Analysis by Energy Workforce President Tim Tarpley
President Trump made a pitch to the House Republican Caucus on Tuesday to get the caucus on board with the large reconciliation package that Speaker Johnson has put together based on provisions from multiple committees in the House. As of midweek, there are still a number of holdouts who have differing views on provisions they either want added or taken out. Some of the Freedom Caucus are withholding support, urging additional cuts to lower the overall fiscal impact of the legislation. Some members from the Northeast and California are still pushing for additional tax deductibility for state and local taxes paid by their constituents in a variety of jurisdictions. Some members have also expressed concerns with some of the immigration provisions in the legislation.
Caught up in the large bill are several energy provisions that will have a significant impact on the OFS sector. Some back-and-forth wrangling on the expedited permitting reform sections has resulted in a controversial pay-for-permitting gas pipeline provision being pulled at the last minute; however, the LNG expedited permitting provision remains. The House Natural Resources Committee was successful in obtaining excellent language to expedite lease sales, both offshore and onshore, which remains in the package.
The timeline for final passage in the House and Senate remains unclear. Speaker Johnson had hoped to move the package this week, but with holdouts and negotiations continuing, this timeline will likely be pushed into June. The Senate also has its own package and has indicated that it will not accept the House package as is, so we can expect additional back-and-forth between the House and Senate. These negotiations will continue for some time.
Department of Interior Releases New Gulf BIOP
On Tuesday, the Department of the Interior released its new BIOP for the Gulf of America. This was necessary due to the vacatur of the 2020 BIOP by a federal judge in Maryland last year. Without a valid BIOP in place, many activities that currently take place in the Gulf could be put in jeopardy. This new BIOP is very welcome to provide certainty to Gulf of America Operations. At the start of the Trump Administration, the Department of the Interior moved at a rapid pace to complete this new BIOP so that we could avoid the prospect of disruptions in the Gulf. This rapid pace has been welcomed by all of those who make their living in the Gulf. The Gulf of America is responsible for nearly 15% of total U.S. crude oil production. Currently, it supports an estimated 362,000 jobs in the United States, contributing an estimated $30.8 billion to the U.S. GDP.
Tim Tarpley, Energy Workforce President, analyzes federal policy for the Energy Workforce & Technology Council. Click here to subscribe to the Energy Workforce newsletter, which highlights sector-specific issues, best practices, activities and more.
