Lawmakers who failed to cinch a bipartisan permitting and transmission deal late last year are now going back to the drawing board.
Their first chance to write a new story comes Wednesday, as the Senate Environment and Public Works Committee will convene a hearing on federal environmental reviews.
Senators will hear from executives in the building and energy industries who have long carped about the country’s slow project approval process process.
The EPW hearing is not the only place permitting talks are bubbling up. Lawmakers in both chambers have restarted conversations after a last-gasp effort collapsed last year.
Several key players have left Congress, most notably former Sen. Joe Manchin of West Virginia, who led a bipartisan bill last year that advanced out of the Energy and Natural Resources Committee but did not get a floor vote.
Lawmakers on that committee are seeking to resurrect features of that bill, the “Energy Permitting Reform Act of 2024,” co-sponsored by Sen. John Barrasso (R-Wyo.), who was then the panel’s ranking member and is now the No. 2 Republican in the Senate.
Manchin and Barrasso’s compromise measure contained a mix of benefits for the oil, gas, mining and renewable industries as well as provisions making it easier to build massive power lines across state lines.
“I think what we did in the Senate in the ENR Committee last year had very broad bipartisan support, and you know, I think that’s a good place to start,” new ranking member Martin Heinrich (D-N.M.) told POLITICO’s E&E News, adding he’s been talking with new Senate Energy Chair Mike Lee (R-Utah).
Sen. John Hickenlooper (D-Colo.), who was in the room during talks in December, said, “I don’t think it would be surprising if at least the start of negotiations were pretty similar to Manchin-Barrasso. Obviously, many Democrats had heartburn, and many Republicans had heartburn. That’s called a compromise.”
Republicans and Democrats, however, remain far apart on environmental policy. In the House, Natural Resources Chair Bruce Westerman (R-Ark.) says he has restarted bipartisan talks.
Rep. Scott Peters (D-Calif.) has long been a proponent of deep changes and has been negotiating with Westerman. But one key Democrat, Rep. Jared Huffman (D-Calif.), the progressive ranking member on Natural Resources, says he hasn’t yet been invited to the party.
Still, many Democrats have continued to inch closer to support changing old-school environmental laws, showing a greater willingness to defy green groups who largely remain opposed to altering the National Environmental Policy Act, the Clean Water Act or the Clean Air Act out of concern for communities already burdened by pollution and neglect.
Lawmakers on both sides of the aisle are in near-universal agreement that more generation is needed for an energy-hungry nation. The tech industry in particular has pressured Congress to act, pointing to massive energy needs for artificial intelligence computing.
And while Republicans believe President Donald Trump can accelerate permitting on his own, his plans to dramatically shrink the workforce could further stymie the cumbersome permitting process.
‘An impetus to get it done’
Conversations with lawmakers and aides in recent weeks suggest both sides think a bipartisan package will be the only way to enact sweeping changes to the country’s permitting and siting process for enormous infrastructure and energy projects.
There’s been some talk of shoving marginal changes in the GOP’s upcoming budget reconciliation legislation but many have expressed doubts.
Westerman broadly ruled out Republicans eschewing bipartisanship, saying the goals of permitting reform cannot be met by a piecemeal approach that could take shape in budget reconciliation.
“To do the type of permitting reform that our country desperately needs, it needs 60 votes in the Senate, and it’s gotta be bipartisan to get 60 votes in the Senate,” Westerman said. “There’s an impetus there to get it done. … The same story is coming from both sides of the aisle.”
Heinrich agreed, arguing that “you can’t really do permitting reform in reconciliation.” He said the larger challenge between the House and the Senate would likely be the two chamber’s “different jurisdictions and how they overlap.”
To that end, Westerman said he has sought to broaden the permitting coalition early in negotiations.
“We’re bringing more, we’re trying to involve both Natural Resources and Energy and Commerce with a couple of members off of both committees,” Westerman said.
New at the negotiating table will be Energy and Commerce Chair Brett Guthrie (R-Ky.), whose expertise focuses on health care rather than energy.
He’s replacing former Chair Cathy McMorris Rodgers (R-Wash.), who was largely on the sidelines of the debate last year. Westerman’s right-hand permitting man, former Rep. Garret Graves (R-La.), is also no longer in Congress.
He led the conference through the 2023 debt ceiling negotiations, which ultimately included modest permitting changes for Republicans and virtually nothing for Democrats.
Energy and Commerce ranking member Frank Pallone (D-N.J.) could emerge an obstacle. He has rejected bipartisan deals he sees as attacking core environmental laws. Last year, for example, he opposed legislation to help private entities clean abandoned mines.
“I fear that Congress is opening a Pandora’s box, where every corporation and polluter will be asking for their own sweetheart Superfund exemption,” said Pallone in December.
Whitehouse, Huffman
Huffman became the new top Democrat on the House Natural Resources Committee as Whitehouse was preparing to take over as top Democrat on Environment and Public Works.
Whitehouse is more progressive and climate-focused than past EPW Chair Tom Carper (D-Del.), who retired. At the same time, Whitehouse is keen on making it easier for renewable energy projects to get built and have their power spread around the country.
House Republicans have bristled at the idea of amending the Federal Power Act to increase federal authority over state planners to build power lines. Though lobbying from the tech industry could influence conservatives eager to ensure reliable power and lead on artificial intelligence.
How Lee will approach the permitting debate remains a wild card. Lee has traditionally been more of a conservative warrior than a dealmaker.
But when asked whether Lee and Barrasso are simpatico on permitting, Hickenlooper said, “Pretty much.”
Another question mark is where Huffman, the new top Democrat on Natural Resources, will fall. Huffman was initially opposed to the Manchin-Barrasso bill but softened his tone after the 2024 elections.
Huffman has suggested that he could get on board with the product if changes were made. But Huffman said Thursday, “I don’t think they want me in the room.”
The Manchin-Barrasso bill did not include broad changes to NEPA. Westerman last year insisted those were necessary to get House Republicans on board.
“I have a different idea of bipartisan that doesn’t involve, you know, this scapegoating of environmental laws gratuitously,” said Huffman. “We’ll see where it goes.”
Schedule: The hearing is Wednesday, Feb. 19, at 10 a.m. in 406 Dirksen and via webcast.
Witnesses:
- Leah Pilconis, general counsel, the Associated General Contractors of America.
- Carl Harris, chair of the board, National Association of Home Builders.
- Jeremy Harrell, CEO, ClearPath.
- Brent Booker, general president, LiUNA Action Network.
- Nicole Pavia, director, clean energy infrastructure deployment, Clean Air Task Force.
