Welcome to The New Interior, a periodic update from Steptoe & Johnson LLP to keep you informed of coming changes at the Department of Interior, and for related matters on Capitol Hill and elsewhere with a new administration taking charge in Washington, DC.  We intend to bring you the very latest on anticipated moves by the Obama Administration and in the 111^th Congress over the next several months, as a new direction takes shape for Interior-related positions and policies.

If you would like to speak with a Steptoe attorney about our Interior practice, please reply to this email or contact Tom Collier (202.429.6242 or tcollier@steptoe.com) or Jody Cummings (202.429.8096 or jcummings@steptoe.com). 

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Salazar Gives Time for More Analysis on Bush 5-Year Drilling Plan, Sets Path for Strategy on Offshore Energy Resources

Consistent with comments he made shortly after his confirmation by the Senate, Interior Secretary Salazar announced this week his strategy for developing an offshore energy plan that includes both conventional and renewable resources.  Notably, it includes a much lengthier look at a five-year outer continental shelf (OCS) drilling program that was proposed by the Minerals Management Service (MMS) just days before the Bush Administration left town.  The Bush Administration provided a 60 day window (until March 23, 2009) for comments on its proposed OCS plan.  However, Secretary Salazar extended that period on Tuesday by an additional 180 days, indicating that he did not believe that the comment period established by the Bush Administration provided enough time for public review or full consideration of the plan’s implications. 

If things go according to plan, the comment period will close in late September.  The Secretary stated that the additional six months provided for comments would give states, stakeholders, and affected communities the opportunity to provide input on the future of offshore areas, and allow the Administration to restore an orderly process to offshore energy planning.

Salazar announced three additional steps for a revised off-shore energy plan:

• He directed the United States Geological Survey (USGS), MMS, and other departmental scientists to assemble all available information about offshore resources – both conventional and renewable – along with information about potential impacts, and provide report to him on such matters within 45 days.
  
  
• Within 30 days after the USGS/MMS report is published, Salazar will convene four regional meetings (Alaska, Pacific Coast, Atlantic Coast, Gulf Coast) to receive input from all interested parties about their recommendations for defining the OCS through appropriate changes in the five-year plan.
  
  
• He promised to issue a final rulemaking for offshore renewables in the coming months so that potential developers know the “rules of the road.”  He contrasted this approach with a description of the Bush Administration’s position as “oil and gas only,” noting that it had taken three years for the previous Administration to even issue a proposed rule on offshore matters. 

Senate Committee Hears Salazar’s Priorities for Indian Country

Secretary Salazar was on Capitol Hill late in the week providing a view of his priorities for Indian Country to the Senate Committee on Indian Affairs.  Among the topics covered were economic opportunities, energy development and climate change, education, and law enforcement.  Salazar’s testimony reaffirmed the view that both he and President Obama have espoused on the importance of ensuring that the Department fulfills the trust responsibility of the United States to tribes.  He also noted that he will seek to resolve litigation relating to management of trust lands and assets, and settle Indian water rights claims.

Discussing economic development, Salazar called for a partnership between the Department and tribes to create an economic boost for tribal economies.  He stated that the economic stimulus package would provide needed economic development for Native communities through funds for infrastructure and workforce development, and create thousands of jobs.  Salazar offered positive testimony about tribal gaming, indicating that the revenues from such operations are important tribal resources for funding education, healthcare, and law enforcement, among other tribal government functions.

On energy issues, Salazar highlighted the potential for projects on tribal land.  He indicated that development of alternative energy sources, including solar, wind, and geothermal resources, presented a great opportunity for Indian Country.  Salazar stated that the Office of Indian Energy and Economic Development has identified 77 reservations that possess commercial-scale wind resources and the ability to support viable wind-based economies.

Salazar also highlighted a need for greater focus on law enforcement issues in Indian Country.  With Chairman Dorgan touting a tribal law enforcement bill in the last Congress and likely plans to bring back again this year, that legislation could get significant action if the Administration’s stated views remain in tact.

Appointments Buzz – The Very Latest

Strickland Taking on Additional Role?

As the buzz about Assistant Secretary appointments continues to grow, one rumor that circulated this week is the possibility of Salazar’s Chief of Staff Tom Strickland being in the running for Assistant Secretary for Fish and Wildlife and Parks.  Word is that Strickland would maintain both jobs at Interior. Given the monumental responsibilities that come along with holding either, it is almost unthinkable that one person could do both jobs at the same.  Still, several insiders indicated having heard the same rumor – meaning that there could be some real legs to it.

Natives Could Be in Line for Top “Non-Traditional” Spots as Well

Although the recent buzz in Indian Country about Interior appointees has focused on what appears to be the all-but-official nomination of Larry EchoHawk as Assistant Secretary for Indian Affairs, Secretary Salazar’s testimony before the Senate Indian Affairs Committee on Thursday relating to potential appointments is likely to create an even greater stir. 

The Secretary indicated that he and President Obama were seriously considering American Indian candidates for top Interior posts other than just jobs at the Bureau of Indian Affairs, Office of Special Trustee, or the National Indian Gaming Commission, which are typically the only offices where American Indians are appointed to top spots in the Department.  The Secretary stated that Indian candidates were currently being vetted for the Solicitor’s job and for Commissioner of the Bureau of Reclamation.  This is consistent with our earlier report that John Leshy and David Getches were out of the running for Solicitor, and that Secretary Salazar was looking to appoint female and racial/ethnic minority candidates.   

For Solicitor, insiders tell us that Hilary Tompkins may be the leading candidate.  Tompkins, a Navajo from New Mexico, teaches law school at the University of New Mexico.  She was formerly chief counsel to New Mexico Governor Bill Richardson.

We also hear that former Oneida Nation of Wisconsin Chairman Jerry Danforth is among those on a short list for the National Indian Gaming Commission. 

Other Names

There has also been some recent buzz about other names that are familiar to Interior.  Rumor has it that Molly McUsic, former Counselor to Secretary Babbitt and a member of President Obama’s Interior Transition Team, may have turned down an offer to be Assistant Secretary for Land and Minerals Management. 

We also hear that Paddy McGuire, former Interior Director of Intergovernmental Affairs during the Clinton Administration, who has also previously served as the Executive Director of the Democratic Party of Oregon and as Oregon’s Deputy Secretary of State, could be up for an open DOI slot.