Clean energy is between a bit of a rock and a hard place right now.
Two years in, the Inflation Reduction Act has pumped hundreds of billions of dollars into renewable energy development and spurred an influx of solar projects. Its incentives for brownfield development have been a boon to AC Power’s business model and underscored the myriad pathways we can take to achieve our decarbonization goals. Solar is expected to make up a majority of new electric-generating capacity in the U.S. this year, and already wind, nuclear, hydro, and solar together account for more than one-fifth of capacity on the electric grid.
So, what’s the problem? It’s not just that the legislation’s continued success may depend on this fall’s elections (keep an eye out for our upcoming blog taking stock of the IRA two years into its passage). As every developer knows all too well, getting projects through the permitting process is long and arduous, and that has only grown truer as the IRA’s incentives have materialized and interconnection queues have filled up. Renewable energy projects, particularly those involving new transmission lines, often face delays that can extend years. These delays can stall projects, drain funding, and diminish investor interest.
The question then becomes: What would you sacrifice to ensure a realistic path to meaningful energy permitting reform?
This has been the debate in the world of U.S. energy and climate policy over the last couple weeks, thanks to Senators Joe Manchin and John Barrasso’s bipartisan legislation that would overhaul the nation’s cumbersome permitting process. As you might expect, a bipartisan bill of this size and scope includes concessions to just about everyone, which makes it difficult to assess its long-term climate impact. The bill takes an all-of-the-above approach to domestic energy generation, cutting through red tape that can stymie clean energy projects while simultaneously pushing annual offshore oil and gas lease sales and expediting permitting for fossil fuel projects on federal lands.
It’s an impossible choice for those of us who care about the planet’s future. Either hold hope out for an unlikely reform package that focuses solely on encouraging clean energy and risk missing out on maximizing the IRA’s full potential, or take the wins where you can get them, even if it means consequences for our environmental future.
Certainly, for solar developers, the Energy Permitting Reform Act could be a game-changer. Provisions to double production targets for renewable energy permitting on federal lands and streamline environmental reviews for low-disturbance renewable projects can significantly reduce the time and bureaucratic hurdles. By enhancing the Federal Energy Regulatory Commission’s authority to approve interstate transmission projects and requiring interregional transmission planning, the bill supports the buildout of a modern, resilient power grid.
But at what cost? A bill like this imperils our environmental future for short-term economic gains and political compromises. We urge lawmakers to draft legislation that genuinely supports the clean energy transition, protects vulnerable communities, and takes bold steps to combat climate change. We demand energy policy that prioritizes sustainability, equity, and a livable future for all.
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