New Studies Back Heinrich Permitting Bill

Four independent groups released new analyses indicating that a proposed federal permitting reform bill would lower household electricity bills and reduce power sector emissions.

The studies, conducted by organizations including the Center for Climate and Energy Solutions, modeled energy transmission and green energy production through 2040 with and without the bill in effect. Researchers found that the legislation would lower annual household electricity costs by between $50 and $78 by 2040. The projected reduction in power sector emissions stands at approximately 20%, a change that would prevent an estimated 6,700 deaths and save $54 billion in cumulative public health costs.

U.S. Sen. Martin Heinrich (D-N.M.), the ranking member of the Senate Energy and Natural Resources Committee, championed the Bipartisan American Affordability and Jobs Act alongside Sen. Mike Lee (R-Utah) and other bipartisan cosponsors. The 417-page bill aims to reform the federal permit review process to reduce delays for renewable energy developers. It also includes provisions to ensure data center developers do not shift energy costs to nearby households. A separate analysis from Grid Strategies estimates that data centers would pay utilities $55 billion over the next decade under the bill, which is $35 billion more than they would pay under existing policy.

The bill has faced criticism from tribal and environmental groups who argue it fast-tracks fossil fuel production and reduces tribal input on sensitive developments. Members of the YUCCA Alliance protested outside Heinrich’s downtown Albuquerque office last week. Despite this, Heinrich’s office pointed to the new analyses as evidence that the bill is necessary to achieve climate goals. The Center for Climate and Energy Solutions noted that the bill would reduce annual electricity bills by $2.5 billion by 2035 by reducing the queue of power plants and storage facilities waiting for grid approval.

Nat Keohane, president of the Center for Climate and Energy Solutions, explained the economic logic behind the findings during a virtual news conference. He stated that it takes years for projects to connect to the grid and deliver energy. When demand grows faster than supply, costs increase. Heinrich said in a statement that Americans are tired of paying more in utility bills while cost-lowering projects sit stuck in the planning phase for years. He added that the independent analyses show the gains from fixing the permitting system include lower bills, cleaner air, and more reliable infrastructure.

Sponsors of the bill intend to shepherd it through both chambers of Congress before the next session begins next year. U.S. Rep. Melanie Stansbury (D-N.M.) announced last week that she does not support the bill as written. Critics argue that Democrats' new majorities in the Senate and House following Tuesday’s election allow for a better bill. Heinrich may take over as chair of the Energy and Natural Resources Committee in January, which would give him increased power over the bill’s provisions.

Heinrich said in an emailed statement that he believes the climate and country cannot wait longer to pass the reform. He stated that if he becomes committee chair, his priorities will be reducing energy costs for New Mexicans and protecting public lands, including Chaco Canyon and the Pecos River. However, he emphasized that the priority right now is passing the bill, which would make it illegal for data centers to shift grid upgrade costs to consumers. He said he has worked toward permitting reform for nearly a decade and is not going to wait, adding that he will negotiate in good faith whether he is the chair or the ranking member.