Lawmakers are looking at bipartisan dealmaking on permitting after several Republican proposals failed to make the cut in the One Big Beautiful Bill Act.
Committees in both the House and Senate will convene hearings focused on accelerating environmental reviews and addressing increased demand for electricity. Those priorities have been at the heart of permitting talks for years.
Senate Majority Leader John Thune (R-S.D.) mentioned the issue during an interview Sunday on Fox News.
“I am hearing, believe it or not, some interest among Democrats in doing something on permitting reform. Because not only is it slowing down and grinding to a halt a lot of conventional energy projects, but there are also renewable projects, things that Democrats support,” Thune said.
Discussions surrounding the Republican tax and spending budget reconciliation bill has dominated congressional work in recent months. But many lawmakers say now is the time to return to bipartisan permitting talks, even though Democrats are wary of the GOP’s intentions and the administration unilateral actions.
“Typically, after a reconciliation package, people get serious about legislation,” said Sen. Martin Heinrich (D-N.M.), the top Democrat on the Senate Energy and Natural Resources Committee. “I hope that’s the case. I do think there’s an opportunity here.”
On Tuesday, House Natural Resources Chair Bruce Westerman (R-Ark.) will hold a hearing titled, “Permitting Purgatory: Restoring Common Sense to NEPA Reviews.”
“While well-intentioned, the National Environmental Policy Act of 1969 (NEPA) has evolved into an extremely cumbersome and lengthy process that has increased costs and permitting timelines for a wide range of projects, from transportation and infrastructure to forestry and energy development,” a Republican committee aide said about the hearing.
Democrats like Rep. Scott Peters (D-Calif.) have been increasingly bullish about engaging with the GOP on changes to the National Environmental Policy Act.
However, they worry about President Donald Trump’s moves to restrict the scope of NEPA and limit environmental reviews, along with continued hostility to renewable energy sources.
Earlier this year, the top Democrat on the Environment and Public Works Committee, Sen. Sheldon Whitehouse (D-R.I.), questioned working with Republicans on permitting while the Trump administration was freezing federal funds, but he’s since indicated he’s been involved in talks.
Negotiators in December focused their talks on permitting — which ended up collapsing — with permitting and grid legislation backed by then-Energy and Natural Resources Chair Joe Manchin (I-W.Va.) and NEPA legislation from Westerman.
The Senate committee’s new chair, Republican Mike Lee of Utah, will tackle the grid portion of the issue during a separate hearing this week.
Heinrich said, “I’ve been having conversations with a number of members around permitting, and I certainly have encouraged [Lee] in that direction. I think it’s one of the few places where we do have a fair amount of bipartisan room to work.”
Democrats, however, have lost significant leverage since last year. The Supreme Court this year limited the scope of NEPA reviews and grid improvements may not be a boon for renewable energy projects under attack from the administration and without tax incentives from the 2022 Inflation Reduction Act.
Also, Republicans will likely insist to amending other laws like the Clean Water Act. Legislation called the “Promoting Efficient Review for Modern Infrastructure Today (PERMIT) Act” is on the House floor this week.
Democrats at least have some influence in the Senate, where 60 votes are needed to pass most legislation, and the parliamentarian there said several permitting proposals didn’t meet the rules to pass by simple majority under reconciliation.
The proposals would have secured permits and limited litigation for projects that paid a certain amount of money. Democrats called them pay-to-play schemes.
“While Congress was able to secure moderate NEPA reforms last Congress in the Fiscal Responsibility Act (FRA) and recent actions by the Trump administration will help in restoring sanity to the NEPA process, Congress must act to provide developers and federal agencies with certainty,” the House Natural Resources GOP aide said.
Schedule: The House Natural Resources hearing is Tuesday, July 22, at 10:15 a.m. in 1324 Longworth and via webcast.
Witnesses:
- Tony Boals, vice president, Wright Brothers Construction Co.
- Tony Campbell, CEO, East Kentucky Power Cooperative.
- Andrew Mergen, professor, Emmett Environmental Law and Policy Clinic, Harvard Law School.
- Alex Herrgott, CEO, The Permitting Institute.
Schedule: The Senate Energy and Natural Resources hearing is Wednesday, July 23, at 10 a.m. in 366 Dirksen and via webcast.
Witnesses:
- Peter Huntsman, CEO, Huntsman Corp.
- Jeff Tench, Vantage Data Centers.
- Rob Gramlich, president, Grid Strategies.
