State energy office outlines how federal 'HR 1' will reshape Utah oil, gas, coal and clean-energy outlook

Jake Garfield, deputy director of the Utah Office of Energy Development, told the Energy and Technology Interim Committee on an HR 1 summary that the recently enacted federal package contains changes that could increase fossil fuel leasing activity while narrowing or ending some federal incentives for wind and solar. "There are some really, really great changes," Garfield said, adding the bill also creates opportunities for critical-minerals projects and grid reliability work.

Garfield said the law requires the Bureau of Land Management to hold quarterly oil and gas lease sales and to put at least half of eligible acreage into each sale, and reduces royalty rates for oil and gas from 16.7% to 12.5% and for coal from 12.5% to 7%. "Royalty rates for oil and gas leasing were also reduced from 16.7% down to 12.5%," he said. He told lawmakers a coal lease permit application process is now required to be completed within 90 days, including public comment and fair market valuation.

The deputy director…