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Posts Tagged ‘Department of the Interior’

WASHINGTON  Today, the Department of the Interior announced a settlement agreement with affiliates of Invenergy, North America’s largest privately held developer, owner, and operator of independent power infrastructure, aimed at strengthening American security and lowering costs, advancing goals central to President Donald Trump’s Energy Dominance Agenda.

As part of the settlement agreement, Invenergy will voluntarily terminate its affiliates’ four offshore wind leases located in the New York Bight, Central Coast of California and the Gulf of Maine totaling $765 million, and redirect that amount towards other domestic energy sources with the demonstrated capability to deliver reliable, affordable power, including the development of natural gas-fired power plants in Indiana, Wisconsin, Iowa, Kansas, and Missouri and geothermal power generation projects in the Western U.S.

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From the Dept. of the Interior:

Why This Change Is Happening  

The transition reflects more than a decade of operational experience managing offshore resources. By consolidating the planning, permitting, inspection, and enforcement responsibilities currently divided between BOEM and BSEE, the Department aims to:  

  • Improve coordination and consistency  
  • Reduce duplication of efforts  
  • Strengthen oversight and environmental safeguards  
  • Modernize organizational structure  

All current regulatory responsibilities and protections will remain in place throughout the transition. There will be no disruption to permitting, environmental reviews, or enforcement activities.

What to Expect

  • Phased Transition: Internal alignment activities begin soon.
  • No Regulatory Rollbacks: Existing requirements remain in full effect.  
  • New Website and Branding: The Marine Minerals Administration’s full digital presence will launch in the coming months.  
  • This page will be updated regularly

previous posts on this merger

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The Department of the Interior today announced the start of a phased plan to establish the Marine Minerals Administration, bringing together the functions of the Bureau of Ocean Energy Management and the Bureau of Safety and Environmental Enforcement. This action is intended to improve coordination and increase efficiencies across offshore leasing, permitting, inspections and environmental oversight, while maintaining all existing regulatory protections and rigorous safety standards. 

This streamlined approach reflects the evolution of offshore energy development and the need for a more integrated approach to managing conventional and emerging resources such as critical minerals. By aligning planning, leasing and oversight functions, the Department is positioning the agency to better meet current and future energy demands.

This is an excellent step that many OCS program veterans have been advocating. In addition to the inefficiencies associated with overlapping and intertwined BOEM and BSEE responsibilities, the associated regulatory fragmentation is a significant safety risk factor.

See the comments that I submitted to the Dept. of the Interior in response to their request for regulatory reform recommendations.

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Dominion’s suit challenging the Coastal Virginia Offshore Wind suspension order is attached.

Summary: “BOEM’s order sets forth no rational basis, cannot be reconciled with BOEM’s own regulations and prior issued lease terms and approvals, is arbitrary and capricious, is procedurally deficient, violates the Outer Continental Shelf Lands Act (“OCSLA”), and infringes upon constitutional principles that limit actions by the Executive Branch. This Court must therefore vacate the Order and enjoin BOEM from taking further action with respect to that Order.”

Key points raised by Dominion:

  • Dominion Energy Virginia (DEV) has spent approximately $8.9 billion to develop CVOW to date, which is over two-thirds of the total projected cost of $11.2 billion.
  • BOEM and Interior afforded DEV no advance warning or due process regarding the Order for CVOW.
  • The Order alleges no CVOW violation or deficiency.
  • The Order points to unnamed “national security threats” based on a November 2025 “additional assessment regarding the national security implications of offshore wind projects” by DoD, “including the rapid evolution of relevant adversary technologies and the resulting direct impacts to national security from offshore wind projects” generally.
  • The Order deems this information “new” and “classified” without any justification or detail. Moreover, as BOEM and DoD should know, certain DEV officials have security clearances to receive and review classified information, yet never were afforded such an opportunity prior to issuance of the Order.
  • DEV is suffering more than $5 million per day in losses solely for costs relating to vessel services associated with the Order. DEV is also incurring losses related to additional storage costs for the significant amount of equipment, idle workforce, contractual penalties, and additional costs.
  • BOEM’s Order comprises a single page, identifies no specific concerns, and provides no supporting documentation.
  • Agencies are required to consider costs and benefits in their decision-making
  • Agencies are required to consider alternatives in their decision-making.
  • The CVOW Order unlawfully deprives DEV of a property interest without due process.

    Dominion’s weakest argument follows (bad State legislation shouldn’t dictate Federal energy policy):

    CVOW is critical to Virginia’s legislative clean energy directive and DEV’s commitment to achieving net-zero emissions. The VCEA requires the transition of Virginia’s electric grid to 100 percent non-carbon producing energy generation by 2045. Va. Code § 56-585.5. The VCEA also states that the construction of Virginia offshore wind facilities is in the public interest. Va. Code § 56-585.1:11 (C)(1).

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      My comments in response to the Dept. of the Interior’s regulatory reform notice are attached. First and foremost, I believe these recommendations would reduce safety and environmental risks. Second, I am confident that they would also reduce governmental costs and the regulatory burden on industry.

      The first attachment discusses regulatory fragmentation and recommends actions to reduce the complexity and redundancy of the offshore regulatory regime. The second attachment proposes a Drilling Safety Leaders Pilot Program as a means of evaluating a more adaptable framework regulatory framework for operators with outstanding performance records.

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      The U.S. Department of the Interior today (5/2/2025) announced its intent to “update” the Bureau of Ocean Energy Management’s 2024 Risk Management and Financial Assurance for OCS Lease and Grant Obligations Rule. 

      Those who are concerned about minimizing the Federal government’s decommissioning risk exposure should closely monitor this process. Some companies and their political allies have sought to minimize the financial risks associated with plugging wells and removing facilities. As a result, it has been necessary to defend BOEM from unwarranted commentary about decommissioning issues and the financial assurance rule. Stay tuned!

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      The U.S. Department of the Interior will implement emergency permitting procedures to accelerate the development of domestic energy resources and critical minerals.

      I’m trying not to be skeptical, but these timelines are very ambitious. How much leeway do the words “approximately” and “roughly” provide?

      • Projects analyzed in an environmental assessment, normally taking up to one year, will now be reviewed within approximately 14 days.
      • Projects requiring a full environmental impact statement, typically a two-year process, will be reviewed in roughly 28 days

      Do we really have a “National Energy Emergency?” Environmental lawyers (and their fundraisers) will no doubt be very busy.

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      Deputy Secretary of the Interior Tommy Beaudreau was “disrupted” (perhaps a euphemism for the thuggish behavior demonstrated in the video clip below) by climate ultras in New York on Sept. 21. On Oct. 4, Mr. Beaudreau announced that he would be leaving the Dept. of the Interior.

      The official announcement provides no reasons for his departure. By all accounts, Beaudreau was highly regarded by career employees in the Department. Was he troubled by his experience in NYC and the absence of a response from DOI? Was it difficult being a lone advocate for a more balanced energy policy?

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      Secretary of the Interior Salazar will be hosting the “Ministerial Forum on Offshore Drilling Containment” on April 14, 2011, in Washington DC. Click for the draft agenda and additional information.

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      Link

      Salazar and Bromwich also announced that they are establishing a permanent advisory body through which the nation’s leading scientific, engineering, and technical experts will provide input on improving offshore drilling safety, well containment, and spill response. Secretary Salazar has asked former Sandia National Laboratory Director Tom Hunter to lead the body, which will be called the Offshore Energy Safety Advisory Committee (Safety Committee).

      The new Bureau of Ocean Energy Management (BOEM) will be responsible for managing development of the nation’s offshore resources in an environmentally and economically responsible way. Functions will include: Leasing, Plan Administration, Environmental Studies, National Environmental Policy Act (NEPA) Analysis, Resource Evaluation, Economic Analysis and the Renewable Energy Program.

      The new Bureau of Safety and Environmental Enforcement (BSEE) will enforce safety and environmental regulations. Functions will include: All field operations including Permitting and Research, Inspections, Offshore Regulatory Programs, Oil Spill Response, and newly formed Training and Environmental Compliance functions.

       

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