DRILLING DOWN: The Inflation Reduction Act reinstates an oil and gas sale that has been criticized by Democrats and environmental groups.
President Biden reinstated the largest oil and gas lease sale in U.S. history, essentially steamrolling the need for environmental review,While the Inflation Reduction Act includes several green energy provisions opposed by the fossil fuel industry, the bill also orders the Department of the Interior to take a series of steps to boost fossil fuel production on federal lands and waters.
In November, the DOI held the lease sale which generated more than $191 million in bids for 308 tracts from fossil fuel companies despite criticism from several prominent Democratic lawmakers and environmental groups. However, ain January ruling in favor of a coalition, led by Friends of the Earth and the Sierra Club, that argued the Biden administration failed to properly analyze the climate impacts of the sale.
The API and several other industry groups penned a letter to House leadership last week urging them to reconsider the legislation. The groups took particular issue with the corporate minimum tax, natural gas tax and tax on crude oil included in the bill.
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