Last week, Energy Workforce President Tim Tarpley provided a federal energy policy update at the SPE-Gulf Coast Section General Meeting luncheon at the Houston Petroleum Club. Tarpley, who addressed the group late last year, discussed the three main areas of energy policy developing at the federal level including the SEC Climate Rule, the Inflation Reduction Act and permitting reform.
The SEC Climate Disclosure rule release could come any day given that it is anticipated for the month of April. The final rule is likely to have more significant changes than the draft, particularly with the omission of required Scope 3 emissions disclosures. The potential decision to exclude Scope 3 likely stems from the wider business community’s pushback on relevance. He also warned that the rule will face an uphill battle with pushback from Republicans on Capitol Hill and at the State level.
On permitting reform, Tarpley discussed the engagements Energy Workforce has led on behalf of the services sector on Capitol Hill. He said that out of the Republican energy package recently passed in the House, the only item that has a chance to pass in the Senate is the BUILDER Act which aims to reform permitting. Recent statements by Republican House leadership indicate that the party might use the debt ceiling negotiations in the summer as a vehicle for the BUILDER Act. Tarpley talked about the importance of permitting reform for domestic energy production.
“The United States needs regulatory reform that removes barriers to vital infrastructure development for increased domestic energy production. Incentives for new technologies like CCS will be limited without permitting reform, and traditional oil and gas infrastructure faces the same need. ”Energy Workforce President Tim Tarpley
With the Inflation Reduction Act, Tarpley covered the carrot and sticks that the industry should be focused on. There are a number of tax credit incentives that the oil and gas industry is well suited to benefit. The main area of concern for industry is the methane fee and the impact of the potential EPA Methane Rule. Tarpley answered audience questions about carbon utilization and how the tax credits enhanced oil recovery and why the incentives have strong domestic workforce and content requirements.
Thank you to Robert Saucedo, Revolink, and Barry Faulkner, SPE, for the invitation to speak.
Maria Suarez-Simmons, Senior Director Energy Policy, writes about industry-specific policies 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.