Policy & Regulation

UPDATE: New bipartisan energy reform legislation passes Senate committee. What’s in it, and what’s next

UPDATE: New bipartisan energy reform legislation passes Senate committee. What’s in it, and what’s next
(Solar panels and wind turbines decorate the Colorado desert at the National Renewable Energy Laboratory.)

Today the Senate Energy and Natural Resources Committee approved the Energy Permitting Reform Act of 2024 by a 15-4 vote, just a little more than a week after the legislation was introduced.

“We did this for a year and a half in the most bipartisan way it can possibly be done, and we did it in the most toxic atmosphere,” U.S. Senator Joe Manchin (I-WV) told reporters after the vote. “You put all that together and get this accomplished right now, in the vote we came out with, and considering everyone’s concerns they had, I think it’s pretty surprising to a lot of people we can get this far.” Manchin noted that members have never had this type of support on a permitting deal.

The next step for the legislation would be a full chamber vote, but Senate Majority Leader Chuck Schumer (D-NY) has previously dismissed the idea of getting a deal done. In May, he told reporters getting permitting reform done would be “virtually impossible,” and said he’d told Manchin as much. Schumer believes GOP opposition to the bill will be too staunch to overcome, as Republicans have vocalized concerns over transmission reforms in the bill.

On Monday, July 22 U.S. Senators Joe Manchin and John Barrasso (R-WY), Chairman and Ranking Member of the Senate Energy and Natural Resources Committee, released the Energy Permitting Reform Act of 2024. This bipartisan legislation aims to strengthen American energy security by accelerating the permitting process for critical energy and mineral projects.

Here are some of the highlights:

  • Shortens judicial review timelines before, during, and after litigation on all types of federal authorizations for energy and mineral projects; Sets a 150-day statute of limitations from the final date of agency action on a project, requires expedited review of legal challenges, and sets a 180-day deadline for federal agencies to act.
  • Sets a new goal to authorize 50 GW of renewable energy on federal land by 2030. Adds energy storage as an eligible project under Section 3101 of the Energy Act of 2020, including it in the scope of the Renewable Energy Coordination Office (RECO) programs.
  • Accelerates leasing and permitting decisions on federal lands without bypassing environmental and land-use laws. Sets deadlines and doubles production targets for renewable energy permitting on federal lands. Streamlines environmental reviews for low-disturbance renewable, electric grid, and storage projects, modernizes geothermal leasing and permitting processes, and more.
  • Requires the Secretary of the Interior to hold at least one offshore wind lease sale and one offshore oil and gas lease sale per year from 2025 through 2029, subject to minimum acreage requirements, without bypassing environmental reviews. At least 400,000 acres must be offered per year in sales. and the Secretary must establish a national goal of 30 GW for offshore wind energy production, set a target for achieving that goal, and periodically revise it as necessary.
  • Requires FERC and NERC to assess future federal regulations significantly affecting power plants, and offer formal comments to federal agencies on reliability. If FERC determines a rule, regulation, or standard proposed by another agency is likely to result in a violation of a mandatory electric reliability standard or resource adequacy requirement or process on file with FERC, NERC is required to conduct an assessment and report back to FERC.
  • Allows FERC to extend start-construction deadlines for certain existing hydropower licenses by four additional years.

You can peruse a section-by-section breakdown of the bill here.

Reaction to the legislation

“It has long been too difficult to build some of the critical energy infrastructure America needs, and this bipartisan proposal provides a good foundation on which to build a comprehensive package of legislative reforms,” said Harry Godfrey, managing director of the national trade association Advanced Energy United. “Both parties agree that unreasonable timetables and fragmented planning processes are making it too difficult to invest and build, providing Congress a unique opportunity to pass legislation that unlocks America’s innovative industries and improves grid reliability and energy costs for households and businesses.”

“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,” said Chairman Manchin. “Unfortunately, today our outdated permitting system is stifling our economic growth, geopolitical strength, and ability to reduce emissions. After over a year of holding hearings in the Senate Energy and Natural Resources Committee, thoughtfully considering input from our colleagues on both sides of the aisle, and engaging in good faith negotiations, Ranking Member Barrasso and I have put together a commonsense, bipartisan piece of legislation that will speed up permitting and provide more certainty for all types of energy and mineral projects without bypassing important protections for our environment and impacted communities. 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. The time to act on it is now.”

“For far too long, Washington’s disastrous permitting system has shackled American energy production and punished families in Wyoming and across our country. Congress must step in and fix this process,” added Ranking Member Barrasso. “Our bipartisan bill secures future access to oil and gas resources on federal lands and waters. We fix the disastrous Rosemont decision so that we can produce more American minerals instead of relying on China. We permanently end President Biden’s reckless ban on natural gas exports. And we ensure we can strengthen our electric grid while protecting customers. This legislation is an urgent and important first step towards improving our nation’s broken permitting process.”

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