Energy industry support is building for the proposed Energy Permitting Reform Act of 2024, which proponents say would reduce permitting wait times, remove the liquefied natural gas export ban, strengthen the nation’s electric grid, restore certainty to the leasing process on federal properties and increase American energy security.
Introduced by Democratic Sen. Joe Manchin of West Virginia and Republican Sen. John Barrasso of Wyoming, the bill was approved by the Senate Energy and Natural Resources Committee with a bipartisan vote in July and it is currently pending before the full Senate in Washington, D.C.
Permian Basin Petroleum Association President Ben Shepperd said recently that unnecessary red tape has limited developmental opportunities and increased energy costs.
“Although our country is blessed with abundant natural resources, for too long the outdated federal bureaucratic permitting system has strangled economic growth, limited our nation’s geopolitical strength and stood in the way of our ability to reduce international emissions,” Shepperd said. “The PBPA is greatly encouraged by the efforts of Sen. Manchin and Barrasso regarding the bipartisan Energy Permitting Reform Act of 2024.”
Texas Independent Producers & Royalty Owners Association President Ed Longanecker said from Austin that his organization is strongly pushing for congressional approval.
“TIPRO believes the chances of passing a stand-alone bill will be challenging, but there is a possibility that it could be included in a broader legislative package during the lame-duck session after the election,” Longanecker said. “It aims to expedite the development of domestic energy projects by streamlining the federal government’s energy infrastructure permitting process. “Overregulation is consistently cited as an obstacle that has stalled energy projects across the country. Electricity demand will increase rapidly in the coming years, particularly in Texas, and provisions in the Energy Permitting Reform Act of 2024 will help streamline processes for natural gas producers to meet that demand and provide reliable, affordable energy for years to come.”
Longanecker said gaining permits to build infrastructure and connect it to the electric grid is harder today in the U.S. than at any point in recent memory.
“Projects built between 2018 and 2022 face an average wait time of four years before they can connect to the grid, which is up from fewer than two years for projects built between 2000 and 2007,” he said. “Unclear and overlapping mandates, poor coordination among federal agencies and unnecessarily long timelines are just some of the many hurdles that energy projects face in development.”
The Washington-based Independent Petroleum Association of America has also been joined in backing the bill by the Houston-based Energy Workforce & Technology Council, the U.S. Oil and Gas Association, Western Energy Alliance, National Stripper Well Association, National Ocean Industries Association, Gulf Energy Alliance, International Association of Drilling Contractors, SE Oil and Gas Association, Louisiana Mid-Continent Oil & Gas Association and the Texas Alliance of Energy Producers.
IPAA Executive Vice President Dan Naatz said Manchin and Barrasso wrote their bill after listening to the concerns and frustrations of the users of multiple-use lands across the industry.
“The senators worked together to help reduce much of the unnecessary red tape that hampers independent producers operating on federal onshore and offshore lands,” Naatz said. “They have put forward a permitting reform package that will improve coordination, reduce permitting wait times, remove the LNG export ban and restore certainty to the Gulf of Mexico leasing process.
“This legislation increases American energy security and IPAA appreciates the senators’ thoughtful approach to these important issues. As our nation’s energy demand continues to grow at an unprecedented rate, the urgency for action is clear.”
Energy Workforce & Technology Council President Tim Tarpley said streamlining the permitting process is crucial to building the necessary infrastructure quickly.
“This reform is essential to maintaining America’s energy leadership and competitiveness and ending the LNG permitting pause is a critical step to unlocking our energy potential,” Tarpley said. “I urge both parties to support and pass this vital legislation within this Congress because our energy future and economic security depend on it.”
“The federal permitting process has become horribly calcified to the point where obtaining any type of permit has become an exercise in futility for a small business that wants to do work with the federal government,” said USOGA President Tim Stewart from Washington. “This problem impacts everyone from energy to outfitters and guides and this legislation is a significant first step forward in fixing a permitting process that is in desperate need of repair.”
