Why the House GOP debt ceiling bill matters
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Huge demands attached to the House GOP's debt ceiling bill are unlikely to succeed, but squint just right and some pieces could form the basis for negotiations.
Driving the news: The Republican leadership's bill to raise the debt limit incorporates their big energy legislation, including provisions to speed energy project permits.
- The proposal would also scuttle major low-carbon energy subsidies that are the centerpiece of the new climate law — a likely nonstarter for Democrats and the White House.
Why it matters: The 320-page bill is a statement of the GOP's political priorities — and an opening offer in a fight with the White House, demanding a "clean" raise of the debt ceiling.
Our thought bubble: Via Axios Pro: Energy Policy's Jael Holzman and Nick Sobczyk...
- House Speaker Kevin McCarthy's (R-Calif.) gamble could either kickstart bipartisan talks to quicken government permits or hit a brick wall of Democrats uninterested in a debt fix that changes environmental laws.
- Not to mention, he'll have a hard time finding support to shrink IRA programs that are bringing jobs to red districts, too.
Catch up fast: The GOP plan would mandate more oil and gas leasing, speed LNG projects, and require congressional approval of major regulations, including climate rules.
- The energy measures likely lack enough support to move through the divided Congress, let alone the White House.
- There's lots of bipartisan interest in more efficient permitting — but also massive political divides over what "reform" should mean.
Yes, but: If the bill can even pass the House, we're curious to see whether any energy provisions become serious fodder for negotiations — specifically pieces aimed at China.
- One would bar entities linked to the Chinese government from acquiring interests in federal lands leased for oil and gas production, or renewables development.
- Another bars the sale or export of oil from U.S. strategic stockpiles to China.
The bottom line: Energy is in play in the high-stakes debt ceiling fight — at least for the moment.
