US fossil fuel, mining, and renewables groups unite in urging Congress to pass Manchin permitting bill

More than 40 industry associations urge action to streamline energy approval process amid AI-driven surge in demand

Senator Joe Manchin. West Virginia Senator Joe Manchin says energy independence will be vital to stabilise prices at CERAWeek by S&P Global in 2023.
Senator Joe Manchin. West Virginia Senator Joe Manchin says energy independence will be vital to stabilise prices at CERAWeek by S&P Global in 2023.Photo: CERAWeek by S&P Global

More than 40 fossil fuel, mining, and renewable energy associations joined in signing a letter to US Congressional leaders urging action on a permitting reform bill by Independent Senator Joe Manchin, one of the architects of the Inflation Reduction Act (IRA).

Manchin of West Virginia and Republican John Barrasso of Wyoming introduced to the Energy Permitting Reform Act of 2024 in July.

Among its several aims is to shorten “timelines before, during, and after litigation on all types of federal authorisations for energy and mineral projects, without changing any existing rights to seek judicial review,” according to the Senate summary.

The letter is addressed to Senate Majority Leader Chuck Schumer, a Democrat, and Minority Leader Mitch McConnell, a Republican. It was also sent to House Speaker Mike Johnson (Republican) and House Minority Leader Hakeem Jeffries (Democrat).

“The bill contains critical reforms to our federal permitting process necessary to generate more American energy and minerals, and build the infrastructure needed to deliver it,” it said.

Along with renewables advocacy group American Clean Power Association (ACP), signatories included industry groups representing utilities, developers, manufacturers, miners, consumers, and others “across America’s energy industry”.

Unified purpose

“America’s energy industry is united in one common goal — providing affordable, reliable, cleaner domestic energy,” the writers said.

The current permitting regime prevents this by “bogging down our projects in bureaucratic delays and endless litigation,” the writers added, with transmission lines taking on average a decade to permit, while mining projects might take three times as long.

“This is unacceptable,” the signatories asserted.

Under President Joe Biden, the US enacted legislation and policies aimed at spurring renewable energy investment, including measures to extract key minerals such as lithium for battery storage.

Slow permitting has a been a key bottleneck with big implications for the US power system as demand is set to surge on artificial intelligence-driven data centre expansion, reshored manufacturing and electric vehicles.

Utility Dominion Energy, which covers the world’s largest cluster of data centres in Northern Virginia, expects demand to rise more than 60% within 10 years.

The legislation would establish a 150-day statute of limitations from the date of the final agency action on a project, require courts to expedite review of legal challenges, and set a 180-day deadline for federal agencies to act on remanded authorisations.

It “delivers common sense reforms to provide the predictability and timely decision-making needed for large scale energy and mineral projects, without jeopardizing environmental protections,” the letter added.

In the current 118th legislative session, Democrats hold a slim majority with 51 to 49 seats in the Senate, while Republicans control the lower House of Representatives at 222-213.

The session ends 3 January and will be replaced by the 119th Congress, with Republicans having flipped the Senate with a 53-47 majority while retaining their somewhat slimmer hold on the House at 220-215.

President-elect Donald Trump will be sworn in 20 January, bringing the US government under Republican domination. Trump favours greater support for the oil & gas industry while vowing to slow or even stop renewables.

His first term saw large-scale renewables deployment, though, and the industry is guardedly optimistic that this second and final term will be similar.

Along with ACP, signatories include American Council on Renewable Energy, American Exploration and Mining Association, Centre for LNG, Solar Energy Industries Association and US Chamber of Commerce.

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Published 13 December 2024, 21:17Updated 13 December 2024, 21:17
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