April 2023 Vol. 78 No. 4
Features
Inside infrastructure: House Republicans move early on major energy package
by Eben Wyman | Wyman Associates
When taking control of the House of Representatives in January, GOP leaders made it clear that a top priority in the 118th Congress would be to roll back some of the harmful climate change policy that was included in recent legislation backed by the Biden White House, and to reinstate commonsense policy that would “unleash American energy” and lower energy costs for American families.
In mid-March, House Republicans announced that a major energy package that has been in the works for weeks and included legislation from multiple committees will the GOP’s top priority.
The “Lower Energy Costs Act” (HR 1) was sponsored by Majority Leader Steve Scalise (R-La.) and includes a large slate of energy policy proposals collected from leaders of the Energy and Commerce Committee, Natural Resources Committee and Transportation and Infrastructure Committee. The measure includes proposals aimed at speeding up the country’s approval process for energy production and transportation, as well as curbing states’ ability to block energy projects that run through their waters.
The main goals highlighted by House leaders are to increase domestic energy production, reform the permitting process for all industries (both fossil fuel and renewable energy projects); reverse “anti-energy policies” advanced by the Biden Administration; streamline energy infrastructure projects and exports; and boost the production and processing of critical minerals.
Specifically, these long-standing goals held by the energy and construction industries are pursued by a range of policy proposals by the abovementioned committees, including provisions that would:
- Prohibit President Biden from banning hydraulic fracturing and leave fracking policy largely to the states.
- Prevent states from blocking interstate infrastructure projects.
- End the abuse of the water quality certification process by streamlining the permitting process under Section 401 of the Clean Water Act and limiting review to only impacts on water quality.
- Reform the National Environmental Policy Act (NEPA) permitting process to streamline federal reviews for all sectors of the economy, including at international borders.
- Sets deadlines for completion of NEPA reviews at one year for environmental assessments and two years for environmental impact statements.
- Provides certainty by imposing a 120-day deadline on filing litigation on final agency actions concerning energy and mining projects.
- Repeal all restrictions on the import and export of natural gas, including LNG.
- Repeal President Biden’s $6-billion natural gas tax.
- Disapprove of President Biden’s canceling of the Keystone XL pipeline.
- Require the Department of the Interior to resume lease sales on federal lands and waters.
Purpose of the bill
“I am proud to announce that I will be introducing our H.R. 1, the Lower Energy Costs Act, to cut red tape and increase energy production here at home to lower energy costs and stop our reliance on hostile foreign dictators for our energy and minerals,” Majority Leader Scalise said while introducing the bill.
“With the introduction of the Lower Energy Costs Act, we will put a stop to the war on American energy, become energy independent again, and lower costs for families who are struggling.”
Energy and Commerce Committee Chair Cathy McMorris Rodgers agreed. “From the gas station to the grocery store, President Biden’s war on energy is making life unaffordable for the hardworking people of this country and forcing us to be dangerously reliant on supply chains controlled by the Chinese Communist Party.
“We must reverse course. HR 1 boosts energy production, lifts regulatory burdens for the construction of more energy infrastructure, cuts China out of our critical materials supply chains, and lowers costs across the board. All of this will ensure we build a better and more secure future in America,” she said.
The legislation was immediately opposed by most Democrats, including Senate Majority Leader Chuck Schumer (D-NY), who called the measure a “partisan, dead-on-arrival and unserious proposal for addressing American energy needs” that he considers “a non-starter in the Senate.”
The three committees raced to assemble the package by holding several hearings, subcommittee markups and then full committee markups. While this reflected a breakneck pace for lawmakers, much of the package includes similar provisions offered by Republicans last year in partial response to rising energy prices.
Of course, all parts of HR 1 are not expected to ultimately become law, given the fact that energy policy has become highly partisan, in general. However, talks about speeding up infrastructure project approvals are now bipartisan in wake of unprecedented infrastructure legislation that is pumping well over a half trillion dollars in new federal investments into a wide range of infrastructure projects.
Sen. Joe Manchin (D-W.V.) unsuccessfully attempted to pass permitting reform legislation late last year amid resistance from Republicans, who said his legislation didn’t go far enough and many Democrats who said it went too far.
Pro-energy industry supporters sprang into action almost immediately generating a barrage of letters, statements and press activities supporting the bill and specifying their priority measures included in it. One industry letter, drafted by the U.S. Chamber of Commerce and signed by scores of industry groups, underscored the importance of modernizing project permitting processes, stating:
“Public- and private-sector infrastructure projects will improve our economy and the lives of millions of Americans. Investing in highways, bridges, transit systems, and ports will move people and goods more quickly and efficiently.
“Building new energy production and transmission projects promises to improve energy reliability and reduce emissions. Expanding access to broadband can close the digital divide, and rebuilding failing water systems will ensure safe drinking water.
“And we can strengthen our national security by expanding domestic production of critical technologies and the raw materials they require. But America cannot accomplish any of this if the outdated, inefficient and unpredictable permitting process is not improved.”
Meetings, compromises
After HR 1 was introduced, several associations were invited to small meetings with House Leadership, as well as staff from the three main committees contributing to the overall legislation. Construction and engineering groups, such as the Distribution Contractors Association and Plastics Pipe Institute, were asked for their support and to share their outreach activities with House leaders along the way.
At the time this article was written, House leaders planned to bring the measure up for a floor vote in late March. While hundreds of amendments were expected, rules applying to the bill prior to debate were expected to provide a reasonable amendment process.
Most infrastructure experts agree, especially those in the energy sector, that permit reform remains the biggest hurdle to getting important projects off the ground. For example, the entire energy industry – from natural gas and oil to renewables – needs consistency in NEPA application across the board in order to develop, construct and operate long-term projects.
Enforcement of NEPA, which was enacted in 1970, has evolved in a way that many believe has empowered opponents of infrastructure projects to an unreasonable extent. At the same time, any appearance of trying to reduce the public’s ability to object to project permits is almost certain to spur objections and even rage from a large segment of the environmental community, including environmental justice advocates.
“This destructive energy bill does not offer real solutions to high energy costs and would lock us into decades of dirty, volatile fossil fuels, perpetuate the climate crisis, and cut out communities from the process,” according to the League of Conservation Voters.
While it’s true that many of the provisions included in HR 1 don’t stand a chance of passing in the Democrat-controlled Senate, it’s also true that the need to expedite the permitting process for all infrastructure projects (including renewable energy) is getting a lot more attention on both sides of the political aisle.
Whether replacing antiquated gas distribution infrastructure with contemporary polyethylene piping, deploying broadband across America, refurbishing dilapidated water and sewer systems, hardening the electric grid or initiating solar, wind or other renewable projects, we need to update the permitting process.
While a lot of work remains to be done to provide meaningful, long-term reforms, the fact that this is increasingly embraced by Democrats in Congress is a very welcomed change, and enactment of HR 1 would take significant steps in the right direction.
WYMAN ASSOCIATES offers strategic consulting with its clients and direct advocacy before the United States Congress and executive branch agencies. Working with several allies in Washington and around the country, provides clients a constant voice in the national debate.
Editor's note: Eben Wyman is a veteran advocate for key underground utility and pipeline associations. He can be contacted at eben@wymanassociates.net.
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