Senate Majority Leader Pushes for Permitting Reform Ahead of Climate Week
U.S. Senate Majority Leader John Thune has placed permitting reform on the Senate agenda just ahead of the upcoming Election Day. This development coincides with next week’s Climate Week NYC event in Manhattan, where key investors, policymakers, and energy developers will gather to discuss innovations that can meet America’s increasing energy demands. American innovators are rapidly advancing in areas like nuclear energy, efficient geothermal drilling, and other emerging energy technologies. However, despite these technological advancements, our permitting system remains stagnant. Addressing this issue should be a priority for everyone involved.
There’s a clear opportunity here to make a meaningful change that’s been a long time coming.
Wall Street has the financial resources, American innovators possess the necessary talent and technologies, and customers desperately need the power. What seems to be lacking is a permitting system that instills confidence in investors that the government will responsibly approve essential infrastructure projects vital for the next wave of American energy.
Historically, the United States has demonstrated its ability to build efficiently—take, for instance, the Hoover Dam, which was completed in just five years, or the Golden Gate Bridge in four years. Even the Empire State Building was erected in a little over a year. Today, however, the process of obtaining a transmission line permit takes longer than completing a college degree.
The current permitting landscape in America tends to favor those who obstruct rather than those who endeavor to build. Delays and aggressive litigation leave capital sidelined, stifling American innovation and obstructing domestic energy supply chains. While investors willingly take on the real risks associated with construction and pioneering projects, they shouldn’t have to face a permitting process that adds years of unnecessary uncertainty to the equation.
Take the SunZia transmission line as an example. This 550-mile high-voltage link across New Mexico and Arizona took 18 years to go from concept to operation, with only three years spent on construction; the remaining 15 years were consumed by planning, reviews, and litigation.
Innovation isn’t usually the hard part; navigating the bureaucratic maze is. Advanced nuclear developers are making progress, geothermal companies are tapping wells that wouldn’t have made financial sense a decade ago, and carbon capture projects are ready for their final investment decisions. Yet, a cumbersome federal permitting process can halt critical infrastructure projects and impede the commercialization of new technologies. Lengthy delays can escalate project costs and push essential energy investments abroad, raising rates and jeopardizing U.S. economic and national security.
These issues stem from a malfunctioning permitting system, which serves as a significant barrier to investment. At a time when investors are eager to inject capital into American energy infrastructure, the existing permitting system complicates the process unnecessarily.
Utility companies anticipate investing $1.4 trillion in the grid by 2030, building on 14 years of historic investment levels. Private funds currently hold about $92 billion in inactive energy capital, with one fund closing at $8.1 billion recently, significantly exceeding its original target of $5 billion. It’s crucial that America seizes these opportunities.
When effective policy merges with American innovation, remarkable outcomes can follow. A case in point is the recent modernization of nuclear licensing, which allowed the Nuclear Regulatory Commission to approve TerraPower’s Natrium reactor in roughly 18 months, ahead of schedule and under budget by 11%.
These results showcase what’s possible when private-sector talent aligns with policy that keeps pace with innovation. The Supreme Court has already stressed the limitations on NEPA reviews and the deference owed to agencies regarding environmental review scopes. However, what is absent is a comprehensive permitting policy.
Congress has clear solutions at its disposal: modernize NEPA to eliminate redundant reviews, reform judicial review processes to minimize delay-driven litigation, and establish enforceable deadlines that must be adhered to. The House has already passed these measures as part of bipartisan legislation, including the SPEED Act proposed by Natural Resources Committee Chairman Bruce Westerman, a Republican from Arkansas.
Public support for permitting modernization stands at 70%. To fuel the next chapter of American energy leadership, more energy resources will be essential. The most constructive action Washington can take is to cut through the bureaucratic red tape and allow Wall Street to unlock the capital needed for America to build.
