WASHINGTON — Permitting legislation still is being developed on Capitol Hill, but the government shutdown and the Trump administration’s actions against clean energy projects in Democratic-led states could stop it from happening this Congress.
The Conservative Energy Network (CEN) and Grid Action held a “fly-in” Nov. 5, in which state officials, business leaders and experts held more than 35 meetings with members of Congress and senior staff to push for permitting reform legislation. The meetings included those with members of the House Energy and Commerce, House Natural Resources, Senate Environment and Public Works, and Senate Energy and Natural Resources committees.
“Our permitting system makes it impossible to do things in a reasonable time frame,” Rep. Mariannette Miller-Meeks (R-Iowa) said at a press conference hosted by CEN. “And the government, whether it be local, state or federal, is often standing in the way of the market meeting the needs, especially the needs for increased energy demand.”
Congress has been working on the issue for years, and the fact that major infrastructure like transmission can take the better part of two decades to build shows change is needed, as Americans pay more for energy than they would otherwise, she added. Miller-Meeks supports the SPEED and Reliability Act, which would amend the National Environmental Policy Act to speed up agencies’ review of infrastructure projects. (See Permitting Hearing Shows Tricky Politics of Getting a Bill Passed.)
“We have an urgent, growing demand, and the question is whether Congress will act decisively or [continue] to tinker around the margins,” Miller-Meeks said.
Asked about the biggest obstacle to legislation in 2025, Miller-Meeks blamed the government shutdown “created by the Democrats,” which officially became the longest in history on the day of the press conference.
Speaking on a webinar hosted by Americans for a Clean Energy Grid (ACEG) in October, Rep. Sean Casten (D-Ill.) noted that Democrats have a different road block for bipartisan legislation.
“The currency of trust is so low when the White House is refusing to even honor existing congressionally mandated spending [and] congressionally mandated legislation,” Casten said. Talking about compromising on permitting legislation now is “a little bit like compromising with somebody who just robbed your house and is saying ‘you can trust me this time.’”
While that issue has cut the probability of legislation for now, Congress still can work on developing good policy for “when that door next opens,” Casten said.
When it comes to the grid, the issue has less to do with permitting and more to do with the right economic incentives, he argued.
“That sounds crazy,” he said. “You’d never know that if you read all the talking heads, or if you looked at the legislation going through Congress.” But regulated utilities can build rate-based generation and get it connected to their systems, and the natural gas industry has no problem getting pipelines built despite environmental risks that are arguably bigger than those of high-voltage transmission, he argued.
“The truth is, we have a profit problem,” Casten said. “The way that our energy markets are structured, we do not have an incentive to deploy cheap energy. And it comes from the fact that if you are an incumbent in the electricity sector, you lose money if a competitor builds a system on your grid that can underprice you.”
Casten said he did not blame utilities because they were following the incentives, so the goal for any legislation should be to change them. The Cheap Energy Act, which he introduced with Rep. Mike Levin (D-Calif.), aims to do that. (See Federal Energy Policy News Roundup: House Bills and DOE Returns $13B.)
“How should we rethink the way that electricity markets are structured so that we don’t wind up in a situation where every single person who deploys a zero-marginal-cost generator doesn’t essentially eat their own investment thesis?” Casten said. “Because, after all, if everybody built renewable power plants and our whole grid was served with renewables, the marginal price of power would be zero, and consumers would win, but there’d be no incentive to build anything. That’s not some innate flaw. It’s just a problem with the way that we’ve regulated the structure. We fix that.”
As both a policy and political matter, any permitting legislation needs to be technology neutral, Bill Parsons, Berkshire Hathaway Energy vice president of federal legislative affairs, said on the ACEG webinar.
“Now, some people will say, ‘Well, as long as the reforms to NEPA and other permitting statutes apply to everything, then that’s tech neutral,’” Parsons said. “I think we do need to go a bit further here. There’s going to need to be a transmission title.”
BHE supported the Energy Permitting Reform Act of 2024 from former Sen. Joe Manchin (I-W.Va.) and Sen. John Barrasso (R-Wyo.). That could be a starting point for a future permitting deal, he said.
“I think we make a mistake when we get overly binary about the policy choices here, and it’s either the status quo or a complete federal takeover of transmission,” Parsons said. “That’s a false choice. There is an opportunity to hive off a very limited number of high-priority national lines, describe them objectively, so people can understand ahead of time what qualifies and what doesn’t for consideration at FERC.”
The National Governors Association weighed in on the permitting debate recently, releasing a bipartisan proposal headed by NGA Chair and Oklahoma Gov. Kevin Stitt (R) and Pennsylvania Gov. Josh Shapiro (D).
“This isn’t a Republican or [Democratic] issue. Every American needs to heat their home and power their vehicle,” Stitt said in a statement. “As the demand for energy rises as we bring new technologies and AI online, we need to complete energy infrastructure projects in a faster, more efficient way.”
The governors’ proposal includes reforms for FERC that would have it create a National Interest Designation Process that lets a transmission facility be declared in the national interest after the hearing and consideration of several factors and consultation with the states. Groups of states could nominate National Interest Electric Lines.
FERC would get greater flexibility to allocate the costs of interstate and offshore transmission lines among all beneficiaries.
The governors also want changes to ISO/RTO governance, including giving states, or organizations of states, “jump ball” or complementary filing rights at FERC. ISO/RTOs would be required to improve interregional planning and more robustly consider states’ alternative planning options.
Another legal change would be to require ISO/RTOs to process interconnection requests for generation and storage within six months of an initial application.
