U.S. House passes energy reform bill with bipartisan support
The U.S. House of Representatives passed a bill to reform the federal permitting process for oil and gas pipelines and critical minerals mining and production.
The Lower Energy Costs Act (H.R. 1) passed on Thursday, March 30, by a vote of 225-204, with 221 Republicans and 4 Democrats voted for it. The bill 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.
In addition, the legislation 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.
“I am proud to introduce today H.R. 1, the Lower Energy Costs Act, to cut red tape and increase energy production here at home so we can lower energy costs and stop our dependence on hostile foreign countries for our energy and minerals. With today’s introduction of the Lower Energy Costs Act, we will show the country how to end the war on American energy, become energy independent again, and lower costs for hardworking families who are struggling under the weight of President Biden’s radical agenda,” House Majority Leader Steve Scalise (R-LA), one of the bill’s sponsors, said.
It was also sponsored by Reps. Cathy McMorris Rodgers (R-WA), chair of the Energy and Commerce Committee; Bruce Westerman (R-AR), chair of the Natural Resources Committee Chair; and Sam Graves (R-MO), chair of the Transportation and Infrastructure Committee.
In addition, the bill would also prevent the banning of hydraulic fracturing and repeal all restrictions on the import and export of natural gas, including LNG. It would also prevent states from blocking interstate infrastructure projects.
Further, the legislation would repeal President Joe Biden’s $6 billion methane tax, and it disapproves of Biden’s canceling of the Keystone XL pipeline. Among other provisions, it would require the Department of the Interior to resume lease sales on federal lands and waters, repeal royalties and fee increases imposed on energy production, ensure parity in energy revenue sharing for states with onshore and offshore energy development, and require publication of the 2023-28 offshore oil and gas lease sales plan/sets deadlines for future 5-year plan.
“From the gas station to the grocery store, President Biden’s war on energy is making life unaffordable for the hardworking people of this country and forcing us to be dangerously reliant on supply chains controlled by the Chinese Communist Party. We must reverse course. H.R. 1 boosts energy production, lifts regulatory burdens for the construction of more energy infrastructure, cuts China out of our critical materials supply chains, and lowers costs across the board,” McMorris Rodgers said.
The legislation, which now moves to the U.S. Senate for consideration, drew praise from several energy industry groups, including the Edison Electric Institute (EEI).
“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. H.R. 1 proposes important improvements to our nation’s inefficient and time-consuming siting and permitting process,” 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 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.
Jeff Eshelman, president and CEO of the Independent Petroleum Association of America (IPAA), said the bill will generate more investment and development across the energy supply chain.
“This legislation – and its designation as the House’s first bill – is a clear indication of the direction and priority that is set by the new House leadership – congratulations to them for getting this much-needed bill through their chamber. The provisions of this bill, including repealing the methane tax and streamlining NEPA to process permits in a timelier manner, provide guidance and assurance that American natural gas and oil are a top priority,” Eshelman said.
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.
