Westerman, left, and Huffman at the markup. Photo: Bill Clark / CQ-Roll Call via Getty Images
House Natural Resources on Tuesday began a contentious debate on its section of the GOP reconciliation bill, with major changes to leasing and environmental laws on the table.
Why it matters: The legislation proposes billions in new oil and gas leasing and sweeping changes to the National Environmental Policy Act that could significantly change how projects get approved and challenged in court.
Driving the news: The committee started churning through dozens of Democratic amendments, and its work could drag on into tomorrow.
- Chair Bruce Westerman said the proposal would generate $18.5 billion in deficit reduction, up from the committee's initial $15 billion estimate.
- "These savings come through spurring greater energy production, rescinding wasteful Biden-era spending programs and increasing productive access to our public lands," Westerman said.
Zoom in: The bill's proposed changes to NEPA will be among the most controversial provisions.
- They would allow project developers to pay a fee — 125% of the anticipated costs of the NEPA process — in exchange for an expedited review.
- The resulting environmental impact statements or environmental assessments would be exempt from judicial review. That's a step beyond previous NEPA proposals from Westerman and others.
What we're watching: If that provision makes it through the House, we may see Senate Democrats challenge all or part of it with the parliamentarian.
- Sen. Sheldon Whitehouse told Axios that although he hadn't seen the language, it "raises my suspicions."
Between the lines: Democrats are also seeking to toss out the bill's proposal for four lease sales in the Arctic National Wildlife Refuge.
- Other provisions in the bill would slash oil and gas royalty rates that were hiked in the IRA; reinstate hard-rock mining leases canceled during the Biden administration; and mandate coal and geothermal lease sales.
The other side: Ranking Member Jared Huffman called the Natural Resources title "the most extreme anti-environment bill in American history."
- Democrats argued that the NEPA provisions are essentially pay-to-play. Huffman said it would be "a caldron of corruption unlike anything we have ever seen."
What's next: The Energy and Commerce and Ways and Means committees had been set to hold markups this week but postponed.
- That could threaten House leadership's Memorial Day goal.
- Senate Republicans will huddle Wednesday to talk through the path forward, as Axios' Stef W. Kight scooped this morning.
