Leading US senators on the Energy and Natural Resources and Environment and Public Works committees are collaborating to release permitting reform recommendations by the end of the year.
Energy Committee Chair Joe Manchin (D-W.Va.) and ranking member John Barrasso (R-Wyo.) are working with Sen. Tom Carper (D-Del.), chair of the Environment and Public Works Committee, to work out the details of a permitting reform proposal before the end of 2023, Manchin said during a Sept. 28 energy committee hearing. Senators at the hearing also discussed the administration's permitting reform efforts and concerns over implementation of the Inflation Reduction Act.
"We're hoping to bring something [on permitting reform] to the committee that you all can work on, because most of it's in our jurisdiction," Manchin said, addressing the committee. "We could surprise the world if we can get something [on permitting reform] done before the end of the year, and we're going to have something substantial, I think, hopefully towards that period."
Manchin did not elaborate on the contents or format of the possible proposal.
Administration, Republicans disagree on permitting approach
Despite bipartisan desire for a permitting reform proposal, several Republican Senators on the energy committee made it clear that they disapproved of some permitting recommendations released Sept. 12 by an interagency working group led by the Interior Department.
The group's final report included recommendations for a leasing system for mine claims, a modified permitting process, and improved consultation between tribes and the federal government.
"The working group wants to fundamentally change the mining claims system," Barrasso said during the hearing. "It wants to add new fees and proposes more authority for the administration to withdraw lands from mineral production, [and] since many of our nation's mineral resources are on federal lands, the group's recommendations will mean less, not more mineral production here in the US and more dependence on our enemies."
Tommy Beaudreau, deputy secretary of the Interior Department and a witness at the hearing, defended the working group's recommendations.
"If we are to seize the opportunities for domestic sourcing of critical minerals, we need to employ the same tools that have been so successful in standing up thousands of megawatts of renewable energy on public lands and offshore," Beaudreau said. "This includes leasing programs that target resources while reducing conflicts with local communities, wildlife habitats and essential water resources."
Manchin to challenge vehicle credit rule
During the hearing, Manchin also doubled down on a previous threat to go to court over the Biden administration's implementation of the Clean Vehicle Credit incentive contained within the Inflation Reduction Act.
The senator takes issue with the administration's broad interpretation of "processing" within proposed guidance from the US Treasury Department on the tax credit. The interpretation could allow more of an electric vehicle's midstream manufacturing to occur abroad and remain eligible for US tax credits so long as final assembly occurs in North America.
The Treasury Department did not say when a final rule on the tax credit will be issued. Once such a rule is issued, Manchin will support legal challenges against it, the senator said.
"As soon as [the administration goes] into their final ruling, there will be somebody damaged [and] they can sue and we will do an amicus brief and stop this craziness," Manchin said. "It's frustrating that the administration continues to water down the sourcing requirements for EV batteries clearly stated in the [Inflation Reduction Act]."
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