McCarthy and Biden to discuss more permit reform after debt limit agreement.

Speaker Kevin McCarthy Plans to Work with President Biden on Energy-Permitting Reform

Speaker Kevin McCarthy (R-CA) is not stopping at the debt limit agreement. He plans to work with President Joe Biden on additional energy-permitting reform. Permitting reform was a major sticking point during deliberations, and although some reform provisions wound up in the final debt ceiling agreement, McCarthy contends that there’s more to do.

“We will continue working with [the White House] and with Democrats across the way because we need energy — all forms of energy, especially for our grid to double in the next future. And so we made a commitment that we’re not stopping now. And that would also deal with transmission. It would deal with pipelines and others,” he said.

Top negotiator Rep. Garret Graves (R-LA) told the Washington Examiner that there were some issues on permitting reform where lawmakers “didn’t have mature enough text on or things weren’t ripe enough” yet for the debt limit framework. Negotiators ticked through some of the key points of their plans for permitting reform featured in the debt limit framework during a press conference Sunday.

Key Points of the Permitting Reform Plan

• The reform package will seek to modernize the approval process by beefing up “electronic documents and transparency” so that “you can understand what’s going” and help speed up the process.
• Some types of energy storage that had been left out of Title 41 of the FAST Act to modernize the review process will now be added, according to Graves, though he did not immediately specify which ones.
• Lawmakers are seeking to “move forward in a bicameral bipartisan way in really studying” transmission issues, which Graves argued is “not well understood in the Congress.”

White House officials provided Democrats with a rundown of how they interpreted the permitting agreement. “Accelerates projects through process efficiencies: The agreement codifies, in NEPA, reforms aimed at boosting the coordination, predictability, and certainty associated with federal agency decision-making. The agreement includes provisions to designate a single lead agency, charged with developing a single environmental review document according to a clear and public timeline. The agreement makes these changes without curtailing the substantive scope of NEPA, cutting down the statute of limitations, imposing barriers to standing, or taking away conjunctive relief or other judicial remedies,” the explanation said.

During the first year of Biden’s administration, permitting reform was raised during the debate on the infrastructure bill. McCarthy noted at the time that Republicans sought deeper reforms to NEPA. The issue later came up during the inner Democratic battle to pass Biden’s so-called Build Back Better agenda. Sen. Joe Manchin (D-WV) prodded his party to enact the reforms after he greenlit the Inflation Reduction Act. Despite Biden’s support, the push ultimately faced headwinds from House progressives. Sen. Kyrsten Sinema (I-AZ) sought to help bridge the gap on permitting reform during the debt ceiling discussions, Axios reported.

McCarthy has vowed to give his members 72 hours to read through the text of the bill. The debt limit agreement is expected to lift the nation’s borrowing authority for two years in exchange for reductions in spending growth, slightly stronger work requirements, permitting reform, and more. The deadline for a deal is June 5, according to Treasury Secretary Janet Yellen.

A few conservatives fussed that the permitting reforms in the debt ceiling agreement were insufficient. “Deficit reduction isn’t even my most important issue. But we didn’t get permitting reform. We didn’t get border security. It’s not entirely clear we got anything,” Sen. J.D. Vance (R-OH) tweeted.