Top energy legislators released a long-awaited proposal for speeding up the approval of a wide range of projects, but it’s expected to be dead-on-arrival in the Senate.
Sens. Joe Manchin (I-WV) and John Barrasso (R-WY) unveiled a highly anticipated permitting reform bill that addresses judicial review, leasing and permitting for onshore and offshore energy, and transmission reform. The overhaul has been in the works since last year.
“The United States of America is blessed with abundant natural resources that have powered our nation to greatness and allow us to help our friends and allies around the world. Unfortunately, today our outdated permitting system is stifling our economic growth, geopolitical strength, and ability to reduce emissions,” Manchin said in a written statement. “The Energy Permitting Reform Act will advance American energy once again to bring down prices, create domestic jobs, and allow us to continue in our role as a global energy leader.”
While permitting reform has remained a significant priority to shore up the aged energy grid, the measure introduced by the top senators on the Energy and Natural Resources Committee faces a tall hill to climb. The legislation would speed up the approval of fossil fuel projects, a red line for climate hawks, and would be a tough vote for Democrats as they look to maintain the majority. Senate Majority Leader Chuck Schumer (D-NY), who controls the floor, told reporters in May that permitting reform would be “virtually impossible” during the election year.
For projects on federal lands, the bill aims to speed up approval of all energy projects, ranging from renewable energy to fossil fuels. The measure would set deadlines for renewable energy permitting and doubles production targets for those on federal lands. The effort also eliminates duplicative permitting requirements for oil and gas production on privately owned oil and gas resources. The bill would also streamline environmental reviews for renewables, set deadlines for processing applications for federally leasing coal, and modernize geothermal leasing.
The bill also sets up reforms to construction and financing of electric power transmission.
Notably, the bill also requires the interior secretary to hold at least one offshore wind and one offshore oil and gas lease sale every year between 2025-2029, aiming to end the slowdown of lease sales under the Biden administration, which has offered the lowest level of offshore oil and gas lease sales in history.
The measure also takes a stab at speeding up project approvals that are often held up for years due to court battles. The bill shortens time frames during all stages of litigation for energy projects and requires courts to expedite the review of legal challenges. It also establishes a 150-day statute of limitations from the date of the final agency action on a project and a 180-day deadline for federal agencies to act on remanded authorizations.
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The bill also sets a 90-day deadline for the secretary of energy to either grant or deny a liquefied natural gas export application, ensuring that a pause, like the one taken by the Biden administration on exports to non-free trade agreement countries, would not be possible in the future.
The measure was introduced two weeks before the Senate is scheduled for an August recess. Afterward, it’s expected senators will focus much of their efforts on campaigning for the November elections, lessening the chances of a contentious regulatory overhaul, such as this one, passing the finish line in either chamber.