Bipartisan bill governing offshore energy leases could benefit Louisiana

A bill moving through the lame-duck session in Congress could open the way for offshore leases for both oil and gas, and wind power, along with curbs on judicial oversight.

The Energy Permitting Reform Act of 2024 is sponsored by Senate Energy & Natural Resources Committee Chairman Joe Manchin, I-W.Va., and Sen. John Barrasso, R-Wyo., the ranking member.

The measure was introduced on Monday and will be marked up next week as many on both sides of the aisle are lining up to support the bill.

The key with the bill is providing offshore energy producers regulatory certainty. That's especially important in the Pelican State, where the oil and gas industry pumped $73 billion into the state's economy and supported 249,800 jobs.

Groups such as the Energy Workforce & Technology Council, Gulf Energy Alliance and the National Ocean Industries Association are lining up behind the bill.

NOIA President Erik Milito told The Center Square that this bill could present a huge opportunity for the supply chain that supports offshore projects, providing high-paying jobs. NOIA is the industry group for the offshore industry.

He also said the bill is critical for the long-term investment in U.S. oil and gas projects and for sustaining high-paying jobs on the Gulf Coast because he says President Joe Biden's administration refuses to provide leases without being forced by the courts and the Inflation Reduction Act.

"What we've seen over the past few years from this administration and restricting offshore leasing has a huge long-term effect," Milito said. "So we hope this window is put to use and this legislation makes it to the finish line because otherwise there will be long-term impacts on our nation's energy security and national security because you need to be able to lease sales to continue to invest and maximize your ability to produce energy and bring these jobs online."

The bill would require the Secretary of the Interior hold one offshore oil and gas lease sale annually from 2025 to 2029 for a minimum of five sales. It would also restrict the sales to areas of the Gulf of Mexico currently open for leases while continuing the moratorium on the eastern planning area off the coast of Florida.

"The United States of America is blessed with abundant natural resources that have powered our nation to greatness and allow us to help our friends and allies around the world," Manchin said in a news release. "Unfortunately, today our outdated permitting system is stifling our economic growth, geopolitical strength, and ability to reduce emissions.

"The Energy Permitting Reform Act will advance American energy once again to bring down prices, create domestic jobs, and allow us to continue in our role as a global energy leader. The time to act on it is now."

Each lease sale would have to be a minimum of 60 million acres and language in the bill would codify long-standing procedures for the secretary to determine a bid's adequacy.

The interior secretary would also have offer the same amount of wind leases during the 2025 to 2029 timeframe, with at least 400 thousand acres up for bid. The secretary would also have the power to authorize rights of way through any National Marine Sanctuary for transmission lines from offshore wind farms.

The bill would also require the Secretary of Energy expedite decisions on applications to export liquified natural gas to non-Free Trade Agreement countries within 90 days of the filing of the final environmental review document for the exporting facility.

One of the most important parts of the bill is the judicial reform section, would would cap judicial review of an agency action regarding energy leases at 150 days after the agency decision, unless a shorter deadline is mandated by existing law.

If a court overrules an agency decision, the agency would have a deadline of 180 days to carry out the order, unless existing law allows for a longer timeline in some cases.