Subscribe today to the Washington Examiner magazine and get Washington Briefing: politics and policy stories that will keep you up to date with what’s going on in Washington. SUBSCRIBE NOW: Just $1.00 an issue!
BLM RESPONDS: BLM is pushing back on claims that its proposed public lands rule aimed at prioritizing land conservation and restoration is a violation of federal law that would substantially harm resource development in large swaths of the country—seeking to put to rest new complaints from a cohort of Western states and Alaska who have already said they are prepared to challenge the agency’s proposal in court.
States argue that BLM is violating the 1976 Federal Land Policy and Management Act, or FLPMA, by changing the rule to put conservation on an equal playing field with other land uses defined by the law, including but not limited to mining, oil drilling, and cattle grazing.
But BLM contends that the proposed rule would allow it to better uphold its duty to manage federal lands, and deliver on its duty to prevent “unnecessary or undue degradation” and ensure lands are both accessible and productive for future generations.
The proposed public lands rule “is completely consistent with the [FLPMA],” a spokesman for the agency told Breanne in an email this morning, as the law “directs BLM to preserve and protect public lands in their natural condition when appropriate.”
“The proposed Public Lands Rule would not change that or create new laws; it is consistent with the current laws that apply to BLM’s management of public lands,” the spokesman said.
Opposition: States say the proposed regulation is a “flagrant violation” of federal law.
In the view of Montana Attorney General Austin Knudsen, who spoke to Breanne in an interview last week, it is Congress—not a federal agency—that must amend and approve any changes or updates.
Opposition to the draft rule has come largely from Western states and Alaska, who argued in letters to BLM and interior last week that the proposed rule both exceeds the agency’s statutory authority and threatens substantial harm to states’ respective economies.
Why it matters: The federal government owns 63% of lands in Idaho, 30% in Montana, 65% in Utah, and 60% in Alaska—all of which are rich with minerals, oil and gas resources, timber, wildlife, and other land resources that are crucial to their economies. The effort has also sparked an outcry from renewable energy and fossil fuel groups, who fear the rule would force various project developments to a halt.
Industry groups, including major mining, petroleum, farming, and cattle groups have also filed comments opposing the rule.
Next steps: BLM must first review and conduct a public comment analysis on the more than 215,000 comments submitted during the 75-day window. It will then either modify or finalize the proposed rule—clearing the way for states to file an official lawsuit.
If approved in its current form, the next step is probably a multi-state lawsuit in which the attorneys general will seek a court injunction to get the rule blocked—an outcome Knudsen said he’s very confident they’d receive if the case was brought before a judge.
States are already in preliminary talks about issuing a challenge, and there seems to be a big appetite among them to move forward with a lawsuit, he said.
Knudsen said states are hoping BLM will do the right thing and back away from the rule, but told Breanne in the interview that he put the odds on the agency significantly amending its proposed regulation at slim to none.
Welcome to Daily on Energy, written by Washington Examiner Energy and Environment Writer Breanne Deppisch (@breanne_dep). Email [email protected] for tips, suggestions, calendar items, and anything else. If a friend sent this to you and you’d like to sign up, click here. If signing up doesn’t work, shoot us an email, and we’ll add you to our list.
SCHUMER LOOKS FOR PROGRESS IN PERMITTING TALKS: Senate Majority Leader Chuck Schumer said in a “Dear Colleague” letter sent yesterday ahead of the Senate’s return that bipartisan talks to “unlock permitting reform” will be a part of the mix.
He warned that passing legislation won’t be easy, and “will depend on cooperation of our Republican colleagues.”
NUCLEAR GENERATION REBOUNDS IN FRANCE, UTILITY SAYS: Nuclear power output from France’s EDF-operated reactors jumped 12.4% in June compared to the same month last year, according to the utility company, bringing total generation in June to roughly 22 terawatt hours (tWh).
In total, France’s reactors have seen a 2.6% increase in activity so far compared to the same period in 2022. The rebound in generation comes after France’s nuclear reactors were taken offline for longer than expected last year for planned maintenance, contributing to a drop in energy production at a crucial time for the bloc.
France is the EU’s largest provider of nuclear power, and has the highest share of nuclear power in its energy mix at nearly 69%.
U.S. LNG EXPORT PROJECTS FACE POTENTIAL STAFFING SHORTAGES: New U.S. liquified natural gas export projects currently being built are expected to be short-staffed once construction is complete, prompting developers to scramble to expand development and training opportunities and coordinate various projects to avoid major labor shortages.
In total, the eight new projects underway are slated to add an additional 86 million tonnes per annum (MTPA) of LNG export capacity once completed. They’re also expected to add thousands of new construction jobs and hundreds of new jobs for operators.
LNG project developer Bechtel currently employs more than 3,000 professionals at its facilities, but projects the number will grow to nearly 20,000 at its peak, according to one top official.
Bechtel and other developers said they must significantly ramp up training and closely coordinate construction dates to ensure they can move workers from other plants to the new facilities—a bid to avoid soaring labor costs and staffing shortages.
“We have multiple projects that are under way at the same time and four mega projects, with the possibility of a fifth to be announced soon, and they require the same type of labor,” Alex Munton, a director at the Rapidan Energy Group, told Reuters. “This will drive up labor costs, increase schedule risks and create productivity issues.”
TWO HEARINGS THIS WEEK IN HOUSE GOP PUSHBACK AGAINST ESG: The GOP-led House Financial Services Committee is holding two hearings this week aimed at ESG, part of a broader effort this week to highlight and criticize environment and social goals in finance.
The first, Wednesday, will focus on the proxy process and also the SEC climate disclosure rule.
The second, Friday, will focus on the effects of ESG on housing and insurance.
The panel’s actions are part of a multi-front Republican war against ESG mandates, which has mostly been led by state-level officials, particularly treasurers, but has also featured heavily in the early going in the presidential primary.
The Rundown
The Guardian ‘What are we willing to sacrifice?’ A journey down America’s most endangered river
Reuters Mexican Pemex estimates platform fire shut in 7,00,000 barrels of oil
