Republican-backed oil and gas bill opposed by New Mexico Democrats in Congress

New Mexico Democrats in Congress opposed a Republican-backed bill intended to speed up oil and gas projects in the U.S., waiving certain environmental requirements and fees and purporting to lower energy costs for Americans.

The bill known as the Lower Energy Costs Act was sponsored by U.S. Rep. Steve Scalise (R-LA) and would also prohibit any moratorium, including by the President, on hydraulic fracturing without an act of Congress.

It would also express Congressional opposition, if passed, to revocation of permits for the Keystone Pipeline, and restrictions on exporting crude oil and other petroleum products.

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The bill passed the U.S. House of Representatives March 30 on a 225-204 vote, generating outcry from environmental groups arguing it would only perpetuate pollution brought on by fossil fuels, but was celebrated by oil and gas industry leaders and their supporters.

All three of New Mexico’s representatives, all Democrats, voted against the bill, records show.

U.S. Rep. Melanie Stansbury (D-NM), who serves as ranking member of the House Natural Resources Subcommittee on Oversight Investigations characterized the legislation as the “Polluters Over People Act,” arguing it unduly rolled back key environmental laws.

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The bill would undo provisions of the Inflation Reduction Act passed last year and signed by President Joe Biden, Stansbury argued by lowering royalty rates operators pay to produce fossil fuel on federal land, and reinstating noncompetitive leasing.

During House debate, Stansbury said the bill was a “giveaway” of public lands to industry.

“It would gut protections for communities to have a say in what happens on their lands and waters,” she said, according to a transcript of Stansbury’s remarks. “It would make it easier for large corporations to pollute and dump toxins on our lands and waters without consequence.”

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U.S. Sen. Ben Ray Lujan (D-NM) spokesman Adan Serna touted Lujan’s Revive Economic Growth and Reclaim Orphaned Wells (REGROW) Act that made meaningful progress in supporting oil and gas workers while mitigating environmental impacts.

The Regrow Act was included in the Infrastructure Investment and Jobs Act passed in 2021, and earmarked federal funds for remediating abandoned oil wells, a move Lujan argued created jobs and supported the industry while also addressing pollution.

“Senator Luján has worked across the aisle to lower costs and create new, good-paying jobs for New Mexico families. Instead of supporting workers or lowering costs, H.R. 1 puts the interests of the wealthiest corporations ahead of our families while undermining critical climate protections,” Serna said.

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But the Republican Party of New Mexico contended the bill would indeed lower energy costs for consumers by reducing costs for the industry, which would also support one of the state’s leading revenue sources.

The oil and gas industry was typically credited with producing about a third of the State of New Mexico’s budget, and for much of a recent surplus of about $3.5 billion in state coffers.

“In New Mexico, lower and middle-class families are the ones who suffer the most from these price increases, forcing many to make the heartbreaking decision of filling up their car or buying groceries,” said Republican Party of New Mexico Chairman Steve Pearce.

“We can avoid an energy crisis if the Senate passes H.R. 1 and President Biden signs it into law. It's time to unleash American energy, support our state's greatest resource, and keep gas affordable for hard-working New Mexicans."

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And Kathleen Sgamma, president of the Western Energy Alliance said the bill would prevent delays of energy development projects by streamlining permitting and environmental reviews.

The Alliance led a letter supporting the bill signed by several oil and gas trade groups around the country, including the New Mexico Oil and Gas Association, Independent Petroleum Association of New Mexico and the Permian Basin Petroleum Association.

“Lawmakers are stepping up to address high gasoline and home energy prices after two years of the Biden administration’s unnecessary interference in energy markets,” Sgamma said.

“The growth of red tape over the past few years was not intended to protect the environment but to handcuff American oil and natural gas production in a misguided attempt to quickly transition to an alternative reality that does not exist.”

Environmental groups warned that pulling back on oil and gas regulations could worsen pollution and climate change, putting local communities at risk.

“We cannot afford any other setbacks that will continue to put our communities in harm’s way by gutting our bedrock environmental and public health laws and ignoring the climate crisis — all in the name of fast-tracking polluter projects,” said Mark Magana, chief executive officer of GreenLatinos.

Adrian Hedden can be reached at 575-628-5516, achedden@currentargus.com or @AdrianHedden on Twitter.

This article originally appeared on Carlsbad Current-Argus: Republican-backed oil and gas bill opposed by New Mexico Democrats