The House Budget Reconciliation BillThe House Budget Reconciliation Bill: : Provisions to expand offshore drilling into Provisions to expand offshore drilling into coastal areas under federal moratorium coastal areas under federal moratorium

and banned areas of the Outer and banned areas of the Outer Continental Shelf off Florida’s Coast and Continental Shelf off Florida’s Coast and

Eastern Portions of the Gulf of Mexico Eastern Portions of the Gulf of Mexico (Baltimore, 2005).(Baltimore, 2005).

By By

Emily Emily ChessinChessin

IntroductionIntroduction• Richard Pombo, the chairman of The Richard Pombo, the chairman of The

House Resources Committee House Resources Committee formulated the provision of the formulated the provision of the offshore drilling initiative in the House offshore drilling initiative in the House Resources Committee’s Budget Resources Committee’s Budget Reconciliation Bill. Reconciliation Bill.

• This initiative is part of a larger goal This initiative is part of a larger goal to open up the Arctic National Wildlife to open up the Arctic National Wildlife Refuge for oil drilling Refuge for oil drilling

• My paper focused on the specific My paper focused on the specific effects the legislation would have on effects the legislation would have on the State of Florida. the State of Florida.

Current Federal Laws on Current Federal Laws on offshore Drillingoffshore Drilling• States have States have

jurisdiction over any jurisdiction over any natural resources natural resources within 3 nautical miles within 3 nautical miles of their coastline. of their coastline.

• Florida and Texas Florida and Texas have jurisdiction over have jurisdiction over any natural resource any natural resource within 9 nautical miles within 9 nautical miles off the coast of the off the coast of the Gulf of Mexico.Gulf of Mexico.

• Any submerged lands Any submerged lands outside of the States outside of the States jurisdiction are managed jurisdiction are managed and controlled by the and controlled by the Federal government. Federal government.

• Congressional moratoriums Congressional moratoriums in effect through FY2006 in effect through FY2006 and Presidential offshore and Presidential offshore leasing prohibitions in leasing prohibitions in effect until 2012. effect until 2012.

• Prohibit offshore drilling for Prohibit offshore drilling for portions of the Outer portions of the Outer Continental Shelf Continental Shelf

The Proposed InitiativeThe Proposed Initiative

• Open areas of the Eastern Open areas of the Eastern Gulf of Mexico to oil and Gulf of Mexico to oil and natural gas productionnatural gas production

• Reduce current buffer zone Reduce current buffer zone for offshore drilling to 125 for offshore drilling to 125 milesmiles

• ““Offshore States Option Offshore States Option Acts”Acts”

• States could extend States could extend moratoriums through 2012 moratoriums through 2012 by petitioning the Secretary by petitioning the Secretary of Interiorof Interior

Incentives for states to ‘opt Incentives for states to ‘opt out’ of Federal Moratoriumsout’ of Federal Moratoriums

• Receive a portion of the lease Receive a portion of the lease royalties energy companies royalties energy companies pay to the Federal pay to the Federal government. government.

• States would receive up to States would receive up to 40%-50% of the revenue from 40%-50% of the revenue from leases leases

• Roughly splitting $1.6 billion Roughly splitting $1.6 billion dollars over 5 years with the dollars over 5 years with the Federal government. Federal government.

Proposed Initiatives cont.Proposed Initiatives cont.

• Permit natural gas drilling as close as 25 Permit natural gas drilling as close as 25 miles to the coast and oil drilling as close as miles to the coast and oil drilling as close as 50 miles to the coast of Florida.50 miles to the coast of Florida.

• Moratoriums expire the Mineral Management Moratoriums expire the Mineral Management Service could begin leasing these areas to oil Service could begin leasing these areas to oil and gas companies (Humphries, 2006). and gas companies (Humphries, 2006).

• Opens up controversial Lease sale area 181. Opens up controversial Lease sale area 181. • US defense secretary and Department of US defense secretary and Department of

Interior secretary resolve issues between oil Interior secretary resolve issues between oil and natural gas drilling operations and and natural gas drilling operations and military training operations military training operations

Foundational pieces of Foundational pieces of LegislationLegislation

• Submerged Lands Act (SLA) 1953Submerged Lands Act (SLA) 1953

• Outer Continental Shelf Lands Act (OCSLA) Outer Continental Shelf Lands Act (OCSLA) 19531953

• Coastal Zone Management Act 1972Coastal Zone Management Act 1972

• Environmental RegulationsEnvironmental Regulations– NEPA 1969NEPA 1969– CAA 1970CAA 1970– ESA 1973ESA 1973– CWA 1977CWA 1977

Proponents of the Budget Proponents of the Budget Reconciliation BillReconciliation Bill

• The chairman of the House The chairman of the House Committee on Resources Committee on Resources Richard PomboRichard Pombo

• Governor of Florida Jeb BushGovernor of Florida Jeb Bush• Florida RepublicansFlorida Republicans• House RepublicansHouse Republicans• Oil and natural gas industries Oil and natural gas industries • Trade groups that represent Trade groups that represent

energy intensive industriesenergy intensive industries

Opposition to the Budget Opposition to the Budget Reconciliation BillReconciliation Bill

• Several Florida Republican Several Florida Republican Representatives Representatives

• Florida senators, Mel Florida senators, Mel Martinez, a Republican, and Martinez, a Republican, and Bill Nelson, a democrat Bill Nelson, a democrat

• Attorney General Charlie Crist Attorney General Charlie Crist

• Environmental OrganizationEnvironmental Organization

• Local GroupsLocal Groups

StrategiesStrategies

• Including the provision in Including the provision in the Budget Reconciliation the Budget Reconciliation BillBill

• Can not be filibusteredCan not be filibustered

• Can be passed with a Can be passed with a simple majority votesimple majority vote

Update and ConclusionUpdate and Conclusion• On November 9, 2005 House Republicans removed On November 9, 2005 House Republicans removed

the language from the budget reconciliation bill on the language from the budget reconciliation bill on both drilling in Alaska’s Arctic National Wildlife both drilling in Alaska’s Arctic National Wildlife Refuge and expanding offshore drilling off of Refuge and expanding offshore drilling off of Florida’s coast. Florida’s coast.

• The Budget Reconciliation Bill is in conference The Budget Reconciliation Bill is in conference between the House and Senate and a final bill has between the House and Senate and a final bill has not yet been proposed not yet been proposed

• Far from a sound piece of legislationFar from a sound piece of legislation• Real intention: to open up as much of the Outer Real intention: to open up as much of the Outer

Continental Shelf as possible for oil and gas Continental Shelf as possible for oil and gas production. production.

• Does not consider the environmental or economic Does not consider the environmental or economic impacts that Florida and other states may sufferimpacts that Florida and other states may suffer

• Makes it a state issue rather than a national issueMakes it a state issue rather than a national issue