U.S. congressional members blamed each other after an attempt at energy permitting reform died prior to the year-end recess, despite pleas from industry representatives.
Permitting reform for energy infrastructure has been a hot topic in Congress this year, and a proposal from Sen. Joe Manchin (I-W.Va.) and Sen. John Barasso (R-Wyo.) had received bipartisan support from congressional members in energy-producing territories.
However, the U.S. House failed to take up the bill, called the “Energy Permitting Reform Act,” prior to recessing, meaning the next sitting Congress will take up the issue after being sworn in next year.
“The current trajectory of the permitting process is not sustainable. Congress should rein in inefficient practices, cut bureaucratic red tape, and eliminate growing confusion,” said Jason McFarland, president of the International Association of Drilling Contractors. McFarland was one of several industry representatives who made a statement through the Energy Workforce and Technology Council on Dec. 11.
“There is tremendous opportunity for bipartisan support given the widespread impacts of permitting delays across all facets of the economy.”
On Dec. 17, Manchin issued a statement blasting Republican House leadership for failing to take up the bill.
“By taking permitting off the table for this Congress, Speaker (Mike) Johnson and House Republican Leadership have done a disservice to the incoming Trump Administration, which has been focused on strengthening our energy security and will now be forced to operate with their hands tied behind their backs when trying to issue permits for all of the types of energy and infrastructure projects our country needs,” Manchin said.
Johnson (R-La.) in turn blamed Senate for taking too long to long to deal with House GOP requests for changes to the bill, delaying the process until it was too late to pass.
“Senate Democrats had several opportunities during both this Congress and the previous one to achieve meaningful permitting reform and failed,” Johnson said in a statement released Dec. 16.
However, Johnson declined to take up the legislation despite a Dec. 11 letter from a coalition of energy industry groups urging him to do so. The coalition was made up of the Energy Workforce & Technology Council, Gulf Energy Alliance, International Association of Drilling Contractors, Independent Petroleum Association of America, National Ocean Industries Association, Texas Alliance of Energy Producers U.S. Oil & Gas Association and Western Energy Alliance.
Craig Heilman, COO at analytical firm Arbo, said the bill was primarily a victim of timing and the current hyper-political atmosphere in Washington.
“The bill is failing mostly as a function of the congressional calendar. You simply can't get anything beyond NDAA [National Defense Authorization Act] and funding government done this time of year in the current partisan paradigm,” Heilman said. “With impending change in administration and balance of power, odds were always slim to none. It's unsurprising for Manchin to blame the other party and the other chamber.”
Manchin warned that eventual passage of the bill would be more difficult next term, even with Republicans in control of both houses of Congress and the White House.
“Meaningful permitting reform will continue to be subject to the Senate’s 60-vote threshold next year and cannot be done by executive action alone,” Manchin said.
According to a report in Politico’s E&E News, GOP leaders are considering passing reform through the budget reconciliation process, which is likely to result in rules more favorable to Republicans but could also bring constitutional challenges.
“A bill with more favorable terms is likely in the future, but for the D votes needed to pass with regular order, Rs should be careful it doesn't read like a ‘Dear Santa’ letter from the fossil fuel industry,” Heilman said.
Permitting reform has been a driving issue over the past decade. Several bills, including the Fixing America’s Surface Transportation Act of 2015, have gone before Congress but failed passage. Since 2000, the average amount of time it takes to obtain permits for interstate pipeline has more than doubled, from two years to five years, according to a study by the Lewis Berkeley National Laboratory.
The process came under intense scrutiny during the construction of the Mountain Valley Pipeline, which was completed this year. The pipeline took an act of Congress in 2023 to surmount the legal issues facing its installation.