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Permitting Bill Will Call Democrats’ Affordability Bluff, Energy Leaders Say
Developing story first seen 2 hours ago
The Senate advanced the bipartisan American Affordability and Jobs Act on Monday, giving lawmakers a chance to decide whether to support permitting reform and rules requiring large data centres to cover their grid-upgrade costs. At a Washington event on Tuesday, energy industry leaders said the bill would test Democrats’ commitment to lowering energy costs after campaigning on affordability.
Christopher Johnson of the American Energy Leadership Institute and Conner Brace of Boundary Stone Partners argued that slow federal approvals are holding back power plants, pipelines and other infrastructure. The bill would shield ratepayers from grid costs linked to large data centres; the House passed the SPEED Act in December 2025 to speed environmental reviews. The speakers said the current lame-duck session may be Republicans’ last chance to pass permitting reform while they control both chambers.
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In short
- A bipartisan permitting bill advanced to the Senate.
- It would make large data centres pay for grid upgrades.
- Energy leaders called it a test of Democrats’ affordability pledges.
How this story developed
- 40 minutes ago Energy industry leaders Christopher Johnson and Conner Brace said slow federal permitting is delaying power plants, pipelines and other infrastructure, and urged Congress to advance permitting reform.
- 41 minutes ago The Senate advanced the bipartisan American Affordability and Jobs Act on Monday, giving lawmakers a chance to decide whether to support permitting reform and rules requiring large data centres to cover their grid-upgrade costs.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Supporters argue that lengthy federal approvals delay power plants and infrastructure needed to expand energy supply, putting upward pressure on costs and limiting reliability. They say permitting reform, alongside requiring large data centres to pay for grid upgrades they drive, could protect ordinary customers and test whether lawmakers will act on affordability.
The case against
Sceptics may argue that faster approvals risk weakening environmental review and public scrutiny, while new energy infrastructure can impose lasting costs on communities and the climate. They may also question whether the bill’s data-centre cost rules and permitting changes will meaningfully lower household bills, or chiefly advance industry priorities.
Explained simply
Permitting rules set out what reviews and approvals are needed before major energy projects can be built. These can include power plants and pipelines, as well as upgrades to the electricity grid. Supporters of reform say lengthy approval processes can delay new infrastructure.
Large data centres use substantial amounts of electricity, and connecting them can require costly grid upgrades. The bill would require large data centres to cover costs linked to those upgrades, helping determine how much falls on other electricity customers. Its provisions sit alongside a wider debate over how to expand energy infrastructure while reviewing its effects on the environment.
The debate involves lawmakers from both parties and energy industry groups, including the American Energy Leadership Institute and Boundary Stone Partners. The issue matters because permitting decisions can affect how quickly energy projects are built and how their costs are shared.
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