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Get up to speed on the SPEED Act.

After many months of will-they-won’t-they, it seems that the dream (or nightmare, to some) of getting a permitting reform bill through Congress is squarely back on the table.
“Permitting reform” has become a catch-all term for various ways of taking a machete to the thicket of bureaucracy bogging down infrastructure projects. Comprehensive permitting reform has been tried before but never quite succeeded. Now, a bipartisan group of lawmakers in the House are taking another stab at it with the SPEED Act, which passed the House Natural Resources Committee the week before Thanksgiving. The bill attempts to untangle just one portion of the permitting process — the National Environmental Policy Act, or NEPA.
There are a lot of other ways regulation and bureaucracy get in the way of innovation and clean energy development that are not related to NEPA. Some aren’t even related to permitting. The biggest barrier to building transmission lines to carry new carbon-free energy, for example, is the lack of a standard process to determine who should pay for them when they cross through multiple utility or state jurisdictions. Lawmakers on both sides of the aisle are working on additional bills to address other kinds of bottlenecks, and the SPEED Act could end up being just one piece of the pie by the time it’s brought to the floor.
But while the bill is narrow in scope, it would be sweeping in effect — and it’s highly unclear at this point whether it could garner the bipartisan support necessary to get 60 votes in the Senate. Just two of the 20 Democrats on the Natural Resources Committee voted in favor of the bill.
Still, the context for the debate has evolved significantly from a year ago, as artificial intelligence has come to dominate America’s economic prospects, raising at least some proponents’ hopes that Congress can reach a deal this time.
“We’ve got this bipartisan interest in America winning the AI race, and an understanding that to win the AI race, we’ve got to expand our power resources and our transmission network,” Jeff Dennis, the executive director of the Electricity Customer Alliance and a former official at the Department of Energy’s Grid Deployment Office, told me. “That creates, I think, a new and a different kind of energy around this conversation than we’ve had in years past.”
One thing that hasn’t changed is that the permitting reform conversation is almost impenetrably difficult to follow. Here’s a guide to the SPEED Act to help you navigate the debate as it moves through Congress.
NEPA says that before federal agencies make decisions, whether promulgating rules or approving permits, they must assess the environmental impacts of those decisions and disclose them to the public. Crucially, it does not mandate any particular action based on the outcome of these assessments — that is, agencies still have full discretion over whether to approve a permit, regardless of how risky the project is shown to be.
The perceived problem is that NEPA slows down infrastructure projects of all kinds — clean energy, dirty energy, housing, transit — beyond what should reasonably be expected, and thereby raises costs. The environmental assessments themselves take a long time, and yet third parties still often sue the federal government for not doing a thorough enough job, which can delay project development for many more years.
There’s a fair amount of disagreement over whether and how NEPA is slowing down clean energy, specifically. Some environmental and clean energy researchers have analyzed NEPA timelines for wind, solar, and transmission projects and concluded that while environmental reviews and litigation do run up the clock, that has been more the exception than the rule. Other groups have looked at the same data and seen a dire need for reform.
Part of the disconnect is about what the data doesn’t show. “What you don’t see is how little activity there is in transmission development because of the fear of not getting permits,” Michael Skelly, the CEO of Grid United, told me. “It’s so difficult to go through NEPA, it’s so costly on the front end and it’s so risky on the back end, that most people don’t even try.”
Underlying the dispute is also the fact that available data on NEPA processes and outcomes are scattered and incomplete. The Natural Resources Committee advanced two smaller complementary bills to the SPEED Act that would shine more light on NEPA’s flaws. One, called the ePermit Act, would create a centralized portal for NEPA-related documentation and data. The other directs the federal government to put out an annual report on how NEPA affects project timelines, costs, and outcomes.
During Biden’s presidency, Congress and the administration took a number of steps to reform NEPA — some more enduring than others. The biggest swing was the Fiscal Responsibility Act of 2023, which raised the debt ceiling. In an effort to prevent redundant analyses when a project requires approvals or input from multiple agencies, it established new rules by which one lead agency would oversee the NEPA process for a given project, set the environmental review schedule, and coordinate with other relevant agencies. It also codified new deadlines for environmental review — one year to complete environmental assessments, and two years for meatier "environmental impact statements” — and set page limits for these documents.
The 2021 bipartisan infrastructure law also established a new permitting council to streamline reviews for the largest projects.
The Inflation Reduction Act allocated more than $750 million for NEPA implementation across the federal government so that agencies would have more resources to conduct reviews. Biden’s Council of Environmental Quality also issued new regulations outlining how agencies should comply with NEPA, but those were vacated by a court decision that held that CEQ does not have authority to issue NEPA regulations.
Trump’s One Big Beautiful Bill Act, which he signed in early July, created a new process under NEPA by which developers could pay a fee to the government to guarantee a faster environmental review process.
None of these laws directly affected NEPA litigation, which many proponents of reform say is the biggest cause of delay and uncertainty in the process.
The most positive comments I heard about the SPEED Act from clean energy proponents were that it was a promising, though flawed, opening salvo for permitting reform.
Dennis told me it was “incredibly important” that the bill had bipartisan support and that it clarified the boundaries for what agencies should consider in environmental reviews. Marc Levitt, the director of regulatory reform at the Breakthrough Institute and a former Environmental Protection Agency staffer, said it addresses many of the right problems — especially the issue of litigation — although the provisions as written are “a bit too extreme.” (More on that in a minute.)
Skelly liked the 150-day statute of limitations on challenging agency decisions in court. In general, speeding up the NEPA process is crucial, he said, not just because time is money. When it takes five years to get a project permitted, “by the time you come out the other side, the world has changed and you might want to change your project,” but going through it all over again is too arduous to be worth it.
Industry associations for both oil and gas and clean energy have applauded the bill, with the American Clean Power Association joining the American Petroleum Institute and other groups in signing a letter urging lawmakers to pass it. The American Council on Renewable Energy also applauded the bill’s passage, but advised that funding and staffing permitting agencies was also crucial.
Many environmental groups fundamentally oppose the bill — both the provisions in it, and the overall premise that NEPA requires reform. “If you look at what’s causing delay at large,” Stephen Schima, senior legislative council for Earthjustice Action, told me, “it’s things like changes in project design, local and state regulations, failures of applicants to provide necessary information, lack of funding, lack of staff and resources at the agencies. It’s not the law itself.”
Schima and Levitt both told me that the language in the bill that’s supposed to prevent Trump from revoking previously approved permits is toothless — all of the exceptions listed “mirror almost precisely the conditions under which Trump and his administration are currently taking away permits,” Levitt said. The Solar Energy Industry Association criticized the bill for not addressing the “core problem” of the Trump administration’s “ongoing permitting moratorium” on clean energy projects.
Perhaps the biggest problem people have with the bill, which came up in my interviews and during a separate roundtable hosted by the Bipartisan Policy Center, is the way it prevents courts from stopping projects. An agency could do a slapdash environmental review, miss significant risks to the public, and there would be no remedy other than that the agency has to update its review — the project could move forward as-is.
Those are far from the only red flags. During a Heatmap event on Thursday, Ted Kelly, the director and lead counsel for U.S. energy at the Environmental Defense Fund, told me one of his biggest concerns was the part about ignoring new scientific research. “That just really is insisting the government shut its eyes to new information,” he said. Schima pointed to the injustice of limiting lawsuits to individuals who submitted public comments, when under the Trump administration, agencies have stopped taking public comments on environmental reviews. The language around considering effects that are “separate in time or place from the project or action” is also dangerous, Levitt said. It limits an agency’s discretion over what effects are relevant to consider, including cumulative effects like pollution and noise from neighboring projects.
The SPEED Act is expected to come to a vote on the House floor in the next few weeks. Then the Senate will likely put forward its own version.
As my colleague Jael Holzman wrote last month, Trump himself remains the biggest wildcard in permitting reform. Democrats have said they won’t agree to a deal that doesn’t bar the president from pulling previously-approved permits or otherwise level the playing field for renewable energy. Whether Trump would ever sign a bill with that kind of language is not a question we have much insight into yet.
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NineDot Energy’s nine-fiigure bet on New York City is a huge sign from the marketplace.
Battery storage is moving full steam ahead in the Big Apple under new Mayor Zohran Mamdani.
NineDot Energy, the city’s largest battery storage developer, just raised more than $430 million in debt financing for 28 projects across the metro area, bringing the company’s overall project pipeline to more than 60 battery storage facilities across every borough except Manhattan. It’s a huge sign from the marketplace that investors remain confident the flashpoints in recent years over individual battery projects in New York City may fail to halt development overall. In an interview with me on Tuesday, NineDot CEO David Arfin said as much. “The last administration, the Adams administration, was very supportive of the transition to clean energy. We expect the Mamdani administration to be similar.”
It’s a big deal given that a year ago, the Moss Landing battery fire in California sparked a wave of fresh battery restrictions at the local level. We’ve been able to track at least seven battery storage fights in the boroughs so far, but we wouldn’t be surprised if the number was even higher. In other words, risk remains evident all over the place.
Asked where the fears over battery storage are heading, Arfin said it's “really hard to tell.”
“As we create more facts on the ground and have more operating batteries in New York, people will gain confidence or have less fear over how these systems operate and the positive nature of them,” he told me. “Infrastructure projects will introduce concern and reasonably so – people should know what’s going on there, what has been done to protect public safety. We share that concern. So I think the future is very bright for being able to build the cleaner infrastructure of the future, but it's not a straightforward path.”
In terms of new policy threats for development, local lawmakers are trying to create new setback requirements and bond rules. Sam Pirozzolo, a Staten Island area assemblyman, has been one of the local politicians most vocally opposed to battery storage without new regulations in place, citing how close projects can be to residences, because it's all happening in a city.
“If I was the CEO of NineDot I would probably be doing the same thing they’re doing now, and that is making sure my company is profitable,” Pirozzolo told me, explaining that in private conversations with the company, he’s made it clear his stance is that Staten Islanders “take the liability and no profit – you’re going to give money to the city of New York but not Staten Island.”
But onlookers also view the NineDot debt financing as a vote of confidence and believe the Mamdani administration may be better able to tackle the various little bouts of hysterics happening today over battery storage. Former mayor Eric Adams did have the City of Yes policy, which allowed for streamlined permitting. However, he didn’t use his pulpit to assuage battery fears. The hope is that the new mayor will use his ample charisma to deftly dispatch these flares.
“I’d be shocked if the administration wasn’t supportive,” said Jonathan Cohen, policy director for NY SEIA, stating Mamdani “has proven to be one of the most effective messengers in New York City politics in a long time and I think his success shows that for at least the majority of folks who turned out in the election, he is a trusted voice. It is an exercise that he has the tools to make this argument.”
City Hall couldn’t be reached for comment on this story. But it’s worth noting the likeliest pathway to any fresh action will come from the city council, then upwards. Hearings on potential legislation around battery storage siting only began late last year. In those hearings, it appears policymakers are erring on the side of safety instead of blanket restrictions.
The week’s most notable updates on conflicts around renewable energy and data centers.
1. Wasco County, Oregon – They used to fight the Rajneeshees, and now they’re fighting a solar farm.
2. Worcester County, Maryland – The legal fight over the primary Maryland offshore wind project just turned in an incredibly ugly direction for offshore projects generally.
3. Manitowoc County, Wisconsin – Towns are starting to pressure counties to ban data centers, galvanizing support for wider moratoria in a fashion similar to what we’ve seen with solar and wind power.
4. Pinal County, Arizona – This county’s commission rejected a 8,122-acre solar farm unanimously this week, only months after the same officials approved multiple data centers.
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A conversation with Adib Nasle, CEO of Xendee Corporation
Today’s Q&A is with Adib Nasle, CEO of Xendee Corporation. Xendee is a microgrid software company that advises large power users on how best to distribute energy over small-scale localized power projects. It’s been working with a lot with data centers as of late, trying to provide algorithmic solutions to alleviate some of the electricity pressures involved with such projects.
I wanted to speak with Nasle because I’ve wondered whether there are other ways to reduce data center impacts on local communities besides BYO power. Specifically, I wanted to know whether a more flexible and dynamic approach to balancing large loads on the grid could help reckon with the cost concerns driving opposition to data centers.
Our conversation is abridged and edited slightly for clarity.
So first of all, tell me about your company.
We’re a software company focused on addressing the end-to-end needs of power systems – microgrids. It’s focused on building the economic case for bringing your own power while operating these systems to make sure they’re delivering the benefits that were promised. It’s to make sure the power gap is filled as quickly as possible for the data center, while at the same time bringing the flexibility any business case needs to be able to expand, understand, and adopt technologies while taking advantage of grid opportunities, as well. It speaks to multiple stakeholders: technical stakeholders, financial stakeholders, policy stakeholders, and the owner and operator of a data center.
At what point do you enter the project planning process?
From the very beginning. There’s a site. It needs power. Maybe there is no power available, or the power available from the grid is very limited. How do we fill that gap in a way that has a business case tied to it? Whatever objective the customer has is what we serve, whether it’s cost savings or supply chain issues around lead times, and then the resiliency or emissions goals an organization has as well.
It’s about dealing with the gap between what you need to run your chips and what the utility can give you today. These data center things almost always have back-up systems and are familiar with putting power on site. It must now be continuous. We helped them design that.
With our algorithm, you tell it what the site is, what the load requirements are, and what the technologies you’re interested in are. It designs the optimal power system. What do we need? How much money is it going to take and how long?
The algorithm helps deliver on those cost savings, deliverables, and so forth. It’s a decision support system to get to a solution very, very quickly and with a high level of confidence.
How does a microgrid reduce impacts to the surrounding community?
The data center obviously wants to power as quickly and cheaply as possible. That’s the objective of that facility. At the same time, when you start bringing generation assets in, there are a few things that’ll impact the local community. Usually we have carbon monoxide systems in our homes and it warns us, right? Emissions from these assets become important and there’s a need to introduce technologies in a way that introduces that power gap and the air quality need. Our software helps address the emissions component and the cost component. And there are technologies that are silent. Batteries, technology components that are noise compliant.
From a policy perspective and a fairness perspective, a microgrid – on-site power plant you can put right next to the data center – helps unburden the local grid at a cost of upgrades that has no value to ratepayers other than just meeting the needs of one big customer. That one big customer can produce and store their own power and ratepayers don’t see a massive increase in their costs. It solves a few problems.
What are data centers most focused on right now when it comes to energy use, and how do you help?
I think they’re very focused on the timeframe and how quickly they can get that power gap filled, those permits in.
At the end of the day the conversation is about the utility’s relationship with the community as opposed to the data center’s relationship with the utility. Everything’s being driven by timelines and those timelines are inherently leaning towards on-site power solutions and microgrids.
More and more of these data center operators and owners are going off-grid. They’ll plug into the grid with what’s available but they’re not going to wait.
Do you feel like using a microgrid makes people more supportive of a data center?
Whether the microgrid is serving a hospital or a campus or a data center, it’s an energy system. From a community perspective, if it’s designed carefully and they’re addressing the environmental impact, the microgrid can actually provide shock absorbers to the system. It can be a localized generation source that can bring strength and stability to that local, regional grid when it needs help. This ability to take yourself out of the equation as a big load and run autonomously to heal itself or stabilize from whatever shock it's dealing with, that’s a big benefit to the local community.