Surprise: Inflation-reduction bill makes oil and gas development on federal lands unattractive
The following is an excerpt from a blog post by Columbia Climate School Sabine Center for Climate Change Law.
photo: USDA NRCS Texas
During Tuesday’s signing ceremony, President Biden described Inflation Reduction Act (IRA) as “one of the most important laws in our history”.Political rhetoric aside, its passage Major achievements. After decades of inaction on climate change, the US Congress has finally taken a step forward. The IRA allocates billions of dollars to support the development of renewable energy, electric vehicles and other clean technologies to reduce greenhouse gas emissions. But, like many things happening in Congress, the IRA was a compromise.
Many have complained that the IRA includes provisions that benefit the fossil fuel industry. Of particular concern is the prohibition of the Interior Department from leasing federal land for wind and solar projects unless it provides leases of a certain amount of land for oil and gas development. Linking land leases for renewable energy projects to fossil fuel development in this way is problematic for a number of reasons. But its real-world impact may be more limited than many fear.
IRA issues conditions on leases for renewable energy projects only offerings Land used for oil and gas development. No actual sale of oil and gas leases is required. Industry interest in developing oil and gas resources on federal lands has declined in recent years, resulting in fewer leases being sold. This trend is likely to continue in the years ahead due to other changes to the IRA-mandated federal land lease program and various market forces.
The IRA is asking the Bureau of Land Management to make major changes to its oil and gas lease program — changes that could hinder oil and gas development on federal lands.
Read about the changes on the Sabine Center blog.
