The Biden administration on Thursday proposed a rule that would raise the royalties that fossil fuel companies pay to pull oil, gas and coal from public lands for the first time since 1920, while increasing more than tenfold the cost of the bonds that companies must pay before they start drilling.
The Interior Department estimated that the new rule, which would also raise various other rates and fees for drilling on public lands, would increase costs for fossil fuel companies by about $1.8 billion between now and 2031.
After that, rates could increase again.
About half of that money would go to states while a third would be used to fund water projects in the West.
Officials at the Interior Department characterize the changes as part of a broader shift as it seeks to address climate change by expanding renewable energy on public land and in federal waters while making it more expensive for private companies to drill there.
Persons:
Biden
Organizations:
Interior Department, West