Key facts
- The US Senate has begun a five-week summer recess without passing a bipartisan infrastructure permitting bill.
- Negotiators have not yet released the text of the permitting bill.
- Lawmakers have only three weeks of session time before the November midterm elections.
- Senator Martin Heinrich cited the White House as a source of delays.
- The White House plans to make unilateral changes to permitting policy.
The US Senate has commenced a five-week summer recess without finalizing a bipartisan infrastructure permitting bill, a development that complicates its potential enactment this year. Senator Shelley Moore Capito had previously stated that passing the bill before the August recess was the "best chance" for it to become law.
On August 8, the Senate recessed after approving a funding bill with a 90-6 vote, which aims to prevent a government shutdown in seven weeks. However, Senate negotiators have yet to release any text of the permitting bill. With only three weeks of session time remaining before the midterm elections on November 3, industry officials from both oil and renewable sectors anticipate that any votes on the permitting legislation will likely occur after the midterms.
Senator Alan Armstrong expressed skepticism about the bill's prospects if the House of Representatives flips in the midterms, suggesting it would become a "dead issue." Despite this, congressional negotiators remain committed to the permitting bill, considering a narrower scope focused on areas of bipartisan agreement. Senator Martin Heinrich indicated that timing would not be an obstacle if the bill garners sufficient support from both Republicans and Democrats. Heinrich attributed the delays to the Trump administration, stating that the White House has consistently introduced challenges, making it difficult to gain caucus support.
Democrats have voiced concerns over the past year regarding the administration's actions that could undermine wind and solar development, warning it would impact their support for a permitting bill. These concerns were highlighted by the administration's halt on offshore wind projects, which were later subject to court challenges. A federal judge recently ordered the US Department of Defense to resume reviews for wind farms that had been suspended for a year. Heinrich also noted that a recent administration proposal to ease enforcement of the National Historic Preservation Act was detrimental to permitting legislation.
Republicans advocating for the permitting deal argue that it would be imprudent for Democrats to abandon the agreement due to the administration's project-blocking actions. Armstrong, who previously served as executive chairman of pipeline company Williams, asserted that a permitting bill would address the issues Democrats aim to resolve, emphasizing the need for legislative action despite industry frustrations.
The White House appears prepared to implement changes to permitting policy unilaterally, even without legislative action. However, industry officials suggest these changes may not provide the investment certainty required for billions of dollars in new infrastructure. The administration intends to finalize measures that would make it more difficult for states to block "section 401" water permits for pipelines and to introduce new regulations for offshore wind permitting.