Illustration: Gabriella Turrisi / Axios
House Energy and Commerce's reconciliation plan would effectively turn off many further federal funding streams and loans to energy projects while aiming to expedite permitting for developers who pay a fee.
Why it matters: Republicans are trying to eliminate what money is left at key offices at DOE and EPA.
- Much like the Natural Resources Committee, E&C is proposing a system of voluntary fees to fit the bounds of reconciliation budget rules.
Zoom in: The bill would rescind unobligated IRA money at DOE for the Loan Programs Office and various energy project loan guarantees. It would also withdraw financing of large transmission projects and grants for clean manufacturing and vehicle technology.
- At EPA, it proposes to repeal the Greenhouse Gas Reduction Fund and take back any unobligated money.
- The bill would also rescind funds for diesel emissions reductions, the Methane Emissions Reduction Program, environmental justice grants and air pollution reduction at ports.
- Meanwhile, EPA fuel economy and emissions standards for vehicles would be repealed — an idea that's almost certain to prompt a parliamentary challenge if it hits the Senate.
Republicans also are proposing a $2 billion appropriation to DOE to fill up and repair the Strategic Petroleum Reserve.
The big picture: E&C Chair Brett Guthrie wrote in a Wall Street Journal op-ed that the IRA rescissions would pull back "$6.5 billion in unspent funds."
- For context, the GHG Reduction Fund alone was originally given $27 billion in the IRA, and the Trump administration is in an ongoing fight with its recipients.
Between the lines: The proposed permitting provisions will be the subject of intense debate and possible challenges with the Senate parliamentarian.
- The bill would see DOE charge a $1 million fee to applicants seeking to export LNG to non-free trade agreement countries.
- In return, the agency would "deem the application in the public interest," per a committee fact sheet.
- Pipeline developers would similarly be able to pay a fee — $10 million or 1% of the project cost — for expedited permitting and limitations on lawsuits.
The other side: "Dozens and dozens of job-creating potential loans all across our country will be compromised if what's proposed is ultimately enacted," David Turk, deputy Energy secretary under President Biden, told Axios in an email.
- Turk also called the permitting provisions "a pay-to-play system," though he praised the GOP effort to fill up the SPR.
- Lindsey Baxter Griffith, CEO of Clean Tomorrow and a former congressional and DOE staffer, also said: "If we're really serious about the innovation pipeline, we should be trying to rebuild the staff and capacity of the Department of Energy right now."
What's next: E&C's markup is Tuesday.
