Source: United States Senator Kevin Cramer (R-ND)
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WASHINGTON – U.S. Senator Kevin Cramer (R-ND) at an Environment and Public Works Committee hearing cautioned against efforts to socialize the power grid and questioned witnesses about states’ permitting authorities, as well as the impacts of high energy costs on U.S. manufacturers. Excerpts and full video are below.
Senator Cramer first discussed the need for transmission reforms to accompany permitting legislation. In a question to Christina Hayes, Executive Director of Americans for a Clean Energy Grid, he raised concerns about giving the Federal Energy Regulatory Commission (FERC) greater authority over transmission systems, which would subject the projects to cumbersome National Environmental Policy Act (NEPA) processes.
“Socializing the entire grid at the FERC level and increasing FERC’s role in it all, including [Department of Energy] in national significance, automatically would trigger NEPA, would it not? And if it did trigger NEPA, don’t we have to have some changes in the underlying NEPA laws, [the Endangered Species Act], and the other federal laws if we’re going to accomplish what several want to accomplish with regard to transmission, as well as some of the other things we’re talking about?” asked Senator Cramer.
“You’re right. Any consolidation of jurisdiction over high-capacity lines at the federal level would need to be coupled with streamlining the permitting and siting process, as you noted,” responded Hayes. “Right now, such lines can go through multiple federal agencies, as well as multiple state agencies, and local governments as well. So, for these larger lines that have larger benefits to the region, that should also be coupled with the idea that it should take five years. We can certainly talk about each of the components of the NEPA process or other environmental reviews, but so often we end up playing whack-a-mole. So, instead, if we look at it from beginning to end, to get five years, a notice to proceed — which is what is needed before you can start turning dirt and putting steel in the ground — that would be very helpful to get these much-needed facilities installed.”
Senator Cramer also talked about preserving states’ roles in siting and permitting matters.
“As a state regulator, I loved siting transmission lines up to the Minnesota border, but I resented it when Minnesota cited them to the North Dakota border and then said, ‘Take it from here.’ So, is there some sort of balance that’s doable that recognizes both the goal, but also – and on the pay front, for sure—the socializing of costs across a broader area then uses the electrons?” asked Senator Cramer.
“Of course, states’ input in terms of how things get sited in the state is very valuable, but it’s really important to make sure the broader regional interest is considered. Each Midwest state has done a great job of partnering with its neighbors to site transmission. We need to spread that around the country,” responded Hayes.
Finally, Senator Cramer questioned Jay Timmons, President and CEO of the National Association of Manufacturers, about how high energy costs slow progress for the U.S. manufacturing sector.
“Can you comment on how important the certainty of costs and how important the role of energy and the cost of energy, as well as availability of energy, is to our ‘manufacturing renaissance’ if we’re going to continue it?” asked Senator Cramer.
“If we are able to be competitive – think in terms of tax, think in terms of regulation, think in terms of infrastructure, which this committee and Congress has addressed – if we’re able to drive down those costs, we can be competitive and we can produce anything in this country. During the pandemic, we saw very clearly that we needed to make more products here in the United States. And we need to make sure the next dollar invested was here, and the only way to do that is to make sure that we can control our costs. Permitting reform will help do that,” responded Timmons.