US senators introduce bill to speed approvals of energy projects

By Timothy Gardner

WASHINGTON (Reuters) - The top two lawmakers on the Senate energy committee on Monday introduced long-awaited legislation to speed permitting of power transmission, mining and liquefied natural gas export projects.

Senators Joe Manchin, an independent who caucuses with Democrats, and John Barrasso, a Republican, said their bill would strengthen the power grid and help keep power prices low.

WHY IT'S IMPORTANT

Building transmission capacity would help get electricity to cities from renewable power projects, many of which have gotten financial support from the 2022 Inflation Reduction Act. Nearly 2,000 MW of clean energy is awaiting grid connection. The bill could help speed the Biden administration's goal to decarbonize the U.S. power sector by 2035.

The bill gives companies more chances to bid on offshore oil and gas leasing between 2025 and 2029. In addition, the legislation sets a 90-day deadline for a secretary of energy to approve or deny liquefied natural gas export applications, which Barrasso said would "permanently end" President Joe Biden's pause on such approvals.

KEY QUOTES

"For far too long, Washington’s disastrous permitting system has shackled American energy production and punished families in Wyoming and across our country," said Barrasso, of Wyoming, the nation's top coal producing state. "Congress must step in and fix this process."

Manchin, called it a "commonsense, bipartisan piece of legislation that will speed up permitting and provide more certainty for all types of energy and mineral projects without bypassing important protections for our environment and impacted communities."

The National Mining Association said the bill could help unlock mining for important minerals used in transmission, renewable energy and energy storage, such as copper .



WHAT HURDLES DOES THE BILL FACE?

Prospects for the bill to advance are uncertain given election-year politics and potential opposition to its measures supporting fossil fuel.

Source: Investing.com