Scalise, Tipton Introduce Resolution to Void Anti-Energy Obama Rule

WASHINGTON, D.C. — Majority Whip Steve Scalise (LA-01) and Congressman Scott Tipton (CO-03) have introduced a resolution that will void a midnight rule from the Obama Administration that would hinder energy production on federal lands, jeopardizing critical offshore revenues and jobs in Louisiana:

“In his last days in office, President Obama snuck through a regulation that is nothing but a shadow tax on American energy that will impede energy production across the country, including offshore energy projects important to my home state of Louisiana. The legislation I filed this week with Congressman Tipton reverses President Obama's regulation, so we can block his energy tax and protect those critical revenue sharing dollars that states like Louisiana will use to restore our coast,” Rep. Scalise said. “If this regulation is not halted, federal revenue from energy production will be reduced, and in Louisiana, it could jeopardize state revenue sharing dollars, hindering our ability to make major investments to restore our coast and protect Louisiana families and businesses from devastating storms. This proposal came from the same President who tried unsuccessfully to repeal revenue sharing for Gulf Coast states, and I am committed to reversing this - and any other - regulation that threatens our ability to restore our coast and protect Louisiana families and our way of life. It is important that we pass this legislation quickly and get it onto President Trump’s desk so he can sign it into law.”

Rep. Tipton said, “The federal government shouldn’t be picking winners and losers when it comes to U.S. energy production, and this is exactly what the ONRR’s regulation does. By adding more red-tape, complexity, and confusion to the mineral valuation process, the regulation creates uncertainty for businesses, a disincentive for responsible development of our natural resources on federal land, and ultimately hurts hardworking Americans, their families, and their communities the most.”

Louisiana stakeholders have weighed in with the following comments:

“More taxes on U.S. energy industries such as oil and gas production have a direct negative impact on all businesses in the entire supply chain and Port Fourchon’s tenants would be no exception. Rep. Scalise’s legislation would repeal a particularly harmful regulation that is not only bad for energy operations in the Gulf of Mexico, but also would jeopardize critical coastal restoration dollars for South Louisiana. Higher costs would certainly impede the amount of investment that could be made by producers, which has a direct effect on the amount of services needed. This would cost thousands of jobs, hundreds of millions in payroll, and billions in potential investment, all negatively impacting the U.S. economy and revenues to the U.S. Treasury in the form of royalties.”
Chett C. Chiasson, MPA
Executive Director
Greater Lafourche Port Commission

“Rep. Steve Scalise has been a strong advocate for rebuilding Louisiana’s disappearing coast, and he is again working to ensure our offshore revenues are not diminished. As the leader in the House to pass the bi-partisan Restore Act, Rep. Scalise has also successfully advocated for funding for the Louisiana Coastal Area Program. He thwarted past efforts to divert the federal revenues secured to restore our irreplaceable region and is once again leading the fight for responsibly balancing our environment and our economy. We support all efforts to ensure Louisiana can continue to grow and prosper while also restoring our nationally significant coast."
Simone Maloz
Restore or Retreat

“America’s offshore energy industry appreciates the efforts of Whip Scalise and Congressman Tipton on this issue. The offshore accounts for nearly a quarter of America's domestically produced oil and natural gas, and this regulation stymies this critical source of energy for our country. The House is already on record in opposition to this misguided rule, and we look forward to working with Congress as this resolution’s consideration moves forward.”
Jeff Vorberger
Vice President – Policy & Government Affairs
NOIA (National Ocean Industries Association)

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