NOIA welcomes Energy Permitting Reform Act

Image: Architect of the Capitol

In a move applauded by the National Ocean Industry Association, U.S. Senators Joe Manchin (I-W.Va.) and John Barrasso (R-Wyo), respectively Chairman and Ranking Member of the Senate Energy and Natural Resources Committee, have released the Energy Permitting Reform Act of 2024.

The bipartisan legislation seeks to strengthen American energy security by accelerating the permitting process for critical energy and mineral projects of all types in the United States.

“The United States of America is blessed with abundant natural resources that have powered our nation to greatness and allow us to help our friends and allies around the world,” said Chairman Manchin. “Unfortunately, today our outdated permitting system is stifling our economic growth, geopolitical strength, and ability to reduce emissions. After over a year of holding hearings in the Senate Energy and Natural Resources Committee, thoughtfully considering input from our colleagues on both sides of the aisle, and engaging in good faith negotiations, Ranking Member Barrasso and I have put together a commonsense, bipartisan piece of legislation that will speed up permitting and provide more certainty for all types of energy and mineral projects without bypassing important protections for our environment and impacted communities. The Energy Permitting Reform Act will advance American energy once again to bring down prices, create domestic jobs, and allow us to continue in our role as a global energy leader. The time to act on it is now.”

“For far too long, Washington’s disastrous permitting system has shackled American energy production and punished families in Wyoming and across our country. Congress must step in and fix this process,” said Ranking Member Barrasso. “Our bipartisan bill secures future access to oil and gas resources on federal lands and waters. We fix the disastrous Rosemont decision so that we can produce more American minerals instead of relying on China. We permanently end President Biden’s reckless ban on natural gas exports. And we ensure we can strengthen our electric grid while protecting customers. This legislation is an urgent and important first step towards improving our nation’s broken permitting process.”

Notably, on offshore energy, the legislation requires the Secretary of the Interior to hold at least one offshore wind lease sale and one offshore oil and gas lease sale per year from 2025 through 2029, subject to minimum acreage requirements, without bypassing environmental reviews. Without these provisions, there will be several years through 2029 where both offshore wind and offshore oil and gas leasing will not take place under current law.

On another issue of major significance for U.S. maritime, LNG exports, the legislation sets a 90-day deadline for the Secretary of Energy to grant or deny LNG export applications following environmental reviews, with applications deemed approved if the Secretary fails to meet the deadline. Ensures fact-based decision-making by requiring the Secretary to base decisions on DOE’s existing LNG economic and emissions studies, unless and until new studies are completed. The bill subjects any new study to peer review, notice and public comment, and other requirements of the Information Quality Act.

Judicial review: The legislation shortens timelines before, during, and after litigation on all types of federal authorizations for energy and mineral projects, without changing any existing rights to seek judicial review. The bill establishes a 150-day statute of limitations from the date of the final agency action on a project; requires courts to expedite review of legal challenges; and sets a 180-day deadline for federal agencies to act on remanded authorizations.

NOIA COMMENTS

“There is broad and bipartisan consensus on the need to streamline permitting to expedite the development of vital infrastructure and energy projects without unnecessary delays,” said NOIA President Erik Milito. “We welcome the introduction of the Energy Permitting Reform Act of 2024 and commend Senators Manchin and Barrasso for their commonsense approach to energy policy.

“Reforming the nation’s permitting process will ensure that America remains a leader in energy production while safeguarding our natural resources. The inclusion of provisions for new offshore oil and gas lease sales underscores the critical role of the Gulf of Mexico and other offshore areas in meeting the nation’s energy needs. This move will boost domestic energy production, create jobs, and stimulate economic growth. Additional Gulf of Mexico lease sales will provide much-needed stability and reassurance to an energy region vital to our national interests.

“We are also pleased with the inclusion of litigation reform. These provisions will help prevent the sudden and disruptive halting of projects, ensuring that infrastructure and energy initiatives can proceed without meritless legal delays. This promotes a stable regulatory environment essential for long-term planning and investment.

“In addition, lifting the pause on LNG permits is crucial for enhancing our energy security and expanding export capacity. This step will strengthen our position in the global energy market and better support our allies. Additionally, it will help the U.S. reclaim a strategic advantage while promoting progress in emission reduction efforts.

“We also commend the bill’s support for offshore wind lease sales. While the power generated from offshore wind projects may be local, the economic significance, including the supply chain, has a national footprint. States like Louisiana, Texas, North Carolina, and Florida have already realized jobs and investments from supporting offshore wind projects.

“Successful permitting reform, as included in this bill, will establish a regulatory framework that balances and enables solutions for navigating climate challenges while promoting long-term affordable energy and providing energy security for Americans and our allies.”

• Energy Permitting Reform Act of 2024 bill text HERE

• Section-by-section summary of the Energy Permitting Reform Act of 2024 HERE

• Read the one-pager for the Energy Permitting Reform Act of 2024 HERE