Sen. Joe Manchin (D-W.Va.) revealed the text of a much awaited proposal to streamline the permitting process for electric transmission and natural gas pipeline projects Wednesday for inclusion in legislation to keep the federal government operating past the end of its fiscal year Sept. 30.

The plan was controversial even before Manchin made the details public, drawing opposition from some Democrats for its benefits to the fossil fuel industry and from some Republicans because it was a bargaining chip in the recent Inflation Reduction Act.

The unlikely combination makes passage an uncertain prospect in the narrowly divided Senate.

The Energy Independence and Security Act of 2022 would speed and simplify siting of regional and interregional transmission lines viewed as indispensable to the Biden administration’s electrification and decarbonization goals. It would also mandate federal authorization for completion of the Mountain Valley Pipeline, which would boost natural gas exports from Manchin’s home state.

Among other key details, the act would:

• set a two-year target for National Environmental Policy Act review of major energy and natural resource projects that require a full environmental impact statement and reviews from more than one federal agency, and a one-year target for projects that require an environmental assessment;
• require issuance of all other permits within 180 days of finishing the NEPA process;
• designate a lead agency to coordinate project reviews and expand the use of shared interagency environmental review documents and concurrent agency reviews;
• set a 150-day statute of limitations for court challenges; require random assignment of judges; and require courts to set and enforce a “reasonable” schedule (no more than 180 days) for agencies to act on remanded or vacated permits; and
• establish procedures for resolving project disagreements without delay.

Manchin has been a pivotal figure in the evenly divided Senate, a Democrat voting with Republicans against some measures that were priorities for his own party.

But he sided with the Democrats on the Inflation Reduction Act in August, in return for a guarantee that his bid to streamline the approval process for transmission projects would be included in a continuing resolution to fund the federal government.

FERC Role

Of particular interest to the electric transmission sector, the act would:

• clarify that FERC has authority to promote and encourage the construction or modification of electricity transmission facilities within and between regions of the country to ensure an abundant supply of electric energy throughout the U.S.;
• allow FERC, upon application by a state or utility, to direct the construction of transmission determined to be in the national interest;
• give the secretary of energy, on application by FERC, authority to designate an electric transmission facility to be necessary in the national interest, which would allow the commission to issue a construction permit for a project;
• allow eminent domain to be exercised on state land;
• direct FERC to allocate the costs of projects it determines to meet certain criteria in accordance with its cost allocation principles and roughly commensurate with the estimated project benefits;
• clarify that FERC is the lead agency for environmental reviews for transmission projects except where approvals are issued by the secretary of the interior; and
• allow FERC to approve cost recovery payments to jurisdictions impacted by a transmission project.

Uncertain Prospects

Manchin and his bill face opposition from multiple directions, starting in his home state.

Sen. Shelley Moore Capito (R-W.Va.) is promoting an alternative streamlining measure that many of her fellow Republicans are lining up behind.

Many Democrats find the proposal’s benefit for fossil fuel projects and removal of environmental balances unpalatable; Sen. Bernie Sanders (I-Vt.) said earlier this month that he would vote against a measure to keep the government operating if it contained Manchin’s proposal.

And many Republicans are angered at Manchin for supporting the Inflation Reduction Act.

Manchin himself noted at a news conference Tuesday that there might be vindictive Republican votes against something the party has sought for years, simply because it was his plan.

Senate Majority Leader Chuck Schumer (D-N.Y.) pledged to put Manchin’s proposal in the continuing resolution in return for Manchin’s earlier vote, but he presides over a 50-50 split in the Senate and cannot easily force measures through.

The measure applies to projects that entail construction of infrastructure to produce, generate, store or transport energy; capture, remove, transport or store carbon dioxide; and mine, extract, beneficiate or process minerals that require preparation of an environmental document under NEPA.

“Major” projects are defined as those that require multiple federal actions and an EIS under NEPA, or those for which the project sponsor requests treatment as a major project, though only an EA is required.

The act would also require the president to designate 25 energy and mineral projects of strategic importance as national priorities for the American public; energy producers, consumers and workers; and international allies of the U.S.

Reaction

“We applaud Sens. Schumer and Manchin for moving forward with legislation to improve the nation’s outdated system for permitting critical energy infrastructure,” Heather Zichal, CEO of the American Clean Power Association, said in a statement Wednesday. “Making common-sense reforms to our current permitting process will help us unleash the full potential of the clean energy investments spurred by the Inflation Reduction Act and keep us within striking distance of the emissions-reduction targets and climate goals we need to achieve.”

Gregory Wetstone, CEO of the American Council on Renewable Energy, said: “We know we need to expand and upgrade the nation’s electrical grid to fully realize the renewable energy growth expected under the Inflation Reduction Act. … Sen. Manchin’s bill includes provisions that will help streamline the transmission approval process, improving our ability to meet our nation’s decarbonization goals by better connecting our key renewable resources to our largest population centers.”

And Grid Strategies President Rob Gramlich said, “This bill is a massive step forward for permitting and paying” for large-scale transmission projects. “The bill allows broad benefits of transmission to be reflected in how costs are recovered and speeds up approval timelines for siting while preserving the important environmental and public participation protections in NEPA.”