House passes permitting bill, but Senate plans big changes
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The House on Thursday passed a bill that would streamline and speed up agencies' environmental reviews for energy and other projects — but it faces major changes in the Senate.
Why it matters: Overhauling the process for green-lighting industry projects is of paramount importance for many business groups.
- Those groups contend that a permitting overhaul must be done via legislation for any changes to be meaningful and consistent.
Driving the news: The House passed the SPEED Act, sponsored by House Natural Resources Chairman Bruce Westerman (R-Ark.) and Rep. Jared Golden (D-Maine), on a 221-196 vote. Eleven Democrats backed the bill.
- The bill would make what supporters say are long-needed changes to the National Environmental Policy Act (NEPA), a key permitting law.
- It would hasten NEPA processing by imposing tighter deadlines on agencies, exempting some types of projects from review, and limiting the scope of environmental effects that are relevant for any single review.
- Westerman portrayed the bill as one answer to rising public alarm over energy prices. He said it "will help everyone in America by lowering costs and increasing affordability."
Reality check: The final legislation — if there is any — won't look like the SPEED Act. Democrats are interested in something far wider-ranging than just NEPA.
- The House bill "is at best an input for permitting reform — the real bill is still percolating in the Senate," Rapidan Energy Group said in a note prior to the bill's passage.
Friction point: To get the bill to the floor, Westerman had to pacify House Freedom Caucus members who opposed any legislation that could benefit renewable energy, particularly offshore wind.
- One change would protect Trump administration officials' court actions to block previously approved projects.
- The move alienated the American Clean Power Association, which withdrew its support of the bill. The group said it favored a "balanced, technology-neutral approach."
What's next: Senators are trying to forge a compromise among Democrats and Republicans sitting on two committees — Energy and Natural Resources along with Environment and Public Works.
- Some Senate Democrats who oppose the SPEED Act said they remain optimistic they can craft a permitting bill that can win the 60 votes needed to pass most legislation.
- "I'm pretty hawkish on permitting reform generally, and I have had some very difficult conversations with my friends on the left about the urgency of the moment," Hawaii Sen. Brian Schatz, a member of the Senate Democratic leadership, said at an Axios event last week.
