TO MEET SURGING ENERGY DEMAND, WE MUST PERMIT AMERICA TO BUILD

The Critical Role Of Permitting Reform In Meeting Electricity Demand Growth

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As demand for energy dramatically increases in Texas and around the world, we must focus on supplying reliable, affordable, and sustainable sources of all types of energy. From powering data centers and artificial intelligence to supporting the next generation of transportation and manufacturing, the need for robust and efficient energy generation and delivery infrastructure has never been more urgent. However, outdated permitting processes are creating significant roadblocks, delaying critical projects, and hindering our ability to meet this critical challenge.

The Growing Demand for Energy

The rapid deployment of new technologies, the reshoring of manufacturing, and the global energy transition are driving unprecedented increases in energy demand. For electricity, these demands are further amplified by the need to support renewable energy projects, expand transmission lines, and modernize aging infrastructure. Yet, the current permitting system, plagued by inefficiencies and delays, is ill-equipped to handle the scale and speed of these requirements. In fact, the current system makes it too easy for opponents – of any type – to kill these critical projects in their tracks.

The Challenges of Our Broken Federal Permitting System

In the United States, it often takes longer to secure a permit for an energy project than it does to build it. Plans to address critical needs for transportation, energy, water, broadband, and other priorities find themselves mired in regulatory and legal delays caused by an antiquated permitting process, threatening our economy and diminishing our global competitiveness. Quite simply, Texas, and the rest of the country, is forced to compete on the world stage with one hand tied behind our back.

Get smart: The National Environmental Policy Act (NEPA), which governs the environmental review process, was signed into law on January 1, 1970, by President Nixon and has seen only minor updates since. A lot has changed in 55 years.

Unfortunately, since NEPA’s inception our federal permitting process has only gotten worse, adding complexity and bureaucratic red tape and empowering project opponents of all kinds to delay action through the courts. Even if the litigation of these projects is ultimately deemed without merit, the delay and cost of these legal proceedings can kill valuable and necessary infrastructure development.

Fill me in: According to government data, it now takes an average of 4.5 years for a project to obtain a federal permit. For roads and bridges, the story is even worse – those projects take an average of 7.4 years. Public transit projects take 5.3 years. Even projects to connect renewable energy to the grid by building electricity transmission infrastructure are subject to delays, with some projects taking a decade or more if they come to fruition at all.

The average federal permitting timelines don’t even reflect the additional time required to battle litigation, which creates additional uncertainty for developers and investors.

This inefficiency not only delays the deployment of critical infrastructure but also increases costs, stifles innovation, and undermines our ability to respond to energy market demands – not to mention the realities of global competition in fast-moving sectors such as artificial intelligence.

For example, transmission lines, which are critical for delivering electricity from where it is generated to where it is needed, face some of the biggest hurdles for energy projects with delays spanning a decade or more for large, multi-state projects. Renewable energy projects such as wind and solar farms, which are an essential contributor to our nation’s diverse set of electricity production resources, are similarly bogged down by regulatory hurdles.

We can and must conduct environmental reviews and provide meaningful community input, but it shouldn’t take longer to get a decision about a permit than it does to physically construct a project, and yet that is often the case across America today.

Without comprehensive permitting reform, these delays threaten to derail efforts to strengthen our energy security and secure the additional energy needed to support economic development and growth. Timely investments from the private sector, along with government policies that incentivize and facilitate those investments, can serve as force multipliers in meeting these challenges. All available tools and policy levers should be deployed to meet surging energy demand and to support our common goals of sustained economic growth and job creation.

The big picture: Permitting reform is essential to unlocking the full potential of America’s existing and future energy infrastructure. By streamlining the permitting process, we can accelerate the development of new energy projects, reduce costs, and ensure that the benefits of recent federal investments in supporting infrastructure and clean energy resources are fully realized.

What Congress Has Done & What Is Left to Do

The good news is there is bipartisan consensus in Congress that we must be able to build the infrastructure necessary to meet our energy, environmental, and economic goals. The new Congress is again expected to make permitting reform a priority, which would unlock investments in energy technology and infrastructure, mining for critical minerals, forestry projects, and critical transportation projects. Delays of four to ten years serve only to threaten the viability of the critical improvements needed now and into the future.

While there are differing perspectives on how Congress should address the permitting challenge, and on what “permitting reform” looks like in the end, we believe there is broad consensus that modernization of our outdated and cumbersome permitting process should reflect the following principles:

1. Predictability: It is crucial for project developers and financers to have a clear understanding of the scope and timeline for project reviews, including any related judicial reviews. This ensures they can plan and execute projects with confidence.

2. Efficiency: Improving coordination among various government agencies is essential to make the best use of public and private resources. This not only speeds up the process but also leads to better environmental and community outcomes.

3. Transparency: Both project sponsors and the public need easy access to information about project permitting milestones and schedules. This can be achieved through a publicly accessible platform, ensuring everyone is informed and up-to-date.

4. Stakeholder Input: It is important that all relevant stakeholders are kept informed and given the opportunity to provide input within a reasonable and consistent timeframe. This ensures that their voices are heard and considered in the decision-making process.

The bottom line: Codifying these principles into law would not only expedite the approval and construction of new projects but would also support necessary upgrades to existing facilities, ensuring that our critical energy infrastructure remains reliable, resilient, and adaptable to future needs.

What We’re Doing

The U.S. Chamber of Commerce and our Global Energy Institute is committed to advocating for permitting reform with Members of Congress on both sides of the aisle and working with the Trump Administration to ensure these priorities are front and center. At the same time, we are working with our state partners to highlight state-based solutions that policymakers in Washington, DC, could replicate.

State Action on Permitting Reform

In today's rapidly evolving economic landscape, states face intense competition in attracting business and stimulating growth—components that require infrastructure to meet the needs of a modern society. However, one of the biggest obstacles impeding infrastructure development is our broken permitting system.

States also need to up their game and should adopt permitting policies that promote more certainty and efficiency.

Zoom in: A few good examples include South Carolina's LocateSC.com and Palmetto Sites program that streamline location and expansion processes to provide businesses with comprehensive information and ensure sites are ready for development. Similarly, Georgia's GRAD program, Tennessee's Certified Sites program, and Ohio's investment in shovel-ready sites facilitate business growth by expediting site preparation with vetted locations conducive to investment.

In Pennsylvania, as well, improving the permitting, licensing, and certification process is a top priority—with Gov. Shapiro even offering an online money-back guarantee system if agencies don’t meet a required approval deadline. And Texas recently approved legislation that allows businesses to seek permitting approvals from qualified thirdparty reviewers if local authorities fail to respond to permit applications within 15 days of the deadline.

Such actions are yielding results. Texas was named Business Facilities’ 2023 State of the Year, recognizing its robust business-friendly environment while Georgia broke economic development records for the third year in a row. Tennessee, too, set a new record for business formation in 2023 while electric vehicle manufacturer Columbia Vehicle Group recently announced it selected South Carolina for new manufacturing operations.

Furthermore, the Minnesota Chamber has underscored that addressing the state’s lengthy permitting process is one solution to help reverse the trend of Minnesota-based companies expanding in other states at a higher rate than within its borders.

The bottom line: While no one state has the perfect formula, it’s clear that advancing infrastructure and attracting businesses go hand in hand.

The Path Forward

The U.S. Chamber of Commerce’s "Permit America to Build" campaign is leading the charge for meaningful, durable permitting reform. This initiative has united nearly 350 organizations from across the economy, reflecting widespread agreement on the need for change. By working together, Congress, businesses, and communities can modernize the permitting process and position the United States as a global leader in energy innovation and infrastructure development.

Permitting reform is not just about cutting red tape; it’s about enabling progress. It’s about ensuring that we can meet the growing demand for energy while advancing our economic, environmental, and national security goals.

The time to act is now. By reforming our permitting system, we can build the energy infrastructure of the future and power a stronger, more sustainable America. n

About the Chamber’s Global Energy Institute

The mission of the U.S. Chamber of Commerce's Global Energy Institute is to unify policymakers, regulators, business leaders, and the American public behind a common-sense energy strategy to help keep America secure, prosperous, and clean. Through policy development, education, and advocacy, the Institute is building support for meaningful energy action at the local, state, national, and international levels.