Legislative update: White House Unveils Its Plan on Permitting Reform

The White House announced its plan and priorities for revamping permitting reform legislation but received mixed reactions from Capitol Hill, indicating the challenge of reconciling differences in Congress. White House senior adviser John Podesta promoted the administration’s vision, which primarily focuses on directing Congress to accelerate electric transmission line deployment, update old mining laws, and build out 25 gigawatts of renewable energy on public lands. It also includes language about carbon dioxide pipelines and hydrogen. Podesta stated that the White House wants the permitting rules removed from debt ceiling negotiations with Republicans, as the two parties have differing views on the focus of energy infrastructure permitting updates.

Podesta also emphasized President Joe Biden’s call for a clean debt ceiling bill and dismissed the House Republican’s energy package (H.R. 1)  which he describes as going “too far” to benefit fossil fuel companies.

Representative Garret Graves (R-LA), who contributed significantly to the GOP’s energy package, criticized the White House’s understanding of permitting and regulatory processes.  Republicans continue to advocate for fair treatment of the U.S. domestic fossil fuel and mining industries as the administration focuses on transmission line deployment and renewables.

The White House’s plan comes as several plans are circulating in Congress. Senate Environment and Public Works Chair Tom Carper (D-DE) says he is crafting his own permitting reform bill, while Sen. Manchin has offered legislation closely mirroring the bill he introduced last year which garnered bipartisan support.  Manchin’s bill would speed up environmental reviews by setting two-year timeframes and page limits. It would also set a 150-day limit on legal challenges against a permit as well as enforce other changes to judicial review.  Additionally, it also would approve the Mountain Valey natural gas pipeline in his state.

Senators John Barrasso (WY) and Shelley Moore Capito also released recently a bill focused on oil and gas permitting.  The bill goes beyond Manchin’s bill by amending environmental laws on water resource management and endangered species. But the GOP bill has failed to muster any Democratic support.  While Podesta did not dismiss the possibility of negotiating with Republicans, he was more optimistic about ideas put forward by Sen. Manchin, and those expected from Sen. Carper.

 

Administration Unveils Power Plant Greenhouse Emissions Rule

Today, the Biden administration announced a wide-sweeping, 681-page proposed rule aimed at reducing greenhouse gas emissions from the country’s power plants.  The rule is a key component of the Biden administration’s climate goals, which seek to slash the use of U.S. fossil fuels to achieve its climate, health, and environmental ambitions. The EPA intends to establish limits for existing power plants based on size, how often they run, and their planned retirement dates. The Administration is trying to thread the legal needle after the Obama Clean Power Plan (CPP) was ruled unconstitutional because the EPA had exceeded its authority in requiring power plants to move away from fossil fuels.

By 2040, coal-burning plants that remain operational will be required to capture 90% of their carbon emissions by 2030 or shut down. Plants slated for closure before 2032 will not be required to make any reductions, nor will plants that commit to closing by 2035 if they operate less than 20% of the time.

Large natural gas plants that consistently operate must either capture 90% of their emissions by 2035 or primarily burn low-carbon hydrogen by 2038. Plants operating at lower capacities will face less stringent regulations, or may not be immediately subject to regulation.

EPA Administrator Michael Regan stated that the rule will likely lead to the retirement of fossil fuel units, but emphasized that decisions will be made by utilities and states (as opposed to the Obama CPP). He explained that the proposed system offers significant flexibility, allowing the power sector to make individual decisions based on available technology and resources. This is the legal and political tightrope the administration is attempting to maneuver – using the limited tools it has to achieve its ambitious climate goals.

Republicans voice strong opposition.

Republicans have voiced strong opposition to the proposal. Senator Shelley Moore Capito (R-WV) has already pledged to introduce a Congressional Review Act resolution to overturn it, although she must wait until the EPA finalizes the proposal, which is anticipated to occur by June 2024.

During a May 10 hearing on the EPA’s budget for Fiscal Year 2024, House Republicans criticized the agency’s “overly ambitious” regulatory agenda, arguing that it would have significant repercussions on job and domestic manufacturing in the US. A National Association of Manufacturers report released shortly before the hearing estimated that adopting the strictest option for particulate regulation could threaten up to $197 billion in economic activity and 974,000 jobs.

Democratic Senator Joe Manchin (WV) has also criticized the administration’s “radical” climate agenda” and vowed to oppose all EPA nominees until the administration curtails its “overreach” targeting the power sector. He believes, as do others, that the Administration is attempting to enact portions of the Build Back Better bill that never passed Congress but were priorities for Democrats, through the implementation process.

Subcommittee Chairman Bill Johnson (R-OH) said he is concerned about the EPA’s recent regulatory actions, which he views as pursuing ideological green goals at the expense of the American people’s safety, security, and economic freedom.  Johnson was dismayed that Regan was testifying prior to the rule being announced and vowed that the committee would be requesting him to return to further discuss the details of the proposal.

Full Committee Chair Cathy McMorris Rodgers (R-WA) blasted the EPA for an agenda that she says is completely “out of touch” with the needs of the American people. “This list contained some of the most aggressive ‘rush-to-green’ mandates, to shortening public comment periods and introducing regulatory changes that lack the analysis to justify them,” she said pointing to the 151 separate pending rulemakings.  “These impractical, expensive standards will eliminate good-paying jobs, destroy our manufacturing base and domestic supply chains, and threaten America’s leadership in key industries that have historically been critical to our efforts to reduce emissions.”

Fully aware the new rules will more than likely end up before the Supreme Court, Regan projected confidence that the rule would meet the legal bar that resulted from the demise of the Obama Clean Power Plan.  “This has limits and guidelines that follow EPA’s traditional approach under the Clean Air Act to cut and control pollution from stationary sources,” Regan said. “So we feel really good that we are well within those bounds.”

The rules will be open for public comment for 60 days. An EPA factsheet summarizing the rule can be found here.  EPA plans to hold a webinar two webinars overviewing the proposed rules and how to engage in the regulatory process on June 6 and June 7.

 

Administration and Agriculture “Four Corners” to Meet and Discuss Farm Bill as Debt Limit Impasse Threatens to Stall Major Legislation

 President Joe Biden is meeting with the top farm bill writers on May 11 to discuss the wide-ranging policy bill for agriculture amid concerns that debt ceiling negotiations between the White House and House Republicans could impede progress. The uncertainty over the debt ceiling has already led to an indefinite delay in the markup of the FY24 defense authorization bill and it may also push back the House Appropriations Committee’s plans to start marking up its spending bills next week.  A May 9 meeting between President Biden and congressional leadership on the debt ceiling led to little progress in striking a deal to ward off the US defaulting on the debt, which might happen as early as June 1 according to Treasury Secretary Janet Yellen.  Another meeting is set for May 12.

The White House farm bill discussion will be attended by the “four corners”–House Agriculture Chairman Glenn “GT” Thompson (R-PA), Ranking Member David Scott (D-GA), Senate Agriculture Chairwoman Debbie Stabenow (D-MI), and Ranking Member John Boozman (R-AR). Agriculture Secretary Tom Vilsack is also expected to attend the meeting.

Stabenow said the main goal of the meeting is to discuss the farm bill and its implications in a broader context. The discussions will focus on exchanging and understanding the President and committee’s priorities and working in a bipartisan and bicameral way. The next farm bill will shape land conservation and nutrition programs, aligning with Biden’s focus on climate change and reducing hunger.

Both the House and Senate Agriculture Committees are working to have a replacement bill ready by September 30 when the current farm law expires.  At this time, both the committees have not released their draft bills.

  

Congress Focuses on Train Safety and Supply Chains

On May 10, the Senate Commerce, Science, and Transportation Committee voted 16-11 to advance a bill, aimed at improving rail safety (S. 576), the bill originated from the Norfolk Southern train derailment incident in East Palestine, Ohio, which occurred in February.

Despite being presented as a bipartisan effort, with Ohio Senators Sherrod Brown (Democrat) and J.D. Vance (Republican) leading the introduction the markup session revealed divisions within the committee. Some Republicans expressed skepticism about the necessity of additional rail regulations, highlighting the challenges of achieving true bipartisan consensus.  Some are concerned that the legislation would give the Transportation Secretary too much authority.  Specifically, Sen. Ted Cruz (R-TX) said the was concerned that authority could be used to restrict the movement of coal, oil, natural gas, and other essential commodities.

It’s not clear if the House will take up the legislation. House Transportation and Infrastructure Chairman Sam Graves (R-MO)  has said he intends to wait for the final NTSB report before taking on relevant legislation.

Meanwhile, the House Transportation and Infrastructure Railroads, Pipelines, and Hazardous Materials Subcommittee will be holding a hearing on “Getting Back on Track: Exploring Rail Supply Chain Resilience and Challenges.”  Witnesses include Chris Jahn, president and CEO of the American Chemistry Council, rail industry associations, labor, and a policy expert from the Reason Foundation.