[House Report 118-405]
[From the U.S. Government Publishing Office]


118th Congress   }                                       {      Report
                        HOUSE OF REPRESENTATIVES
 2d Session      }                                       {     118-405

======================================================================



 
 BRINGING RELIABLE INVESTMENT INTO DOMESTIC GULF ENERGY PRODUCTION ACT 
                                OF 2023

                                _______
                                

 March 5, 2024.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

 Mr. Westerman, from the Committee on Natural Resources, submitted the 
                               following

                              R E P O R T

                             together with

                            DISSENTING VIEWS

                        [To accompany H.R. 5616]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Natural Resources, to whom was referred 
the bill (H.R. 5616) to require the Secretary of the Interior 
to conduct certain offshore lease sales, having considered the 
same, reports favorably thereon with an amendment and 
recommends that the bill as amended do pass.
    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Bringing Reliable Investment into 
Domestic Gulf Energy Production Act of 2023'' or the ``BRIDGE 
Production Act of 2023''.

SEC. 2. OFFSHORE OIL AND GAS LEASE SALES.

  (a) Definitions.--In this section:
          (1) Offshore lease sale.--The term ``offshore lease sale'' 
        means an oil and gas lease sale--
                  (A) that is held by the Secretary in accordance with 
                the Outer Continental Shelf Lands Act (43 U.S.C. 1331 
                et seq.), notwithstanding the requirements of section 
                18 of that Act (43 U.S.C. 1344);
                  (B) that, with respect to lease sales in the Gulf of 
                Mexico region, offers the same lease form, lease terms, 
                economic conditions, and stipulations as contained in 
                the final notice of sale entitled ``Gulf of Mexico 
                Outer Continental Shelf Oil and Gas Lease Sale 257'' 
                (86 Fed. Reg. 54728 (October 4, 2021)); and
                  (C) that, if any acceptable bids have been received 
                for any tract offered in the lease sale, results in the 
                issuance of leases within 90 days of the sale to the 
                highest bids on the tracts offered, subject to the 
                Bureau of Ocean Energy Management ``Summary of 
                Procedures for Determining Bid Adequacy at Offshore Oil 
                and Gas Lease Sales Effective March 2016, with Central 
                Gulf of Mexico Sale 241 and Eastern Gulf of Mexico Sale 
                226''.
          (2) Secretary.--The term ``Secretary'' means the Secretary of 
        the Interior.
  (b) Waiver.--The Secretary may waive any other requirements under 
section 18 of the Outer Continental Shelf Lands Act (43 U.S.C. 1344) 
that would delay final approval of an offshore lease sale under 
subsection (c).
  (c) Requirement.--Notwithstanding section 18 of the Outer Continental 
Shelf Lands Act (43 U.S.C. 1344), the Secretary shall--
          (1) conduct not fewer than 13 offshore lease sales during the 
        5-year period beginning on the date of enactment of this Act, 
        including 10 lease sales in the Gulf of Mexico region and 3 
        lease sales in the Cook Inlet Planning Area, notwithstanding 
        lease sales which are held under the 2024-2029 Proposed Final 
        Program (88 Fed. Reg. 67798 (October 2, 2023)); and
          (2) ensure that the 2017-2022 Outer Continental Shelf Oil and 
        Gas Leasing Program Final Programmatic Environmental Impact 
        Statement and Record of Decision shall apply to lease sales 
        conducted under this subsection and shall be sufficient for 
        purposes of complying with the National Environmental Policy 
        Act for offshore lease sales conducted under this subsection to 
        the extent it does not conflict with this Act.
  (d) Timing.--
          (1) Gulf of mexico region.--In conducting the offshore lease 
        sales in the Gulf of Mexico region required under subsection 
        (c), the Secretary shall conduct an offshore lease sale not 
        later than--
                  (A) March 31, 2024;
                  (B) August 31, 2024;
                  (C) March 31, 2025;
                  (D) August 31, 2025;
                  (E) March 31, 2026;
                  (F) August 31, 2026;
                  (G) March 31, 2027;
                  (H) August 31, 2027;
                  (I) March 31, 2028; and
                  (J) August 31, 2028.
          (2) Cook inlet planning area.--In conducting the offshore 
        lease sales in the Cook Inlet Planning Area required under 
        subsection (c), the Secretary shall conduct an offshore lease 
        sale not later than--
                  (A) August 31, 2025;
                  (B) March 31, 2027; and
                  (C) August 31, 2028.
  (e) Area Offered for Lease.--
          (1) Acreage.--The Secretary shall offer not fewer than 
        80,000,000 acres for each offshore lease sale conducted under 
        subsection (c) for offshore lease sales in the Gulf of Mexico 
        Region. The Secretary shall offer not fewer than 1,000,000 
        acres for each region wide lease sale conducted under 
        subsection (c) in the Cook Inlet Planning Area.
          (2) Location.--An offshore lease sale conducted under 
        subsection (c)--
                  (A) in the Gulf of Mexico region shall offer the 
                areas identified in Figure S-1 of the 2017-2022 Outer 
                Continental Shelf Oil and Gas Leasing Proposed Final 
                Program published on November 18, 2016, by the Bureau 
                of Ocean Energy Management (as announced in the notice 
                of availability of the Bureau of Ocean Energy 
                Management entitled ``Notice of Availability of the 
                2017-2022 Outer Continental Shelf Oil and Gas Leasing 
                Proposed Final Program'' (81 Fed. Reg. 84612 (November 
                23, 2016))); and
                  (B) in the Cook Inlet Planning Area shall offer the 
                areas identified in Figure S-2 of the 2017-2022 Outer 
                Continental Shelf Oil and Gas Leasing Proposed Final 
                Program published on November 18, 2016, by the Bureau 
                of Ocean Energy Management (as announced in the notice 
                of availability of the Bureau of Ocean Energy 
                Management entitled ``Notice of Availability of the 
                2017-2022 Outer Continental Shelf Oil and Gas Leasing 
                Proposed Final Program'' (81 Fed. Reg. 84612 (November 
                23, 2016))).
  (f) Effect of Litigation.--
          (1) In general.--A civil action challenging an offshore lease 
        sale conducted under this section shall not--
                  (A) affect the validity of any lease issued under 
                such an offshore lease sale; and
                  (B) except as provided in paragraph (3)(B), cause a 
                delay in the timelines for the consideration of any 
                exploration plan, development plan, development 
                operations coordination document, applications for 
                permit to drill, or other application for a Federal 
                agency authorization or approval for activities on a 
                lease issued under such an offshore lease sale.
          (2) Remand; processing of approvals and applications.--If, in 
        a civil action described in paragraph (1), a court finds that 
        the offshore lease sale was not carried out in compliance with 
        Federal law--
                  (A) the court shall not--
                          (i) set aside, vacate, or enjoin the offshore 
                        lease sale;
                          (ii) set aside, vacate, or enjoin the leases 
                        issued pursuant to the offshore lease sale; or
                          (iii) enjoin the Secretary from issuing 
                        leases to the highest bidders in the challenged 
                        offshore lease sale;
                  (B) the court shall remand the matter to the 
                Secretary and require the Secretary to correct the 
                noncompliance; and
                  (C) the Secretary shall continue to process all 
                exploration plans, development plans, development 
                operations coordination documents, applications for a 
                permit to drill, and other applications for a Federal 
                agency authorization or other approval for activities 
                requested under any lease issued under the challenged 
                offshore lease sale in accordance with the Outer 
                Continental Shelf Lands Act (43 U.S.C. 1331 et seq.).
          (3) Notice.--
                  (A) In general.--Not later than 10 days after the 
                date on which a civil action described in paragraph (1) 
                is served on the United States, the Secretary shall 
                notify the holder of any lease issued, or apparent high 
                bidder if the lease has not yet been issued, under the 
                offshore lease sale that is the subject of the civil 
                action of the filing of the civil action.
                  (B) Timeline.--Not later than 90 days after the date 
                of receipt of a notice under subparagraph (A), the 
                holder of the lease may file with the Secretary, and 
                the Secretary may approve, a request to pause the 
                timeline with respect to the term of the lease during 
                any period in which the civil action is pending.

                       PURPOSE OF THE LEGISLATION

    The purpose of H.R. 5616 is to require the Secretary of the 
Interior to conduct certain offshore lease sales.

                  BACKGROUND AND NEED FOR LEGISLATION

    H.R. 5616 would require the Bureau of Ocean Energy 
Management (BOEM) to hold two offshore lease sales in the Gulf 
of Mexico in 2024 and 2025. Rep. Graves offered an amendment in 
nature of a substitute during Committee markup to add two sales 
in the years 2026, 2027 and 2028 to address anticipated 
deficiencies in BOEM's proposed 2024-2029 National Outer 
Continental Shelf Oil and Gas Leasing Proposed Final Program 
(proposed 2024-2029 Program).\1\ BOEM's proposed 2024-2029 
Program only included three potential sales in the Gulf of 
Mexico over five years and no sales in Alaska, which is the 
lowest number of sales in the history of the offshore leasing 
program.
---------------------------------------------------------------------------
    \1\Bureau of Ocean Energy Management, 2024-2029 National OCS Oil 
and Gas Leasing Proposed Final Program, September 2023. https://
www.boem.gov/sites/default/files/documents/oil-gas-energy/leasing/2024-
2029NatOCSOilGasLeasing_FinalPEISVol1.pdf.
---------------------------------------------------------------------------
    At the time of the Committee's consideration of H.R. 5616, 
BOEM had not adequately planned to hold lease sales in 2024 and 
2025. BOEM was not on track to hold any offshore lease sales in 
2024, and scheduling sales appeared unlikely in 2025 due to 
lengthy review processes anticipated under the National 
Environmental Policy Act (NEPA). The delays in the lease sale 
planning process, combined with the Biden administration's 
decision to propose only three sales in the proposed 2024-2029 
Program compared to the 47 sales considered in the initial 
planning phases, created uncertainty about the U.S.'s long-term 
energy strategy in the Gulf of Mexico (GOM) and Alaska.
    During the Committee markup, an amendment was accepted to 
add three sales in Alaska's Cook Inlet. To ensure certainty for 
bidders and that robust sales are held, the bill also requires 
that BOEM offer the same lease form, terms, economic 
conditions, and stipulations utilized for Lease Sale 257, as 
well as the bid adequacy procedures made effective March 8, 
2016. Additionally, the bill addresses legal challenges to 
offshore lease sales, ensuring that such actions do not 
invalidate leases, the sale or cause undue delays.
    BOEM released the final 2024-2029 National Outer 
Continental Shelf Oil and Gas Leasing Proposed Final Program 
(2024-2029 Program) nearly two years late. Consistent with the 
proposed 2024-2029 Proposed Final Program, the final 2024-2029 
Program includes only three potential sales in the Gulf of 
Mexico planning area and contains no new lease sales in Alaska. 
The Biden administration's Record of Decision for the 2024-2029 
Program was published 18 months after the previous plan expired 
and will become effective on July 1, 2024.\2\ This timing 
ensures a two-year gap between the 2017-2022 leasing program 
and the 2024-2029 Program, marking a significant shift from any 
previous administration's stance. This delay guarantees no 
offshore oil and gas lease sales in 2024 and raises uncertainty 
about the possibility of sales in 2025 under the Biden 
administration.
---------------------------------------------------------------------------
    \2\U.S. Department of the Interior, Oil and Gas Energy, Decision 
Memo, Signed National Program, Record of Decision--December 14, 2023 
https://www.boem.gov/sites/default/files/
documents/oil-gas-energy/Decision-Memo-National-Program-SIGNED.pdf.
---------------------------------------------------------------------------

                            COMMITTEE ACTION

    H.R. 5616 was introduced on September 21, 2023, by Rep. 
Garret Graves (R-LA). The bill was referred to the Committee on 
Natural Resources, and within the Committee to the Subcommittee 
on Energy and Mineral Resources. On September 28, 2023, the 
Subcommittee on Energy and Mineral Resources held a hearing on 
the bill. On October 25-26, 2023, the Committee on Natural 
Resources met to consider the bill. The Subcommittee on Energy 
and Mineral Resources was discharged from further consideration 
of H.R. 5616 by unanimous consent. Rep. Graves (R-LA) offered 
an amendment in the nature of a substitute designated 
Graves_077 ANS. Rep. Pete Stauber (R-MN) offered an amendment 
to the amendment in the nature of a substitute designated 
Stauber_01. The amendment was adopted by a roll call vote of 21 
yeas to 17 nays, as follows:

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

    Rep. Jared Huffman (D-CA) offered an amendment to the 
amendment in the nature of a substitute designated Huffman #1. 
The amendment was not adopted by a roll call vote of 18 yeas to 
20 nays, as follows:

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

    Rep. Sydney Kamlager-Dove (D-CA) offered an amendment to 
the amendment in the nature of a substitute designated 
Kamlager-Dove #2. The amendment was not adopted by a roll call 
vote of 18 yeas to 21 nays, as follows:

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

    Rep. Debbie Dingell (D-MI) offered an amendment to the 
amendment in the nature of a substitute designated Dingell #3. 
The amendment was not adopted by a roll call vote of 18 yeas to 
21 nays, as follows:

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

    Rep. Jared Huffman (D-CA) offered an amendment to the 
amendment in the nature of a substitute designated Huffman #4. 
The amendment was not adopted by a roll call vote of 18 yeas to 
21 nays, as follows:

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

    The amendment in the nature of a substitute, as amended, 
was adopted by voice vote. H.R. 5616, as amended, was ordered 
favorably reported to the House of Representatives by a roll 
call vote of 22 yeas to 17 nays, as follows:

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

                                HEARINGS

    For the purposes of clause 3(c)(6) of House rule XIII, the 
following hearing was used to develop or consider this measure: 
hearing by the Subcommittee on Energy and Mineral Resources 
held on September 28, 2023.

                      SECTION-BY-SECTION ANALYSIS

Section 1. Short title

    Section 1 establishes the short title of the bill as the 
``Bringing Reliable Investment into Domestic Gulf Energy 
Production Act of 2023'' or the ``BRIDGE Production Act of 
2023.''

Section 2. Offshore oil and gas lease sales

    Section 2(a) defines the terms ``offshore lease sale'' and 
``Secretary.''
    Section 2(b) allows the Secretary to waive certain 
requirements to expedite the lease sale process.
    Section 2(c) requires the Secretary to conduct 13 offshore 
lease sales within a 5-year period and specifically requires 10 
lease sales in the Gulf of Mexico region and 3 lease sales in 
the Cook Inlet Planning Area.
    Section 2(d) establishes deadlines for conducting offshore 
lease sales in the Gulf of Mexico region and the Cook Inlet 
Planning Area.
    Section 2(e) specifies the acreage to be offered for each 
offshore lease sale in these regions.
    Section 2(f) addresses potential legal challenges to 
offshore lease sales, ensuring such actions do not invalidate 
leases or cause undue delays.

            COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS

    Regarding clause 2(b)(1) of rule X and clause 3(c)(1) of 
rule XIII of the Rules of the House of Representatives, the 
Committee on Natural Resources' oversight findings and 
recommendations are reflected in the body of this report.

                  COMPLIANCE WITH HOUSE RULE XIII AND 
                        CONGRESSIONAL BUDGET ACT

    1. Cost of Legislation and the Congressional Budget Act. 
With respect to the requirements of clause 3(c)(2) and (3) of 
rule XIII of the Rules of the House of Representatives and 
sections 308(a) and 402 of the Congressional Budget Act of 
1974, the Committee has received the following estimate for the 
bill from the Director of the Congressional Budget Office:

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]


    The bill would:
           Require the Bureau of Ocean Energy 
        Management (BOEM) to conduct at least 13 offshore oil 
        and gas lease sales during the next five years
    Estimated budgetary effects would mainly stem from:
           Increases in offsetting receipts, which are 
        treated as decreases in direct spending, from payments 
        stemming from the leases
    Areas of significant uncertainty include:
           Identifying whether BOEM would hold 
        additional offshore wind lease sales
           Projecting the number of new oil and gas 
        leases that would be issued under the bill
           Estimating the total amount of oil or gas 
        that would be produced from new leases
           Predicting future prices of oil and gas
    Bill summary: H.R. 5616 would require the Bureau of Ocean 
Energy Management (BOEM) to conduct at least 13 offshore oil 
and gas lease sales on the Outer Continental Shelf (OCS), 
including 10 in the Gulf of Mexico and 3 in Alaska's Cook Inlet 
Planning Area over the five-year period following enactment.
    Estimated Federal cost: The estimated budgetary effect of 
H.R. 5616 is shown in Table 1. The costs of the legislation 
fall within budget functions 300 (natural resources and 
environment) and 950 (undistributed offsetting receipts).

                                            TABLE 1.--ESTIMATED DECREASES IN DIRECT SPENDING UNDER H.R. 5616
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                            By fiscal year, millions of dollars--
                                    --------------------------------------------------------------------------------------------------------------------
                                                                                                                                        2024-     2024-
                                      2024    2025     2026     2027     2028     2029     2030     2031     2032     2033     2034     2029      2034
--------------------------------------------------------------------------------------------------------------------------------------------------------
Bonus Bids:
    Estimated Budget Authority.....      0      -60     -260     -210     -260     -210        0        0        0        0        0    -1,000    -1,000
    Estimated Outlays..............      0      -60     -260     -210     -260     -210        0        0        0        0        0    -1,000    -1,000
Rent Payments:
    Estimated Budget Authority.....      0        *       -5       -5      -10      -10       -5       -5       -5       -5        *       -30       -50
    Estimated Outlays..............      0        *       -5       -5      -10      -10       -5       -5       -5       -5        *       -30       -50
Royalty Payments:
    Estimated Budget Authority.....      0        0        0        0      -20     -140     -310     -490     -690     -740     -760      -160    -3,150
    Estimated Outlays..............      0        0        0        0      -20     -140     -310     -490     -690     -740     -760      -160    -3,150
Total Decreases:
    Estimated Budget Authority.....      0      -60     -265     -215     -290     -360     -315     -495     -695     -745     -760    -1,190    -4,200
    Estimated Outlays..............      0      -60     -265     -215     -290     -360     -315     -495     -695     -745     -760    -1,190    -4,200
--------------------------------------------------------------------------------------------------------------------------------------------------------
* = between -$500,000 and zero.

    Basis of estimate: For this estimate, CBO assumes that H.R. 
5616 will be enacted during 2024. The estimates are based on 
the economic and technical assumptions underlying CBO's 
February 2024 baseline projections, which incorporates the 
assumption that BOEM will implement its current plan for oil 
and gas leasing on the OCS.\1\
---------------------------------------------------------------------------
    \1\See Bureau of Ocean Energy Management, 2024-2029 National Outer 
Continental Shelf Oil and Gas Leasing: Proposed Final Program 
(September 2023), http://tinyurl.com/52s8k96w.
---------------------------------------------------------------------------
    Background: Federally owned energy resources are developed 
under a leasing system that requires companies to bid on tracts 
of OCS land. Winning bidders make payments called bonus bids 
when leases are issued, pay annual rent on nonproducing leases, 
and pay royalties or fees on the value of any oil, gas, or 
electricity produced from the leased land. Those payments are 
recorded in the budget as offsetting receipts, which are 
treated as reductions in direct spending.
    In September 2023, BOEM released its five-year plan for 
holding oil and gas lease sales for OCS land during the 2024-
2029 period. BOEM is required to issue a forward-looking 
leasing schedule pursuant to the Outer Continental Shelf Lands 
Act; any significant revision to that schedule requires a 
rulemaking and consultation process. Under the current five-
year plan, the agency intends to hold three lease sales in the 
Gulf of Mexico: one each in 2025, 2027, and 2029. The plan does 
not include any lease sales in the Alaska OCS.
    Direct spending: CBO estimates that enacting H.R. 5616 
would increase offsetting receipts by about $4.2 billion over 
the 2024-2034 period, stemming from additional collections of 
bonus bids, rents, and royalties.
    Bonus Bids. Under the bill, BOEM would need to hold 10 
additional offshore oil and gas lease sales by the middle of 
fiscal year 2029, including 7 in the Gulf of Mexico and 3 in 
the Cook Inlet Planning Area of Alaska's OCS. Because planning 
and executing a lease sale takes between six months and two 
years, CBO expects that the two new oil and gas lease sales 
required in 2024 under the bill would occur in later years.
    From 2025 to 2029, CBO expects BOEM would hold two 
additional oil and gas lease sales in the Gulf of Mexico each 
year. As specified in the bill, CBO expects that BOEM would 
hold lease sales in the Cook Inlet Planning Area in 2025, 2027, 
and 2028. Based on the recent history of bonus bid collections 
per oil and gas lease sale, CBO expects that offsetting 
receipts from additional bonus bids would increase by $700 
million over the 2024-2034 period.
    Under the 2022 reconciliation legislation (Public Law 117-
169), for BOEM to hold a lease sale for offshore wind in any 
year, the agency must have held an offshore oil and gas lease 
sale in the preceding year. Because H.R. 5616 would add oil and 
gas lease sales in 2026 and 2028 (which are not expected in 
CBO's February 2024 baseline), BOEM could hold wind lease sales 
in 2027 and 2029 under the bill. Based on the recent history of 
bonus bid collections per wind lease sale, CBO expects that 
BOEM would collect $600 million in bonus bids from two 
additional wind lease sales. However, because BOEM is not 
mandated to hold offshore wind sales the year after an offshore 
oil and gas sale, CBO cannot predict whether BOEM would choose 
to hold such sales in 2027 and 2029. Therefore, CBO applies a 
50 percent probability that additional wind lease sales would 
be held in those years. On that basis, we estimate that 
offsetting receipts from bonus bids for wind lease sales would 
increase by $300 million over the 2024-2034 period.
    In total, CBO estimates that BOEM would collect $1 billion 
in additional bonus bids over the 2024-2034 period.
    Rent payments. CBO expects that all leaseholders pay rent 
in the year of the sale, with declining numbers of leaseholders 
paying rent in subsequent years. Using historical information 
about the percentage of leaseholders that do not produce oil, 
gas, or electricity in the years following a lease sale, CBO 
estimates that offsetting receipts from additional rent 
payments would increase by $50 million over the 2024-2034 
period.
    Royalty payments. Under current law, BOEM collects 
royalties on oil and gas produced on leased land at a 
percentage the agency specifies in the lease sale. Based on 
royalty rates set in recent lease sales, CBO expects that oil 
and gas produced on land newly leased under H.R. 5616 would 
have a royalty rate of 18.75 percent.
    Using information about the number of new deepwater and 
shallow water leases that have produced oil and gas in recent 
years, CBO expects that new lease sales under the bill would 
yield about 20 new deepwater leases and four new shallow water 
leases that would produce oil and gas. CBO expects that those 
leaseholders would, on average, begin producing oil and gas 
three years after acquiring the lease and would continue 
producing for decades into the future. On that basis, CBO 
estimates that under the bill offsetting receipts from royalty 
payments would increase by about $3.2 billion over the 2024-
2034 period.
    CBO expects that royalties stemming from new wind leases 
would not be collected until after 2034.
    Spending subject to appropriation: Using information from 
BOEM, CBO estimates that it would cost $19 million over the 
2024-2029 period for the agency to hold 10 additional lease 
sales (see Table 2). That amount would support about six 
additional employees annually as well as specialized software 
applications and subsurface data acquisitions. Any spending 
would be subject to the availability of appropriated funds.

               TABLE 2.--ESTIMATED INCREASES IN SPENDING SUBJECT TO APPROPRIATION UNDER H.R. 5616
----------------------------------------------------------------------------------------------------------------
                                                              By fiscal year, millions of dollars--
                                                ----------------------------------------------------------------
                                                   2024     2025     2026     2027     2028     2029   2024-2029
----------------------------------------------------------------------------------------------------------------
Estimated Authorization........................        *        4        4        4        4        4        20
Estimated Outlays..............................        *        3        4        4        4        4        19
----------------------------------------------------------------------------------------------------------------
* = between zero and $500,000.

    Uncertainty: CBO's estimates of the amount of offsetting 
receipts that would be collected from new offshore energy 
leases under H.R. 5616 are uncertain.
    Whether BOEM would hold additional offshore wind lease 
sales under the bill is uncertain. Current law requires BOEM to 
hold an oil and gas lease sale in the year immediately before 
an offshore wind sale. However, BOEM is not required to hold a 
wind lease sale in the year following an oil and gas lease 
sale. Therefore, CBO assigns a 50 percent probability that BOEM 
would hold wind sales in 2027 and 2029 under the bill. 
Depending on whether BOEM chooses to hold such sales under the 
bill, offsetting receipts from bonus bids would be higher or 
lower than CBO estimated.
    CBO's estimated offsetting receipts stemming from oil and 
gas leases under the bill also are subject to uncertainty. 
Specific sources of uncertainty include:
           The total number of leases that would be 
        issued under the OCS sales required in the bill, which 
        depend on private interest in leasing for oil and gas 
        in the Gulf of Mexico and Alaska;
           The total amount of oil or gas that would be 
        produced from OCS land leased under the bill, which 
        depends on the technical and economic characteristics 
        of each tract of land leased; and
           Future oil or gas prices, which depend on 
        future market conditions and would affect royalties and 
        bonus payments for offshore leases.
    Pay-As-You-Go considerations: The Statutory Pay-As-You-Go 
Act of 2010 establishes budget-reporting and enforcement 
procedures for legislation affecting direct spending or 
revenues. The net changes in outlays that are subject to those 
pay-as-you-go procedures are shown in Table 3.

    TABLE 3.--CBO'S ESTIMATE OF THE STATUTORY PAY-AS-YOU-GO EFFECTS OF H.R. 5616, THE BRIDGE PRODUCTION ACT OF 2023, AS ORDERED REPORTED BY THE HOUSE
                                                     COMMITTEE NATURAL RESOURCES ON OCTOBER 26, 2023
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                           By fiscal year, millions of dollars--
                                  ----------------------------------------------------------------------------------------------------------------------
                                    2024    2025     2026     2027     2028     2029     2030     2031     2032     2033     2034   2024-2029  2024-2034
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               NET DECREASE IN THE DEFICIT
 
Pay-As-You-Go Effect.............      -0     -60     -265     -215     -290     -360     -315     -495     -695     -745     -760     -1,190     -4,200
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Increase in long-term net direct spending and deficits: CBO 
estimates that enacting H.R. 5616 would not increase net direct 
spending or deficits in any of the four consecutive 10-year 
periods beginning in 2035.
    Mandates: The bill contains no intergovernmental or 
private-sector mandates as defined in the Unfunded Mandates 
Reform Act.
    Estimate prepared by: Federal costs: David Hughes; 
Mandates: Rachel Austin.
    Estimate reviewed by: Robert Reese, Chief, Natural and 
Physical Resources Cost Estimates Unit; Kathleen FitzGerald, 
Chief, Public and Private Mandates Unit; H. Samuel Papenfuss, 
Deputy Director of Budget Analysis; Chad Chirico, Director of 
Budget Analysis.
    Estimate approved by: Phillip L. Swagel, Director, 
Congressional Budget Office.
    2. General Performance Goals and Objectives. As required by 
clause 3(c)(4) of rule XIII, the general performance goal or 
objective of this bill is to require the Secretary of the 
Interior to conduct certain offshore lease sales.

                           EARMARK STATEMENT

    This bill does not contain any Congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined 
under clauses 9(e), 9(f), and 9(g) of rule XXI of the Rules of 
the House of Representatives.

                 UNFUNDED MANDATES REFORM ACT STATEMENT

    According to the Congressional Budget Office, H.R. 5616 
contains no unfunded mandates as defined in the Unfunded 
Mandates Reform Act.

                           EXISTING PROGRAMS

    Directed Rule Making. This bill does not contain any 
directed rule makings.
    Duplication of Existing Programs. This bill does not 
establish or reauthorize a program of the federal government 
known to be duplicative of another program. Such program was 
not included in any report from the Government Accountability 
Office to Congress pursuant to section 21 of Public Law 111-139 
or identified in the most recent Catalog of Federal Domestic 
Assistance published pursuant to the Federal Program 
Information Act (Public Law 95-220, as amended by Public Law 
98-169) as relating to other programs.

                  APPLICABILITY TO LEGISLATIVE BRANCH

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

                PREEMPTION OF STATE, LOCAL OR TRIBAL LAW

    Any preemptive effect of this bill over state, local, or 
tribal law is intended to be consistent with the bill's 
purposes and text and the Supremacy Clause of Article VI of the 
U.S. Constitution.

                        CHANGES IN EXISTING LAW

    As ordered reported by the Committee on Natural Resources, 
H.R. 5616 would make no changes in existing law.

                            DISSENTING VIEWS

    H.R. 5616 would force the Bureau of Ocean Energy Management 
(BOEM) to hold ten offshore oil and gas lease sales in the Gulf 
of Mexico and three in the Cook Inlet Planning Area offshore 
Alaska in the five-year period following the enactment of the 
Act. These 13 lease sales would be in addition to the three 
proposed lease sales in DOI's recently released 2024-2029 five-
year plan.
    Under this legislation, each lease sale in the Gulf of 
Mexico is required to be at least 80 million acres, essentially 
the entire central and western Gulf of Mexico--there are only 
83 million unleased acres in the region.\1\ The lease sales 
would also be offered at pre--Inflation Reduction Act (IRA) 
terms, meaning lower royalty rates (12.5 percent rather than 
the new minimum of 16.67 percent) and no fees on methane 
emissions. The legislation would also waive the requirements 
for BOEM to review the balance between development and 
environmental risks in a certain region; expressed interest 
from oil and gas producers; the laws, goals, and policies of 
affected states; and other information as required by Section 
18 of the Outer Continental Shelf Lands Act (OCSLA) if doing so 
would delay issuance of a lease. The bill would also entirely 
waive National Environmental Policy Act (NEPA) requirements, 
including environmental review and community input, and 
eliminate the ability for citizens to sue to stop a lease, even 
if there are legal violations.
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    \1\BOEM, GOM Interactive Lease Statistics Dashboard, Last Accessed 
September 22, 2023, https://www.boem.gov/gom-interactive-lease-
statistics-dashboard. According to BOEM, there are 95 million acres in 
the central and western GOM, and over 12 million have been leased.
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    On September 29, 2023, the Biden administration released 
the 2024-2029 Proposed Final Program for offshore oil and gas 
leasing (five-year plan), containing three lease sales in the 
Gulf of Mexico, the minimum under the terms in the Inflation 
Reduction Act to sustain offshore wind leasing through 2030.\2\ 
This is the fewest number of lease sales in a five-year plan in 
history--the Trump administration proposed 47 lease sales, 
although that plan was never finalized. Including a sale or 
area in the five-year plan does not necessarily mean that BOEM 
will hold the lease sale; however, no areas or leases not 
included in the program will be considered for leasing during 
the period.
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    \2\U.S. Department of the Interior, Press Release, September 29, 
2023, https://www.doi.gov/pressreleases/reflecting-americas-rapid-and-
accelerating-shift-clean-energy-interior-department.

                   2024-2029 PROPOSED FINAL PROGRAM\3\
------------------------------------------------------------------------
             Sale Number                         Area              Year
------------------------------------------------------------------------
262..................................  Gulf of Mexico Region...     2025
263..................................  Gulf of Mexico Region...     2027
264..................................  Gulf of Mexico Region...     2029
------------------------------------------------------------------------

    If the U.S. is to meet President Biden's goals to reduce 
emissions by 50-52 percent of 2005 levels by 2030 and stay 
consistent with the International Panel on Climate Change's 
science-backed pollution guidance, the U.S. needs to rapidly 
reduce its reliance on and production of fossil fuels.\4\ 
However, offshore oil production in the Gulf of Mexico has 
steadily increased over the last decade. The U.S. is currently 
the number one producer of oil and gas in the world and a top 
exporter.\5\
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    \3\BOEM, 2024-2029 National Outer Continental Shelf Oil and Gas 
Leasing Proposed Final Program, September 2023, https://www.boem.gov/
sites/default/files/documents/oil-gas-energy/
leasing/2024-2029_NationalOCSProgram_PFP_Sept_2023.pdf.
    \4\``FACT SHEET: President Biden Sets 2030 Greenhouse Gas Pollution 
Reduction Target Aimed at Creating Good-Paying Union Jobs and Securing 
US Leadership on Clean Energy Technologies,'' The White House, April 
22, 2021, https://www.whitehouse.gov/briefing-room/
statements-releases/2021/04/22/fact-sheet-president-biden-sets-2030-
greenhouse-gas-pollution-
reduction-target-aimed-at-creating-good-paying-union-jobs-and-securing-
u-s-leadership-on-clean-
energy-technologies/.
    \5\Congressional Research Service (CRS), Federal Offshore Oil and 
Gas Revenues During the COVID-19 Pandemic, March 8, 2021, https://
crsreports.congress.gov/product/pdf/IF/IF11649.
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    In 2022, Big Oil made a record $219 billion in profits and 
paid shareholders a record $110 billion in dividends and stock 
buybacks.\6\ Additionally, the U.S. Energy Information 
Administration, the Federal Energy Regulatory Commission, and 
the head of global natural gas research at Goldman Sachs have 
all found that the increased export of natural gas causes 
increased prices and volatility for American 
consumers.\7\\8\\9\
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    \6\Big Oil refers to the 6 largest Western oil and gas companies, 
Shell, BP, TotalEnergies, Chevron, ExxonMobil, and Equinor. See ``Big 
Oil doubles profits in blockbuster 2022,'' Reuters, February 8, 2023. 
https://www.reuters.com/business/energy/big-oil-doubles-profits-
blockbuster-2022-2023-02-08/.
    \7\Effects of Liquefied Natural Gas Exports on the U.S. Natural Gas 
Market, at page 7, www.eia.gov/outlooks/aeo/IIF_LNG/.
    \8\Federal Energy Regulatory Commission, ``Winter Energy Market and 
Reliability Assessment 2022-2023.'' https://ferc.gov/media/report-2022-
2023-winter-assessment.
    \9\Lily Jamali, Marketplace, July 11, 2023, https://
www.marketplace.org/2023/07/11/buffetts-berkshire-hathaway-ramps-up-
investment-in-liquefied-natural-gas/.
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    According to the International Monetary Fund, when the 
externalized costs of fossil fuel production are accounted for, 
including health, environmental, and climate costs, the U.S. 
spends $649 billion per year on fossil fuel subsidies.\10\ The 
federal government's direct fossil fuel subsidies are $20.5 
billion annually, according to conservative estimates, 
including over 13 tax breaks, below-market lease and royalty 
rates, fossil fuel research and development, and financing 
international fossil fuel projects.\11\ When tax breaks, 
especially write-offs for taxes paid to foreign governments, 
are considered, many major oil and gas companies pay roughly 
half the standard federal corporate tax rate of 35 percent. In 
2009, Exxon Mobil paid zero U.S. federal income taxes.\12\
---------------------------------------------------------------------------
    \10\Coady, D. et al. ``Global Fossil Fuel Subsidies Remain Large: 
An Update on Country-Level Estimates.'' International Monetary Fund. 
2019. https://www.imf.org/en/Publications/WP/Issues/2019/05/02/Global-
Fossil-Fuel-Subsidies-Remain-Large-An-Update-Based-on-Country-Level-
Estimates-46509.
    \11\Oil Change International, October 2017, Dirty Energy Dominance: 
Dependent on Denial http://priceofoil.org/content/uploads/2017/10/
OCIUS_Fossil-Fuel-Subs-2015-16_Final_Oct2017. pdf.
    \12\Oceana, Oil & Gas Subsidies: Myth vs. Fact, Accessed September 
22, 2023, https://usa.oceana.org/oil-gas-subsidies-myth-vs-fact/.
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    This legislation is yet another giveaway to the fossil fuel 
industry. Republicans argue that we need to extract even more 
oil and gas from our public lands and waters to lower gas 
prices and become ``energy independent,'' but the U.S. is 
already the world's number one producer and a top exporter of 
oil and gas and that has failed to make us independent from 
price fluctuations of these global commodities.\13\ Fossil fuel 
companies continue to reap record profits to the detriment of 
Americans at the pump.
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    \13\U.S. Energy Information Administration. ``Crude Oil 
Production.'' Accessed September 21, 2023, https://www.eia.gov/dnav/
pet/hist/LeafHandler.ashx?n=pet&s=mcrfp3fm2&f=a.
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    Additionally, and it cannot be understated, oil and gas 
development is a public health hazard. In ``Cancer Alley'' in 
Louisiana, the cancer risk is nearly 50 times higher than the 
national average due to nearby chemical plants and oil 
refineries.\14\ It's long past time we put an end to 
sacrificing environmental justice communities for the sake of 
industry profits.
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    \14\``Waiting to Die'' (July 2019). University Network for Human 
Rights, https://www.epa.gov/sites/default/files/2019-12/documents/
waiting_to_die_final.pdf.
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    For these reasons, Congress should reject H.R. 5616.

                                          Raul M. Grijalva,
                                                    Ranking Member.

                                  [all]