Democrats' midterm gains complicate path forward on permitting bill

(The Center Square) – Despite broad bipartisan support of the U.S. Senate's permitting reform bill, which aims to expedite energy projects and lower electricity costs, Democratic leadership in the House is now demanding more concessions.

Senate leaders were hoping to hold a vote on the long-awaited Bipartisan American Affordability and Jobs Act during the upcoming lame-duck session, the last eight weeks of the 119th Congress.

The primary purpose of the 417-page bill is to expedite the permitting approval process for energy-related projects – such as natural gas pipelines, drilling and mining, and data center infrastructure – primarily by scaling back environmental and judicial reviews.

Permitting-associated expenses cost manufacturers a cumulative $12.1 billion per year, according to the National Association of Manufacturers. By expediting the timelines that contribute to higher permitting costs, the BAAJA would cut that number by 35%, saving manufacturers $4.2 billion per year, NAM says.

Supporters of BAAJA say it will increase energy supply, reduce Americans' electric bills, and create more jobs as the country enters a new era of energy demand.

Monumental election wins, however, have galvanized some Democrats to push for changes, including House Minority Leader Hakeem Jeffries, D-N.Y., who is set to become House speaker in January.

Jeffries said the bill "falls short in several areas," specifically naming environmental and tribal protections in his post-election comments to Politico.

Jeffries' remarks echo the concerns of BAAJA-critical organizations, who argue the bill in its current form would trample state and community rights by limiting litigation and local input, erode environmental safeguards, and make it more difficult for states and tribes to oppose federal projects and data centers.

Rep. Jared Huffman, D-Calif., wants lawmakers to hold a hearing on the bill and allow amendments to be introduced before holding a vote.

"House Democrats support, and will deliver, responsible permitting reform. But as Speaker-elect Jeffries said today, and as some of us have said for weeks, we must have a chance to fix the most glaring flaws in BAAJA," Huffman posted Thursday on social media.

But with Democrats having campaigned largely on affordability promises, some view the results as even more of a reason to pass legislation targeting energy costs as soon as possible, rather than make ultimatums.

"Modernizing our permitting process is an important way to lower utility costs, create good-paying local jobs, and secure our energy future, and we need to get it done," Rep. Sharice Davids, D-Kan., said in a statement Friday explicitly breaking with Jeffries.

"Standing up for working families means getting this done the right way and ensuring we don't repeat mistakes of the past," Davids added. "I am working with House and Senate leaders in both parties to fix these provisions so we can pass a bill that lowers everyday costs, respects Tribal nations, and protects our environment."

Without faster buildout of high-voltage transmission lines, additional power generation facilities, and other energy infrastructure, the U.S. demand for energy will overtake supply within the next ten years, according to the North American Electric Reliability Corporation.