Energy & Environment — Republicans prepare to take on oil reserve releases

by Rachel Frazin and Zack Budryk - 01/04/23 7:22 PM ET

House Republicans outline plans to address releases from the Strategic Petroleum Reserve, President Biden appoints an interim FERC chairman and Germany hits a wind energy milestone.

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GOP targets Biden’s petroleum reserve releases

House Republicans are honing in on releases from the nation’s Strategic Petroleum Reserve (SPR) in the first set of bills that they’re expected to take up once they can start legislating.

While their legislation is unlikely to make it through the Democratic-led Senate and past President Biden, including these bills among the first of the new Congress signals the nation’s oil reserves will be a key policy priority for the GOP.

What they’re saying: On Friday, Rep. Steve Scalise (La.), a key Republican leader, released a list of “meaningful, ‘ready-to-go’” bills that will be the first that the party takes up, including two bills related to the strategic oil reserves.

“These commonsense measures will address challenges facing hard-working families on issues ranging from energy, inflation, border security, life, taxpayer protection, and more,” he said of the 11 total bills in a dear colleague letter.

The back story: The Strategic Petroleum Reserve is the nation’s emergency crude oil supply. Last year, the Biden administration executed the largest-ever sell off of oil from the reserve, drawing Republican ire, in an effort to tamp down fuel prices that skyrocketed after Russia’s invasion of Ukraine.

Now, the GOP is pushing back.

The party is slated to take up two bills aimed at future oil releases: one that would prevent new releases of SPR oil unless there is a plan in place for more leasing for new oil and gas drilling on the nation’s public lands and another that would prevent SPR barrels from being sold to entities under the ownership, control or influence of the Chinese Communist Party.

“We wanted to start with some things on [SPR] which we’ve seen President Biden raid to cover for his failed policies,” Scalise told reporters.

Scalise added that Republicans will be “doing a lot of bills to lower energy costs and have a good energy strategy that allows us to create our own energy” but said committees like Energy and Commerce and Natural Resources would have to do work on those.

The administration defended its use of the SPR, saying it was used correctly to address supply issues.
“The Biden administration, like administrations of both parties have historically done, rightly authorized emergency use of the SPR mission to address supply disruptions –providing relief to American families and refineries when needed the most. Treasury estimated that the Biden administration’s releases reduced prices at the pump by up to $0.40/gallon,” said an emailed statement from the Energy Department.

Biden taps Dem as interim interstate energy chair

President Biden will name Willie Phillips as interim head of the Federal Energy Regulatory Commission (FERC), the White House confirmed Tuesday.

The agency confirmed Phillips, a member of the commission since Dec. 21, will replace Chairman Richard Glick, who left his post Tuesday.
Phillips, whose term as a commissioner expires in 2026, will serve as acting head of the utility agency until a permanent replacement is found.

Biden nominated Glick for another term in May, but In November, Senate Energy Committee Chairman Joe Manchin (D-W.Va.) said he would not support Glick’s renomination as FERC chairman, with a spokesperson saying the West Virginia Democrat was “not comfortable holding a hearing” to give Glick another term.

“It is an honor to be chosen by President Biden to lead FERC at such a pivotal moment,” Phillips said in a statement Tuesday. “The work we do here at FERC is crucial to ensuring consumers have access to reliable, safe, secure and efficient energy services at reasonable cost. I look forward to continuing to work with my fellow Commissioners and the FERC staff, as well as to prioritize public engagement, in pursuit of our important mission.”

What does FERC do again? FERC regulates interstate energy issues, including transmission of oil and natural gas. While Manchin did not elaborate on his opposition to Glick’s renomination, it came shortly after he had vocally opposed a move by FERC to incorporate pipelines’ contributions to climate change into the approval process.

Glick’s departure gives the commission an even split of two Republicans and two Democrats. Regulations bar the board from having a majority of more than one on either side.
Phillips was confirmed to FERC by the Senate in a voice vote, which typically indicates lack of controversy, but his record as a utility regulator has been criticized by environmentalists, who have called him overly friendly with utility companies.