Illustration: Aïda Amer/Axios
The House Natural Resources Committee is proposing billions in federal lease sales and changes to the National Environmental Policy Act as part of the GOP's reconciliation bill.
Why it matters: The committee's portion of the mega-tax bill — dropped Thursday night ahead of a markup next week — would lay the groundwork for the Trump administration's goal of expanding drilling and mining on public lands.
- It'll be the center of a high-profile fight between industry and environmental groups.
Driving the news: Chair Bruce Westerman's draft proposes nearly $15 billion worth of lease sales, according to committee aides.
- That includes four sales in the Arctic National Wildlife Refuge and leasing in the Western Gulf and Alaska's Cook Inlet.
- And it would reverse the IRA's oil and gas royalty hike, which the committee argues would actually raise revenue because it would make drilling more appealing.
- The Natural Resources proposal also includes the Public Land Renewable Energy Development Act, a longstanding bipartisan idea to set up a revenue-sharing system for wind and solar development.
The big picture: The Natural Resources slice of reconciliation, as currently crafted, would bring in $15 billion in net deficit reductions to help pay for tax cuts, committee aides said.
- That's significantly more than the $1 billion floor for the committee spelled out in the GOP budget resolution.
Yes, but: Take any scoring on leasing with a grain of salt. Their potential to generate revenue depends on industry interest and changing conditions in the oil and gas market.
- The last GOP move to open up ANWR drilling didn't generate nearly as much revenue as anticipated.
Zoom in: On permitting, Natural Resources is getting creative to comply with the budget rules governing reconciliation.
- Project sponsors would pay a fee to the federal government. In return, they would get an expedited NEPA review process and a prohibition on lawsuits against their NEPA permits.
- But the committee has also rejected Westerman's proposal to include specific project approvals, namely the Twin Metals mine, in reconciliation.
- And it doesn't include any public land sales after a storm of controversy in recent weeks.
Other notable provisions include:
- $129 million in cuts to unobligated IRA money at NOAA, including from the agency's coastal communities and climate resilience account.
- Undoing Biden-era resource management plans at Interior.
- Provisions aimed at boosting logging on public lands.
- Additional geothermal lease sales.
- $190 in spending to support President Trump's plans for the nation's 250th anniversary next year.
