Analysis by Energy Workforce President Tim Tarpley
On Monday, the Bipartisan American Affordability and Jobs Act (BAAJA) cleared its first major hurdle in the Senate. The motion to allow for debate on the package passed 73-25. This is a strong margin that bodes well for the ultimate passage of the package. Co-author of the bill, Senator Shelley Moore Capito (R-WV), said it was a slightly better margin than she was expecting. In the Senate, the motion is a good indicator of what a final passage could look like; however, there is still a lot more work to do. Senators who vote for the motion to proceed often will vote for final passage of the legislation, but not always, especially when there is a significant amendment process that could change elements of the bill. Senator Whitehouse has promised a “robust” amendment process, and at the time of writing, a timeline for this amendment process has not yet been agreed to. We expect an agreement soon that will set a timeframe for amendment debate as well as final passage.
As far as supporters of the package, all Republicans voted yes except Senator Mike Rounds (SD), who voted no. On the Democratic side, 21 Democrats and Maine Independent Senator Angus King voted yes. Senate Minority Leader Chuck Schumer (NY) supported the measure but said after the vote that he had “outstanding concerns” that he would address through the amendment process. Notable “no’s” on the Democratic side are Senator Jeff Merkley (OR) and Ed Markey (MA).
So what happens now? The most important next step is for the legislation to move through the Amendment process and ensure that no poison pill amendments (from either side) pass or roil the process. We can expect tricky amendments in both the permitting certainty and data center areas. Right before the vote, President Trump, during an ad hoc press conference, stated that he would never approve wind generation permits; however, this statement did not seem to sway the vote. We can expect a few amendments on the Democratic side looking to address their concerns regarding the potential for additional wind permitting delays. Also, given the political hot potato that data centers occupy in American politics, we can expect a handful of data center-related amendments. The current legislation requires data centers to provide their own power and water, but some have argued the language is not strong enough. It will be critical to watch these amendments as they develop. EWTC will be working closely to identify problematic amendments in the coming days and working with our allies to ensure that the final product is as strong as it can be.
Once the package (hopefully) clears the Senate, it will have to go back to the House. The biggest issue in the House will likely be attendance. There will only be a few weeks of lame duck to get done, and floor time will be at a premium. With so many non-returning members, it’s possible some days will have challenging attendance. Additionally, Hakeem Jefferies, the expected Speaker of the House for the next Congress, has indicated he opposes the legislation, which may complicate expected support on the Democratic side. Also, some House members on both sides of the aisle have indicated they want the House to have an opportunity for amendments as well, a prospect that could add significant time to the entire process. It will be critical for EWTC and other energy allies to work closely with the House to ensure that the legislation can move as quickly as possible.
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.
