Sen. Manchin introduces bill to reform permitting process for energy projects

Published on September 23, 2022 by Dave Kovaleski


Warning: Undefined variable $post_id in /var/www/dailyenergyinsider.com/wp-content/themes/dei/single.php on line 31

Warning: Undefined variable $post_id in /var/www/dailyenergyinsider.com/wp-content/themes/dei/single.php on line 36
© Shutterstock

U.S. Sen. Joe Manchin (D-WV) introduced the Energy Independence and Security Act of 2022, a permitting reform bill designed to streamline the process for authorizations and reviews of energy and natural resources projects.

Among the provisions in the bill, it sets a two-year target for National Environmental Policy Act (NEPA) reviews for major energy and natural resource projects, which require a full environmental impact statement and reviews from more than one federal agency. Further, it establishes a 1-year target for projects which require an environmental assessment. In addition, it requires the issuance of all other permits within 180 days of finishing the NEPA process.

Also, it designates a lead agency to coordinate project reviews and expands the use of shared interagency environmental review documents and concurrent agency reviews. In addition, it sets a 150-day statute of limitations for court challenges, requires random assignment of
judges to cases consistent with current practice and requires courts to set and enforce a reasonable schedule — of no more than 180 days — for agencies to act on remanded or vacated permits. It also establishes dispute resolution procedures for resolving project disagreements.

Manchin, chair of the Senate Energy and Natural Resources Committee, said these federal permitting reforms for energy and minerals projects would allow for the increased energy production provided for by the Inflation Reduction Act to get to the domestic and international markets that need them, providing relief at the gas pump and on energy bills while bolstering the country’s energy security.

“No matter what you want to build, whether it’s transmission pipelines or hydropower dams, more often than not, it takes too long and drives up costs. You can double your cost within a five to six, seven-year period from what the original cost may have been. Look here at the energy prices, look what the people in America are facing right now. 200 percent increase in natural gas, increases to regular gasoline is up 67 percent, residential electricity is up 15 percent. We’ve got a good piece of legislation that is extremely balanced. And I think it’ll prove itself in time. The bottom line is how much suffering and how much pain do you want to inflict on the American people for the time being? I can assure you, the longer the time goes on, the more the price goes up. That’s what we’re facing in America today with energy,” Manchin said at press conference announcing the legislation.

As part of the Inflation Reduction Act signed into law on Aug. 16, Manchin secured a commitment from Senate Majority Leader Chuck Schumer (D-NY), House Speaker Nancy Pelosi (D-CA), and President Joe Biden to pass this permitting reform package before the fiscal year ends on Sept. 30. The bill will be included in the Continuing Resolution.

The measure has received backlash from Senate Republicans as well as some Democrats. The measure drew praise, however, from some industry groups, including the American Clean Power Association.

“We applaud Senators Schumer and Manchin for moving forward with legislation to improve the nation’s outdated system for permitting critical energy infrastructure. Making common-sense reforms to our current permitting process will help us unleash the full potential of the clean energy investments spurred by the Inflation Reduction Act and keep us within striking distance of the emissions reduction targets and climate goals we need to achieve. As renewable energy projects become more prevalent and federal involvement likely increases, we must consider reasonable permitting reforms that preserve the substance of bedrock environmental laws while expediting the review process under them,” Heather Zichal, CEO of the American Clean Power Association, said.

Zichal said the current permitting system is overly cumbersome and mired in delays, which jeopardizes the deployment of 100 gigawatts of clean energy by 2030.

“We can’t afford to let our unnecessarily burdensome permitting process derail the promise of a clean energy future,” she said.