Document Y9V3G2J7V1N9xDYrrammgBO3D

Nedd, Michael <mnedd@blm.gov> BLM-Approved Report re: E.O. 13783 5 messages Mali, Peter <pmali@blm.gov> To: "Moran, Jill" <jcmoran@blm.gov> Cc: Michael Nedd <mnedd@blm.gov> Jill: Wed, Jul 12, 2017 at 6:20 PM As discussed, attached is the BLM-approved contribution to the report pursuant to E.O. 13783. Please call my cell (202 503-7460) if you have questions or need to discuss further. Peter Peter Mali Acting Chief of Staff Bureau of Land Management Office: (202) 208-4586 Mobile: (202) 503-7460 EO13783 Energy Report_BLM Approved Version_DRAFT_7.12.2017_6.15pm.docx 39K Moran, Jill <jcmoran@blm.gov> To: "Mali, Peter" <pmali@blm.gov> Cc: Michael Nedd <mnedd@blm.gov> Great - thank you, Peter. [Quoted text hidden] Jill Moran Energy Program Analyst - BLM Liaison Office of the Assistant Secretary - Land and Minerals Management (202) 208-4114 Wed, Jul 12, 2017 at 6:21 PM Mali, Peter <pmali@blm.gov> To: Michael Nedd <mnedd@blm.gov> Mike: I'm re-sending this to you -- Chris McAlear said you are looking for a clean version. Peter Mali Acting Chief of Staff Bureau of Land Management Office: (202) 208-4586 Mobile: (202) 503-7460 [Quoted text hidden] Wed, Jul 12, 2017 at 11:51 PM EO13783 Energy Report_BLM Approved Version_DRAFT_7.12.2017_6.15pm.docx 39K Mali, Peter <pmali@blm.gov> Wed, Jul 12, 2017 at 11:57 PM To: Michael Nedd <mnedd@blm.gov>, Kristin Bail <kbail@blm.gov>, "McAlear, Christopher" <cmcalear@blm.gov> Folks: Thanks for the work of your staff on this product -- here's a clean version of what we sent to ASLM. Safe travels home. Peter Peter Mali Acting Chief of Staff Bureau of Land Management Office: (202) 208-4586 Mobile: (202) 503-7460 ----------Forwarded message----------From: Mali, Peter <pmali@blm.gov> Date: Wed, Jul 12, 2017 at 6:20 PM Subject: BLM-Approved Report re: E.O. 13783 To: "Moran, Jill" <jcmoran@blm.gov> Cc: Michael Nedd <mnedd@blm.gov> [Quoted text hidden] EO13783 Energy Report_BLM Approved Version_DRAFT_7.12.2017_6.15pm.docx 39K Michael Nedd <mnedd@blm.gov> To: Peter Mali <pmali@blm.gov> I am? Thx anyway... Thu, Jul 13, 2017 at 11:36 AM 'tzke care and have a wonderfuC day!:) MichaelD. Nedd 202-208-3801 Office 202-208-5242 Fax mnedd@blm.gov JA thought to consider "T>o aCCthe goodyou can, in aCCthe ways you can, for aCCthe peopCe you can, whiCe you can!" From: Mali, Peter [mailto:pmali@blm.gov] Sent: Wednesday, July 12, 2017 11:51 PM To: Michael Nedd <mnedd@blm.gov> Subject: Fwd: BLM-Approved Report re: E.O. 13783 INTERNAL DELIBERATIONS - DO NOTDISTRIBUTE DRAFT as of 6:15pm, 7/12/17 Bureau of Land Management Input into July Draft E.O. 13783 Energy Report I. Executive Summary II. Recommendations for Alleviating or Eliminating Burdensome Actions A. Climate Change Actions Permanent Instruction Memorandum (Permanent IM) 2017-003 (Jan. 12, 2017) -- The Council on Environmental Quality Guidance on Consideration of Greenhouse Gas Emissions and the Effects of Climate Change in National Environmental Policy Act Reviews: 1. Description. This Permanent IM transmits the Council on Environmental Quality (CEQ) guidance on consideration ofgreenhouse gas (GHG) emissions and the effects of climate change in National Environmental Policy Act (NEPA) reviews. This Memorandum also provides general guidelines for calculating reasonably foreseeable direct and indirect GHG emissions ofproposed actions 2. Opportunities to Address Burden or Other Issues of Concern. As the CEQ guidance was withdrawn pursuant to Section 3 ofExecutive Order 13783, the BLM Permanent IM will be rescinded. The BLM will consider issuing new guidance to its offices on approaches for calculating reasonably foreseeable direct and indirect GHG emissions ofproposed and related actions. 3. Anticipated Benefits. The primary benefits will be to bring BLM's policyguidance into compliance with Executive Order 13783 and clarify that BLM should calculate combustion-related GHG emissions only if the available data allow BLM to estimate reasonably foreseeable emissions associated with combustion. 4. Measuring Success. The success measure in issuing new guidance will be consistent approaches for considering GHG emissions in NEPA reviews. 5. Interim Methods. The BLM is developing an Instruction Memorandum to replace Permanent IM 2017-003; this new IM will provide guidance on consideration of GHG emissions and the effects of climate change in NEPA reviews. The BLM is also developing a unified Air Resources Toolkit that can be used across all organizational levels to consistently calculate, as needed and appropriate, relevant air emissions for a variety ofBLMresource management functions. Once available, this toolkit will expedite analysis ofreasonably foreseeable GHG emissions associated with energy and mineral development. 1 B. Mitigation Actions INTERNAL DELIBERATIONS - DO NOTDISTRIBUTE DRAFT as of 6:15pm, 7/12/17 Mitigation Manual Section (MS-1794) and Handbook (H-1794-1): 1. Description. The Mitigation Manual Section and Handbook provide direction on the use ofmitigation, including compensatory mitigation, to support the BLM's multiple use and sustainedyield mandates. The 2016 Manual and Handbook replaced several IMs (IMNumbers 2005-069, 2008-204, and 2013-14) issued by BLMfor the same purpose. The 2016 Manual and Handbook encourages identification ofmitigation standards that seek to achieve "no net loss " or "net benefit" for resources that BLM has determined are important, scarce, sensitive, or that have a protective legal mandate. A "net benefit" standard may burden development or use of domestically produced energy resources and may be appropriate only in limited circumstances, for example where it is voluntary or will clearly benefit BLM-managed resources, the states, local communities, industry, and otherprimary stakeholders. 2. Opportunities to Address Burden or Other Issues of Concern. This potential burden would be reduced or eliminated through revision of the Mitigation Manual and Handbook, specifically through identifying a mitigation standard that is generally not more protective than "no net loss." Other revisions, such as clarifying what resources require compensatory mitigation, and how to calculate the appropriate kind and amount of compensatory mitigation, may further reduce this potential burden. 3. Anticipated Benefits. A revised Manual and Handbook that address the issues identified above are expected to provide greaterpredictability (internally and externally), ease conflicts, and may reduce permitting/authorizations times. 4. Measuring Success. Measuring success would be largely quantitative. The BLM would continue to track impacts from land use authorizations and would also track the type and amount of compensatory mitigation implemented and its effectiveness, preferably in a centralized database. 5. Interim Methods. The BLM is drafting an IM that provides interim direction regarding new and ongoing mitigation practices while the Manual and Handbook are being reviewed and revised. Use of the existing Manual and Handbook would continue, as modified and limited by this IM, until they are superseded. BLMManual 6220 - National Monuments, National Conservation Areas, and Similar Designations (07/13/2012) 1. Description. Manual 6220provides guidance for managing BLM National Conservation Lands designated by Congress or the President as National Monuments, National Conservation Areas, and similar designations (NM/NCA) in order to comply with the designating Acts of Congress and Presidential Proclamations, Federal Land Policy and Management Act (FLPMA), and the 2 INTERNAL DELIBERATIONS - DO NOTDISTRIBUTE DRAFT as of 6:15pm, 7/12/17 Omnibus Public Land Management Act of2009 (16 U.S.C. 7202). Manual 6220 contains verygeneral guidance that directs these areas be managed to mitigate impacts to the objects and values for which the Monuments and NCAs were designated, specifically related to valid existing rights and rights-of-way actions. 2. Opportunities to Address Burden or Other Issues of Concern. Manual 6220 provides necessaryguidance for managing these areas consistent with the designating legislation or Presidential Proclamation. Manual 6220provides clarity on a range ofmultiple uses that may be allowed. The BLMwill review Manual 6220 following the proposed revisions to the BLMMitigation Manual Section (MS-1794) and Handbook (H-1794-1) to ensure that Manual 6220 conforms to the BLM's revised mitigation guidance. 3. Anticipated Benefits. The guidance in Manual 6220 for managing these areas provides more certainty upfront for operators, local and state government, and other stakeholders. 4. Measuring Success. Success will be measured in the BLMmeeting legal obligations under the designating Act or Proclamation for each unit and the allowance of compatible multiple uses. 5. Interim Methods. N/A BLMManual 6400 - Wild and Scenic Rivers, Policy and Program Direction for Identification, Evaluation, Planning, and Management (07/13/2012) 1. Description. Manual 6400provides guidance for management ofeligible and suitable wild and scenic rivers and designated wild and scenic rivers in order to fulfill obligations from the Wild and Scenic Rivers Act. The manual contains very general guidance that mitigation be considered related in reference to impacts to eligible and suitable rivers from water resource and hydroelectric dam projects. 2. Opportunities to Address Burden or Other Issues of Concern. Manual 6400 provides guidance for managing designated WSR in accordance with the Wild and Scenic Rivers Act. Manual 6400 will be reviewed following the proposed revisions to the BLMMitigation Manual Section and Handbook to ensure it conforms to the BLM revised mitigation guidance. 3. Anticipated Benefits. Although requirements of the NTSA limit some uses, the manual helps clarify the BLM's decision-space which provides more certainty upfront for operators, local and state government, and other stakeholders. 4. Measuring Success. Success will be measured in terms of complying with the WSRA and identifying and allowing compatible multiple uses. 5. Interim Methods. N/A 3 INTERNAL DELIBERATIONS - DO NOTDISTRIBUTE DRAFT as of 6:15pm, 7/12/17 BLMManual 6280 - Management ofNational Scenic and Historic Trails and Trails under Study or Recommended as Suitable for Congressional Designation (09/14/2012) 1. Description. Manual 6280provides guidance for managing trails under study, trails recommended as suitable, and congressionally designated National Scenic and Historic Trails to fulfill the requirements of the National Trails System Act (NTSA) and the Federal Land Policy and Management Act. Manual 6280 identifies mitigation as one way to address substantial interference with the natural and purposes for which a National Trail is designated. Consideration ofpotential mitigation measures is considered through the review under the National Environmental Policy A ct(NEPA). 2. Opportunities to Address Burden or Other Issues of Concern. Manual 6280 provides guidance for managing designated NSHTin accordance with the NTSA, including clarity on uses that may be allowed while still complying with the law. The BLM will review Manual 6280 following the proposed revisions to the BLM Mitigation Manual Section and Handbook to ensure Manual 6280 conforms to the BLM revised mitigation guidance. 3. Anticipated Benefits. Although requirements of the NTSA limit some uses, the manual helps clarify the BLMs decision-space which provides more certainty upfront for operators, local and state government, and other stakeholders. 4. Measuring Success. Success will be measured in terms of complying with the NTSA and identifying and allowing compatible multiple uses. 5. Interim Methods. N/A C. Coal-Related Policy Instruction Memorandum (IM) 2014-156, "Supplemental Guidance on Processing Royalty Rate Reduction Applications " 6. Description. This IM informs BLM State Directors that they must provide the BLM Washington Office (WO) with ajustification when seeking a royalty rate reduction (RRR). A copy ofthe State's draft decision must accompany thejustification when requesting WO concurrence. Further, this IM augments and reiterates the existing policy for processing RRR applications. This policy has resulted in a delay to the processing ofRRR applications as it has imposed an additional level ofreview of the BLM State Directors ' decisions. However, the BLM should assure that all RRRs meet the necessary regulatory standards, considering the public and Congressional scrutiny surrounding these actions. 7. Opportunities to Address Burden or Other Issues of Concern. This policy is currently under review and will be address in the Report to the Secretary on Recommendations for Streamlining the Federal Coal Leasing and Permitting Process. 4 INTERNAL DELIBERATIONS - DO NOTDISTRIBUTE DRAFT as of 6:15pm, 7/12/17 8. Anticipated Benefits. The BLM expects the primary benefits to be a more efficient process that maintains an adequate review of the RRR application and a greater measure of certainty. The certainty will improve industry applicants ' abilities to confidentlyprepare mine operations and coal production planning, because a response will take weeks to months rather than months to years. 9. Measuring Success. The BLM will measure success by reduced confusion and RRR application review timeframes, assuming all necessary information has been provided by the proponent. 10. Interim Methods. There are no variances or waivers available to provide interim compliance on RRR requests. However, the WO and the BLM States can work together to prioritize the existing RRR requests and identify an approach that will move the existing RRR requests along as quickly as can be expected with existing staff, workload, and priorities while concurrently developing the revised policy. Policy IM2017-035, "Publicly A ccessible Bureau ofLand Management Websites for Information Regarding Federal Coal Program Leasing, Exploration Licensing and Royalty Rate Reductions " 6. Description. Through this IM, the BLM responded to stakeholder suggestions for improved access to information on the Federal coal program, and replaced WO-IM2014-159 titled "Publicly Accessible Bureau ofLand Management Websites for Coal Leasing Information." The 2017 IM directs BLM offices to post and update specified Federal coalprogram information on BLMpublicly accessible websites, including' (1) information about Federal coal lease applications and leases, lease modification applications, and lease modifications; (2) information about exploration licensing applications and exploration licenses; (3) information about RRR applications; and (4) summary information on the Federal coal program. 7. Opportunities to Address Burden or Other Issues of Concern. The BLMs new policy lifted the burden on responding to public and other requests for coal information, including Freedom ofInformation Act (FOIA) requests, which this policy will minimize and largelyprevent. The BLM expects to complete implementation ofthe policy in the first quarter ofFiscal Year (FY) 2018. 8. Anticipated Benefits. The newpolicy will free up BLM specialists and allow them to devote more time on core functions, such as coal application processing The new policy will have direct benefits to coal applicants by reducing the time it takes to fully review their applications. 9. Measuring Success. The BLM will measure success by quantifying the number of time-consuming requests before and after public availability of the coal program information. 10. Interim Methods. This policy is internal to the BLM and results from the burden of responding to public and other requests for coal program information. As such, there 5 INTERNAL DELIBERATIONS - DO NOTDISTRIBUTE DRAFT as of 6:15pm, 7/12/17 technology. This technology has opened large portions ofFederal and Indian lands to oil and gas development. Some provisions of the rule add regulatory burdens that unnecessarily encumber energyproduction, constrain economic growth, andprevent job creation. Portions of the rule also overlap with current Environmental Protection Agency provisions. 2. Opportunities to Address Burden or Other Issues of Concern. Due to on-going litigation and court-ordered stay, this regulation has never gone into effect and therefore has not become a burden on energy-producers. This regulation will be rescinded. 3. Anticipated Benefits. In states that currently regulate hydraulic fracturing, proponents will be under only one set ofregulations and, as such, the rule has the potential to offer a reduction in the regulatory burden by being under one regulation rather than two. 4. Measuring Success. Since the regulation was never implemented, there is not prior experience with which to compare. The situation will be status quo with the existing regulations that have been in place for over twentyyears. 5. Interim Methods. The interim state is the status quo of the existing regulations. These are very simple regulations regarding hydraulic fracturing and no particular variances, waivers or interim compliance measures are required. Regulation, Oil and Gas; Waste Prevention, Production Subject to Royalties, and Resource Conservation, 81 Fed. Reg 83008 1. Description. The "Venting & Flaring Rule," formally known as the "Waste Prevention, Production Subject to Royalties, and Resource Conservation" rule, replaced the requirements related to venting flaring and royalty-free use ofgas contained in the 1979 "Notice to Lessees and Operators of Onshore Federal and Indian Oil and Gas Leases, Royalty or Compensation for Oil and Gas Lost" (NTL4A). The BLM codified the new rule at new 43 CFR subparts 3178 and 3179. The recent rulemaking includes provisions to make regulatory and statutory authority consistent with respect to royalty rates that may be levied on competitively offered oil and gas leases on Federal lands. Some provisions of the rule add regulatory burdens that unnecessarily encumber energyproduction, constrain economic growth, and preventjob creation. Portions of the rule also overlap with current Environmental Protection Agencyprovisions. 2. Opportunities to Address Burden or Other Issues of Concern. To reduce the regulatory burden on the energy industry, the BLMis revising the regulation to delay the phased-in implementation dates. This will provide industry additional time to plan for and engineer responsive infrastructure modifications that will comply with the regulation. The BLM expects to complete the revision of the regulation in the fourth quarter ofFY 2018. 7 INTERNAL DELIBERATIONS - DO NOTDISTRIBUTE DRAFT as of 6:15pm, 7/12/17 acreage industry nominates because industry market conditions can fluctuate dramatically up and down; therefore, total nominated acreage awaiting sale is not likely to be a measure ofsuccess. 5. Interim Methods. Until the BLM can complete the policy revision, the BLMis setting quarterly lease sale acreage targets to address the acreage currently nominated. The BLMis also identifying ways to augment staffsupport forpotential sales in those offices with the greatest numbers ofacres nominated. Policy, Oil and Gas; IM 2013-101, "Oil and Gas Leasing Reform - Master Leasing Plans (MLPs) " 1. Description. This IM announces the incorporation ofMaster Leasing Plans (MLP), further explained in Chapter V of the BLM Handbook H-1624-1, titled "Planning for Fluid Mineral Resources." The IM establishes a process for integrating an MLP into the land use planningprocess. The BLMhas extended this IM several times while the BLM completes the public scoping and analysis for MLPs. In addition, many areas previously open to leasing have also been removed from leasing in recentyears through the MLPprocess. 2. Opportunities to Address Burden or Other Issues of Concern. The BLMhas undertaken an effort to revise the leasing reform and MLPpolicy and to re-establish the BLMResource Management Plans (RMP) as the source oflands available for fluid minerals leasing The BLM is currently evaluating existing MLP efforts with the goal of ending this approach. The BLM expects to rescind this IM and complete the revision of the above BLM Handbook, as well as any other relevant BLM handbooks, in the first quarter ofFY 2018. 3. Anticipated Benefits. Because this change will re-establish the RMP as the source ofland allocation decisions for fluid minerals, it will result in less National Environmental Policy Act (NEPA) analysis and a shorter timeframe for acreage nominations to make it to a competitive lease sale. Since extra time and NEPA analysis adds to uncertainty for industry, removing these process steps has the effect of decreasing uncertainty 4. Measuring Success. The primary measure ofsuccess in removing regulatory burden from the rescission of the MLPpolicy will be in the elimination ofrelated nominated acreage sale deferral pending completion ofNEPA. While there will continue to be acreage sale deferrals for various reasons, completion ofMLP NEPA will no longer be one of them. The time frames will be shorter. 5. Interim Methods. There are no interim compliance requirements, waivers or variances needed or that would really help. However, BLM's review ofMLP efforts will result in the cancellation ofat least those in the verypreliminary stage. 9 INTERNAL DELIBERATIONS - DO NOTDISTRIBUTE DRAFT as of 6:15pm, 7/12/17 Policy, Oil and Gas; IM2013-177, "National Environmental Policy Act (NEPA) Compliance for Oil and Gas Lease Reinstatement Petitions" 1. Description. This IM directs all BLM oil and gas leasing Field Offices to: 1) ensure RMP conformance; 2) evaluate the adequacy of existing NEPA analysis and documentation; and 3) complete any necessary new or supplemental NEPA analysis and documentation before approving a Class I or Class II oil and gas lease reinstatementpetition. This IMhas resulted in additional analysis and review time that often involves another Surface Management Agency and, in some instances, has led to adding new lease stipulations prior to lease reinstatement. 2. Opportunities to Address Burden or Other Issues of Concern. The lease reinstatements were once at the level ofa ministerial review. IM2013-177 changed that in significant ways, resulting in additional NEPA review and significantly greater timeframes for completing the reinstatement. Rescinding this policy will greatly reduce timeframes to make decisions on lease reinstatement requests. BLM expects to complete review of this policy in the first quarter ofFY 2018. 3. Anticipated Benefits. BLM expects that changes to this policy will place the emphasis back on existing NEPA analysis and information, which will significantly shorten the time it takes to consider a lease reinstatement request. The policy changes will provide greater certainty and reduced expense for energy development companies. 4. Measuring Success. The BLM will measure the reduction in burden in terms of the average time it takes to consider a complete lease reinstatement request. 5. Interim Methods. Similar to MLPs, in the interim, the BLMmust identify and evaluate where each current lease reinstatement request is to understand the degree to which it is possible to expedite its consideration. There are no other interim measures, waivers or variances that are relevant to the process. Regulation, Oil and Gas; Onshore Orders Nos. 3, 4 and 5 1. Description. These three concurrent rulemakings updated and replaced Onshore Orders for site security, oil measurement, and gas measurement regulations that had been in place since 1989. The recent rulemakings resulted in new site security, oil measurement, and gas measurement regulations for onshore Federal and Indian oil andgas production and are codified in the Code ofFederal Regulations at 43 CFRpart 3170. External and internal oversight reviews prompted these rulemakings and found that many of the BLM's production measurement and accountabilitypolicies were outdated and inconsistently applied. The new rules also address some of the Government Accountability Office concerns for high risk with regard to the Department's production accountability. Combined, the new regulations improve the BLM's ability to ensure accurate measurement, accountability and proper reporting of oil and gas 10 INTERNAL DELIBERATIONS - DO NOTDISTRIBUTE DRAFT as of 6:15pm, 7/12/17 Greater Sage-Grouse Conservation Policies and Plans: 1. Description. In September 2015, the BLMincorporated Greater Sage-Grouse (GRSG) conservation measures into its land use plans within the range of the GRSG. In September 2016, the BLMissued a number ofIMs to help guide the implementation of the GRSG plans. These GRSG plans and policies will affect where, when, and how energy and minerals are developed within the range of the GRSG. 2. Opportunities to Address Burden or Other Issues of Concern. Pursuant to Secretarial Order 3353, "Greater Sage-Grouse Conservation and Cooperation with Western States," a Department of the Interior (DOI) Sage-Grouse Review Team (Review Team) is working with the State-Federal Sage-Grouse Task Force to identify opportunities for greater collaboration, better align federal and state plans for the GRSG, support local economies and jobs, and consider new and innovative ways to conserve sage-grouse in the long-term. Pursuant to the Secretarial Order, in August 2017 the Review Team will submit a report to the Secretary summarizing their review and providing recommendations regarding next steps. 3. Anticipated Benefits. The BLM anticipates that the Review Team's report will identify a number ofpotential actions to enhance the coordination and integration of state and federal GRSG conservation efforts. The BLM also anticipates that the report will identify actions that could be taken to facilitate energy and mineral development within the range ofthe GRSG. 4. Measuring Success. Success will be measured and evaluated in terms ofimproved working relationship among local, state, Tribal and federal units ofgovernment and in terms ofimprovedpartner and stakeholder understanding ofeffective GRSG conservation measures and of the science underlying them. 5. Interim Methods. The BLM anticipates that some of the actions outlined in the Review Team's report to the Secretary could be implemented in the near future through changes in policy (through issuance ofIMs, for example), technical assistance, or training. Other actions may require amending the land use plans. Depending on the scope and significance, such amendments could take upwards of2 4 years to complete. 14