The US House Committee on Natural Resources has unanimously approved the passing of H.R. 5577, the Innovation in Offshore Leasing Act, which modernizes the Bureau of Ocean Management’s (BOEM) offshore leasing process through the use of internet-based oil and natural gas lease sales.
H.R. 5577 passed as part of a broader unanimous consent package.
“This bill is an important improvement to the federal government’s ancient process for offshore oil and gas leasing. I applaud the work of Rep. Graves in developing an innovative framework for an outdated process,” chairman Rob Bishop said.
Currently, the Secretary of the Interior conducts sealed-bid lease sales for offshore oil and natural gas leasing, in which bids are opened and read aloud in the Superdome in New Orleans, Louisiana. Transitioning to internet-based technologies will bring greater efficiency and transparency to the Department of the Interior’s (DOI) offshore leasing process.
“This is a step forward for taxpayers. It’s a change that makes sense, plain and simple. My six year old uses the internet – the government should embrace this change,” Rep. Graves stated. “It will save taxpayers money, increase transparency for the public and level the playing field so that businesses access the opportunity in the Gulf. Most importantly, the increased competition for offshore energy will maximize value of this important public resource.”
H.R. 5577 is one piece of legislation in the Innovation Initiative spearheaded by House Majority Leader Kevin McCarthy (R-CA) and Chief Deputy Whip Patrick McHenry (R-NC). The initiative seeks to remove government-made obstacles to innovation and bring government into the 21st Century.
“The process to lease federal land could be the poster child for inefficiencies and outdated processes that frustrate Americans’ interaction with government. The Innovation Initiative was designed to streamline government programs to bring them into the 21st Century and I am thrilled Representative Garrett Graves has introduced this legislation,” McCarthy said.
The National Ocean Industries Association (NOIA) commended the decision.
“NOIA commends Chairman Rob Bishop (R-UT) and the members of the House Natural Resources Committee for passing the Innovation in Offshore Leasing Act out of committee. Sponsored by Representatives Garret Graves (R-LA) and Alan Lowenthal (D-CA), H.R. 5577 is a common-sense way to update the offshore lease sale process,” NOIA President Randall Luthi said. Incorporating internet-based technologies are cost-effective improvements that can increase transparency and efficiency in the offshore lease sale process. NOIA looks forward to working with the House of Representatives in seeing this bill passed.”
Image from BOEM.
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