Addressing Inefficiencies in the Energy Sector: The Proposed Energy Permitting Reform Act of 2024


The permitting process has been identified by numerous commentators as a major cause of delays in the development of energy, infrastructure, and mining projects in the United States. With ongoing energy demand set to increase significantly in the coming decades, along with increased geopolitical uncertainty, the need to secure domestic energy resources is an objective that has received strong bipartisan support. To that end, on July 24th, Senators Joe Manchin (I-WV) and John Barrasso (R-WY), the Chair and Ranking Member of the Senate Energy and Natural Resources Committee, respectively, introduced the Energy Permitting Reform Bill (NEW24584 (senate.gov)) (the “Bill”) with the aim of addressing some of the areas of concern affecting permitting and licensing in the energy and mining industries.

The following is a brief overview of some of the key provisions of the Bill affecting the energy sector. The proposed revisions affecting the mining industry will not be addressed in this client alert, though we continue to monitor progress in this area as well. For a deep dive into permitting reforms with a particular focus on the mining sector, please consult our recent white paper on this subject, Permitting Reforms for Mining and the Energy Transition.


Renewable Energy

The Bill proposes a number of new rules and legislative amendments that have the potential to increase deployment of onshore and offshore renewable energy projects. The key initiatives that the Bill introduces include:


Electricity Transmission and Planning

The past two decades have seen an increase in intermittent renewable energy deployment alongside growing demand for electricity. These trends are set to continue, with electricity demand in particular looking poised to grow significantly due to anticipated energy needs from data centers and transportation applications. As a result, recognition that transmission grids are not fit for purpose to address these developments has been growing.

The Bill would introduce a number of revisions to the transmission permitting and planning processes. With respect to permitting, the Bill strengthens the hand of the Federal Energy Regulatory Commission (“FERC”) to issue construction permits for projects that are in the national interest, without those projects needing to first be designated as National Interest Electric Transmission Corridors (“NIETC”). Indeed, the Bill would eliminate the concept of NIETCs entirely and allow FERC to act on a greater number of proposed transmission projects.

In addition to permitting reforms, the Bill introduces two new sections to the Federal Power Act (“FPA”) that would require Regional Transmission Organizations / Independent System Operators (“RTOs/ISOs”), with the exception of the Electric Reliability Council of Texas (“ERCOT”), to jointly submit periodic plans with adjacent RTOs/ISOs relating to interregional transmission. The initial plans would need to be jointly submitted within two years of the Bill being enacted and updated at least once every four years. FERC would be authorized by the Bill to establish precise regulations on the submission of transmission plans, as well as approving proposed cost allocations.


Oil and Gas

In addition to measures intended to facilitate the development of renewable energy projects, the Bill would also enact rules designed to promote domestic oil & gas production. The key proposals affecting the petroleum sector are set out below.


Final Thoughts

The Bill would introduce a number of key revisions that would improve permitting for a large number of energy projects; however, the above summary is by no means an exhaustive list of all proposed measured included in the Bill. With the current legislative calendar, it is unclear when (if ever) the Bill will be taken up by lawmakers in earnest. We will continue to monitor developments with respect to the proposed Energy Permitting Reform Act.


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National Law Review, Volume XIV, Number 215