White House/Executive Agencies
The Administration had a full plate in May, with numerous domestic and international issues rearing their heads. Under pressure to continue to move forward his agenda, President Biden unveiled his delayed FY2022 budget request late in the month. Totaling $6 trillion in spending, the request includes over $580 million to plug abandoned wells, and makes a bevy of changes to portions of the tax code affecting natural gas and oil companies, with the Made in America Tax Plan included within the American Jobs Plan portion of the request. These include everything from repealing credits, expensing, and deductions on EOR, FDII, tertiary injectants, and ICDs, to modifying FOGEI/FORI rules and limiting inversions.
Senate
The Senate continued confirming President Biden’s nominees throughout May, tallying an additional 10. On the energy front, the Senate Finance Committee held a hearing examining the Clean Energy for America Act, a Democrat-sponsored bill that would look to make substantial changes to portions of the tax code affecting natural gas and oil companies. The bill advanced out of the committee in a narrow party line vote, and aims to legislate on President’s Biden’s Executive Order 14008, which called for the repeal of fossil fuel-friendly tax provisions. It will likely be included as part of a future appropriations package. The Senate Energy & Natural Resources Committee examined federal leasing in the OCS, with Senators grilling BOEM Director Amanda Lefton on the Administration’s plans to hold leases over the next four years. The committee also held hearings examining offshore green energy development, forest management, and carbon sequestration.
House
The House was busy in May, passing several bills ranging on issues from hate crimes, homebuyer assistance, and COVID-19 supplies enhancement. Now that the President’s budget, which contains topline spending numbers for the 12 or so area of the government to fund, Democrats will start drafting their appropriations bills after the Memorial Day break, with subcommittee markups beginning June 24.
On the energy front, May saw several hearings, including several in the Natural Resources Committee covering tax policy as it relates to the industry, expanding clean energy on federal lands, and examining offshore energy development. The Energy and Commerce Committee was also busy, holding three hearings on the CLEAN Future Act, which would legislate on several issues concerning wastewater. Heading into June, IADC is tracking several bills the House has yet to take up:
- H.R. 1503 – Restoring Community Input and Public Protections in Oil and Gas Leasing Act of 2021 (Rep. Levin)
- H.R. 1492 – Methane Waste Prevention Act of 2021 (Rep. DeGette)
- H.R. 1505 – Bonding Reform and Taxpayer Protection Act of 2021 (Rep. Lowenthal)
- H.R. 1506 – Transparency in Energy Production Act of 2021 (Rep. Lowenthal)
- H.R. 1517 – Ending Taxpayer Welfare for Oil and Gas Companies Act of 2021 (Rep. Porter)
