Democrats’ Deal on Climate and Tax Bill Opens Door for Comprehensive Permitting Reform

What happened: Senate Majority Leader Chuck Schumer (D-N.Y.) and Sen. Joe Manchin (D-W.Va.) July 27 announced a deal on legislation to fund climate, tax and health care reforms called the Inflation Reduction Act of 2022.

The legislation would provide funds to several federal agencies to facilitate ‘efficient, accurate and timely reviews’ for the environmental permitting process. The bill would advance in the Senate via the reconciliation process, which only requires 50 votes. This means it could pass without Republican support.

As a part of the agreement, Democratic leaders in Congress and President Joe Biden also agreed to consider separate comprehensive permitting legislation this fall. Details of that permitting legislation have not been released.

Why it matters: Funds to support the environmental review process in the Inflation Reduction Act have the potential to lead to faster infrastructure project approvals. A separate permitting reform bill could also be impactful, depending on its scope, and would need Republican support to move forward.

What’s next: While the Senate plans to vote on the Inflation Reduction Act in early August, it’s unclear if the bill has support from all 50 Senate Democrats. Action on separate permitting legislation is not expected until September.