House Passes SPEED Act Amid Rising Power Costs. The House approved legislation aimed at shortening federal permitting timelines for energy projects, but divisions over presidential authority and protections for renewables threaten a bipartisan Senate deal. Electricity prices rose 7.4% year-over-year and natural gas costs increased 6.9%, while surging demand from AI data centers adds urgency. Negotiators say a technology-neutral, "all-of-the-above" compromise is needed, but tough trade-offs on NEPA, the Clean Water Act and transmission lines lie ahead.
Permitting Fight Threatens U.S. Energy Supply as Power Prices Climb
Congress is wrestling with a growing U.S. power squeeze as lawmakers, industry groups and the administration debate major changes to federal permitting rules for energy projects. While there is broad agreement that permitting reform is needed, lawmakers remain sharply divided over how to protect renewables, preserve presidential authority and speed projects that could relieve rising energy costs.
The House on Thursday approved the SPEED Act by a 221-196 vote — a bill designed to shorten review timelines for projects ranging from solar and wind farms to long-distance transmission lines, pipelines and export facilities. Supporters argue the overhaul is urgent: federal data show consumer electricity prices rose 7.4% over the past 12 months and residential natural gas costs climbed 6.9%, both well above overall inflation. Lawmakers and industry groups also warn that surging demand from artificial-intelligence data centers could intensify pressure on the grid and push prices higher.
Why Agreement Is Elusive
Despite bipartisan backing for the principle of reform, the path to a final deal is narrow. House conservatives opposed language they say would protect renewable projects; Democrats counter that, without firm guardrails, a president could continue to block wind and solar developments. To win hardline GOP votes, House leaders weakened a provision intended to limit presidential revocation of permits — a change that lets the administration continue to challenge previously approved offshore wind projects. That concession prompted at least one clean-energy trade group to withdraw support and drew sharp Democratic criticism.
“If we do something big and bipartisan, it is pretty easy to argue that it is going to be good for affordability,” Sen. Kevin Cramer (R-N.D.) told POLITICO. “But it would require leadership from the administration. We can’t do it without them.”
Stakeholders and Split Priorities
Support for reform spans an ideologically diverse coalition: the American Petroleum Institute, Clean Energy Buyers Association, National Association of Manufacturers and the Data Center Coalition have all urged Congress to act. Republicans generally push to ease NEPA reviews and limit litigation that delays projects; many Democrats emphasize the need to expedite interstate transmission lines that can deliver clean power between regions.
Negotiators such as Natural Resources Chair Bruce Westerman (R-Ark.) and Senate Environment and Public Works Chair Shelley Moore Capito (R-W.Va.) say a technology-neutral approach that speeds approvals for all energy types is the practical path to a compromise. Critics say recent changes skew the bill toward fossil fuels by preserving executive flexibility to block renewables, especially offshore wind.
The Senate Math And Next Steps
A final package will likely need at least seven Democratic votes in the Senate in addition to widespread Republican support. Key issues for senators include changes to the National Environmental Policy Act (NEPA), potential adjustments to the Clean Water Act to ease pipeline approvals, and measures to facilitate interstate transmission — all of which require tough trade-offs.
If negotiators reach a compromise, House leadership will still face the challenge of shepherding the bill past hardline members. Democrats warn that without enforceable protections for clean energy, permitting reform could accelerate fossil-fuel projects at the expense of the fastest-growing sources on the grid. Republicans counter that faster approvals for oil and gas are also essential to lower prices and secure supply.
Energy Secretary Chris Wright has said the administration supports speeding permitting and is engaged in discussions with lawmakers, but the White House has not publicly embraced the final House bill. That ambivalence — combined with ongoing distrust between congressional Democrats and the administration over previous permit revocations — complicates prospects for a truly bipartisan outcome.
As momentum builds from industry and utilities warning of a potential supply crunch, negotiators insist a pragmatic, "all-of-the-above," technology-neutral solution is the most politically viable way forward — though accomplishing it will require compromise on both sides.
Byline: Kelsey Tamborrino contributed to this report.
