Jeff Merkley (D-OR), Ron Wyden (D-OR), Maria Cantwell (D-WA), and Patty Murray (D-WA).

Following his letter to President Obama, Senator Bill Nelson (D-FL) introduced two bills in response to the Gulf of Mexico offshore rig spill incident.  The first bill, S. 3308, seeks to halt the Department of the Interior’s five-year plan to expand offshore drilling.  A companion bill has been introduced in the House by Representative Kendrick B. Meek (D-FL), who also is running for U.S. Senate.  Senator Nelson’s second bill, S. 3305, seeks to retroactively amend the Oil Pollution Act of 1990 to increase the liability limit for economic damages from spills from offshore facilities from $75 million to $10 billion.  Representative Rush Holt (D-NJ) introduced a similar bill in the House.

All twenty Republicans on the House Natural Resources Committee sent a letter to Committee Chairman Nick Rahall (D-WV) yesterday requesting a full committee hearing "at the soonest possible time" on the Administration's new offshore drilling plan.  The letter calls for testimony from Interior Secretary Ken Salazar, Director of the White House Office of Energy and Climate Change Policy Carol Browner, and MMS Director Liz Birnbaum, among others, on the economic impacts of the plan.  Committee Republicans, led by Ranking Member Doc Hastings (R-WA), are concerned that the plan will impact new job creation by closing off areas to offshore drilling and delaying leasing plans. In response, Blake Androff, the Democratic spokesman for the Committee, stated Chairman Rahall had already decided to hold a hearing on the plan "in the near future."

On the heels of the release of the five-year offshore drilling plan, Rep. Edward Markey (D-MA) announced last week that he plans to re-introduce legislation designed to eliminate royalty relief for certain deepwater leases issued between 1996 and 2000.  Similar to bills considered by the House in the past, the bill would allow companies to choose whether to continue to drill in these existing leases, or bid for new leases opened for drilling under the five-year plan.

Last week Gov. Bob McDonnell (R-VA) notified the Governors' Wind Energy Coalition that he was terminating Virginia’s further participation in the coalition.  According to the letter of termination (available via The Hill), Gov. McDonnell ended Virginia’s participation in the group because of a letter sent to the U.S. congressional leadership advocating a national renewable energy standard (RES).  Governor McDonnell claims that the letter included his name and implied that his administration supports a national RES policy, but he does not agree with the policy and did not approve the letter before it was released.  The letter also notes that Virginia will continue to participate in the Atlantic Offshore Wind Energy Consortium.

On the heels of President Obama's 5-year offshore drilling plan announced yesterday, Rep. Edward Markey (D-MA) stated his intention to revive legislation to provide oil companies with strong incentives to drill in offshore areas where they already hold leases before purchasing new leases.  The so-called "use-it-or-lose-it" legislation would impose escalating fees on oil drilling rights that remain unused, and was approved by the House several times during the 110th Congress.  The concept has also been debated in the 111th as well as included in the Obama administration's recent budget request.

Representative Bob Goodlatte (R-VA) and six other Virginia congressmen jointly introduced H.R. 4942, the Virginia Access to Energy Act, last week.  If enacted, the legislation would require U.S. Secretary of the Interior Ken Salazar to conduct OCS Lease Sale 220 no more than one year after Virginia’s governor requests that the sale be conducted.  The bill also would prohibit oil and natural gas leases within 50 miles of Virginia’s coastal zone as well as any that conflict with military operations.  The funds raised by the lease sale and royalties would be divided equally between the U.S. Government and Virginia, with the federal government’s share going towards national debt reduction and an Alternative Energy Trust Fund.

Eighty-Eight House Republicans last week sent a letter to Interior Secretary Ken Salazar, voicing displeasure with the Secretary's recent decision to discard the 2010-2015 OCS lease plan and instead implement the next Five-Year Plan starting in 2012.  The House Republicans are characterizing this two year delay in issuing a new plan the "Obama Moratorium," and assert that it directly conflicts with American public opinion, which favors offshore drilling.  
 
Meanwhile, a number of Senate Democrats from coastal and Great Lakes states earlier this week delivered a letter to Sens. John Kerry (D-MA), Lindsay Graham (R-SC) and Joe Lieberman (I-CT), arguing that pending climate change legislation should not be accompanied by measures that would grant "unfettered access" of the OCS to oil and gas interests.  Citing environmental concerns over oil spills and  potential turf conflicts between E&P operations and the Department of Defense's training zones, the letter goes on to argue against a proposal that revenues from the new OCS leases be shared with the impacted coastal states, and that any opening up of the OCS for drilling should be accompanied by a reform of the leasing process.

A group of opponents of the Cape Wind project have filed a notice of violations with U.S. Secretary of the Interior Ken Salazar, stating that MMS and the Fish and Wildlife Services violated the Endangered Species Act and the Outer Continental Shelf Lands Act during their review of the project. The specific allegations involve concerns that the proposed offshore wind energy project would result in approximately 100 birds killed during the first 25 years of operation of Cape Wind. The Boston Herald provides further information.

Separately, BNA [subscription required] reports Secretary Salazar told the U.S. House Appropriations Subcommittee on Interior and Environment that he will decide whether or not to approve the Cape Wind project towards the end of April. Secretary Salazar noted that he expected to receive the findings of an advisory board appointed to study the project by April 15, 2010.

The House Democratic Caucus on March 9 announced Rep. Jim Moran (D-VA) as the new chairman of the Interior Appropriations Subcommittee, which has jurisdiction over EPA and Interior, among other federal agencies.  In this role, Rep. Moran will oversee the fiscal 2011 Interior and Environmental bill.

Reps. Ed Markey (D-MA), Chairman of the House Select Committee on Energy Independence and Global Warming, and Chris Van Hollen (D-MA) introduced a bill this week, the "Royalty Relief for Consumers Act of 2010,"  that seeks to recover up to $54 billion from companies producing in deep waters in the Gulf of Mexico between 1996 and 2000, effectively overturning the Fifth Circuit's decision in Dep't of Interior v. Kerr-McGee, which was recently denied cert by the Supreme Court.  The House has approved similar versions of the bill in 2006, 2007 and 2008, but it has yet to be enacted into law.

Platts Inside Energy Extra [subscription required] reports that the congressional delegation from Massachusetts has requested that MMS place its new regional office for renewable energy along the Atlantic seaboard in Massachusetts.  Secretary of the Interior Ken Salazar announced the creation of this office earlier this month, but a site for the office has not yet been selected.

The House Committee on Science and Technology, Energy and Environment Subcommittee held a hearing Nov. 3 to discuss the role of the federal government and industry in the development of hydrokinetic energy generation.  Chairman Brian Baird (D-WA) noted that studies indicate approximately 10% of U.S. electricity demand could be met by hydrokinetic energy sources.  Currently, DOE reports that there is only one commercial hydrokinetic project operating in the U.S. (in the Mississippi River).  Congress first authorized funding for significant hydrokinetic technology research in the Energy Independence and Security Act of 2007, but DOE’s hydrokinetic R&D portfolio remains modest.  This hearing indicates that interest in these projects is growing.  Additionally, key agencies such as DOE, FERC, and DOI are considering forming a working group to speed up the regulatory process for permitting in the near future.

Congressman Edward Markey (D-MA) wrote a letter to U.S. Secretary of the Interior yesterday expressing his support for the Cape Wind project planned for offshore Massachusetts.  According to the Boston Globe, environmentalists speculate that Rep. Markey's letter is in response to a decision by the Massachusetts state historic preservation officer who recently ruled that Nantucket Sound is eligible to be listed on the National Register of Historic Places because it may contain remains of ancestors of the Wampanoag tribe.  This decision is counter to the previous decision of the U.S. Minerals Management Service.  The National Park Service now will have 45 days to determine which decision is accurate.  Read more in yesterday's Greenwire [subscription required].

The House Committee on Natural Resources will be considering new legislation aimed at offshore energy programs.  Chairman Nick Rahall (D-WV) announced that the committee will hold hearings on September 16 and 17 to consider H.R. 3534, a bill Rahall introduced yesterday, based on draft legislation circulated earlier this year.  The Chairman's bill proposes a new Interior agency that would handle onshore and offshore lease sales, inspection, enforcement, and revenue collection, as well as an overhaul of the federal royalty program. 
 
In addition, the Energy and Mineral Resources Subcommittee held a hearing today on H.R. 2227, a bill sponsored by Neil Abercrombie (D-HI), as well as over 30 Republicans and conservative Democrats.  The bill also addresses the federal royalty program and proposes that federal revenues be shared with coastal states that have offshore production.  Under the bill, 30% of royalty revenues would go to states, and the remaining 70% would go towards an extension of renewable energy tax credits, carbon sequestration, and nuclear energy.
 
Both bills are available on Thomas.gov.

A staff discussion draft bill circulating through the House Natural Resources Committee seeks to make major structural and substantive changes to the Department of Interior's (DOI) offshore leasing programs. The draft bill, tentatively titled the "Federal Lands and Resources Energy Development Act of 2009," seeks to respond to major criticism that DOI and the Minerals Management Service faced last year on a variety of issues. The changes it proposes to make include: (1) consolidating all offshore and onshore energy leasing and revenue offices, including offshore renewables, under a new "Office of Federal Energy and Minerals Leasing," which would be headed by a new political appointee; (2) eliminating the royalty-in-kind program; (3) stricter ethics rules for  DOI  officials; (4) creating new "Regional OCS Councils" to oversee strategic planning; (5) authorizing DOI to issue new "diligent development" regulations for offshore leases; (6) repealing deepwater royalty relief; and (7) other changes to royalty collection procedures, including new criminal sanctions.

The draft bill is currently being reviewed by DOI. It is possible that the bill or sections of the bill may be combined with the House Energy and Commerce Committee's comprehensive energy and climate change bill, which won approval from that panel late last week.

Chairman Henry Waxman (D-CA) of the U.S. House Energy and Commerce Committee released yesterday an updated version of H.R. 2454, the House bill designed to promote green energy and address global climate change. The document, called a "Chairman's mark" in Capitol Hill parlance, would require that "ecosystem-based management" of ocean resources serve as the foundation for all marine resource planning, as opposed to resource-based management. The bill also mandates a study of regional marine spatial planning by DOI, FERC, and NOAA that would identify a mechanism for formally installing a marine spatial planning regime and requires the U.S. Council on Environmental Quality to determine whether the approach outlined in the study ought to be followed in developing policies for renewable energy on the OCS. An official with the American Wind Energy Association told E&E [subscription required] that her organization is not opposed to marine spatial planning, but that she is concerned that offshore renewable energy projects currently under development could be delayed as the marine spatial planning policy is developed and implemented.

Yesterday, U.S. Reps. Tim Murphy (R-PA) and Neil Abercrombie (D-HI) and a group of bipartisan House members introduced the American Conservation and Clean Energy Independence Act, H.R. 2227. The legislation would approve the 2010-2015 OCS Oil and Gas Leasing Program adopted during the Bush administration and expedite the leasing process for new exploration and production. Under the provisions of the bill, within 30 days of the bill's passage the Interior would be required to conduct a lease sale in each OCS planning area in which there is commercial interest in purchasing federal oil and gas leases for production. The agency would then be required to hold lease sales every 270 days thereafter upon a determination by the Secretary that commercial interest exists in a planning area.

In what would amount to a significant development if the legislation is passed, it would extend the seaward boundary of coastal states to 12 nautical miles from the current 3 miles applicable to most states. However, it appears that the federal government will maintain leasing and regulatory authority over “Federal oil and gas mineral rights” in the 3- to 12-mile zone. In an apparent effort to gain support from critical coastal state members, the legislation grants states the right to “exercise all of the sovereign powers of taxation” in this zone.

Importantly, the legislation would allocate 30% of the expected royalties generated from the exploration and production in the new 12-mile zone to producing coastal states.  The U.S. Treasury would receive 10% of the expected revenues, and the remainder, in the ballpark of $1 trillion according to the summary of the bill, would be allocated to offset the costs of the renewable energy tax incentives and credits, and promote clean energy technology development, environmental restoration and protection, and energy efficiency.  According to the section-by-section analysis of the legislation available on Rep. Murphy’s website, states also could receive royalties from renewable energy projects up to the 12-mile boundary.  However, a close reading of the legislation indicates that this is not the case, as royalties are derived only from oil and gas activities in that zone.

A summary of the legislation is here. Rep. Murphy's press release can be found here.

No word yet on the bill's viability, but it seems to us that there is increasing recognition on Capitol Hill that a balanced energy portfolio, including traditional sources of energy, is in the nation's best interest … and is likely to obtain the most support on both sides of the aisle. 

According to BNA's Daily Report for Executives [subscription required], Rep. Inslee (D-WA) plans to introduce a bill in committee later this month that would (1) create a new permitting office for offshore renewable energy projects and (2) increase research, development and deployment funding for such projects.  Inslee, a member of the House Energy and Commerce Committee, proposes to combine staffs from the relevant executive offices in order to streamline and simplify the permitting process.  This joint permitting office would include staff from MMS, FERC, NOAA, DOE and the Army Corps of Engineers.  Inslee's bill also  would increase federal R&D funding for offshore renewable projects by increasing the DOE's budget authorization for offshore renewable R&D from the current $50 million to $250 million.   As OffshoreEnergyLawBlog has previously noted, there appears to be speculation amongst some members of Congress as to whether the proposed jurisdictional delimitation over offshore renewable energy projects in the recently signed MOU between FERC and MMS is the best outcome for the rapid advancement of such projects.  It's probably not a stretch to speculate that Inslee's proposed legislation is intended to address such concerns.  Stay tuned 'til after the recess ....

Rep. Lois Capps (D-CA) introduced legislation (H.R. 1906) on April 2 that would prohibit oil and gas leasing offshore California. 

Several East Coast House Democrats introduced legislation (H.R. 1696) yesterday to permanently ban offshore drilling in the Mid- and North Atlantic OCS planning areas.  These areas cover offshore lands from Maine through North Carolina.  Rep. Frank Pallone (NJ) sponsored the legislation along with Albio Sires (NJ), Steven Rothman (NJ), James Moran (VA), and Kathy Castor (FL).  House leaders have, however, said they do not intend to seek a blanket reimposition of the recently elapsed moratorium. 

Noting the environmental impacts of climate change and industrial activity in sensitive areas, 67 House Democrats transmitted a letter to President Obama yesterday urging a "science-based" approach to management of the Beaufort and Chukchi Seas and the Arctic National Wildlife Refuge (ANWR).  They contend that "[t]he most notable and immediate ... threat is from the aggressive and risky expansion of oil and gas activities in the region from the last eight years."  The letter outlines four specific proposals: create an interagency task force to craft comprehensive Arctic energy policy; pass new legislation to protect ANWR; conduct a new assessment of Arctic ecosystems; and suspend new offshore leasing, E&P, shipping, commercial fishing, and mining.  The letter was authored by Reps. Inslee (WA), Markey (MA) and McCollum (MN), and key signees include Energy and Commerce Committee Chairman Henry Waxman (CA), Natural Resources Committee Chairman Nick Rahall (WV), and Foreign Affairs Committee Chairman Howard Berman (CA).

The following subcommittee hearings have been scheduled for March:

March 3:   The Subcommittee on Insular Affairs, Oceans and Wildlife  - "Managing Our Ocean and Wildlife Resources in a Dynamic Environment: Priorities for the New Administration and the 111^th Congress." 

March 3:   The Subcommittee on National Parks, Forests and Public Lands - "The Role of Federal Lands in Combating Climate Change." 

 March 5:  The Subcommittee on Energy and Mineral Resources - "Energy Outlooks, and the Role of Federal Onshore and Offshore Resources in Meeting Future Energy Demand." 

House Natural Resources Committee Chairman Nick Rahall (D-WV) praised President Obama's fiscal year 2010 budget in a news release, claiming that under it "taxpayers [will] receive a fair return for the extraction of oil and natural gas resources on public lands." The budget's proposals implement ideas that Rahall has advocated for and introduced in the past: "Last Congress, I introduced legislation to reform the royalty collection program, encourage the diligent development of federal oil and gas leases, and require energy companies to pay their fair share for the use of public resources.  I am heartened that the President's budget includes all of these initiatives, and also correctly identifies our public lands as an immense potential resource for the development and deployment of domestic alternative energy," Rahall said

Usually when top executives from the oil and natural gas industry testify before a congressional committee, they come expecting to hear an ear full.  At today's House Natural Resources Committee hearing on OCS drilling, however, the executives walked away with relatively few scars.  They even agreed with Committee Chairman Nick Rahall (D-WV) on one point -- that the nation is sorely in need of a comprehensive energy policy that considers the panoply of available energy resources, including solar, wind, and biofuels.  Despite recognizing the need for a comprehensive approach, it was clear that the industry representatives favored additional access to OCS resources.  In his prepared statement, the Chairman noted the benefits of offshore drilling, including jobs and tax income, but also stated that "the amount of additional oil that we could drill offshore is a drop in the bucket of what we need to sustain our economy and meet our energy needs."  Citing the American Petroleum Institute's ("API") own figures, he added that even in the most optimistic scenario, opening the entire OCS to drilling would "provide no more than 5% of our total daily energy needs, and displace only 8% of our oil imports" by 2030.   
 
Today's panel included officials from ExxonMobil, BP, Shell, Chevron, Devon (representing API), and the Institute for 21st Century Energy, an affiliate of the U.S. Chamber of Commerce.  Each panelist generally agreed that additional OCS drilling will promote energy security, create jobs, and generate more revenue for the U.S. Treasury.  Moreover, when the issue arose, each panelist appeared to support revenue sharing with states that host drilling operations off their coastline.  Perhaps one of the most prominent themes of the day was that the resource data currently held by the government to establish projections for OCS oil and gas inventory is woefully inadequate.  Members of the Committee were repeatedly reminded that current resource projections in the Gulf of Mexico are roughly eight times greater than were originally forecasted.  In short, the executives believe that the projected inventories in the OCS areas formerly under moratoria would be much higher if companies were allowed to use current technology to evaluate these areas.  Some panelists even expressed a willingness to fund these endeavors, but are hesitant to do so until the federal government provides greater assurances that these areas would be open to development. 
 
Several members of the Committee inquired as to how much money the companies were devoting to the development of renewable fuels.  While the panelists responded to this inquiry, Rep. Lois Capps (D-CA) requested these figures to be provided in writing to the Committee.  A few members, however, did suggest that the companies were spending an inadequate amount of money on developing alternative energy resources in light of their profit figures for 2008.  Rep. John Sarbanes (D-MD) also noted that he is worried that the combination of low prices and additional OCS drilling may inhibit the nation's ability to adequately develop renewable forms of energy. 
 
Another issue raised during the hearing was Interior Secretary Salazar's recent decision to delay the OCS planning process by 180 days.  As expected, the companies did not favor this decision.  The Ranking Member on the Committee, Doc Hastings (R-WA) took this sentiment a bit further, noting that the Secretary's decision amounts to a reinstatement of the ban on drilling.  Rep. Hastings also added that the government needs to examine what it can do to facilitate the development of leases.  Rep. Henry Brown (R-SC) further examined the permitting issue, asking the panelists to compare the process in the U.S. with other countries.  The panelists appeared to agree that the permitting process, at least in the Gulf of Mexico, is comparable with other countries.  The Alaska permitting process does appear, however, to be more difficult, according to the executives.
 
While this hearing concluded the Committee's first series on OCS drilling matters, we expect the Chairman and others to call for additional hearings to discuss royalties, leasing, and other related issues.

The House Natural Resources Committee today convened the second in a series of hearings addressing the nation's policy on offshore drilling.  In his opening statement, Committee Chairman, Nick Rahall (D-WV), noted that he is "not opposed to drilling," but is "aware of the risks" associated with the development of the OCS.  This sentiment was echoed by several of the Committee's members who, while not in favor of reimposing the longstanding congressional drilling moratoria, understand that opening the offshore to greater production will trigger environmental concerns, including the addition of more greenhouse gases to the atmosphere.  On this point, several members asserted that it is not yet clear that such activities have significantly contributed to global warming.  Not surprisingly, there was generally a clear divide between Committee Democrats and Republicans on these issues, although both sides appeared interested in developing a national energy policy.    
 
The first panel included Reps. Sam Farr (D) and Dana Rohrabacher (R), both from California.  Rep. Farr was in favor of reinstating the moratoria, noting that he supports a temporary ban until a more comprehensive approach can be established.  Rep. Farr also advocated for "marine spatial planning," a process that allows the government to "assess and then allocate areas of the OCS" for development in a manner that preserves the oceans and benefits the economy.  He contrasted this method with onshore development, where certain regions hosting critical habitats are restricted from development.  In contrast, Rep. Rohrabacher strongly advocated for OCS drilling while noting that he is an avid surfer and scuba diver.  He cited environmental groups as a key obstacle to expanded exploration and production.  He added that the lack of OCS production requires the United States to import oil and gas by tanker.  Noting that tanker spills cause greater damage than spills from OCS production, he said opponents "ironically make oil spills more likely" by blocking the development of such production.  Rep. Rohrabacher also suggested, somewhat facetiously, that providing pleasant "facades" on offshore platforms (e.g., painting trees on them) may help to win the support of environmental opponents. 
 
After a rousing first session, the atmosphere surrounding the second panel was less colorful.  The lighting rod on the panel, at least for Republicans, was Secretary Mike Chrisman of the California Natural Resources Agency.  Secretary Chrisman was frequently questioned about his state's staunch opposition to offshore drilling.  Committee Ranking Member Doc Hastings (R-WA) also asked why California appears to support the importation of liquefied natural gas (LNG) over offshore production, implying that the nation would be better served by producing natural gas domestically than importing from "Saudi Arabia, Venezuela and Brazil."  Secretary Chrisman noted that the state is evaluating importing LNG from Australia and that LNG is part of a broader energy policy, which includes a heavy renewable energy component.  Virginia State Senator Frank Wagner (R), a longtime supporter of drilling offshore Virginia, noted that he disagrees with Governor's Kaine's support for Interior Secretary Salazar's recent decision to extend the comment period on the 5-year OCS plan by 180 days.   
 
Tomorrow the Committee will host the third hearing in the series, focusing on industrial perspectives.  Based on past hearings, this one promises to be the most contentious. 

Chairman Nick Rahall (D-WV) and the House Natural Resources Committee held their first in a series of three hearings on OCS leasing policy today, welcoming celebrity ocean advocates Ted Danson and Phillipe Cousteau, the grandson of Capt. Jacques Costeau, as the first panel of witnesses.  Rahall opened by responding to advocates of the "drill, baby, drill!" mold, noting that "the United States does drill -- and we drill a lot," and that there are more active rigs in the U.S. than in the rest of the world combined.  Danson, arguing that "oil and water don't mix" and that "the oil companies are making us a sucker's offer [in expanding OCS drilling]," proposed reinstating the OCS ban, suspending all Arctic exploration, and holding a new series of hearings on offshore renewable energy such as wind, tidal, current, and geothermal projects.  Cousteau, echoing Danson's proposals, also called for a more comprehensive, unified approach to leasing, and the funding of a new Ocean Investment Fund with OCS royalties.  Rahall opined that political realities dictate that an OCS ban cannot be reimposed.  A lively (and long) round of questioning from Members focused on the difference in environmental impacts from oil versus natural gas exploration, "use-it-or-lose-it" issues with existing leases, and environmental and permitting problems related to offshore renewables.

Rep. Markey (D-MA) introduced legislation today (H.R. 790) designed to prohibit oil and natural gas leasing and production in the Georges Bank, off the coast of Massachusetts. Georges Bank supports several of New England's largest fishing ports, including the nation's most productive port in New Bedford, Mass. Given that oil and gas leasing is no longer prohibited on the majority of the Outer Continental Shelf, coastal state members may be inclined to introduce measures prohibiting offshore development in specific areas, such as the Georges Bank. Read Rep. Markey's press release for more details. 

 

Similar legislation (H.R. 204) was introduced earlier this year by Rep. Mike Thompson (D-CA) to prohibit drilling offshore Northern California.

House Natural Resources Chairman Nick Rahall (D-WV) has called a series of three oversight hearings focused on offshore drilling.  The series consists of: "Environmental and Commercial Perspectives" on Feb. 11; "State Perspectives" on Feb. 24; and "Industrial Perspectives" on Feb. 25.  These congressional hearings come at a time when the Obama Administration is trying to decide how aggressively, and under what conditions, to lease federal land located on the OCS for oil and gas E&P.  The Committee's Ranking Member, Rep. Doc Hastings (R-WA), argues that job creation should be the primary touchstone when evaluating offshore drilling policy.  Chairman Rahall, echoing President Obama, does not fundamentally oppose offshore exploration, but adds that it should be done in a "responsible, environmentally sound and transparent manner."  Stay tuned to see exactly what that limiting language means when it comes to energy legislation in the 111th Congress.  Today's Greenwire has more. [Subscription required.]

In a press release issued today, House Minority Leader John Boehner (R-OH) announced that he and several of his Republican colleagues wrote to President Obama and the Department of the Interior to urge them not to block energy exploration on the Outer Continental Shelf. The Members stated OCS energy exploration is critical to lowering energy costs and to job creation.

Rep. Jim Costa (D-CA) will chair the Subcommittee on Energy and Mineral Resources, which has jurisdiction over energy development on public lands and waters, including oil and gas leasing in the Outer Continental Shelf. The selection by the Democratic Caucus of Costa, whose district includes parts of Fresno and Bakersfield and is entirely inland, means that yet another California Democrat will play an important role in offshore energy development, adding to Senator Barbara Boxer, who chairs the Senate Committee on Environment and Public Works, and Rep. Henry Waxman, who chairs the House Energy and Commerce Committee. Read the House Natural Resources Committee's press release for more details.

Two Congressional Democrats from California have proposed legislation aimed at blocking drilling off the coast of Northern California. Rep. Mike Thompson (D-CA) and Rep. Lynn Woolsey (D-CA) introduced separate legislation yesterday in an "effort to protect th[e] area and to keep it pristine."  Rep. Thompson’s legislation aims to prohibit oil and gas drilling off Mendocino, Humboldt and Del Norte counties, and Rep. Woolsey reintroduced legislation seeking to expand two national marine sanctuaries off the coast of Sonoma County.  The Press Democrat has more details.

Given the unlikelihood of a comprehensive moratorium on offshore drilling on the east and west coasts, targeted legislative efforts at banning drilling in specific locales may become more frequent.  More to come ....