(Washington, D.C.) – U.S. Senator David Vitter, top Republican on the Senate Environment and Public Works Committee (R-La.) and U.S. Congressman Rob Bishop (R-Utah) today introduced their Energy Production and Project Delivery Act of 2013. This bicameral effort would immediately help address the nation’s energy, job, and financial crises by unleashing domestic energy resources, creating millions of jobs, and generating significant federal revenues from energy production. Vitter’s legislation will also increase federal revenue sharing for offshore oil and gas production without incurring more debt in Washington.
“There’s no disputing the fact that our nation’s domestic energy production on federal lands and waters has been stymied by this administration and is trending in the exact opposite direction of the rapid growth we’re seeing on private and state lands. This legislation would reverse that trend by increasing access to our domestic resources,” said Vitter. “Maybe the most important part of our bill for Louisiana is that we’ll significantly increase federal offshore revenue sharing - which is completely paid for.”
The bill’s Senate cosponsors include: John Barrasso (R-Wyo.), Roy Blunt (R-Mo.), Saxby Chambliss (R-Ga.), Daniel Coats (R-Ind.), Thad Cochran (R-Miss.), John Cornyn (R-Texas), Mike Crapo (R-Idaho), Ted Cruz (R-Texas), Michael Enzi (R-Wyo.), Dean Heller (R-Nev.), John Hoeven (R-N.D.), James Inhofe (R-Okla.), Mike Johanns (R-Neb.), Johnny Isakson (R-Ga.), Ron Johnson (R-Wis.), James Risch (R-Idaho), Richard Shelby (R-Ala.), Pat Toomey (R-Penn.), Roger Wicker (R-Miss.).
Additional information on the legislation is below.
Energy Production and Project Delivery Act of 2013
Under Current Law:
• Gulf producing states receive a share of the revenue from only a handful of leases until 2016.
o 2011 the total amount shared with states was $314 thousand.
• Beginning in 2017 a larger bulk of Gulf producing leases will begin sharing revenues with Gulf producing states.
o 2017 to 2055 cap on revenues shared will be $500 million.
Under Energy Production and Project Delivery Act of 2013:
• Increases revenue sharing with offshore producing states along all our coasts, including an additional $3 billion annually, offset with increased production and expedited leasing in areas currently off limits. Revenue sharing provisions as follows:
o Gulf $1 billion for 2017-2024
$2 billion for 2025-2055
o Atlantic $500 million 2024-2055
o Pacific $500 million 2024-2055
o Arctic $500 million 2024-2055
• Requiring the Secretary of Interior to open closed areas of the OCS for mineral leasing could create 1.2 million long-term and well-paying jobs.
• Over the next 30 years, increased OCS leasing could generate approximately $8.2 trillion in GDP, or approximately $273 billion per year. Potential to provide more than $2.2 trillion in incremental tax receipts.
• Opens production along all our coasts and expedites a new 5-year lease plan that provides more than double the access of the current 5-year plan.
• Opens ANWR to oil and gas production which could create approximately 730,000 jobs.
• Leasing ANWR could generate over $114 billion in royalty revenue plus another $95 billion in corporate income tax revenue.
Regulatory Streamlining and Project Delivery
• Expedites judicial review of energy projects on federal lands so that they are not caught up in extended legal challenges. According to the CBO, the number one action that could have been taken to accelerate spending authorized in the stimulus package was streamlining the National Environmental Policy Act (NEPA) environmental and judicial review processes.
• The U.S. Chamber of Commerce has identified more than 300 projects around the United States that are tied-up in environmental lawsuits. All 300 could provide a significant number of jobs to workers and families in need.
• Prevents EPA from regulating CO2 under the Clean Air Act (CAA) until China, India and Russia are similarly willing. EPA regulation of CO2 under the CAA could result in the average loss of over 500,000 jobs annually and over $7 trillion in GDP over the next 20 years.
• Requires EPA to do full economic analysis of the employment effects of EPA regulation under the Clean Air Act.
• The ESA was not intended to be used as a tool for climate change regulatory actions to further put American workers out of work, or to crush private landowners. This would prevent the consideration of greenhouse gases in ESA listings.
• Expedites the permitting of the Keystone XL Pipeline (20,000 jobs).
Economic Impacts Over Next 30 Years (conservative)
• 2 million jobs, $10 trillion to our GDP, and over $2.2 trillion in federal taxes.
Supporting Organizations: U.S. Chamber of Commerce, Americans for Prosperity, Americans for Limited Government, Americans for Tax Reform, National Taxpayers Union, Western Business Roundtable