Sign In or Create an Account.

By continuing, you agree to the Terms of Service and acknowledge our Privacy Policy

Daily Briefing

Freedom (It Won’t Slow You Down)

Or, the Senate releases its latest attempt at bipartisan permitting reform.

•
Catherine Cortez Masto.
Heatmap Illustration/Getty Images

Are we getting closer to a viable permitting reform proposal?

At least one part is falling into place: This morning, Senator Catherine Cortez Masto and Senator Tom Cotton released a bipartisan bill that would keep future presidents from messing with already permitted energy projects. The House has already published its version, dubbed the FREEDOM Act — we scooped it in February — and now the Senate has had their go.

President Trump’s interference with onshore and offshore wind projects has made this kind of legislation a priority for Democrats, and I see its inclusion as essential to any kind of final permitting deal. Of course, Republicans have wanted to limit the executive branch’s interference with energy projects since President Joe Biden canceled the Keystone XL pipeline on the first day of his term. Harsh experience — or canny gamesmanship on the Trump administration’s part — has made permitting certainty a bipartisan priority. Lawmakers have come to recognize, too, that the government doesn’t need to revoke the permits for an energy project in order to effectively wage extrajudicial war on it — in other words, as George Michael might have sung, sometimes a “slow” can amount to a ban.

The new Senate bill makes a few key breaks with the House version. Most importantly, it jettisons a de-risking compensation program. In the original House version, developers would be eligible to receive up to $5 million in public funding if the government revoked a permit, missed a permitting deadline, or ran out the clock on a project. An agency that missed a deadline also faced stiff financial penalties.

Get Heatmap in your inbox daily.

That mechanism is now stripped from the bill. In the new Senate version, when a court decides a federal agency has waylaid a permit, it can appoint a court-approved contractor to finish the job. The bill establishes a new fund to pay for that contractor’s work, but it doesn’t fund the fees from agency penalties — and it doesn’t financially compensate developers.

There's one more change to the bill worth noting. The original House version of the proposal covered any project that would “develop, produce, generate, store, transport, or distribute energy” — great verbs! — as well as mineral and carbon capture infrastructure. The Senate adopts that definition in full, but adds that it covers projects on the “Outer Continental Shelf” — that is, offshore wind.

The FREEDOM Act doesn’t cover everything that I expect an eventual permitting reform bill would need to do, although it is getting closer. The bill’s final section, for instance, allows enhanced geothermal projects, like those developed by Fervo or Eavor, to benefit from the same exclusion from some federal rules that fracking wells already enjoy. Any final bipartisan effort will need to include transmission reforms and perhaps, as Republican Senator Mike Lee of Utah hopes, potential changes to federal historic preservation law.

But one thing I’d call out is Senator Tom Cotton’s cosponsorship of this bill. Cotton has become more of a presence on energy policy than I can remember from recent years.

He proposed a bill earlier this year that would allow data center developers to build their own independent power plants and transmission lines, provided they didn’t connect them to the grid. And he wrote a Washington Post op-ed in April tying the country’s failure to “build the physical foundations of power and defense” to its “broken permitting system.” He also cosponsored a partisan permitting bill back in 2020. But this is the first time I can remember the hard-right senator joining a Democrat to put out an energy-related proposal.

We’ll be tracking all that and more at Heatmap.

Blue

You’re out of free articles.

Subscribe to access Heatmap's exclusive climate and energy polling, award-winning journalism, and subscriber-only events, now just $99 $79.20/year.
To continue reading
Create a free account or sign in to unlock more free articles.
or
Please enter an email address
By continuing, you agree to the Terms of Service and acknowledge our Privacy Policy
Hotspots

Meta Data Center Federal Pipeline Review Due Early Next Year

And more of the week’s top fights around development.

The United States.
Heatmap Illustration/Getty Images

1. Richland Parish, Louisiana – Gird your loins for the coming fight over the Meta Hyperion data center’s gas pipeline.

  • On Wednesday, the Federal Energy Regulatory Commission laid out plans for an environmental assessment of the Entergy pipeline for the Meta data center under the National Environmental Policy Act and stated it’ll be issued in early January 2027. Federal agencies have been ordered by the panel to complete any remaining decisions on authorizations by April.
  • The decision to do an environmental assessment under NEPA will be controversial. The Sierra Club filed comments to FERC stating they wanted an environmental impact statement instead that took into account the environmental impacts of the data center being fed by the pipeline, as well as a review of the project’s cumulative impacts, as the activist group said they’re explicitly linked to the data center’s operations. “The power stations and data center are not remote or speculative developments unrelated to the proposed action,” their comments read.
  • This is quite similar to what’s playing out with the Green Chile pipeline in New Mexico for Oracle and OpenAI’s Project Jupiter, which we recently explained could turn into litigation with high stakes for future gas pipelines linked to data centers. But to me, this conflict with Meta feels like it has more at stake for this individual project, as it’s playing out while construction on gas power plants for the data center has been underway for almost a year after earlier being blessed by state regulators.
  • I asked Sierra Club what could happen next. Eric Huber, one of their managing attorneys, told me on Thursday, “I heard the EA is expected in January, but we are in wait and see mode and will decide on further steps when it comes out.” Meta and Entergy did not respond to a request for comment.

2. Spartanburg County, South Carolina – I have one last data center race to tell you to watch on Tuesday: South Carolina’s 4th, on the northern rim of the state.

Keep reading...Show less
Yellow
Plus

Is the Election Really About Data Centers?

Talking with Kevin Gundersen, the head of public affairs for Digital Realty.

Kevin Gundersen
Heatmap Illustration

This week’s conversation is with Kevin Gundersen, head of public affairs for data center developer Digital Realty. On Wednesday, Digital Realty released a fascinating poll as part of Infrastructure for America, a pro-data center organization that also includes Compass, Vantage Data Centers, and QTS. The poll pushed back on the idea that we’re currently in the middle of a “data center election”; instead, it found most voters are not expected to choose their national elected officials based on a politician’s stance on data centers.

I reached out to folks involved in the poll's release, and they put me in touch with Gundersen, whom I’ve met before and consider to be a straight shooter. He accepted my invitation to do a candid hot-seat chat about the findings, his thoughts on all the data center attack ads, and whether his industry’s actually recovering any ground with the American people.

Keep reading...Show less
Yellow
Politics

Why Project Certainty Is the Thorniest Part of the Permitting Bill

Can a key section of BAAJA be saved from unintended consequences?

Donald Trump and Congress.
Heatmap Illustration/Getty Images

Any bipartisan bill to update the nation’s permitting laws was always going to be a compromise, with advantages for the oil and gas industry as well as clean energy. Proponents of the Senate’s latest attempt at permitting reform have painted it as a delicate balance, a hard-won opportunity, and an all-or-nothing deal.

What, then, to make of drafting errors, or unintended consequences?

Keep reading...Show less