Energy Daily: Westerman’s Permit Reform Bill Looks Back, Manchin-Barrasso Gets Support, and OPEC+ Delays Production Hike
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Energy Daily: Westerman’s Permit Reform Bill Looks Back, Manchin-Barrasso Gets Support, and OPEC+ Delays Production Hike

IN CASE YOU MISSED IT: WESTERMAN’S PERMIT REFORM BILL: Libertine. Bruce Westerman introduced a draft permitting reform proposal that would narrow the scope of the Environmental Policy Act, unlock investment in important bills like the IRA and the bipartisan infrastructure bill, and introduce judicial reform to limit legal challenges to energy projects.

Why is this important: The measure, which was released yesterday, could form the basis for a bicameral effort to enable reform, a top priority for industry players. The senators’ bipartisan proposal. Joe Manchin AND John Barrasso aims to ease bureaucratic and legal hurdles for all types of energy projects, from fossil fuels to transmission lines. It has not introduced a House companion — but a legislative hearing on Westerman’s bill is scheduled for next Wednesday.

What the Westerman Act includes: A key part of the bill is a judicial reform that would limit the ability of lawsuits to slow down projects. The bill would require plaintiffs to file claims within 120 days of a final agency action — a shorter period than the Manchin-Barrasso bill — and would set timelines for courts to decide NEPA-related cases and appeals within 180 days.

The measure would also limit legal actions against projects, allowing them to proceed “unless there is a clear finding of significant and imminent harm to the environment.” Even if there are deficiencies in a project’s environmental analysis or environmental impact statement, the project would be allowed to proceed until the deficiencies are corrected.

Westerman’s bill would limit the scope of environmental reviews to those under the jurisdiction of a federal agency, minimizing considerations that can delay project approval and increase the risk of litigation. The measure would also clarify that agencies are not required to conduct new scientific or technical studies unless it is “necessary” to make an informed decision among alternatives.

The bill would change the definition of “significant Federal action,” a condition that triggers the NEPA process. The measure would clarify that an agency action would not be considered a “significant Federal action” based on an allocation of federal funds, grants, loans or loan guarantees. That means that allocations of federal funds (think IRA funds and the Infrastructure Account) would be exempt from NEPA.

The measure would also clarify that NEPA is a procedural statute intended to ensure that federal agencies consider the environmental impacts of their actions without “prescribing specific outcomes.” Read the full bill here.

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BUT ABOUT ANOTHER PROPOSAL FOR PERMIT REFORM…: A new analysis of the bill shows that Manchin and Barrasso’s proposal to reform the permitting system would lead to net emissions reductions — findings that could bolster support among Democratic Party skeptics who oppose streamlining fossil fuel projects.

The analysis by centrist think tank Third Way outlines the proposal’s carbon implications by examining policy tools to streamline permitting processes for a range of energy projects, including onshore and offshore oil and gas leasing, liquefied natural gas exports and transmission projects.

What they discovered: Enactment of the bill results in significant net emission reductions in both the low- and high-range scenarios. Even in a scenario in which the highest estimates of net fossil fuel emissions increased and are paired with low levels of transmission deployment, the measure would still result in net emission reductions by 2050.

Why it is BFD: This could help secure Democratic support for the bill as questions arise about whether the majority leader Chuck Schumer will introduce the bill. Some Democratic senators on the Energy and Natural Resources Committee opposed the bill, raising concerns that streamlining fossil fuel projects would increase greenhouse gas emissions.

Read the analysis here.

OPEC CONFIRMS SUSPENSION OF OIL PRODUCTION GROWTH: OPEC+ has confirmed that it will suspend planned oil production growth next month.

Details: The largest oil-producing bloc said on Thursday that eight member countries, including Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria and Oman, will cut production by 2.2 million barrels per day until the end of November.

Why it’s important: The decision delays a planned increase in oil production announced earlier this year, which was to have increased by 180,000 barrels per day in October.

Oil prices fell to their lowest levels this year this week, and industry experts are warning that prices could fall even lower. Those low prices have eased some pressure on consumers amid runaway inflation.

News of the OPEC+ decision sent oil prices higher, with benchmark Brent crude up about 0.6% late Thursday morning.

Some context: Sources reported earlier Reuters Agency The expected return came as Libya’s production was disrupted by the closure of plants. The country’s eastern government shut down production of 500,000 barrels a day in an attempt to oust Sadiq al Kabir, the head of Libya’s central bank.

Kabir suggested that the production disruptions would be resolved, saying on Tuesday that there were “strong” signs of an agreement approaching, Bloomberg reported.

Sources say the policy withdrawal was also influenced by weakening demand in China, which began to shift its focus towards renewable energy.

A MILESTONE IN OFFSHORE WIND ENERGY:The Biden administration on Thursday approved an offshore wind project off the coast of Maryland, marking the 10th commercial-scale project and half of the capacity needed to meet the president’s goal of 30 gigawatts of offshore wind by 2030.

At the beginning of the president’s term, no projects were approved Joe Bidenterm, according to administration officials. The latest project, a Maryland offshore wind farm project, would generate more than 2 gigawatts of renewable energy for the Delmarva Peninsula and power more than 718,000 homes. The project, located off the coast of Sussex County, could support more than 2,600 jobs a year for six years.

The milestone marks the halfway point for the Biden administration’s offshore wind goal, underscoring the stakes in the next election. If Vice President Kamala Harris wins, he will probably continue the work of his predecessor and continue building offshore wind farms. However, the victory of the former president Donald Trump could prove to be a setback for renewable energy sources, as he promised to abandon the projects “on day one” of his presidency and said they were deadly to whales.

“From port infrastructure upgrades and new tax breaks to accelerating responsible and efficient permitting, we are using every tool at our disposal to continue to supercharge this industry and secure a clean energy future for the country,” said White House National Climate Advisor Ali Zaidi.

You can read more about it here.

$7 BILLION FOR CLEAN ENERGY IN RURAL AMERICA: The Biden administration has announced more than $7 billion in grants to build renewable energy projects in rural areas, Nancy reports.

Details: Under the Inflation Reduction Act of 2022, the money would go to 16 rural electric cooperatives that would build or buy a range of projects, including wind, solar, nuclear, hydropower and battery storage. The money, backed by $29 billion in private investment, would be used to build more than 10 gigawatts of clean energy in rural areas.

The Agriculture Department said the grants represent the largest investment in clean energy in rural communities since President Donald Trump began his term.t Franklin D. Roosevelt signed the New Deal.

“One in five rural Americans will benefit from these clean energy investments through partnerships with rural electric cooperatives like Dairyland,” said Agriculture Secretary Tom Vilsack stated in a written statement.

Why is this important: Rural areas often lag behind in clean energy and electrification. For example, while many Midwestern and rural states have larger driving ranges and lack public transportation, many lack the charging infrastructure to support electric vehicles.

The projects aim to reduce and avoid at least 43.7 million tonnes of greenhouse gases per year, the equivalent of taking more than 10 million cars off the road each year. Read more here.

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