Congress fails to reach deal to ease energy permitting rules

A bipartisan group of lawmakers failed to reach a compromise deal to reform permitting rules that would speed the development of new energy infrastructure, people involved in the effort said on Monday.

The push to overcome partisan differences ahead of a crucial government funding deadline saw a significant push by key lawmakers — led by retiring Senate Energy Chair Joe Manchin (I-W.Va.) and House Natural Resources Chair Bruce Westerman (R-Ark.) — but the long-shot challenge of making progress on a major policy issue before Republicans take control of both chambers of Congress and the White House proved too difficult.

“It’s a shame that our country is losing this monumental opportunity to advance the commonsense, bipartisan permitting reform bill that has strong support in the United States Senate," Manchin said in a statement.

Republicans have long pushed for changes to the federal government’s permitting rules, arguing that the cumbersome and timely process has stalled the build-out of fossil fuel projects.

And in recent years, many Democrats have come to the same conclusion, arguing that clean energy projects are stalling due to strict permitting rules and that electrical grid bottlenecks are preventing the delivery of renewable energy to major power markets.

Despite optimism from the lawmakers involved, major obstacles that tripped up previous efforts to pass permitting legislation over the past three years were ultimately too difficult to overcome.

Conservatives have rejected measures that would ease approval of grid projects in their states that they fear could raise power rates, while progressives oppose loosening rules for oil and gas projects that contribute to climate change.

Negotiators were also unable to agree to changes that would streamline permitting reviews and limit legal challenges under the landmark, decades-old National Environmental Policy Act, a top priority of House Republicans.

Retiring Sen. Tom Carper (D-Del.), chair of the Environment and Public Works Committee, blamed the GOP for permitting talks falling short.

"Democrats offered meaningful NEPA reforms, sought by Republicans," he said in a statement. "Unfortunately, instead of taking real policy wins, House Republicans let their perfect be the enemy of the good."

President-elect Donald Trump is expected to make a renewed permitting reform push next year with Republicans having narrow control of the Senate and House.

Trump has made permitting a focus — recently promising that anyone who invests at least $1 billion in the U.S. will be rewarded with expedited environmental approvals. But he has focused most of his attention on boosting fossil fuel projects.

Republicans have discussed trying to include permitting measures in a party-line reconciliation bill they want to pass early next year, but it’s unclear if they’ll be able to push through changes that comply with the strict budget rules that govern the process.