DEMS UNVEIL PERMITTING BILL

Democrats are floating a new consensus permitting bill to rally around. At least, that’s the goal of new legislation from Reps. Mike Levin (D-Calif.) and Sean Casten (D-Ill.) that’s been almost a year in the making. It combines several Democratic energy priorities: spurring transmission, streamlining permitting for renewable energy projects and boosting engagement with disadvantaged communities in the review process.

The 200-page bill has already attracted 71 co-sponsors and is backed by both the moderate New Democrat Coalition and Congressional Progressive Caucus.

Casten told ME that the bill came out of a “real frustration at the end of last term” that Democrats lacked a consensus permitting bill to build upon their victories in the Inflation Reduction Act, and after efforts to reach a compromise fell short last December.

The Clean Electricity and Transmission Acceleration (CETA) Act would compel FERC to establish performance-based ratemaking for interstate transmission, tying utility revenues to the performance of their grids. Casten said he believes realigning profit incentives for utilities is the only way to unlock faster permitting. On top of that, the bill would give FERC siting authority for major transmission projects and require a minimum transfer capacity between regions. It would also establish a 30 percent investment tax credit for transmission projects.

Of course, a bill from the minority party in the House isn’t going anywhere this Congress, and the legislation has not gotten any support from the other side of the aisle. Casten wasn’t optimistic about getting Republicans to overcome their philosophical differences. “If you’re going to prioritize energy consumers over energy producers, I haven’t found a way to get a Republican on board with that concept,” he said.