July 29, 2026

DENVER – Western Energy Alliance and the Independent Petroleum Association of America (IPAA) today welcomed the Senate Energy and Natural Resources Committee’s approval of legislation to extend a successful program that funds oil and natural gas permitting activities on federal lands, bringing Congress one step closer to preventing its expiration later this year. The License to Drill Act (S. 5039/H.R. 7831) to reauthorize the Permitting Project Improvement Fund (PPIF) was passed with unanimous and bipartisan support by the committee.

The PPIF directs the fees paid for drilling permits by oil and natural gas producers to priority Bureau of Land Management (BLM) field offices to support leasing, permitting, inspections, and other energy-related duties. The legislation was first introduced by Rep. Mike Kennedy (UT-03) and passed the U.S. House of Representatives with strong bipartisan in June. In the Senate, Chairman Mike Lee (R-UT) recently introduced the companion bill.

The associations urge Congress to complete passage before the program expires in September and emphasize the importance of maintaining support for federal employees responsible for managing energy development on public lands.

“Energy development depends on a permitting system that has the resources to function efficiently. The Permitting Project Improvement Fund ensures that the fees paid by producers on public lands are reinvested into the permitting process and the federal workforce responsible for administering it. This legislation helps ensure those offices have the resources they need to do their jobs,” said Melissa Simpson, president of the Alliance. “Allowing the program to expire would disrupt funding for field offices that play a critical role in managing energy development on federal lands. We appreciate the leadership of Sen. Mike Lee and the committee's action, and we encourage Congress to send this legislation to the president's desk without delay.”

“S. 5039 reauthorizes a long-standing policy that is an important framework for federal land producers. IPAA has championed this concept since its origins in the Energy Policy Act of 2005 and proudly testified in support of the bill during its committee hearing earlier this year," said Dan Naatz, IPAA EVP and Chief Policy Officer. "The PPIF program has garnered bipartisan support in both the Senate and House in previous reauthorizations as the concept is sound – industry pays its own way. Extending the program preserves an industry-funded permitting system with a fee that is indexed to inflation, designed to improve agency resources and reduce permitting delays. We applaud Chairman Lee and the Senate Energy and Natural Resources Committee’s leadership, and we urge the full Senate to move this legislation forward expeditiously.”

Oil and natural gas producers pay more than $12,500 for each Application for Permit to Drill submitted to the federal government. Revenue generated through those fees supports personnel and activities associated with reviewing permits and managing energy development on public lands. The program has long received bipartisan support because it is funded entirely by industry-paid fees rather than taxpayer dollars.

Reauthorization would provide continued support for BLM offices responsible for overseeing approximately 10% of U.S. oil and natural gas production, making timely permitting and effective field office operations important to maintaining domestic energy production and energy security.

Background

The PPIF was created in the Energy Policy Act of 2005 as a pilot program. Following 10 years of success, Congress renewed it for an additional 10 years and expanded the program. Authorization for using drilling permit fees to fund portions of the PPIF expires in September.

Congress prioritized funding for eight high-volume BLM offices to support federal and tribal oil and natural gas activities. The offices are in Colorado, Montana/North Dakota, New Mexico, Utah, and Wyoming. The PPIF supports BLM’s staff working on approvals for oil and natural gas activities, including permits, rights of way, environmental analysis, sundry notices, surface‑use plans. Money is also used for interagency coordination with other federal agencies, staff hiring, and training.

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