Departmental Highlights DH - 39 New Energy Frontier New Energy Frontier The Administration has implemented a true all-of-the-above approach to American energy, with renewable energy from sources like wind and solar doubling since the President took office, while at the same time domestic oil and gas production has increased each year. Ken Salazar, Secretary of the Interior October 23, 2012 On May 7, 2012, Secretary of the Interior Ken Salazar “flipped the switch” on the Enbridge Silver State North solar project, the first large-scale solar energy facility on U.S. public lands to deliver power to American consumers. Located 40 miles south of Las Vegas, Nevada, Silver State North is a 50 mega- watt plant that will use photovoltaic technology to generate enough power for nearly 9,000 Nevada homes. Constructed on 618 acres of public land managed by the Bureau of Land Management, the solar project underwent full environmental analysis and public review. The BLM worked closely with Federal, State and local partners, members of the environmental and conservation community, and interested stakeholders to protect wildlife and advance this environmentally sound project. This milestone is in line with theAdministration’s broad commitment to expand production of all sources of American made energy, including renewable sources such as wind and solar. Innovation and technology are helping to create a new energy frontier in America. The Department of the Interior is an integral part of that effort as the steward of the Nation’s public lands. Interior manages one-fifth of the Nation’s landmass and 1.7 billion acres of the Outer Continental Shelf, and has the resources to help America responsibly produce more energy at home. Oil and gas development on Federal lands and waters presently account for nearly 23 percent of the Nation’s energy supply. Under Interior’s stewardship, responsible domestic energy development, both conventional and re- newable, has made significant contributions to the Nation’s energy security and to the clean energy economy of the future. Just four years ago, in 2009, there was not a single commercial solar energy project on or under de- velopment on Federal lands. Since then, Interior has authorized 37 renewable energy projects on or through the public lands, which if fully developed, will provide more than 11,500 megawatts of power, enough to power more than 3.8 million homes, ac- cording to developer estimates. At the end of 2012, domestic crude oil produc- tion was higher than at any time since 1992 and natural gas production was at its highest level ever.
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DepartmentalHighlights DH-39 NewEnergyFrontier
NewEnergyFrontier
The Administration has implemented a true all-of-the-above approach to American energy, with renewable energy from sources like wind and solar doubling since the President took office, while at the same time domestic oil and gas production has increased each year.
Ken Salazar, Secretary of the InteriorOctober 23, 2012
OnMay7,2012,SecretaryoftheInteriorKenSalazar“flippedtheswitch”ontheEnbridgeSilverStateNorthsolarproject,thefirstlarge-scalesolarenergyfacilityonU.S.public lands todeliverpower toAmericanconsumers.Located40milessouthofLasVegas,Nevada,SilverStateNorthisa50mega-wattplantthatwillusephotovoltaictechnologytogenerateenoughpowerfornearly9,000Nevadahomes. Constructedon618acresofpublic landmanagedbytheBureauofLandManagement,thesolarprojectunderwentfullenvironmentalanalysisandpublicreview.TheBLMworkedcloselywithFederal,Stateandlocalpartners,membersoftheenvironmentalandconservationcommunity,andinterested stakeholders to protect wildlife andadvancethisenvironmentallysoundproject.ThismilestoneisinlinewiththeAdministration’sbroadcommitmenttoexpandproductionofallsourcesofAmericanmade energy, including renewablesourcessuchaswindandsolar.
InnovationandtechnologyarehelpingtocreateanewenergyfrontierinAmerica.TheDepartmentoftheInteriorisanintegralpartofthateffortasthestewardoftheNation’spubliclands.Interiormanagesone-fifthoftheNation’slandmassand1.7billionacresoftheOuterContinentalShelf,andhastheresourcestohelpAmericaresponsiblyproducemoreenergyathome.OilandgasdevelopmentonFederallandsandwaterspresentlyaccountfornearly23percentof theNation’senergysupply.UnderInterior’sstewardship,responsibledomesticenergy development, both conventional and re-newable,hasmadesignificantcontributionstotheNation’senergysecurityandtothecleanenergyeconomyofthefuture.
Justfouryearsago,in2009,therewasnotasinglecommercial solar energyproject onorunderde-velopmentonFederal lands. Sincethen,Interiorhasauthorized37renewableenergyprojectsonorthroughthepubliclands,whichiffullydeveloped,willprovidemorethan11,500megawattsofpower,enoughtopowermorethan3.8millionhomes,ac-cordingtodeveloperestimates.
At the end of 2012, domestic crude oil produc-tionwashigher thanat any time since 1992 andnaturalgasproductionwasatitshighestlevelever.
NewEnergyFrontier DH-40 DepartmentalHighlights
parTnersHips are advanCing THe new energy fronTier
These renewable energy projects reflect the Obama Administration’s commitment to expand domestic energy production on our public lands and diversify our Nation’s energy portfolio.
Ken Salazar, Secretary of the InteriorMarch 13, 2013
Workingtogether,theStateofCaliforniaandtheDepartmentoftheInteriorhaveestablishedauniquepartnershipinsupportoftheStateandFederalgovernment’scleanenergygoals.Since2009,thealignedFederal and State permitting and environmental reviewprocesses have advanced five gigawatts of wind, solar,geothermal, and transmission projects on public lands inCalifornia,andmorethan15gigawattsState-wide.
These resources are a significant driver of U.S.economic development and employment. TheDepartment estimates that in 2011, oil, gas, coal,hydropower,windpower,geothermalpower,solarpower, and other mineral activities on Interior-managedlandsandoffshoreareassupportednearly1.5millionjobsand$275billionineconomicactivity.Excluding hydropower, the Energy InformationAdministrationprojectsincreasedgenerationfromrenewableenergyintheelectricpowersector.Thiswillaccountfor33percentoftheoverallgrowthinelectricitygenerationfrom2010to2035.Accordingto theBureauofLaborStatistics, employment inelectricpowergeneration, transmission, anddis-
NewEnergyFrontier DH-42 DepartmentalHighlights
tributionisexpectedtodeclineby0.9percenteachyearforthenexttenyears. TheBureaupredicts,however,greenenergy,especiallywindandsolar,willaccount fora largershareof theU.S.energysupply.Asthesesectorsexpand,theneedforbothhigh-andlow-skilledworkerstoconstruct,maintain,andoperateplantswillgrow.
Interior’s focus onAmerica’s energy future sup-portsanall-inclusiveapproach,onethatresponsiblydevelopsnotonlyconventionalbutalsorenewableresourcesontheNation’spubliclands.Interior’sresourceprogramsareworkingtoachievearespon-siblebalancebetweenreducingrelianceonimportedoilandbroadeningtheNation’senergyportfolio,whilealsoensuringthatitchoosestherightplacestodevelopandenforcingstrongsafetystandardsindevelopment.
Responsible and Accountable Energy Develop-ment – In2014, theDepartmentwill continue toadvancea suiteof reforms toget thebest returnforthetaxpayer,encouragediligentdevelopment,andstrengthenrevenuecollectionprocesses.TheseeffortswillcapitalizeonthereorganizationoftheformerMineralsManagementService,completedin2012,intotheBureauofOceanEnergyManagement,BureauofSafetyandEnvironmentalEnforcement,andOfficeofNaturalResourcesRevenuewithintheOfficeoftheSecretary.Togetherthesereformswillpromotemaximumtransparencyinagencydecisionsand processes, a priority for thisAdministrationandtheSecretary.
Topromotetransparencyandequitywithinenergymarkets, Interior is leading theAdministration’sefforttoimplementtheExtractiveIndustriesTrans-parencyInitiative.TheEITIrequiresgovernmentstopubliclydisclosetheirrevenuesfromoil,gas,and
TheU.S. Extractive IndustriesTransparencyInitiativeMulti-StakeholderGroupispilotinganewapproachtoparticipatorygovernment,bringingrepresentativesfromindustry,gov-ernment,andthepublictogethertodevelopnewwaystobringgreatertransparencytotherevenuethatisgeneratedandcollectedfromextractive processes of the Nation’s naturalresources.
TheEITIisavoluntary,globaleffortdesignedtoincreasetransparency,strengthentheaccount-abilityofnaturalresourcerevenuereporting,andbuildpublictrustforthegovernanceofthesevitalactivities. EachNation’sEITIre-portingrequirementsiscountry-specificanddevelopedjointlybyamulti-stakeholdergroupcomprisedofmembersofthepublic,govern-ment, and companies through amulti-year,consensus-basedprocess.
Participatingcountriespubliclydiscloserev-enuesreceivedbythegovernmentforoil,gas,andmining development, while companiesmake corresponding disclosures regardingthesesamepaymentstothegovernment.Bothsetsofdataare reviewedand reconciledbya mutually agreed upon independent thirdparty,andresultsarethenreleasedinapublicreport.ThegoalsunderEITIcomplementthetop to bottom reforms of Interior’s naturalresource management undertaken over thelastthreeyears.
AttheinauguralmeetingoftheU.S.EITIMulti-StakeholderGroupinFebruary2013,SamanthaPower, SeniorAdvisor to the President andSenior Director for Multilateral Affairs andHumanRights,described theU.S.EITIas acriticaltoolinthefightagainstcorruption,aneffectiveweapontoensuregreatertranspar-encyandempowercitizens.
In 2012, Interior established a newPriorityGoaltargetingonshoreoilandgasoperationstoensuretaxpayersarereceivingrevenuesowedforproduc-tionandthatoperationsaresafeandenvironmentallyresponsible.AlthoughthePriorityGoalfocusesontheonshore inspectionandmonitoringprogram,milestonesanddeliverableswillbeusedtogaugethereductionofrisksinotherareasofproductionandrevenuecollection.Interiorestablishedthisgoaltoproducetangibleresultsinanareaidentifiedforimprovement by theGovernmentAccountabilityOffice.
The 2014 request for New Energy Frontier pro-gramsincludes$99.9millionforrenewableenergyactivities, a $26.4 million increase over the 2012level.Combinedcurrentandpermanentfundingforconventionalenergyandcomplianceactivitiestotals$671.7million, an increaseof$71.0millionoverthe2012level.NewEnergyFrontierfundingin2014maintains theDepartment’semphasisonstrategicinvestmentstoadvancerenewableenergydevelopment,encouragedomesticenergyproduc-tion,enhanceenvironmentalenforcementfunctions,expandtrainingandelectronicinspectioncapabili-ties,andfundoperationalsafetyimprovements.
ToTal ................................. 674.2 771.6 +97.5
The2014requestalsoassumesseveral legislativeand administrative proposals related to energyprograms; these are describedmore fully in theDepartmentalOverview.Inparticular,therequestincludesapackageofoilandgasprogramreformsthatcombinesadministrativereformswithlegisla-tivechanges, includingseveralnewproposalsaswellasproposalssubmittedwiththe2013request.Theseproposalsincluderoyaltyreforms,changestoencouragediligentdevelopmentofoilandgasleases, and improvements to revenue collectionprocesses.Intotal,thispackageofreformsisesti-matedtosave$2.5billionovertheperiod2014-2023,ofwhichthelegislativecomponentsareestimatedtosave$1.7billion.
NewEnergyFrontier DH-44 DepartmentalHighlights
developing renewable energy
In just over four years, we have advanced 37 wind, solar, and geothermal projects on our public lands–or enough to power more than 3.8 million American homes. These projects are bolstering rural economies by generating good jobs and reliable power and strengthening our national energy security.
Ken Salazar, Secretary of the InteriorMarch 13, 2013
IndeliveringnewenergytoAmerica,Interior,work-ingwithFederalpartners, States, and local com-munities,isguidedbythefundamentalbeliefthatrenewableenergydevelopment,wherepromotedandsitedinathoughtfulway,canfullycontributetoconservationandprotectionoftheenvironment.Interiorhascontinuedtoresponsiblyandaggres-sivelydeveloprenewableenergyresources,todateauthorizing37renewableenergyprojectsonpubliclands since 2009, and laying the groundwork tohold thefirst-ever auctions for commercialwinddevelopmentintheAtlantic.Thisyear,theDepart-mentwillcompletegroundbreakingmilestonestooffer additional commercial lease sales forWindEnergyAreasoffshoreNewJersey,Maryland,andMassachusetts,andanalyzealeaserequesttode-velopcutting-edgefloatingwindturbinesinFederalwatersoffMaine.OtherdemonstrationprojectsareproposedoffVirginiaandOregon.Inaddition,in2013BOEMisreviewingamid-Atlanticwindenergytransmissionlinethathasthepotentialtoeventu-allybringupto7,000megawattsofoffshorewindenergycapacitytothegrid.
TheSecretary’seffortstoexpanddomesticenergyhaveproducedgroundbreakingprojects.In2009,Interiorestablishedthefirstregulatoryframeworkforoffshorerenewableenergydevelopmentandin2010,launcheda“SmartfromtheStart”develop-mentstrategytoidentifywindenergyareasusinga coordinated, focused approach with extensiveenvironmentalanalysis,publicreview,andlarge-scaleplanning.In2012,InterioridentifiedsixwindenergyareasontheAtlanticcoastwiththegreatestwindpotentialandfewestdevelopmentconflicts.In2012,theDepartmentissuedthesecondcommercialwind lease offDelaware andwillmove forwardwiththefirstevercompetitiveleasesalesforwindenergyareasoffVirginiaandRhodeIsland/Mas-sachusetts.Thesesaleshavethepotentialtosupport
renewable energy prioriTy goal
In theEnergyPolicyActof 2005,Congresssetagoalofapproving10,000megawattsofnon-hydrorenewableenergyby2015. TheBLMachievedthatmilestonein2012,beatingtheEnergyPolicyActtargetbythreeyears.TheDepartmentandBLMhavenotallowedearlyachievementoftheEnergyPolicyActgoaltoleadtocomplacency.Interiorrecom-mitted itself to aggressively advancing theAdministration’s alternative energy goalsbyestablishingaRenewableEnergyPriorityPerformanceGoalfor2010through2014.Itwillincreaseapprovedcapacityauthorizedforrenewablesolar,wind,andgeothermalenergyresources affecting Interior-managed lands,whileensuringfullenvironmentalreview,toreach15,429megawatts. TheDepartmentwillsuccessfullymeetthisgoalifamajorityoftheenergyprojectsdesignatedaspriorityprojectsfor2012and2013areapproved.
onsHore oil and gas developmenT prioriTy goal
goal:Improve production accountability, safety,andenvironmentalprotectionofoilandgasoperations through increased inspection ofhigh-riskoilandgasproductioncases.meTriC:BySeptember30,2013, theBureauofLandManagementwillincreasethecompletionofinspectionsofFederalandIndianhigh-riskoilandgascasesbyninepercentover2011levels,theequivalentofcoveringasmuchas95percentofthepotentialhigh-riskcases.Infiscalyear2014,BLMistargetingtomaintaininspectionsofthepotentialhigh-riskcases.
DepartmentalHighlights DH-45 NewEnergyFrontier
have been withdrawn over the years formilitaryusearelocatedintheWestandarehighinwind,solar,andgeothermalresources.
•Approvedfivenewrenewableenergyprojectsin2012,includinga350megawattsolarenergyprojectontribaltrustlandoftheMoapaBandofPaiuteIndiansinClarkCounty,Nevada.The projectmarks amilestone as the first-ever,utility-scalesolarprojectapprovedfordevelopmenton tribal lands,and isoneofthemanystepstheAdministrationhastakentohelpstrengthentribalcommunities.Thisprojectisexpectedtogenerateenoughpowerforanestimated100,000homes.
•InWyoming,InteriorapprovedtheChoke-cherry-Sierra Madre wind energy project,thelargestproposedwindenergyprojectintheU.S.todate,andoneofthelargestintheworld.Thisprojectwilluse1,000turbinestoproduce3,000megawattsofpower,enoughtopowernearlyonemillionhomes.
•Approvedconstructionof the transmissionlineforFirstSolar’sCampoVerdesolaren-ergyproject,whichwill cross public landssouthwestofElCentro,California.The139megawattsolarenergyprojectisexpectedtosupportmorethan250jobsthroughconstruc-tionandoperations,generate$17.5millioninlocaltaxrevenueoverthelifeofthefacility,andprovideanestimated$239millionoffinancialbenefitstolocal,county,andStateeconomies.Atfullcapacity,whenbuilt,theCampoVerdesolarfacilitywillproduceenoughelectricitytopowernearly40,000homes.
•Identified 373 existing Bureau of Reclama-tioncanalsandconduitswiththecombinedpotential to generate an additional 365,000megawatt hours of hydropower annually,
In2012,theDepartmentmadesignificantachieve-ments to advance responsible development ofrenewableenergyonpubliclands.Usingastruc-tured,scientificprocess,Interiorreleasedguidelinesdesignedtohelpwindenergyprojectdevelopersavoidandminimize impactsof land-basedwindprojectsonwildlifeandtheirhabitats.Thevoluntaryguidelinesaretheresultofafive-yearprocessthatincludedmultipleopportunitiesforpublicreviewandcomment.TheguidelineswerealsoinformedbytheWindTurbineGuidelinesAdvisoryCommittee,establishedin2007,whichiscomprisedofdiversestakeholders,includingFederalandStateagencies,Tribes,thewindenergyindustry,andconservationorganizations.ThesevoluntaryguidelinesalsowillhelpdevelopersidentifyadditionalstepsandreviewprocessesandpermitsthatmaybeneededtoensurecompliancewithFederallawssuchastheMigratoryBirdTreatyAct,theBaldandGoldenEagleProtec-tionAct,andtheEndangeredSpeciesAct.
•Createdaroadmapforsmartsolardevelop-mentonshorebyfinalizingtheWesternSolarEnergyPlan,whichprovidesablueprintforutility-scale solar energy permitting. ThePlancoverssixwesternStatesandestablishes17solarenergyzones,totalinganestimated285,000acresofpubliclands,withaccesstoexistingorplanned transmissions thatwillserveaspriorityareasforcommercial-scalesolardevelopment.
•ExpandedapartnershipwiththeDefenseDe-partmentbysigningahistoricMemorandumofUnderstandingtostrengthentheNation’senergy security and reducemilitary utilitycosts. The MOU encourages appropriatedevelopment of renewable energy projectson public lands withdrawn (set aside) fordefense-relatedpurposes,andotheronshoreandoffshoreareasnearmilitaryinstallations.Nearly13millionofthe16millionacresthat
Bureau of Land Management –In2013and2014,BLMwill continue to facilitate and promote thedevelopment of renewable energy resources onthevastpubliclandsitmanagesintheWest,landsthat are rich in renewable energy resources andpotential, includingwind, solar,geothermal,andbiomass.TheBLMlandsalsoserveascorridorsforenergytransmissioninfrastructure,afunctionthatisvitaltotheNation’soverallabilitytoefficientlyandeffectivelyutilizeenergyandpower.TheBLMisfocusedondevelopingrenewableenergyinanacceleratedbutresponsiblemanner,ensuring theprotectionof signature landscapes,wildlifehabi-tats,andtheculturalresourcesofthepubliclands.In its pursuit of renewable energydevelopment,BLMworkscloselyandcollaborativelywithlocalcommunities,States,Tribes,industry,conservation-ists,andotherinterestedstakeholderstodeveloputility-scalerenewableenergyprojectsintherightwayandintherightplaces,toavoidorminimizeconflictswithotherpubliclanduses.
The2014requestcontinuestoprovidestrongsup-port forBLM’s contributions to theNewEnergyFrontierinitiativeintheresponsibledevelopmentofrenewableandconventionalenergy.Thebudgetrequestprovidesa$7.1millionprogramincreaseforRenewableEnergytosupportplanningeffortsandstudiesaimedatidentifyingadditionalrenewableenergydevelopmentzonesorleasingareasandim-plementationofrenewableenergyplansscheduledtobecompletedin2013forArizona,California,andNevada.TheincreasewillenableBLMtoprepareandoffer thefirst competitive solar energy leasesalesandallowBLMtocontinueongoingprogrammanagementresponsibilitiesassociatedwithgeo-
Bureau of Ocean Energy Management–TheSec-retaryhasdelegated toBOEMtheEnergyPolicyAct of 2005 authority to grant leases, easements,orrights-of-wayforactivitiesontheOCSrelatedto production, transportation or transmission ofenergy from renewable sources. In 2012, BOEMcompleted the first lease under Interior’s SmartfromtheStartinitiative,whichfacilitatesenviron-mentallyresponsibleoffshorewinddevelopmentalong theOCSby identifyingwindenergyareasin a coordinated, focused approach with exten-sive environmental analysis, public review, andlarge-scaleplanning.Continuingthismomentum,BOEMissuedproposedsalenoticesforthesaleofcommercialwindenergyleasesintheVirginiaandRhodeIsland/Massachusettsoffshorewindenergyareas,andpassedanothermilestoneforrenewableenergy development by issuing aDeterminationofNoCompetitiveInterestfortheproposedMid-Atlanticoffshorewindenergytransmissionline.Ifconstructed,itwouldbethefirstsuchmajoroffshoretransmissionlineintheUnitedStates.
Bureau of Reclamation–The2014requestallocates$1.1millionforapilotinitiativetoincreaserenew-ablegenerationbyexploringhowrenewableenergytechnologies, including solar, small hydropower,andhydrokinetics,canbeintegratedintoReclama-tionprojects.Reclamationwillcontinueeffortsto:optimizeitshydropowerprojectstoproducemoreenergywiththesameamountofwater;investigatehydropump-storageprojectsthatcanhelpintegratelargeamountsofdifferentrenewableresourcessuchaswindandsolarintotheelectricgrid;andworkwithTribestoassistthemindevelopingrenewableenergysources.Theseimportantprojectswillassist
Fish and Wildlife Service–The2014FWSrenewableenergyrequestincludes$14.1million,anincreaseof$7.2millionover the2012 level, toexpandca-pabilitytofulfillendangeredspeciesconsultationrequirementsforrenewableenergyprojects. Therequestincludesaprogramincreaseof$1.4millionfor scientific research into the impacts of energytransmission and development infrastructure onwildlife and habitat. The research will identifypotentialimpactsassociatedwiththedevelopmentofenergyinfrastructureanddevelopstrategiestominimizetheimpactsonhabitatandspecieslikelytobe impacted, includingthedesert tortoiseandsagegrouse.
TheFWSEndangeredSpeciesConsultationprogramwillutilizethefindings,andarequestedprogramincreaseof$1.5million,toconductenvironmentalreviewsassociatedwithproposedrenewableenergyprojects.Therequestincludesaprogramincreaseof$2.8millionforconservationplanningassistanceand$750,000formigratorybirdconservationandmonitoringthatwillenableFWStocooperatewithFederal, State, tribal, and local governments andtherenewableenergy industry toensureprioritylandscapelevelplanningconsiderstheimpactsonwildlifeandhabitat.Applicationofbiologicalex-pertiseandpro-activeconsultationandcooperationwilllimitlengthydelaysasprojectplanningnearscompletionandshouldminimizelegalchallengesthatmighthinderprojectdevelopment.
The FWS will help ensure the Nation’s energydevelopmentoccursinanenvironmentallyrespon-siblemanner,consistentwithwindpowerindustryguidelines issued in 2012, and reflective of theDepartment’slongstandingcommitmenttowild-lifeconservation.Therequestincludesaprogramincreaseof$750,000forlawenforcementactivitiesthataddresstheimpactofenergydevelopmentonwildlifeandhabitat.
Indian Affairs – The 2014 request provides $8.3million,anincreaseof$2.3millionabovethe2012enactedlevel,forrenewableenergyprojectsontriballands.Morethan50renewableenergyprojectsareongoing on an estimated 35 reservations. This,however,isbarelytappingthepotentialthatexistsinIndianCountryforrenewableenergydevelopment.TheBIAhasidentified267reservationswithrenew-able energypotential, but the resourceson thesereservationshavenotyetbeenfullydetermined.
Thepotentialforhydroelectricpowerontheseres-ervationsissignificant.AtremendousneedexiststoquantifythepotentialonindividualreservationstogainabetterunderstandingofhowtobestdeveloptheseresourceswhereTribeshaveexpressedanin-terestindoingso.Thebudgetincludesanincreaseof $1.9 million to complement existing programactivities to complete technical and engineeringstudiesassociatedwithrenewableenergyprojects.Thesestudieswillbeusedtocompletefeasibilityandfinancialpackagesandtostarttheenvironmentalpermitting.Concurrentwithassessmentoftheseresources,BIAwillalsodeterminetheneedsandin-terestsoftheIndiancommunitiesand,inaccordancewithcommunityinterest,workwithTribestobringtheseresourcestotheproductionstage.DevelopingtheseresourceshasthepotentialtocreategreenjobsinIndianCountrywhilealsohelpingtoalleviatechronicunemploymentonIndianreservations.
TheBIAisworkingwithseveralTribesonhydro-generationprojects,providingassistancewiththeplanningof facilitiesusingexistingdams. Manyreservations have feasibility and environmentalstudiesunderreview.Detailedplanningisrequiredforresourcepotential,fishdisturbance,andpoten-tialenvironmentalimpactiftheseprojectsaretobesuccessful.Currently,mostactivityisinnorthernCalifornia,andthereispotentialforfutureprojectswithin the BIA RockyMountain Region. Tribeswiththebestpotentialareinthenorthwest,RockyMountains, and Great Plains, and they includeRockyBoy’s,Flathead,Crow,Cherokee,PyramidLake,WindRiver,aswellasseveralnorthernCali-forniaTribes.
U.S. Geological Survey–The2014USGSbudgetincludes$9.9millionforrenewableenergyactivities,an increaseof$4.0millionover the2012enactedlevel. The increasewould fund research to sup-port permitting decisions for alternative energystrategies onFederal lands. The increasewouldalsofundresearchtoprovideinformationonspe-cies,populations,habitats,andenergytechnology
NewEnergyFrontier DH-48 DepartmentalHighlights
firsT ever CommerCial solar energy projeCT on ameriCan indian TrusT lands
Office of Insular Affairs–In2012,OIAawardedfundingforawindturbinepilotprojectinGuamaswellasenergyefficiencyimprovementstoanumberofGovernmentofGuambuildings.Theseactivi-tiesareconsistentwiththe2011U.S.DepartmentofEnergy,NationalRenewableEnergyLaboratoryrecommendations for initialenergyefficiency, re-newableenergyassessments,andastrategicplanforimplementationanddeployment.FundingalsoisbeingusedbytheGuamEnergyOfficetodevelopanenergycodecurriculumtotrainbuildingindustryprofessionalsontheimportanceoffollowingGuam’srecentlydevelopedTropicalEnergyCode.
Thebudgetprovides$3.0million,$1.9millionabovethe2012level,forsustainableenergyprojects.TheEmpoweringInsularCommunitiesprogramsup-portsthedevelopmentandimplementationofsus-tainableenergystrategiesinallfourU.S.territories:American Samoa, Guam, the Commonwealth oftheNorthernMarianaIslands,andtheU.S.VirginIslands.Strengtheningtheenergyfoundationsintheislandswillreducetheirdependenceoncostlyoilimports,helpstabilizecriticalenergyservices,andattractinvestmentinthelocaleconomies.
ConvenTional energy developmenT
Today, drilling activities in the Gulf are back to pre-spill levels. And the U.S. is now positioned as a global leader in offshore oil and gas safety. That’s good for domestic production and good for the industry as a whole.
Ken Salazar, Secretary of the InteriorApril 24, 2012
Overthepastseveralyears,Interiorhasreformedthe Nation’s onshore and offshore oil and gasprogramstoexpanddomesticenergyproductionin a safe and environmentally responsible way.DeepwaterHorizonshookAmericans’confidenceinoffshoreenergydevelopment. Interiormovedquicklyandaggressivelytostrengthensafetystan-dards and environmental protections and put inplaceassurancesthatcompaniesdrillingindeep-waterareasarepreparedtodealwithablowout.
At the end of 2012,more rigswere operating intheGulfthanintheprevioustwoandahalfyears,equaling the number of rigs in the Gulf beforetheDeepwaterHorizonoil spill. Since2010, theDepartmentissuedover1,800drillingpermits,in-cluding146newdeepwaterand161newshallowwaterpermits.
In2012,theDepartmentreleasedanewfive-yearprogram for offshore leasing,making areas con-taininganestimated75percentofthetechnicallyrecoverableoffshoreoilandgasresourcesavailableforexplorationanddevelopment.InterioroversawthefirstnewexploratoryactivityintheAlaskanarcticinadecadeunderstrictsafetyandenvironmentaloversight.Alsoin2012,theAdministrationreachedagreementwiththegovernmentofMexicotoopenuppreviouslyofflimitstransboundaryoilandnaturalgasreservoirsintheGulfofMexico.WhenapprovedbyCongress,thisagreementwouldmakeaccessiblenearly1.5millionacresoftheUnitedStatesOCS,believedtocontainasmuchas172millionbarrelsofoiland304billioncubicfeetofnaturalgas.InMarch2013,InteriorheldthesecondsaleunderthenewOCSPlan,thefirstoffiveCentralGulfofMexicoleasesalesthatwillbeheldundertheprogram.Thesalegeneratedmorethan$1.2billioninhighbids.
Atthesametime,Interioradvancedreformstoen-sureoffshoreoilandgasproductioncancontinueto expand safely and responsibly. In 2012, theBureauofSafetyandEnvironmentalEnforcementimplemented regulations for safety and environ-mentalmanagementsystems,issuedanewdrillingsafetyruletorefinesafetyreformsandstrengthenrequirements, took administrative action to holdcontractorsaccountablefortheiractionsoffshore,collaboratedwiththeU.S.CoastGuardtoprovideconsistencyinOCSregulationtopromotecompli-ance,andparticipatedinthefirstfull-scaleindustry
Onshore,theDepartmentimplementedleasingre-formsbringingthepublicintotheleasingprocessearlier, so fewer leases endup in court. Interiorhasworkedtoresolvecontroversiesonsomeofthe
largestoilandgasprojectsintheWest,includingmorethan3,500newwellsonAnadarko’sGreaterNaturalButtesprojectinUtah,whileatthesametime safeguarding air quality and assuring theprotectionofcriticalwildlifehabitat.InDecember2012,SecretarySalazarissuedaSecretarialOrdertopromotetheco-developmentofoilandgasand
TheUSGS conducted research that associates deepwell fluid injection, a process sometimes used todisposeofproducedwatersorflowbackwatersfromhydraulicfracturingandgasproduction,withthetriggeringofearthquakes.Earthquakesmayoccurwhentheinjectedfluidreachesacriticallystressedfault.Deepwellfluidinjectionisatechniqueinwhichwastewater,typicallyproducedwatersfromthepetroleumformationandflowbackfromthefrackingoperation,isinjectedbackintotheEarthforstor-age.TheUSGSisresearchingthefactorsthatcontrolthegenerationofinjection-inducedearthquakesandmaintainsinformationregardingthepotentialearthquakehazardsassociatedwithdeepwellfluidinjection.
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potashresourcesinNewMexico,addressingalongstanding source of serious conflict regarding thesequencingofproductionoftheseresources.
The Department is also part of a multi-agencyresearchanddevelopmenteffortwiththeDepart-mentofEnergyandtheEnvironmentalProtectionAgencytobetterunderstandandminimizepotentialenvironmental,health,andsafetyimpactsofenergydevelopmentinvolvinghydraulicfracturing.Newworkwillbuildonexistingeffortsandaddressis-suessuchaswaterqualityandquantity;ecosystem,community,andhumanhealthimpacts;andinducedseismicity.Continuedsupportforthiscollaborationisincludedinthe2014budget.
•Groundbreaking steps to assess the con-ventional energy resource potential in theMid-andSouthAtlanticwiththereleaseofadraftProgrammaticEnvironmentalImpactStatement.ThismilestoneadvancesBOEM’sregionally-tailoredapproachtoOCSexplo-ration and development, consistent withtheOCSOil andGasLeasingProgram for2012-2017.
•Newinitiativestoexpeditesafeandrespon-sible development of domestic energy re-sourcesonU.S.publiclandsandIndiantrustlands in theDakotas,Montana, and StatesacrosstheCountryaspartofBLM’songoingefforts to ensure efficient processing of oilandgaspermitapplications.TheBureauisimplementingnewautomatedtrackingsys-
Bureau of Land Management –FederalonshoreoilandgasresourcesarevitalcomponentsoftheNation’s energy portfolio. In May, 2010, BLMimplemented leasingreforms toestablishamoreorderly,open,andenvironmentallysoundprocessfordevelopingoilandgasresourcesonpubliclandsthathasresultedinasignificantdeclineinthenum-berofprotests.Infiscalyear2012,only18percentofBLM’soilandgasleaseswereprotested,downfrom47percentin2009.
The2014requestenhancesBLM’sabilitytosupportoil and gas development on Federal lands. Therequest forOil andGasManagement includes a$10.0millionincreasetocontinueimplementationoftheimportantleasingreformsfirstinstitutedin
ThebudgetalsoproposestoexpandandstrengthenBLM’soilandgasinspectioncapabilitywithrev-enuesfromnewfeesonindustry.TheBLMistakingsteps to improve itsoil andgas inspection capa-bilities.TheBureauhastransitionedtoarisk-basedinspection strategy and will continue to expanditsimplementation.Thisstrategywillhelpensurethehighestriskcasesareinspectedeachyear.Thebudgetproposes$48.0millioninnewinspectionfeecollections,whichwilloffsetaproposedreductionof$38.0millioninappropriatedfunds,providingforanetincreaseof$10.0millionforinspectionandenforcementactivities.TheadditionalfundswillenableBLMtoconductdefensibleandtimelyleaseparcelenvironmentalanalysesandcorrectdeficien-ciesidentifiedbyGAOinitsFebruary2011report,whichdesignatedFederalmanagementofoilandgas resources, includingproductionandrevenuecollection,ashigh-risk.
Bureau of Ocean Energy Management –The2014BOEMbudgetincludes$135.0millionforconven-tionalenergyactivities,anincreaseof$7.3millionoverthe2012level.Withinthistotal,$63.8millionisprovidedforenvironmentalassessments,including$700,000tosupportnecessarybaselineenvironmen-talcharacterizationandmonitoringactivities,and$1.1milliontoestablishanairqualityregulatoryprograminAlaska.The2012ConsolidatedAppro-priationsActtransferredjurisdictionforairqualitymonitoring from the Environmental ProtectionAgencytotheDepartmentforOCSsourceslocatedoffshore theNorthSlopeBoroughof theStateofAlaska. The new jurisdiction includes both theBeaufortSeaandChukchiSeaOCSplanningareas,orArcticOCS.Withthisstatutorychangeinplace,Interior,throughBOEM,nowhasresponsibilityforthoroughlyreviewingthepotentialairqualityeffectsofnewoffshoreoperationsinthesearcticareas,inadditiontoareasoftheWesternandCentralGulfofMexicowhereBOEMalreadyhas jurisdiction.The bureau is undertaking an integrated effortacrossregionsandinclosecoordinationwiththeEPAtoimplementthisnewauthorityandenhancetheprogramoverall.
Bureau of Safety and Environmental Enforcement The2014requestforBSEEincludes$222.1millionfor conventional energy activities, an increase of$24.8millionoverthe2012level.Therequestcon-tinuesstrongsupportforresponsibledevelopmentofoffshoreoilandgasresources,andthereformsputinplacetostrengthenregulatoryandoversightcapability,andfosterenvironmentalcompliance,in-spection,investigation,andenforcementprograms.
The2014requestwillfocussignificantincreasesof$15.2millionforOperations,SafetyandRegulation,includingprogramincreasesof$2.5milliontosup-porttheanticipatedgrowthinexploration,develop-ment,andproductionactivitiesontheAlaskaOCS,and$1.0milliontostreamlinethepermittingprocesstosupportdevelopmentofamodernelectronicsys-temtomanagethepermittingprocess.Additionalincreasesareproposedof$1.4milliontoresearchrequirementsforwellstructureintegrityand$2.0millionforoffshoresafetysystemsandoperations.As the industry pushes into deeper water anddrillsmorehigh-pressure/high-temperaturewells,BSEE’ssafetyandenforcementprotocolsmustbekeptup-to-date. TheBSEEwilluse this increasetokeeppacewithindustry’sadvancementanden-suretheintegrityofstate-of-the-artequipmentandoperations.Theseincreasesarepartiallyoffsetby$3.0millioninadditionalestimatedinspectionfeecollections. Inspectionactivitiesalsowillbenefitfromaprogramincreaseof$3.7milliontosupportthenewNationalOffshoreTrainingprogram.TheprogramwillprovidecontemporarylearninganddevelopmentopportunitiestoBSEE’sinspectorsand
ThereorganizationoftheformerMineralsManage-mentServiceseparatedtheconflictingmissionsandstrengthenedoversightofoffshoreenergydevelop-ment.Therequestincludesaprogramincreaseof$4.0millionforBSEEtosustainthenecessarylevelofsupportservices,recruitandretainnewinspectors,engineers, and scientists, and conduct additionalenvironmentalandtechnologicalstudies.
Office of Natural Resources Revenue –ThroughONRR,theInteriorDepartmentseekstoensurethefullandfairreturnofroyaltiesandothermoniesowedtotheAmericanpeoplefromtheproductionofenergyandmineralresources,bothonshoreandontheOCS.Thisincludesensuringthatrevenuedue to thepublic is received, accounted for, andappropriatelydistributed.Themeansofcollectingroyalties,rents,andotherrevenuesmustbetrans-parentandrobust. Revenuedistributions,whichtotaling$12.2billionin2012,benefitStates,Tribes,individualIndianmineralroyaltyowners,andU.S.Treasuryaccounts.
The2014requestincludes$121.1millionforONRR’sreceiptsmanagementprograms,a$1.6millionin-creaseabovethe2012enactedlevel,including$1.5millionforfullyfundedfixedcosts.Allofthefundsrequested support conventional energy activitieswithintheNewEnergyFrontierinitiative.
U.S. Geological Survey–The2014requestforUSGSis$39.8millionforconventionalenergyprograms.Therequestincludesanincreaseof$13.0milliontosupportaninteragencyresearchanddevelopment
Fish and Wildlife Service –The 2014 request of$3.4millionforFWSconventionalenergyactivitiesincludesaprogramincreaseof$250,000tocomple-mentrenewableenergyfundingforlawenforcementactivitiesthatwillhelpensurethedevelopmentofoil,gas,andelectricitytransmissionisconsistentwithwildlifeandhabitatconservation.Specificeffortswillincludeeducationaloutreachtoenergydevel-opersandlandmanagementagencies,complianceassistanceandmonitoring,andinvestigativeworktodocumentviolationsoflawincircumstanceswhereknownmitigationmeasureshavenotbeenadopted.
As part of President Obama’s all-of-the-above energy strategy, Interior is committed to expanding safe and responsible oil and gas development on public lands and Indian trust lands. With the help of new technology, the Bakken in North Dakota is generating impressive energy production for our Country and creating thousands of American jobs, as well as substantial royalty revenues for the State, Tribes, and taxpayers. By upgrading and improving our oil and gas drilling permit processing systems and technologies, we believe we can improve efficiencies while ensuring thorough reviews for safety and compliance.
Ken Salazar, Secretary of the InteriorApril 3, 2012
NewEnergyFrontier DH-54 DepartmentalHighlights
Indian Affairs –TheOfficeofIndianEnergyandEconomic Development is working closely withtribalnationstoexploreanddevelopconventionalenergy resources on Indian Trust lands whereTribesareinterestedindevelopingtheseresources.Together,theOfficeandTribesarefurtherdefining,quantifying,anddevelopingtribalenergyresourcesforindustrialscaleenergyproduction.TheDepart-mentestimatesenergyandmineraldevelopmentonIndianlandsin2012supportedover$16.0billionofeconomicactivityandnearly120,000jobsrelatedtotrustresources.Inthelastthreeyears,thisOfficeassistedIndianmineralownersinthenegotiationof55leasesforoil,gas,renewableenergy,andaggregatematerialsdevelopmentonapproximately3.1millionacres.The2014requestincludes$2.5millionforcon-ventional energyandauditcompliance,thesame as the 2012 en-actedlevel,tosupporttriballeasingactivitiesonreservations.
Priorto2006,theThreeAffiliatedTribesoftheFortBertholdReserva-tionhadnotleasedanyof their lands for oilandgasexplorationforover25years.Attherequest of the Tribes,IndianAffairsstaffhasbeen evaluating theoil and gas potentialfor the Tribes. From2005 to 2013, IEEDassisted the Tribes inthenegotiationofleaseagreementswithoilandgascompanies.TheseleaseagreementshaveallowedtheTribestoshareinthesuccessoftheoilandgasleasingboomintheBakkenFormationintheWillistonBasin.IncreasedfocusfromIndianAffairs toapproveleases inatimelyfashionwithahands-onapproachtotechnicalas-
sistancehelpedstimulateoilandgasdevelopmentinthearea.In2011,over200drillingpermitsandassociated rights-of-ways were approved in thearea.In2012,thenumberofdrillingpermitsandassociatedrights-of-waypermitshasrisentoover300.Drillingactivityisexpectedtoincreasethrough2013,withthedevelopmentratelevelingoffto200wellsperyearoverthenextfiveyears.Nearly1,000wellsareexpectedtobedrilledtoinitiallydevelopthe Bakken Formation with an additional 1,000wellsdrilledtocompletefulldevelopmentoftheBakkenandThreeForksFormationsoverthenexttento20years.
Toprovidebetter coordination and collaborationamong interagency staff to respond to increased
demand for oil andgaspermitsincertainregions,IndianAffairsisdevelopingteamstoprovidetechnicalstaffto assist as demandincreases. The teamsincludeexpertspecial-ists in realty servicesand environmentalcompliance, as wellas petroleum engi-neers. Thefirst teamis already workingon the Fort BertholdReservation and hasprovided a solutiontotheincreasedwork-load.Anewteamisintheinitialstagesofbe-comingoperationalattheUintahandOuray
Reservation inUtah. Plans are beingdevelopedtoplaceateamattheNavajoRegionalOfficeforfutureleasesaleactivitiesofNavajolandsinNewMexico.Thisconceptwillbeusedatotherreserva-tionswhereIEEDisseeingan increase inenergydevelopmentactivity.
