- Imposes job-killing changes and higher taxes for onshore natural gas and oil production. It fundamentally changes leasing onshore by the Forest Service and Bureau of Land Management, which affects not just leasing for natural gas and oil, but also for renewable energy including wind and solar. Forest Service and BLM leasing are shoved into the three new agencies that are replacing the former Minerals Management Service (MMS).
- Creates over $30 billion in new mandatory spending for two programs that have nothing to do with the oil spill (the Land and Water Conservation Fund and the Historic Preservation Fund). In the version of the bill headed to the House floor, Democrats added brand new language that expressly allows this $30 billion to be earmarked by the Appropriations Committee.
- Raises taxes by over $22 billion in ten years – with the taxes eventually climbing to nearly $3 billion per year. This is a direct tax on natural gas and oil that will raise energy prices for American families and businesses, hurt domestic jobs, and increase our dependence on foreign oil. This tax only applies to U.S. oil and gas production on federal leases – giving an advantage to foreign oil and hurting American energy jobs.
- Requires the federal takeover of state authority to permit in state waters, which reverses sixty years of precedent. The mismanagement, corruption and oversight failures of the federal government are being used as justification to expand federal control by seizing management from the states.
- Allows 10% of all offshore revenues – an amount possibly as high as $500 million per year – to be spent on a new fund controlled by the Interior Secretary to issue ocean research grants (ORCA fund). There is no requirement that the fund is used for the Gulf region or anything related to oil spills or offshore drilling. These funds can be earmarked.
- Establishes “marine spatial planning” regulatory authority – which allows for ocean zoning that could lead to restrictions on fishing, energy production and even onshore activities such as farming. This vague new regulatory authority could cost fishing jobs, energy jobs, manufacturing jobs, farming jobs, and many more jobs that may impact waterways that drain into the ocean.