ICYMI: WESTERMAN’S PERMITTING REFORM DRAFT: Rep. Bruce Westerman is out with a draft permitting reform proposal that would limit the scope of the National Environmental Policy Act, unlock investments from major laws such as the IRA and the bipartisan infrastructure bill, and enact judicial reform to curb legal challenges to energy projects.
Why this is important: The measure, which was released yesterday, could set the groundwork for a bicameral effort toward permitting reform, a major priority for industry players. A bipartisan proposal from Sens. Joe Manchin and John Barrasso is meant to alleviate bureaucratic and legal hurdles for all types of energy projects, ranging from fossil fuels to transmission lines. A House companion has not been introduced – but a legislative hearing for Westerman’s bill is scheduled for next Wednesday.
What’s in the Westerman bill: A key focus of the bill is judicial reform, which would limit the ability to slow down projects through lawsuits. The bill would require plaintiffs to file claims within 120 days of a final agency action – a shorter time period than the Manchin and Barrasso bill – and would establish timelines for courts to resolve NEPA-related cases and appeals within 180 days.
The measure would also restrict court actions against projects, allowing them to move forward “unless there is a clear finding of substantial and proximate environmental harm.” Even if there are deficiencies in a project’s environmental analysis or impact statement, the project will be allowed to move forward while the deficiencies are remedied.
Westerman’s bill would limit the scope of environmental reviews to those that are within the jurisdiction of a federal agency, minimizing considerations that can delay project approvals and increase risks of litigation. The measure would also clarify that agencies are not required to conduct new scientific or technical research unless it is “essential” to making a reasoned decision among alternatives.
The bill would rework the definition of a “major federal action,” which is the condition that triggers the NEPA process. The measure would clarify that an agency action would not be considered “a major federal action” based on the allocation of federal funds, grants, loans, or loan guarantees. That means that the granting of federal funds (think IRA and infrastructure bill funds) would be exempt from NEPA.
The measure would also clarify that NEPA is a procedural statute meant to ensure that federal agencies consider the environmental impacts of their actions without “mandating specific outcomes.” Read the full bill here.
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BUT ABOUT ANOTHER PERMITTING REFORM PROPOSAL…: Manchin and Barrasso’s permitting reform proposal would result in net emissions reductions, a new analysis of the bill shows – findings that could shore up support among Democratic skeptics who are against streamlining fossil fuel projects.
The analysis , conducted by centrist think tank Third Way, models the emissions effects of the proposal by analyzing the policy levers to streamline the permitting processes for a variety of energy projects, including for onshore and offshore oil and gas leasing, liquefied natural gas exports, and transmission projects.
What they found: Enactment of the bill results in significant net emissions reductions, both in low and high range scenarios. Even in a scenario where the highest estimates for fossil fuel-related net emissions increased, and are juxtaposed with low levels of transmission deployment, the measure would still result in net emission reductions by 2050.
Why it’s a BFD: This could help bring Democratic support to the bill as questions loom on whether Majority Leader Chuck Schumer will bring the bill to the floor. Some Senate Democrats on the Energy and Natural Resources Committee opposed the bill, raising concerns that the streamlining of fossil fuel projects would exacerbate greenhouse gas emissions.
Read the analysis here.
OPEC CONFIRMS PAUSE ON OIL PRODUCTION HIKE: OPEC+ has confirmed a pause to its planned oil production hike expected next month.
The details: The top oil-producing bloc revealed Thursday that eight member countries, including Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman will be cutting production by 2.2 million barrels per day through the end of November.
Why it’s important: This decision delays the planned increase in oil production announced earlier this year, which would have seen a hike of 180,000 barrels per day in October.
This week, oil prices fell to the lowest levels this year with industry experts warning prices could drop even lower. Those low prices have alleviated some pressure on consumers amid rampant inflation.
News of OPEC+’s decision saw crude prices rise. Benchmark Brent crude was up about 0.6% late Thursday morning.
Some context: Sources previously told Reuters the anticipated walkback was because of output disruptions in Libya from facility shutdowns. The country’s eastern government shut down production of 500,000 barrels a day over an attempted ousting of Sadiq al Kabir, who heads Libya’s central bank.
Kabir has hinted at a resolution over the output disruptions, saying Tuesday that there were “strong” indications of a nearing agreement, according to Bloomberg.
The rollback was also reportedly influenced by weakening demand from China, which has begun to shift its focus toward renewable energy.
AN OFFSHORE WIND MILESTONE : The Biden administration approved an offshore wind project off the coast of Maryland on Thursday, marking the 10th commercial-scale project and half of the capacity needed to achieve the president’s goal of 30 gigawatts of offshore wind energy by 2030.
Zero projects were approved at the beginning of President Joe Biden ’s term, according to administration officials. The latest project, Maryland’s offshore wind project, would generate over 2 gigawatts of renewable energy for the Delmarva Peninsula and power over 718,000 homes. The project, located off the coast of Sussex County, could support over 2,600 jobs annually over six years.
The milestone marks a halfway point in the Biden administration’s goal for offshore wind, underlining the stakes of the next election. If Vice President Kamala Harris wins, it is likely she will continue the work of her predecessor and pursue further offshore wind construction. However, a victory by former President Donald Trump could be a setback for the renewable energy source because he has pledged to scrap the projects “on day one” of his presidency and claimed the projects are lethal to whales.
“From port infrastructure upgrades and new tax credits to speeding responsible and efficient permitting, we are using every tool available to continue turbocharging this industry and delivering a clean energy future for the nation,” said White House National Climate Advisor Ali Zaidi .
Read more on that here.
$7B FOR CLEAN ENERGY IN RURAL AMERICA: The Biden administration announced more than $7 billion in grants to build renewable energy projects in rural communities, Nancy reports.
The deets: Provided by the 2022 Inflation Reduction Act, the money would go to 16 rural electric cooperatives to build or purchase a range of projects, such as wind, solar, nuclear, hydropower, and battery storage. The funds, leveraged with $29 billion in private investments, would be meant to build more than 10 gigawatts of clean energy across the rural areas.
The Agriculture Department said the grants represent the largest clean energy investment in rural communities since Presiden t Franklin D. Roosevelt signed the New Deal into law.
“One in five rural Americans will benefit from these clean energy investments, thanks to partnerships with rural electric cooperatives like Dairyland,” Agriculture Secretary Tom Vilsack said in a written statement.
Why this is important: Rural areas often lag in terms of clean energy and electrification. For example, although many Midwestern and rural states have larger spans of driving range and lack public transportation, many lack electric charging infrastructure to support electric vehicles.
The projects are meant to reduce and avoid at least 43.7 million tons of greenhouse gases annually, the equivalent of removing more than 10 million cars off the road each year. Read more on that here.
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