Daily on Energy: A look at the Casten-Levin permitting reform bill

NEW PERMITTING REFORM LEGISLATION: Democratic Reps. Sean Casten and Mike Levin, co-chairs of the House Sustainable Energy and Environment Coalition, are out with a new permitting reform measure – likely the last legislative measure overhauling the permitting process to be introduced before the election year.

The bill, dubbed the Clean Electricity and Transmission Acceleration Act (CETA), aims to support the buildout of transmission lines connected to clean energy projects – a key piece of infrastructure that’s critical to the Biden administration’s goals of transitioning away from fossil fuels. However, the industry is facing a series of bottlenecks as it’s struggling to meet demand, with utilities and stakeholders wrestling on where to site lines and who will pay for them.

The measure adopts the language of various Democratic bills, and serves as a “consensus transmission and permitting reform bill of the House Democratic Caucus,” according to Casten.

“Last Congress, Democrats made the single largest investment in climate action in U.S. history,” Levin said. “Now, we must unlock its full potential by addressing the transmission permitting issues that are preventing us from bringing clean energy from where it’s generated to American households.”

What the bill does: By amending the Federal Power Act, the bill would direct the Federal Energy Regulatory Commission to create new rules on improving the interregional planning, siting, and deployment of transmission lines, and would grant FERC the exclusive authority to approve where the projects are placed. The measure also includes provisions to promote the development of renewables with a 30% transmission investment tax credit, and makes changes to improve how the grid is managed.

Other areas the bill touches on: 

Renewable energy on public lands: CETA would establish a production goal for clean energy projects, and work to minimize disturbances from the projects for towns and the environment. The bill would also direct revenues to fund conservation efforts.

Offshore wind: The bill would reform the Outer Continental Shelf Lands Act – which establishes U.S. jurisdiction over the region – to further build out offshore wind, while creating a compensation fund for those that may be negatively impacted by the development of a project.

Community engagement: CETA would also aim to improve the community engagement process by requiring agencies to complete community impact statements assessing environmental and public health factors, mandating agencies engage with environmental justice and tribal communities, and requiring the consideration of cumulative impacts and greenhouse gases when conducting an environmental analysis under the National Environmental Policy Act. The bill also aims to increase the capacity to complete environmental reviews, and conduct community engagement at the state and local level and at FERC.

Dead in the House: The bill exclusively focuses on the permitting approval of transmission for clean energy – which is a non-starter for Republicans, who want streamlined permitting for fossil fuel projects as well. So, it’s safe to say that it stands a slim to none chance of passing the House as a standalone bill.

Reading the tea leaves (or rather, the jet fumes): Lawmakers are leaving town today for the holiday break, and once they get back in January, much attention will be paid to funding the government. Plus, it’s an election year, so the odds of comprehensive legislation getting passed into law in a divided Washington will plummet.