Legislation would let developers sue over delayed permits
Four senators — two Republicans and two Democrats — unveiled sweeping legislation on Wednesday aimed at breaking through the federal permitting bottlenecks that energy developers say have stalled pipelines, wind farms, solar arrays and transmission lines for years.
The Bipartisan American Affordability and Jobs Act, introduced by Sens. Martin Heinrich of New Mexico, Mike Lee of Utah, Shelley Moore Capito of West Virginia and Sheldon Whitehouse of Rhode Island, includes aggressive measures to fend off the permitting lags developers have long complained about.
The bill’s central provision allows developers to sue the federal government for damages when permits are improperly delayed or unreasonably denied. It also restricts travel for certain agency heads who miss permitting deadlines.
The legislation arrives against a backdrop of different obstacles facing different parts of the energy industry. Oil-and-gas companies have dealt with long delays securing the permits to erect new pipelines to ship their products to markets, along with yearslong lawsuits from environmental groups. They threw their support behind President Trump in part in the hope that a GOP-led Congress would help them cut through the red tape.
Wind and solar developers, meanwhile, have wrangled with mounting local opposition to their projects and the transmission lines needed to connect them to power users. In recent years, both Republicans and Democrats have agreed that reforms were needed to build new projects at a time of soaring energy demand.
To reduce the litigation that has slowed projects, the bill makes it harder to challenge a permit in court once issued. It also includes a package of reforms aimed at strengthening the electric grid and mandates that data centers pay for all of their associated transmission costs.
Energy industry leaders reacted swiftly. “For years, we have been talking about modernizing a broken permitting system that makes it far too difficult to build the energy infrastructure this country needs,” said Toby Rice, CEO of natural gas producer EQT. “Now, we have a real opportunity to finally get it done.”
Anne Bradbury, CEO of the American Exploration & Production Council, an oil-and-gas lobby, said the bill ‘would unlock generational investments to make energy more affordable and position America to win the global energy race that will define our future.’
Drew Maloney, CEO of the Edison Electric Institute, a utility trade group, said it was encouraged by measures that streamline environmental permitting and create project certainty, and that it is reviewing the transmission provisions and how they might affect efforts to deliver electricity. Several energy chief executives called on Congress to pass the bill before the end of the year.
The four sponsors said the bill should lower electricity costs measurably for Americans, increase clean power significantly, and significantly add construction and jobs across the country.
The senators said they expected a Senate vote after the midterm elections.