U.S. House passes energy bill with permitting reform

The U.S. House of Representatives passed energy legislation on Thursday that included provisions to reform the federal permitting process to speed up infrastructure projects, a prospect that was welcomed by energy industry trade groups.

The Lower Energy Costs Act, H.R. 1, was approved by a 225-204 vote, with 221 Republicans and 4 Democrats supporting it. The bill, sponsored by House Majority Leader Rep. Steve Scalise (R-LA), aims to increase domestic energy production, streamline energy infrastructure and exports, boost the production and processing of critical minerals, and reform the permitting process for all industries.

Gregory Wetstone, president and CEO of the American Council on Renewable Energy (ACORE), cautioned that any energy legislation will need broad bipartisan support to have any chance of enactment. Further, he said a comprehensive permitting bill “needs to help streamline the nation’s unworkable approval process for electric transmission lines.”

“Today, the average transmission project takes well over a decade from announcement to completion, a staggering length of time that is nowhere close to the speed at which transmission must be built if we have any hope of meeting our climate targets. It is telling that virtually no interregional transmission lines have been built in the last decade, despite their critical importance to grid reliability and resilience. Permitting reform should be designed to rapidly accelerate interstate transmission deployment, and we remain hopeful Congress can negotiate a bipartisan, bicameral solution this year,” Wetstone said.

H.R. 1, if enacted, would amend the National Environmental Policy Act (NEPA) permitting process to streamline federal reviews for all sectors of the economy, including at international borders. It would also limit the scope of environmental review under NEPA to reasonably foreseeable and economically feasible impacts and set deadlines for completion of NEPA reviews at one year for environmental assessments and two years for environmental impact statements, according to a summary of the bill.

In addition, the bill would impose a 120-day deadline on filing litigation on final agency actions concerning energy and mining projects. Also, it would require that certain low-impact activities and activities in previously studied areas on public lands are not major federal actions under NEPA. Further, it would streamline the permitting process under the Clean Water Act and limit review to water quality impacts only. Finally, it would amend the environmental permitting processes at critical minerals refining and process facilities, among other provisions, the bill summary said.

The legislation now moves to the U.S. Senate for consideration, where Senate Majority Leader Chuck Schumer (D-NY) has called the bill a “non-starter.”

The permitting reforms included in H.R. 1 drew praise from several energy industry groups.

The Edison Electric Institute (EEI), an association that represents all U.S. investor-owned electric companies, said the bill proposes important improvements to the nation’s inefficient and time-consuming siting and permitting process.

“EEI and our member companies support permitting improvements that create a more efficient, environmentally sound, and legally durable process for deploying new energy infrastructure and energy technologies,” EEI President Tom Kuhn said. “A clear, coordinated, consistent, and efficient permitting process is essential for our industry and for America’s electric companies as we make critical investments in our nation’s energy grid.”

The American Clean Power Association (ACP) also said it was pleased to see Congressional efforts move forward to engage on permitting reform, which it called a “critical and complex set of issues.”

“The Congress must pass meaningful permitting reform to support a dynamic, secure, and clean economy,” ACP CEO Jason Grumet said.

The American Petroleum Institute (API) also applauded the House passage of the bill.

“It is clear now that both Republicans and Democrats share the common goal of providing reliable energy to Americans and making energy safer, cleaner, and more affordable. This is a positive step towards enacting serious, bipartisan permitting reform and we look forward to continuing to collaborate on real solutions that will modernize our infrastructure and benefit all Americans,” API President and CEO Mike Sommers said.