E&C advances energy title as Dems seize on "pay-to-play" permitting
Illustration: Brendan Lynch/Axios
The House Energy and Commerce Committee voted along party lines Tuesday to advance the energy portion of its reconciliation bill after rejecting Democrats' concerns over energy costs and permitting provisions.
Why it matters: The energy subtitle was the initial part of the committee's marathon markup, as members at times heatedly debated energy funding rollbacks as well as permitting provisions.
- The so-called "pay to play" permitting provisions that dominated the debate are likely to become an ongoing Democratic political talking point.
Driving the news: The energy title was approved on a 29-24 vote. The panel moved on to the environment portion, which covers the Greenhouse Gas Reduction Fund and various emissions-related initiatives.
- Rep. Alexandria Ocasio-Cortez and other Democrats raised corruption concerns with GOP reconciliation proposals that would allow natural gas developers to pay to obtain permits.
- Her amendment — voted down on a 24-28 party-line vote — would have allowed the Energy Department's Office of Inspector General to certify the permitting provisions don't increase risk of corruption.
- "Allowing massive corporations to simply cut a check to bypass the very real reasons that permitting exists in the first place poses a deep and grave danger to people across the country," Ocasio-Cortez said.
- Rep. Lizzie Fletcher, a moderate Democrat who supports LNG exports and permitting changes, said it could amount to a "shakedown" of developers.
The other side: GOP Reps. Bob Latta, Dan Crenshaw and August Pfluger argued laws are in place to prevent corruption and the FERC review process will hear community concerns.
Between the lines: The bill would have DOE charge a $1 million fee to applicants seeking to export LNG to non-free trade agreement countries. The agency would "deem the application in the public interest."
- Pipeline developers would be able to pay a fee — $10 million or 1% of the project cost — for expedited permitting and limitations on lawsuits.
What we're watching: The Ways and Means Committee also started debate Tuesday afternoon on the tax portion of the reconciliation bill, including rollbacks of the IRA's clean energy incentives.
- Democrats raised concerns about changes that would phase out the investment and production credits based on when projects come onto the grid – rather than when they begin construction.
- Both markups look likely to drag into the overnight hours.
