Republicans are proposing legislation that would ease energy permits in exchange for raising the US debt ceiling, creating a potential path to avoid a default.
The White House is still pushing for a bill that simply raises the debt ceiling without conditions. But a deal on energy permits could benefit projects ranging from pipelines and oil refining to renewable energy projects, making a deal attractive to both sides.
House Speaker Kevin McCarthy wrote to President Joe Biden on Tuesday, proposing to attach to the debt ceiling bill “measures to reduce energy costs, make America energy independent” in addition to the cuts and previously requested national discretionary spending limits.
“Ultimately, I would like this to be part of the debt ceiling negotiations,” said House Majority Leader Steve Scalise. “It’s time for President Biden to pick up the phone, call President McCarthy and accept his offer to sit down and talk. That would be a very good element to help move these conversations forward.”
Energy permits may be more fertile ground for compromise, a senior Republican aide said. The idea also has Senate support as a possible way to seal a deal on the debt ceiling with Democrats.
“The permitting issue is a bipartisan one. The left wants to permit because a lot of renewable projects are being stopped,” John Thune, the second-ranking Republican in the Senate, told reporters. “If we can find common ground on this issue, it would be a huge win for everyone.”
Groups representing companies such as oil giant Exxon Mobil Corp. and pipeline operator Enbridge Inc. to renewable energy generator NextEra Energy Inc. they advocate that Congress reach a permit agreement before the end of the summer.
“Today, the single biggest obstacle to building the infrastructure of the future is a broken permitting system,” nearly 350 groups, including the U.S. Chamber of Commerce and the American Clean Energy Association, wrote to Congress. as part of a new permit campaign launched on Monday. . “This effort will not be easy, but it must be pursued to make the most of once-in-a-generation investment opportunities.
GOP proposal
The Republican permitting reform, included as part of a broad energy package dubbed HR 1, would enshrine the Trump administration’s changes to the National Environmental Policy Act, a more than 50-year-old law considered sacrosanct by many environmentalists.
The bill, which would force more oil and gas lease sales and repeal parts of Democrats’ massive climate law, would make it harder for states to block the construction of interstate pipelines that cross their borders and make it easier to allow mining, drilling and other energy projects.
The White House has vowed to veto the legislation, saying the bill would “take us backwards.” Progressive Democrats have said the bill would gut environmental policy and did not include language that would speed up permitting for high-voltage power lines that connect renewable energy projects to the grid.
However, there may be room for common ground.
“We always talk about enabling,” said moderate Democratic Sen. Joe Manchin, referring to McCarthy. “We’ll make it.”
Democrats have their own permit review proposals, including one written by Manchin and backed by Biden that would speed up the approval process for transmission lines. The bill failed on a 47-47 vote in the Senate in the last Congress amid opposition from Republicans seeking political payback for Manchin’s pivotal vote on the Democrats’ massive climate bill.
“We’re going to work with the Senate and get a real authorization bill,” Rep. Cathy McMorris Rodgers, R-Washington who chairs the House Energy and Commerce Committee, said Tuesday. “The biggest barrier to doing anything right now is the permitting and regulatory process.”
Energy changes may not be enough to garner support from more conservative Republicans, who are calling for deep spending cuts to raise the debt ceiling.
“There will be no increase in the debt ceiling without spending cuts,” said Florida Representative Matt Gaetz. Gaetz and other members of the House Freedom Caucus planned to introduce a package of bills outlining $1 trillion in spending cuts that could be attached to the debt ceiling this week.
House Republicans hold a narrow majority, but a bipartisan deal could still pass that chamber with Democratic support.
–With the help of Emily Wilkins.
Photo Credit – iStock.com/tampatra
