Western Energy Alliance submitted testimony for consideration by the Senate Energy and Natural Resources Subcommittee on National Parks in conjunction with a hearing on the Great American Outdoors Act (GAOA). The Alliance submitted testimony as it is unlikely the USDA Forest Service and Department of the Interior witnesses will acknowledge that oil and natural gas almost exclusively provide the $2.8 billion authorized by GAOA for conservation and national parks infrastructure. Alliance President Kathleen Sgamma also points out how the outdoor industry uses national parks to market their products but does not likewise contribute to their conservation and upkeep.
“We’re proud that the oil and natural gas industry almost exclusively provides the $2.8 billion for conservation and infrastructure in national parks, wildlife refuges, and other public lands that GAOA enabled, with coal providing a share as well,” said Sgamma. “We’re pleased that a large portion of the revenues we generate from public lands are directed into conservation and maintenance of those public lands. By providing that funding, we provide a solution to the maintenance backlog in national parks and the means to expand access to parks for all Americans, including disadvantaged communities.
“On the other hand, outdoor retailers actively market their apparel and gear as a means for their customers to access parks and public lands. By advertising their gear alongside iconic landmarks in Yosemite and Arches National Parks, for example, they associate their brands with the landscapes that Americans cherish,” added Sgamma. “Their aggressive marketing and social media advocacy has the downside of contributing to the strain on national park resources. Congress should consider enlisting the outdoor industry to help fund the infrastructure necessary to accommodate the increased visitation they so actively encourage. A ‘backpack tax’ has been proposed in the past, but has been fought by the outdoor industry. Such a use tax for gear that will often be used on public lands would help to relieve the strain on parks that outdoor retailers and manufacturers have encouraged through their marketing.”
Sgamma’s full testimony is available on the Alliance’s website.
Background
- GAOA was signed into law on August 4, 2020 after receiving strong bipartisan support in Congress.
- The law established a new National Park and Public Lands Legacy Restoration Fund authorized up to $1.9 billion annually to address the $20 billion maintenance backlog in national parks and other public lands. The Legacy Restoration Fund is funded from 50% of the revenues generated from energy development on public lands, up to $1.9 million annually.
- While the exact funding source data have not been released by the Interior Department, the relative size of leasing and royalty revenue is the best proxy for contributions. Data from the Office of Natural Resources Revenue (ONRR) for 2021 breakdown as follows, including their percentage of energy revenues:
- Oil and natural gas $4 billion, 91.3%
- Coal $364 million, 8.2%
- Geothermal $18 million 0.4%
- Wind $5 million, 0.1%
- In the absence of oil and natural gas revenues, only about $193.5 million would have been available under GAOA.
- GAOA also fully funds the popular Land and Water Conservation Fund at $900 million annually, which derives revenues exclusively from offshore oil and natural gas.
- The U.S. Department of the Interior provides more information online about the national park projects funded in 2021 under GAOA and proposed projects for 2022.
Western Energy Alliance represents 200 companies engaged in all aspects of environmentally responsible exploration and production of oil and natural gas in the West. Alliance members are independents, the majority of which are small businesses with an average of fourteen employees. Learn more at www.WesternEnergyAlliance.org.
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