Illustration: Lindsey Bailey/Axios
The collapse of permitting talks highlighted tensions that will make it difficult to revive a deal to expedite energy projects next year.
Why it matters: Republicans will make a fresh push in the next Congress to overhaul the nation's environmental laws, continuing a debate that's been going on for more than two years since the IRA passed.
- But the path gets complicated with Sen. Joe Manchin's exit and continued GOP resistance to changing laws surrounding electric transmission.
The big picture: The blame game started late Monday afternoon, with Democrats saying that Speaker Mike Johnson called off talks on a potential permitting deal to be attached to the CR.
- But Rep. Bruce Westerman said Senate Democrats had received his updated offers as recently as Monday afternoon: "Nobody said, 'Y'all can stop working now,'" he told Axios.
- Rep. Garret Graves, who was involved in negotiations, told reporters that the Democratic counteroffers would have only created more NEPA lawsuits.
- "I don't ever speak on behalf of anyone, but I will tell you right now: If there was an agreement on NEPA reforms, Speaker Johnson would do everything he could to get that in the bill," he said.
Between the lines: Note that Graves said NEPA reforms. He didn't directly address the transmission provisions from Manchin-Barrasso that Democrats felt they needed to have.
- House Energy and Commerce Chair Cathy McMorris Rodgers, who has jurisdiction on that issue, wasn't in the room for the marquee negotiating session that blew up Thursday night. (Her office didn't respond to a request for comment.)
- Republicans were also facing intense pressure from rural electric co-ops and other utilities to oppose the transmission provisions, which would have given more power to FERC to site and allocate costs for big transmission lines.
- That culminated in a letter to lawmakers Friday from conservative energy policy groups urging Republicans to nix the lame duck effort and instead use their majorities for permitting next year
What's next: Republicans will keep their efforts to overhaul NEPA alive, likely alongside additional proposals to change the Endangered Species and Clean Water acts.
- Count us doubtful that Republicans will be able to make major changes to environmental laws without negotiating with Senate Democrats.
- But Westerman said he's confident that Manchin-Barrasso's leasing mandates — and even NEPA changes, if they're tied to a budget impact — would fit into a reconciliation package in the next Congress.
- Democrats notably included millions for staffing at agencies to support quicker environmental reviews in the IRA.
The other side: Sen. Sheldon Whitehouse, the likely top Dem on Environment and Public Works next year, said that with Manchin's departure, lawmakers will have a "clean slate" on permitting.
- "It may take our Republican House friends a little time to come to the realization that to pass this, they're going to need 60 votes in the Senate," he told Axios.
- "Once that realization sets in, then we'll get back to work again, because the impetus for doing it remains very strong."
