WASHINGTON (AP) — Senators from both parties announced on Wednesday that they have reached a bipartisan agreement on legislation designed to expedite permitting reviews for new energy and infrastructure projects, which currently face extensive delays. The legislation aims to address the increasing demand for electricity and other energy sources, particularly due to the rise of data centers for artificial intelligence.
Proponents of the bill argue that it would shorten the timeline for initiating significant energy projects. The bill mandates that data centers will be responsible for the additional electricity they consume and proposes changes to a key environmental law that some critics claim hinders energy project development.
Republican Senator Shelley Moore Capito of West Virginia, chair of the Environment and Public Works Committee, referred to the bill as "a major step toward making it faster and more efficient and easier to build infrastructure projects" while still upholding essential environmental protections. "The American people sent us here to do big things. This is a big thing. It's monumental and it's legacy-setting," Capito stated during a news conference at the Capitol, where she was joined by Republican Senator Mike Lee of Utah and Democratic Senators Martin Heinrich of New Mexico and Sheldon Whitehouse of Rhode Island.
Heinrich expressed that the bill would lead to increased energy availability, more job opportunities, and lower electricity costs for families and businesses. He emphasized that data centers should contribute to the costs of the grid upgrades they necessitate, rather than passing those costs onto American families.
A vote on the bill is not expected until after the midterm elections, reflecting the complex political landscape that could alter the balance of power in Congress. However, the bill signifies a rare moment of bipartisan cooperation regarding energy policy, as lawmakers from both parties acknowledge the necessity of developing new energy projects.
Lee expressed confidence that the bill would pass during a lame-duck session in November, citing its bipartisan support and backing from business and environmental organizations.
Whitehouse, the leading Democrat on the environment panel, expressed optimism but noted that Democrats are still seeking assurances on how the bill will prevent the previous administration from obstructing wind and solar projects. He and Heinrich have criticized former President Trump's actions against wind energy, which included blocking several offshore wind projects.
Brad Campbell, president of the Conservation Law Foundation, criticized the agreement, stating that it appears to cater to the fossil fuel industry and could undermine protections for clean water and endangered species, limit judicial review, and reduce the authority of the Environmental Protection Agency and state agencies in evaluating the impacts of energy projects.
The White House stated that the bill would implement transformative policies aimed at reducing energy and housing costs for Americans, promoting new construction and investment in infrastructure, and creating jobs.
Trump's stance on wind energy has been a significant barrier to permitting reform, with Democrats asserting that progress on the issue is contingent on the administration's willingness to allow previously approved projects to proceed. Trump has recently indicated a willingness to ease restrictions on renewable energy projects to facilitate a permitting agreement.
Capito expressed confidence that any obstacles could be resolved, stating that the current permitting system has been plagued by delays and excessive costs, resulting in projects taking decades to complete.
The Senate bill proposes to limit legal challenges under the National Environmental Policy Act, which requires federal agencies to assess potential environmental impacts before project approval. The bill also aims to streamline the approval process for interstate transmission lines and enhance the Federal Energy Regulatory Commission's authority to review major projects concurrently with state reviews, thereby accelerating the overall permitting process. Additionally, the bill would require data centers to cover all associated transmission costs, preventing these expenses from being transferred to families or businesses.