Overnight Energy & Environment

Overnight Energy: Obama offshore drilling rule imminent

OFFSHORE RULE ON ITS WAY: The Obama administration is planning Thursday to unveil the final version of its well control rule, the biggest offshore drilling rule since the 2010 Deepwater Horizon disaster.

A person familiar with the rulemaking confirmed the plan to issue it Thursday, just under a week before the sixth anniversary of the explosion that killed 11 and led to an 87-day spill in the Gulf of Mexico.

As proposed last year, the well control rule would set a new suite of standards for the construction and operation of blowout preventers and other key safety equipment and practices for offshore oil and natural gas drilling.

{mosads}”Through this proposed rule, we’re requiring more stringent design requirements and stricter operational procedures for critical equipment used in offshore energy development,” Interior Secretary Sally Jewell said in announcing the proposal last year.

“We owe it to the American people to ensure we’re developing these resources responsibly and safely,” she said.

The oil and natural gas industry opposes key portions of the rule, saying some provisions are unnecessary, costly and could actually decrease safety in the offshore industry.

An industry-commissioned study earlier this year said up to 190,000 jobs are at risk from the new standards.

Read more here.

APPROPRIATING: The House and Senate Appropriations subcommittees with energy and water jurisdiction approved their bills for fiscal 2017 funding Wednesday.

Democrats did not oppose the approvals at either meeting, though the House Democrats weren’t completely pleased with their version of the bill, and hinted they could propose amendments later in the process.

The House’s $37.4 billion bill prioritizes fossil fuel research and development and takes funding away from Obama’s clean energy priorities. It also focuses more attention on the Department of Energy’s nuclear weapons programs.

“This bill rejects the budget request’s proposal to reduce investment in the energy sources that we rely on today,” said Rep. Mike Simpson (R-Idaho), the panel’s chairman.

“Within energy programs, the recommendation rebalances the portfolio to provide a true all-of-the-above strategy,” he said. “This bill includes strong funding for nuclear energy, providing research and development to ensure a safe, efficient, reliable nuclear fleet, and laying the foundation for the next generation of nuclear reactors.”

In the Senate, leaders decided to put forth a bipartisan bill with no controversial policy provisions.

“The bill that Sen. [Dianne] Feinstein and I have negotiated has focused on discretionary funding; it invests in our waterways; it puts us one step closer to doubling basic energy research; it helps to resolve the nuclear waste stalemate that both she and I are determined, one way or another, to resolve,” said Sen. Lamar Alexander (R-Tenn.), the chairman.

The actions line up the bills for full committee consideration, which is scheduled for Thursday in the Senate.

Read more here and here.

ENERGY BILL COMING BACK TO THE SENATE FLOOR: The Senate’s Energy Policy Modernization Act is coming back to the floor for more amendment votes, weeks after disagreements over funding for the Flint, Mich., water crisis derailed it.

Sen. Bill Nelson (D-Fla.) has dropped his hold on the bill, which was based on a potential amendment regarding offshore drilling.

Keep an eye on The Hill for more details and developments.

ON TAP THURSDAY I: The Senate Appropriations Committee will meet to consider its energy and water funding bill for fiscal 2017, along with other business. The bill passed the subcommittee Wednesday.

ON TAP THURSDAY II: The House Energy and Commerce Committee’s energy and power subcommittee will hold a hearing to change the implementation of the Environmental Protection Agency’s (EPA) ozone regulation from last year. Top environmental officials from Arizona, Utah, Delaware, southern California and Texas will testify.

Rest of Thursday’s agenda…

The Senate Energy and Natural Resources Committee’s public lands subcommittee will hold a hearing on the Bureau of Land Management’s proposed rule to limit natural gas venting and flaring on federal and American Indian land. Senators will hear from representatives of the Interior Department, Wyoming’s Department of Environmental Quality, the Southern Ute Indian Tribe, Flir Systems Inc. and the Western Energy Alliance.

The House Transportation and Infrastructure Committee’s emergency management subpanel will hold a hearing on the possibility of a cyberattack or other major failure in the electrical grid. Major Obama administration officials will testify, including Federal Emergency Management Agency head Craig Fugate and top Energy Department and Homeland Security Department officials in charge of the matter.

IN CASE YOU MISSED IT:

Check out Wednesday’s stories…

– Senators subpoena EPA officials over mine waste spill

– Obama to issue new offshore drilling rule

– Senate subcommittee passes $37.5B energy, water funding bill

– House panel passes $37.4 billion energy, water funding bill

– Republicans say EPA rules would stall racing industry

– Lawmakers look to prevent future Flints

– World’s largest coal company files for bankruptcy

– Sanders injects fracking into battle for NY

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