Sen. McCormick Advocates for Energy Reform to Boost Economy
During a policy event hosted by Breitbart News on Monday, Sen. Dave McCormick (R-Pennsylvania) emphasized that energy reform could be the most significant step the U.S. could take to “stimulate the economy.”
He noted the gap between energy demand and production capabilities, stating, “We can’t implement energy production fast enough to meet that need.” McCormick pointed to long permitting processes for various energy projects, whether they involve liquefied natural gas, pipelines, or nuclear facilities, explaining that these can take years to navigate. He accused environmental activists of exploiting laws like the Clean Water Act, leading to delays that prevent timely project completions.
McCormick expressed concern that uncertainty surrounding permits is detrimental to investors. He shared that three projects in Pennsylvania had been scrapped due to the inability to secure necessary permits, observing that it typically takes five to six years to get approval—remarkably longer than the three and a half years it took to win World War II.
In April, McCormick introduced the Unlock American Energy and Jobs Act, aimed at combating the burdensome permitting regulations by streamlining the federal process and providing clearer pathways for energy infrastructure projects.
As per a press release from his office, over 650 projects are currently in the federal permitting pipeline. Delays in these projects can inflate construction costs by 24-30%. Furthermore, a notable industry report indicated that around 51% of manufacturers would hold off on investments due to uncertainty, with nearly 66% revealing they would be more inclined to invest if the permitting process were faster and more predictable. This indicates that the current system not only hampers progress but also stifles potential investment proposals.
McCormick remarked that the situation is “unnatural” and a distortion of the intentions behind the original laws. He suggested that the review process should be confined to one year, with irreversible decisions once made. Additionally, he mentioned there is an estimated $1.5 trillion in capital waiting to be deployed due to these restrictive permitting rules.
He concluded that implementing these reforms would “free up” substantial capital and be the “biggest thing” the U.S. could do to stimulate economic growth.
