H.R. 4480, Strategic Energy Production Act of 2012

Update: Passed 6/21/2012 on vote of 248-163.

H.R. 4480, the Strategic Energy Production Act, would establish certain fees for activities related to the development of oil and gas on federal lands. The bill also would direct the Secretary of the Interior to take actions aimed at facilitating onshore oil and gas leasing and production on federal lands; direct the Department of Energy to develop a plan to increase the amount of acreage leased for oil and gas development on federal lands if the department sells oil from the Strategic Oil Reserve; and establish an interagency committee to analyze the impact of certain rules and actions taken by the Environmental Protection Agency on gasoline, diesel fuel, and natural gas prices.

H.R. 4480 combines five bills approved by the House Committee on Natural Resources and two bills approved by the House Committee on Energy and Commerce. CBO has prepared cost estimates for the following bills:

• H.R. 2150, the National Petroleum Reserve Alaska Access Act, as ordered reported by the House Committee on Natural Resources on July 13, 2011;
• H.R. 2752, the BLM Live Internet Auctions Act, as ordered reported by the House Committee on Natural Resources on October 5, 2012;
• H.R. 4381, the Planning for American Energy Act of 2012, as ordered reported by the House Committee on Natural Resources on May 16, 2012;
• H.R. 4382, the Providing Leasing Certainty for American Energy Act of 2012, as ordered reported by the House Committee on Natural Resources on May 16, 2012;
• H.R. 4383, the Streamlining Permitting of American Energy Act of 2012, as ordered reported by the House Committee on Natural Resources on May 16, 2012;
• H.R. 4471, the Gasoline Regulations Act of 2012, as ordered reported by the House Committee on Energy and Commerce on April 25, 2012; and
• H.R. 4480, the Strategic Energy Production Act of 2012, as ordered reported by the House Committee on Energy and Commerce on May 17, 2012.

Energy and Power Subcommittee member Cory Gardner (R-CO), together with several of his colleagues, has introduced H.R. 4480, the Strategic Energy Production Act to provide a solution. The Strategic Energy Production Act of 2012 requires the Secretary of Energy to develop a plan to increase the percentage of federal lands leased for oil and gas production after the next SPR sale. Currently only three percent of federal land is leased for oil and gas development. The increase in the percentage of federal lands leased would be commensurate with the percentage that was drawn down from the SPR. The lands available for leasing would be among the vast 2.4 billion acres of government lands under the jurisdiction of the Department of Agriculture, Department of the Interior, Department of Defense.

Strategic Energy Production Act of 2012: What it Will Do

• Would make a release from the SPR part of longer term energy strategy by requiring more federal lands to be leased after a release.
• Would address the growing problem of falling production of oil on federal lands.

The Strategic Energy Production Act of 2012: What it Will Not Do

• Would not limit the ability of the president to release oil from the SPR.
• Would not open more then 10 percent of federal lands to leasing.
• Would not allow leasing on federal lands managed under the National Park Service or National Wilderness Preservation System.

(CBO, House Energy & Commerce Committee, Status & Summary-GovTrack)