Energy Policy Likely To Be In Spotlight In United States In 2025

According to the Metals Service Center Institute’s (MSCI) partners at the Energy Equipment and Infrastructure Alliance (EEIA), there are now fewer new energy pipeline projects on the drawing board than at any time in the last 30 years. That is because developers simply are not willing make the huge up-front investments needed to design a new project and prepare for permit applications when the federal permitting environment is as adverse, uncertain, untimely, and litigious as it currently is.

As EEIA has argued for years, failing to build this critical infrastructure in the United States will cause the country to: fall behind China and the rest of the world in the race for innovation, indefinitely delay the retirement of higher-emitting generating capacity, discourage investment in new job-creating manufacturing capacity, increase the cost of energy to consumers and businesses as natural gas demand exceeds supply, and imperil the country’s increasingly unstable grid, endangering lives and economic activity as heating, cooling, lighting, and process power become unreliable.

This policy uncertainty could change soon, however. According to the EEIA, the specific issues outlined below present some of the biggest and most immediate opportunities for growth-enabling policies:

• Permitting Reform. A reform bill approved by the U.S. Senate Energy and Natural Resources Committee late this summer with 15-4 bipartisan support has not been voted on by the full U.S. Senate. While the legislation would have provided limited but welcome improvements, it is possible the 119th Congress may consider a much stronger bill.
• LNG Export Licensing. As Connecting the Dots has explained, the Biden administration paused U.S. Energy Department reviews and licensing of new liquified natural gas export terminal permits. The Trump administration is expected to resume review of these permits.
• Environmental Review Process Reform. The U.S. Congress and the White House also are likely to work together to simplify and accelerate federal environmental reviews required for approval of energy projects and exports under the National Environmental Policy Act. These reforms will significantly reduce the costs, delays, and uncertainties in the permitting process that discourage developers from bringing new energy infrastructure projects forward.

This list may just be the beginning. The EEIA sees major new opportunities to advance energy infrastructure. Stay tuned to Connecting the Dots for news of these policy developments and instructions for how MSCI members can make their voices heard on these important matters.