Budget reconciliation bill clears a path for Alaska drilling, mining

Republicans in the U.S. House are trying to clear hurdles for Alaska oil drilling and mining with a budget reconciliation bill that’s written to thwart environmental lawsuits.

The bill, for instance, mandates four new lease sales in the Arctic National Wildlife Refuge, under terms the first Trump administration decided on. Only this time, if the bill passes as proposed, the law would declare that the leases comply with a raft of environmental laws and no one but the State of Alaska or the leaseholder could go to court.

The House Natural Resources Committee takes up the Alaska drilling sections of the bill Tuesday.

The committee is working on its part of the Republican budget reconciliation measure, or as President Trump calls it, “one big beautiful bill.” The sweeping legislation includes much of his agenda, including tax cuts and immigration enforcement, as well as rolling back environmental rules in Alaska and around the country.

U.S. Sen. Dan Sullivan told Alaska business and industry representatives last week that, with Republicans controlling the White House and Congress, Alaska stands to benefit.

“We have probably the biggest opportunities to make huge advances for our state, maybe in the history of our state,” he said, as recorded by his office.

Among the Alaska provisions in the reconciliation bill is the removal of environmental restrictions that the Biden administration imposed in the National Petroleum Reserve Alaska. The bill also mandates approval of the Ambler Road corridor, across federal land in Northwest Alaska. And it requires at least six petroleum lease sales in Cook Inlet.

Past lease sales in ANWR drew only paltry bidding. Still, House Republicans say they expect the Alaska energy section to generate $1.5 billion for the federal government. The bill says starting in 2035, the government will give 90% of the revenues generated by oil development to the State of Alaska.

Environmental groups are gearing up for battle.

Andy Moderow, senior director of policy for Alaska Wilderness League called the bill an aggressive attack on Alaska’s environment, but also on American democracy.

“If they get what they want through it, it would let leaseholders and oil companies access the courts while Alaskans concerned about fish wildlife, public lands would be locked out,” he said. “And that’s just shocking.”

A reconciliation bill is immune from filibuster in the Senate, so it could pass both chambers if Republicans unite behind it. It’s not certain they will. Some Republicans object to the legislation because it would add trillions to the deficit over 10 years. Potential cuts to Medicaid are controversial, too.

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