During a U.S. Senate Energy and Natural Resources Committee FY 2024 budget oversight hearing today, U.S. Interior Sec. Deb Haaland heard concerns and fielded questions related to offshore energy access.
Chairman Joe Manchin (D-WV) reiterated his support for offshore oil and gas lease sales mandated by the Inflation Reduction Act and the requirement that offshore renewable energy leasing be conditioned on offshore oil and gas leasing, and noted that “we are still waiting for the next five year offshore program of oil and gas lease sales” and that until now there has never been a gap between programs. He also noted the Bipartisan Infrastructure Law’s provision for establishing rules around carbon sequestration in federal waters and related delays in doing so.
As to offshore energy leasing, Sec. Haaland said that “we’re mindful” of the Inflation Reduction Act provisions and “we will follow the law with respect to leasing.”
Additionally, Sen. Martin Heinrich (D-NM) expressed concerns about the ability to meet the administration’s goal to deploy 30 gigawatts of offshore wind by 2030, and sought an update on efforts to permit utility-scale offshore wind projects, while Sen. Josh Hawley (R-MO) asked Haaland whether she agreed with Interior Dept. analysis that a higher royalty rate for the recent Cook Inlet lease sale was justified based on climate considerations despite the implications for energy security.
Haaland called the royalty rate “the most reasonable balance of environmental and economic factors” and consistent with Inflation Reduction Act requirements,” adding that “of course, yes, we are in the middle of a terrible climate crisis” and “it’s our job to balance those things.”
