We all know the value of affordable and reliable energy. From powering homes and businesses to supporting hundreds of thousands of good jobs for Ohioans, energy means jobs, growth, and opportunity. But demand for energy is surging.
America’s electricity demand is projected to increase 35 to 50% by 2040, driven in large part by new AI data centers.
In the PJM Interconnection, which includes Ohio, 95% of new power demand through 2030 is expected to come from data centers, further straining a system that’s slow to bring new power sources online.
According to a report by the Ohio Business Roundtable, Ohio’s regional energy needs could surge 50% in nine years with the buildout of new data centers.
A broken federal permitting system
The rapid rise of technology and the race for America’s future brings new urgency to fixing a broken, inefficient permitting system where projects are often stuck in red tape and buried in endless reviews, thus blocking the critical infrastructure needed to keep pace with demand.
Infrastructure projects of all kinds – pipelines, power plants, transmission lines – even roads and bridges – face a myriad of federal approvals under a maze of outdated laws and regulations. Opponents regularly weaponize statutes like the National Environmental Policy Act (NEPA) and the Clean Water Act (CWA) to block development at every stage of permitting.
In natural gas- and oil-rich Ohio and the Appalachian region, more takeaway capacity, including pipelines, is needed to move energy from the drilling field to the refinery and then to consumers.
Construction on the Mountain Valley Pipeline, for example, began in 2018, but after nearly six years of lawsuits and delays, it took an act of Congress to finish.
And to the north in Michigan, the shovel-ready Great Lakes Tunnel project is awaiting permits, which will house a dual oil and natural gas liquids pipeline that supplies regional refineries and serves most of the state’s propane needs.
Other major pipelines projects were cancelled after years of permitting delays and court challenges.
When infrastructure lags behind demand, supply tightens. Building new infrastructure helps energy flow faster to consumers and could help keep costs affordable.
While the Trump administration and legislative leaders in Ohio have taken steps to stop harmful mandates and restrictive energy policies to help bolster American energy dominance, congressional action on permitting reform is urgently needed to unlock America’s potential and get back to building. Enacting commonsense deadlines and predictable permitting processes can help ensure projects are built in years, not decades.
Three key areas must be addressed: 1) set deadlines and enforce them, 2) stop lawsuits and start building and 3) enforce targeted reviews and swift decisions.
Ohio stands ready to build
Energy-rich Ohio can benefit from permitting reform being passed into law at the federal level. Sitting atop the Utica shale and the Marcellus, the largest natural gas formation in the U.S., Ohio is a leading natural gas and oil producer. In 2023, Ohio was the largest oil producer east of the Mississippi River and produced about 13 times more natural gas compared to 2013.
Ohio has the natural resources and skilled workforce to advance U.S. energy dominance and build a stronger economy. Permitting reform can help unleash Ohio energy to support innovation while creating good jobs and helping to keep energy costs affordable for consumers.
Without permit reform, Ohioans could face energy shortages, much like they do in California and New England, where policy roadblocks restrict energy access and infrastructure projects.
Ohioans shouldn’t have to pay the price for permitting delays, with fewer reliable energy options, because Washington can’t fix a broken permitting system. This doesn’t mean cutting corners on safety or the environment – it means using common sense, establishing clear deadlines and keeping critical projects moving forward – not trapped in red tape and litigation.
Congress must act on durable reforms that help ensure Americans have access to affordable, reliable and secure energy for decades to come while helping to power U.S. technology and innovation.
It’s time to fix permitting and get back to building – in Ohio, and across America.
Chris Zeigler is the executive director of American Petroleum Institute Ohio based in Columbus.
This article was originally published by RealClearEnergy and made available via RealClearWire.
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