Capito continues quest for federal permitting reform

Sep. 29—A bipartisan push to pass some version of federal permitting reform is under way after Sen. Joe Manchin's effort to include reform in the continuing resolution (CR) that is now being considered failed.

Manchin withdrew his reform language late Tuesday after he saw it could prevent the CR to pass, and the CR is needed to avoid a partial federal government shutdown after Sept. 30, the end of this federal fiscal year.

But Sen. Shelley Moore Capito, R-W.Va. said during a virtual press briefing from her Washington office Wednesday the effort to bring reform to the federal environmental permitting process continues.

Talks are ongoing among people who want to see permitting reform and "I am front and center on some of those discussions," she said. "We will see how that rolls out."

Capito is Ranking Member of the Senate Committee on Environment and Public Works (EPW).

"I have jurisdiction in my committee for a great deal of this," she said. "Since I put my bill out I am sure we will be looking at both bills to see where we have common ground and what we may need to change."

Earlier this month, Capito introduced the Simplify Timelines and Assure Regulatory Transparency (START) Act, also comprehensive federal regulatory permitting and project review reform legislation.

The provisions in her bill are similar to what Manchin wanted.

"This is an on-going process and I am certainly not giving up," she said. "But we have to have that bipartisan back-and-forth that you get when you negotiate. We are still looking at it because it's important for all types of energy. We want to make sure energy gets delivered here in this country because we are energy abundant."

There is generally a large amount of interest in permitting reform, she said. "But you can't do it with just one party behind closed doors where nobody sees this."

Capito said the reform package can't be a "side deal, a back room deal" and the text is held to the very end. "You saw what happened. It fell on its own weight."

Capito was referring to Manchin not consulting with Republicans on the reform proposals and only releasing the full text last week.

During the time waiting for the text, Capito expressed her concern and could not offer support because she did not know all the details. But it did include wording related to speeding up the permitting for the Mountain Valley Pipeline, which was the key to her supporting it.

However, too many other senators, both Democrat and Republican, said they would not vote for the CR with Manchin's reform included.

Many criticized Manchin's "deal" with Senate Majority Leader Chuck Schumer, D-N.Y., to support the Inflation Reduction Act if the reform could be included in the CR.

Manchin said they were just playing politics and the reform is too important to allow that to happen.

Before Manchin released the text, Capito introduced START, saying, "Since our calls for action and offers to see legislative text from the permitting 'deal' remain unheeded, Republicans are introducing this legislation ... to deliver solutions to the roadblocks, delays, and postponements of key infrastructure projects across the country. The START Act would provide regulatory certainty to states, expedite permitting and review processes, codify substantive environmental regulatory reforms, and expedite permitting of the critically important Mountain Valley Pipeline. Republicans are unified in working to deliver needed permitting reform, and this legislation is a blueprint for how we can help communities benefit from being able to finally get critical projects across the finish line."

Capito said she is not sure if the GOP takes over the House and/or the Senate after the November election it will make a difference in passing the permitting reform.

"I think it's going to be a delicate balance between those of us who feel, as was reflected in my bill, that we really need major permitting reform, whether it's in the waters of the U.S., whether it's pipelines, whether it's NEPA (National Environmental Policy Act))," she said. "Then there are those who serve who want absolutely no permitting reform because they are environmentally afraid of it, which for the life of me I don't understand..."

Capito said fossil fuel energy is necessary and available and can follow all of the environmental protocols. She also said it is critical to stabilize the country, provide a supplemental energy baseload and help overseas allies.

"We are going to keep working and try to get a bipartisan product," she said of the needed permitting reform. "Even if it's a new Congress and even if it's a Republican takeover, we still need to have a bipartisan product here in the U.S. Senate. That is the direction I think we are going to try to go."

Speculation abounds Republicans will take over the House and possibly the Senate in the Nov. 8 election.

Capito said if there is one thing this has shown is that it takes five to seven years to permit a transmission line or a transportation project.

"There are ways to shorten those timelines and put deadlines on it and ask for a better result where our money goes further and is more efficient," she said.

Manchin has made the point of how long it is taking the Mountain Valley Pipeline (MVP) to be up and running, and its expense, which will eventually be passed on to consumers.

The project started out with a $3.5 billion price tag and was projected to be transporting natural gas from North Central West Virginia in late 2018.

But with protests and court cases based on the federal permitting, FERC (Federal Energy Regulatory Commission) recently extended the current permits until 2026 and the cost of the MVP is now estimated to be well over $6 billion.

Manchin said that if his reform passed, the pipeline could be completed in six months because other courts could hear the cases and timelines would be enforced.

Contact Charles Boothe at cboothe@bdtonline.com

Contact Charles Boothe at cboothe@bdtonline.com