The US Congress is poised to make another attempt at bipartisan permitting legislation, as industry groups ramp up pressure for a deal that would fast-track infrastructure needed to meet a surge of energy demand tied to artificial intelligence.
Congress for the last decade has tried unsuccessfully, with a minor exception in 2023, to pass a comprehensive bill that would cut down on the years it takes to permit pipelines, transmission lines and other infrastructure. But industry officials say recent developments, such as surging energy demand and a slowdown in all types of energy projects, will offer a prime chance for a deal to come together by the end of the year.
"Both sides of the aisle recognize the need — from a national security standpoint, from an economic standpoint, to be able to lead — to build data centers," the trade group US Chamber of Commerce vice president for environment Chad Whiteman said. "And they require a ton of energy and associated infrastructure."
The core of any permitting deal would likely need to meet Republican demands to speed approval of pipelines and other fossil fuel infrastructure, and in exchange meet a Democratic goal to make it easier to approve clean energy infrastructure such as transmission lines. Fossil fuel and clean energy developers want legislation that will make permitting more predictable, with more protections against lawsuits or permitting reversals that result in costly delays.
President Donald Trump's tax and energy law that cut $540bn in clean energy tax credits, along with his recent attacks on renewables, will mean there are fewer clean energy projects where faster permitting would provide a benefit. And Trump's recent unilateral decision to halt work on a $4bn offshore wind farm that is already 80pc complete could erode any remaining trust by Democrats in a permitting process led by the Trump administration.
Trump's recent permitting delays that have targeted clean energy came after former president Joe Biden "pause" on LNG export licenses. The steep obstacles for all types of energy projects could create momentum in Congress to gain more control over permitting, industry officials say, with the alternative being delays and higher costs for consumers.
"Permitting reform will be a priority this fall because industries that both Democrats and Republicans care deeply about are at a point where they can no longer develop their projects," said Partnership to Address Global Emissions executive director Chris Treanor, whose group is seeking to speed permitting for natural gas and LNG projects.
A coalition of energy and industry groups are preparing a new push, starting next week, to pressure Congress to enact comprehensive permitting legislation. The US House of Representatives would likely vote on permitting legislation in October, after which any package would advance to the US Senate for revisions that could potentially be attached to must-pass legislation. Senate Environment and Public Works Committee ranking member Sheldon Whitehouse (D-Rhode Island), in remarks on the Senate floor on 30 July, said permitting legislation could be a "golden opportunity" to cut delays for infrastructure. Industry officials have taken those remarks as a positive sign that legislation could come together this year.
Democratic lawmakers may be reluctant to hand Trump a win on legislation to speed permitting of energy infrastructure, particularly as they ramp up an effort to blame his policies for higher electricity prices. But failure to reach a permitting deal could also carry long-term risks for Democrats, who have struggled with energy workers and others in battleground states such as Pennsylvania.
"We have to figure out how to get energy voters back in the fold as Democrats," said former US representative Tim Ryan (D-Ohio), who now serves as leadership co-chair for the gas group Natural Allies for a Clean Energy Future.
