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BUILDING OUR CLEAN ENERGY ECONOMY

N.J. Governor Corzine, Secretary Salazar, Rick Dovey, President Atlantic County Utilities Authority, Marvin Embry, Board of Director Atlantic County Utilities Authority, U.S. Congressman Rush Holt (N.J.), Michael Epps, Board of Director Atlantic County Utilities Authority, and Tom Lauletta, VP Atlantic County Utilities Authority. [Photo Credit: Tami A. Heilemann DOI]

N.J. Governor Corzine, Secretary Salazar, Rick Dovey, President Atlantic County Utilities Authority, Marvin Embry, Board of Director Atlantic County Utilities Authority, U.S. Congressman Rush Holt (N.J.), Michael Epps, Board of Director Atlantic County Utilities Authority, and Tom Lauletta, VP Atlantic County Utilities Authority. [Photo Credit: Tami A. Heilemann DOI] Hi-Res

Secretary Salazar believes that the Department of the Interior, which oversees one-fifth of the nation’s landmass and over 1.7 billion acres in the outer-continental shelf, should be a leader in the new energy frontier by helping produce and transmit renewable energy from America’s public lands.

First Secretarial Order: Making Renewable Energy a Priority for the Department

On March 11, Secretary Salazar issued his first secretarial order, establishing renewable energy production as a top priority for the Department of the Interior. The order establishes an energy and climate change task force that will spur this agenda and identify specific zones on U.S. public lands where Interior can facilitate a rapid and responsible move to large-scale production of solar, wind, geothermal, and biomass energy.

Interior’s Bureau of Land Management has identified approximately 21 million acres of public land with wind energy potential in the 11 western states and about 29 million acres with solar energy potential in the six southwestern states. There are also 140 million acres of public land in western states and Alaska that have geothermal resource potential. In addition, the National Renewable Energy Lab has identified more than 1,000 gigawatts of wind potential off the Atlantic coast, and more than 900 gigawatts of wind potential off our Pacific Coast, that would be managed by DOI.

Cutting Red Tape for Offshore Renewable Energy Development

Secretary Salazar worked with Federal Energy Regulatory Commission (FERC) Chairman John Wellinghoff to reach an agreement on permitting and licensing hydro-kinetic energy projects on the U.S. Outer Continental Shelf (OCS). The procedures and processes are detailed in a Memorandum of Understanding between the two federal agencies, settling jurisdictional questions that had been unresolved for several years, threatening to delay development of offshore renewable energy projects, such as for wind, current, and wave power.

Launching New “Rules of the Road” for Offshore Renewable Energy Development

On Earth Day, 2009, President Obama and Secretary Salazar announced rules for the development of renewable energy resources on the OCS. These long-delayed rules open the gates for the responsible development of significant offshore wind energy potential, including along the Atlantic Coast.

Department of Interior Chief of Staff Tom Strickland, Secretary Salazar and Louisiana Lt. Governor Mitch Landrieu receive a safety briefing aboard the Medusa Star offshore oil production rig in the Gulf of Mexico. [Photo Credit: Tami Heilemann, DOI-NBC]

Department of Interior Chief of Staff Tom Strickland, Secretary Salazar and Louisiana Lt. Governor Mitch Landrieu receive a safety briefing aboard the Medusa Star offshore oil production rig in the Gulf of Mexico. [Photo Credit: Tami Heilemann, DOI-NBC] Hi-Res

Responsibly Developing America’s Oil and Natural Gas Supplies

As we work to transition our economy toward cleaner, renewable energy sources, the Administration recognizes that America’s oil and gas supplies remain an important component of a comprehensive energy plan. DOI is working to ensure that the oil and gas resources it manages are developed in a responsible manner.

The Department conducts regular lease sales in OCS areas open to development according to a 5-year leasing schedule. In March, Secretary Salazar traveled to New Orleans to participate in an oil and gas lease sale for areas in the Central Gulf of Mexico. Lease Sale 208 attracted $703,048,523 in high bids on 348 tracts comprising over 1.9 million acres offshore.

In addition, since January 20, the Department of the Interior has held 11 onshore oil and gas lease sales, offering 1.5 million acres of land for development, and potentially netting $49.5 million in revenue for American taxpayers.

Building a Comprehensive Energy Strategy for the Outer Continental Shelf

Secretary Salazar believes that because America’s energy resources on the OCS belong to the American public, it is important that decisions about the development of these resources be based on the best available information and public input. To achieve this goal, Secretary Salazar:

  • extended the public comment period on the draft 5-year program for the OCS by 180 days;
  • directed the Minerals Management Service and the United States Geological Survey to assemble a report on the available resources in the OCS;
  • held four regional meetings around the country to gather public input; and
  • expedited the Department’s renewable energy rulemaking for the Outer Continental Shelf that was required under the Energy Policy Act of 2005.

In four regional meetings in New Jersey, Louisiana, Alaska and California, Secretary Salazar listened to the perspectives of local citizens, elected officials, tribal leaders, stakeholders, and representatives of the energy industry. The information he collected, and that will continue to be collected throughout the public comment period, will guide the Administration as it assembles a comprehensive energy plan for the country.

Ensuring a Fair Return for American Taxpayers

Secretary Salazar believes that American taxpayers should get a fair return on the development of the resources on their public lands. He has ordered a comprehensive review of the royalty rates from energy development on federal land and withdrew a proposal from the previous Administration to offer oil shale research and development leases at a 5% royalty rate. Secretary Salazar has directed the Bureau of Land Management to gather public input before moving ahead with a second round of oil shale research and development leases that ensures that taxpayers receive a fair return.