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House coalition presents draft for streamlining regulatory procedures

Electric permitting overhauls, championed by organizations like the Edison Electric Institute, are being advocated, stimulated by surging electric consumption and escalating electricity costs.

House Bipartisan Group Unveils Outline for Permitting Reform
House Bipartisan Group Unveils Outline for Permitting Reform

House coalition presents draft for streamlining regulatory procedures

In a bid to simplify the process for building transmission lines, pipelines, and power projects, a bipartisan House group has released a permitting reform "framework." This initiative comes amid calls for addressing permitting reform in Congress this year.

The framework, known as the Standardizing Permitting and Expediting Economic Development Act (SPEED Act), was discussed during a House hearing on Sept. 10. The bill, supported by the Edison Electric Institute (EEI) and other utility groups, aims to make changes to NEPA requirements.

The SPEED Act proposes setting deadlines for court reviews of permitting decisions and amending the National Interest Electric Transmission Corridors process to allow for individual national interest high-impact transmission lines. It also suggests restricting judicial standing for litigating projects to parties who submitted detailed comments during public review.

The framework promotes grid-enhancing technologies to maximize capacity on existing transmission lines and expedites geothermal project permitting by allowing for simultaneous consideration of multiple project phases. It further proposes clarifying that Clean Water Act Section 401 certifications by states should focus only on water quality impacts of a project that result from the federally permitted or licensed activity.

Martin Durbin, senior vice president for policy at the U.S. Chamber of Commerce, called for permitting reforms in a Sept. 3 blog post. He specifically cited the Trump administration's stop-work orders for offshore wind projects as an example of the need for reform. Durbin emphasized the need to ensure permits, once granted, remain secure and reliable. He stated that these stop-work orders inject significant uncertainty into the infrastructure development process, increase the price of projects, and risk raising the cost of electricity.

Drew Maloney, president and CEO of the Edison Electric Institute, also called for rapid deployment of new energy infrastructure in a letter to House and Senate leaders. However, details about his specific announcement are not widely available.

The 47-member Problem Solvers Caucus plans to turn the framework into legislation. Rep. Tom Suozzi, D-N.Y. and Problem Solvers Caucus co-chair, stated in a press release that high energy costs are a major concern for Americans, with electricity prices having risen more than 6.5% in the last year.

However, the future of the SPEED Act is uncertain. ClearView Energy Partners predicts that if the SPEED Act passed the House in its current form, it would face an uphill climb in the Senate where a stand-alone bill could face a filibuster. The framework calls for reducing the statute of limitations for permitting lawsuits to one year or less, with 150-day limits for FAST-41 projects. This could be a contentious point, as Democrats in the hearing stated that actions by the Trump administration, such as reducing the federal workforce and hampering solar and wind development, undermined the prospect of compromise on permitting reform.

In conclusion, the permitting reform framework, if passed, could significantly streamline the process for building energy infrastructure in the United States. However, it faces challenges in the Senate, and the political landscape could impact its progress.

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