Senator Manchin Unveils Federal Permitting Reform Legislation; Vote Expected Next Week
September 22, 2022
On September 21, Senator Joe Manchin (D-WV) unveiled a much-anticipated permitting reform package – the Energy Independence and Security Act – that would help accelerate federal environmental reviews for fossil fuels projects, as well as clean energy and power grid projects. It should be noted that Majority Leader Chuck Schumer (D-NY) had previously agreed to hold a vote on the proposal in exchange for Senator Manchin’s support on the recently enacted climate, tax, and health care legislation (the Inflation Reduction Act).
Among other things, the Manchin bill would streamline the project approval timeline by setting time limits on environmental reviews. Specifically, the Energy Independence and Security Act would establish a two-year target for agencies to complete environmental reviews for major energy projects. The legislation also would require the White House to identify 25 energy projects that are the most critical for the country, which would be prioritized for streamlined permitting. These projects would have to be balanced between the various energy sectors, including critical minerals, nuclear, hydrogen, fossil fuels, electric transmission, renewables, and carbon capture.
In addition, and of particular concern for progressives, the legislation would direct federal agencies “to issue all approval and permits” for the Mountain Valley pipeline, which would carry natural gas from West Virginia to its neighbors in Virginia and North Carolina. The measure also would allow the federal government to take over the approval process by unilaterally granting a construction permit for a transmission line that the Department of Energy has determined to be in the national interest, regardless of any state opposition.
Looking ahead, Majority Leader Schumer has vowed to link the permitting reforms to a short-term appropriations bill (Continuing Resolution (CR)) that must pass by September 30. However, there has been significant pushback on this tactic from a large bloc of congressional Democrats. In fact, dozens of House Democrats sent a letter to their leadership team opposing the inclusion of the permitting changes in the stopgap funding measure. A handful of Senate Democrats has separately urged party leaders to separate the permitting reforms from the CR. While Republicans are generally supportive of streamlining the federal permitting process, a number of GOP lawmakers have already come out against the Manchin-Schumer proposal. For the most part, they do not believe it goes far enough to streamline environmental laws.
Looking ahead, it’s unclear whether the proposal will be included in the CR or if there will be a separate vote on the measure, perhaps as early as next week. It’s also unclear whether the legislation has the necessary 60 votes to advance in the evenly divided Senate.
Senators Feinstein, Daines Introduce Bipartisan Legislation to Protect Communities from Wildfire
Senators Dianne Feinstein (D-CA) and Steve Daines (R-MT) recently introduced bipartisan legislation – the Community Wildfire Protection Act (S. 4826) – that would expand access to federal wildfire mitigation grants. Specifically, the bill would amend the definition of an “at-risk community” to include any community at high risk for wildfire that would significantly threaten human life and property. The term, which is defined under the Healthy Forests Restoration Act of 2003 (16 U.S.C. 6511(1)), limits eligibility for federal grants to communities adjacent to federal lands or those identified in the Federal Register.
Senators Feinstein, Padilla Introduce Bill to Protect Giant Sequoias
Senators Feinstein and Alex Padilla (D-CA) recently introduced legislation – the Save Our Sequoias Act (S. 4833) – that would protect giant sequoias from the threat of wildfire and expedite future wildfire-resiliency projects. Specifically, the measure would require the Departments of Interior and Agriculture to develop and implement a strategy to enhance the reforestation and rehabilitation of giant sequoia groves. It also would provide the National Park Service with narrow authority to expedite projects that make sequoia groves more resilient to wildfire, insects, or disease.
In addition, the bill would authorize the U.S. Forest Service and the National Park Service to partner with local governments or private entities to conduct sequoia forest management work. Finally, S. 4833 would establish a grant program to support nurseries for growing sequoia seedlings or facilities making use of wood from forest thinning projects. It should be noted that House Minority Leader Kevin McCarthy (R-CA) and Scott Peters (D-CA) introduced a companion measure (H.R. 8168) earlier this year that has garnered 50 bipartisan cosponsors.
Biden Administration Launches Initiatives to Expand Offshore Wind Energy
The Biden administration recently launched a series of coordinated actions to help develop new floating offshore wind platforms. These actions are in line with the administration’s goal of deploying 30 gigawatts (GW) of offshore wind by 2030. Among other things, the administration will create a new initiative – the Floating Offshore Wind ShotTM – to accelerate breakthroughs across engineering, manufacturing, and other innovation areas. The Floating Offshore Wind Shot will aim to reduce the costs of floating technologies by more than 70 percent by 2035, to $45 per megawatt-hour.
In addition, the White House announced a new goal to deploy 15 GW of installed floating offshore wind capacity by 2035. It should be noted that the existing goal of deploying 30 GW of offshore wind by 2030 will largely be met using fixed-bottom technology. The Interior Department’s Bureau of Ocean Energy Management (BOEM) will advance lease areas in deep waters for floating technology, starting with a lease auction off the coast of California by the end of 2022.
To support these goals, the Department of Energy announced nearly $50 million in funding opportunities for research, development, and demonstration funding. This includes $6.85 million for a prize competition (Floating Offshore Wind Readiness Prize) that challenges competitors to optimize floating platform technologies and work to get them ready for wide-scale domestic manufacturing and $1 million for a project (West Coast Ports Analysis) to reduce key infrastructure challenges by outlining a network of West Coast ports and upgrades needed to deploy commercial-scale floating offshore wind. Funding will also be available for an analysis (West Coast Transmission Analysis) to review existing transmission studies and identify research gaps related to offshore wind integration in California, Oregon, and Washington.