Permitting Reform May Not Make It Over The Finish Line in 2024

Analysis by Energy Workforce President Tim Tarpley

LNG export
Energy Workforce President Tim Tarpley

As the old saying goes, “It ain’t over till it’s over,” and there is still a chance until the 118th Congress officially gavels out at some point later this week, it is beginning to look more and more likely that energy-permitting reform does not get across the finish line this year.

Despite a flurry of last-minute negotiations led by retiring Senate Energy Chair Joe Manchin (I-WV) and House Natural Resources Chair Bruce Westerman (R-AR), along with retiring Senator Tom Carper (D-DE), who chairs the Environment and Public Works Committee in the Senate.

Ultimately, the group could not agree with Carper, unwilling to accept enough of the NEPA reforms pushed by Westerman and the Republicans to get a deal done. While the likely failure to get a deal done this year is a major let-down given the amount of time and effort put into the endeavor by the industry, it certainly does not mean that all is lost. President-elect Trump is expected to make a renewed permitting reform push next year with Republicans having a narrow lead in both the Senate and the House.

Some Republicans are considering trying to put some permitting reform measures in the budget reconciliation bill that will have to pass early next year. This approach would be key to getting around the 60-vote threshold in the Senate although it is not clear that the majority of the measures relevant to our sector would meet the test to be included. A budget reconciliation bill is limited to provisions that have budgetary effects and there is a fairly strict parliamentary procedure used to week out provisions that do not meet this test. It is more likely that we will have to go through regular order and have new legislation introduced in the next Congress and make its way through the process.

It is also possible that some permitting reform can be achieved through executive action. President-elect Trump recently promised that anyone who invests at least $1 billion in the US will be rewarded with expedited environmental approvals. While the mechanics of this proposal are still unclear, we can expect that there will be renewed efforts on day one to expedite any and all permitting processes that can be achieved without congressional action.

Tim Tarpley, Energy Workforce President, analyzes federal policy for the Energy Workforce & Technology Council. Click here to subscribe to the Energy Workforce newsletter, which highlights sector-specific issues, best practices, activities and more.


Facebook
Twitter
LinkedIn

ENERGY NEWS

Stay Connected

Sign up for the Energy Workforce newsletter to stay on top of the latest energy news and events.