Senators propose sweeping energy permitting reform package

Newly introduced bipartisan legislation in Congress aims to bolster America’s energy security by accelerating the permitting process for critical energy and mineral projects in the United States, including for transmission permitting and planning.

U.S. Sens. Joe Manchin (I-WV) and John Barrasso (R-WY), chairman and ranking member, respectively, of the U.S. Senate Energy and Natural Resources Committee, on Monday unveiled the Energy Permitting Reform Act of 2024, which has not yet received a number in the congressional record.

“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,” Manchin said. “Unfortunately, today, our outdated permitting system is stifling our economic growth, geopolitical strength, and ability to reduce emissions.”

Manchin said that crafting the bill followed more than a year of hearings held by the Senate Energy and Natural Resources Committee, which incorporated input from colleagues on both sides of the aisle and engaged in good faith negotiations.

The result, he said, is “a common-sense, 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.”

Generally, the 75-page bill would reform leasing, permitting, and judicial review for certain energy and minerals projects, according to the text of the bill.

The proposal includes several provisions specific to electric transmission, including one to reform existing backstop siting authority for interstate electric transmission lines and require interregional transmission planning.

Other transmission-related provisions would provide two pathways for transmission development that include clear standards for cost allocation among customers that benefit from a project: an interregional planning requirement that ensures regions jointly address needs; and a process that allows individual applicants to propose national-interest projects, the summary says.

These provisions also include key features and guardrails that protect consumers, benefit communities, and respect state authorities, such as requiring qualifying transmission projects to improve electric reliability; allocating costs only to customers that benefit using a minimum specified list of electric reliability and affordability benefits; and preserving current law to ensure that states have at least one year to respond to applications before applicants may go to the Federal Energy Regulatory Commission (FERC), among others.

“We ensure we can strengthen our electric grid while protecting customers,” Barrasso said. “This legislation is an urgent and important first step towards improving our nation’s broken permitting process.”

At the same time, the proposed bill includes provisions related to electric reliability and would require FERC and the North American Electric Reliability Corporation (NERC) to assess future federal regulations significantly affecting power plants and offer formal comments to federal agencies about any effects on electric reliability, states the summary.

Additionally, a provision for liquefied natural gas (LNG) exports would set a 90-day deadline for the U.S. Secretary of Energy to grant or deny LNG export applications following environmental reviews, with applications deemed approved if the secretary fails to meet the deadline.

Another LNG-related provision would ensure fact-based decision-making by requiring the Energy Secretary to base decisions on the U.S. Department of Energy’s existing LNG economic and emissions studies, unless and until new studies are completed, and the bill would subject any new study to peer review, notice, and public comment.

“Our bipartisan bill secures future access to oil and gas resources on federal lands and waters,” Barrasso said. “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.”

Other provisions exist regarding judicial review, such as one to shorten timelines before, during, and after litigation on all types of federal authorizations for energy and mineral projects without changing any existing rights to seek judicial review, according to the one-page bill summary.

The bill also would establish a 150-day statute of limitations from the date of the final agency action on a project; require courts to expedite review of legal challenges; and set a 180-day deadline for federal agencies to act on remanded authorizations.

“For far too long, Washington’s disastrous permitting system has shackled American energy production and punished families in Wyoming and across our country,” said Barrasso. “Congress must step in and fix this process.”

The Energy Permitting Reform Act of 2024 has garnered support from both the Independent Petroleum Association of America (IPAA), which advocates for thousands of oil and natural gas producers that develop 90 percent of wells nationwide, and the American Clean Power Association (ACP), which represents over 800 energy storage, wind, utility-scale solar, clean hydrogen, and transmission companies.

“After listening to the concerns and frustrations of users of multiple-use lands across the industry, Senators Manchin and Barrasso worked together to help reduce much of the unnecessary red tape that hampers independent producers operating on federal onshore and offshore lands,” said Dan Naatz, the chief operating officer and executive vice president for the Independent Petroleum Association of America (IPAA). “This legislation increases American energy security and IPAA appreciates the senators’ thoughtful approach to these important issues.”

American Clean Power Association (ACP) Chief Executive Officer Jason Grumet pointed out that the nation’s future success and strength rests on building modern systems to produce, store, and distribute energy. And while the U.S. has the technology, workforce, and financial capital to build such great things, he said the nation lacks a governing process for success.

“This legislation changes that,” said Grumet, and “will help our nation meet the growing demand for electricity, deploy transmission lines to deliver clean, reliable power, and strengthen American energy security.”

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