At a February 24th Senate Energy and Natural Resources Committee hearing on the Department of Interior (DOI)’s FY2016 budget request, Secretary Sally Jewell and Deputy Secretary Mike Connor answered questions from lawmakers on many issues tracked by TCS, including coal royalty reform, oil and gas leasing, budget caps and sequestration, and the U.S. Forest Service (USFS) maintenance backlog.

The hearing began with opening statements by Chairman Murkowski (R-AK), Ranking Member Cantwell (D-WA), and Secretary Jewell. In her opening statement, Cantwell pointed out that reforms to ensure a fair return for taxpayers for coal mined on federal lands are missing from the budget request, and that taxpayers do not receive enough in royalties from coal. This concern was further echoed by Senator Wyden (D-OR), who said that the proposed Bureau of Land Management (BLM) coal royalty payment rule needs to do more to ensure taxpayers a fair return. Senator Daines (R-MT) expressed frustration with the Administration’s claims of an “all of the above” approach to energy development, which actually excludes coal from its funding plans.

Senators Murkowski (R-AK), Hoeven (R-ND), Cassidy (R-LA), and Daines (R-MT) further raised the issue of oil and gas leasing and permitting, arguing that DOI is not issuing permits fast enough for projects. Senator Barrasso (R-WY) inquired about permits for accessing gathering lines at natural gas facilities in order to better reduce methane venting and flaring. Secretary Jewell acknowledged that reducing methane emissions due to natural gas is an important priority.

Senator King (D-ME) asked the Secretary how DOI’s budget request fits into the budget sequestration process, to which Jewell responded that this budget seeks to move beyond sequestration and budget caps.

TCS has long argued that adhering to fiscal discipline would eliminate the need for sequestration and that an across-the-board cut to all energy subsidies would help level the playing field.

Taxpayers must receive a fair return for resources extracted from public lands and waters, and we hope that as the appropriations process moves forward, important reforms to make federal mineral leasing and the related royalty collection system more transparent, fair, and accountable are included.