The urgency of permitting reform has emerged as a crucial national security issue in Washington, driven by the United States’ increasing energy demands and intensifying global competition, particularly from China. The current permitting process for energy infrastructure projects in the U.S. is often lengthy and cumbersome, causing vital initiatives to be delayed for several years or even decades. This inefficiency not only hampers economic growth but also poses significant threats to national defense, as many Department of Defense (DoD) installations rely heavily on the civilian power grid. The SAFE Center for Grid Security highlights that an overhaul of energy infrastructure approvals is essential to ensure military operations are resilient and capable of responding to contemporary challenges. The pending Energy Permitting Reform Act of 2024 (EPRA) seeks to address these issues by expediting upgrades and ensuring that military installations are equipped to handle potential disruptions to the power grid.
The transition to a GOP-controlled Congress in January raises concerns about the passage of the EPRA, as Republicans might choose to postpone action until they have had a chance to reorganize and assess their priorities. However, the pressing need for reform necessitates immediate action. The CEO of SAFE, Robbie Diamond, emphasizes the importance of preparing for a surge in power demand as the new administration embarks on a path toward reindustrialization. Delaying the implementation of these reforms—even for a few months—could have detrimental effects on the U.S. economy and military readiness. By passing the EPRA now, policymakers can lay a solid foundation for future growth while initiating necessary reforms in a phased manner, balancing urgency with the need for comprehensive change.
Beyond national security considerations, the vulnerabilities of the power grid have far-reaching implications for the U.S. economy and its competitive stance in the global market. Industries vital to national interests, such as semiconductor manufacturing and artificial intelligence, depend on reliable and affordable energy from a stable grid. If permitting reforms are not enacted, there exists a substantial risk that these critical sectors could relocate to countries with more dependable energy infrastructure. The EPRA, therefore, aims to streamline permitting processes for projects that bolster grid resilience, promoting the advancement of technology in the U.S. and ensuring that defense-critical supply chains remain domestically positioned.
Moreover, the current permitting system imposes hidden costs on the DoD, which is often forced to invest in backup power systems like diesel generators and microgrids in anticipation of grid failures. While microgrids can provide a degree of cost savings compared to diesel generators, they still represent significant financial burdens that divert funds from frontline defense initiatives. These costs highlight the urgency of reforming the permitting process so that resources can be allocated more effectively towards maintaining national security, rather than being expended on backup energy solutions.
The impact of severe weather events further illustrates the risks associated with the existing power grid vulnerabilities, as prolonged power outages can severely disrupt military operations and economic productivity, leading to billions in losses. The National Guard, tasked with addressing these emergencies, finds its resources stretched, which ultimately detracts from its ability to focus on essential missions such as disaster response and homeland defense. The EPRA is designed to prioritize efforts to establish a more resilient and interconnected power grid, thereby strengthening security for both military establishments and civilian infrastructure.
In contrast to the U.S., China’s energy policy illustrates a determined focus on national interests, with swift actions taken to enhance energy infrastructure. This underscores the need for the U.S. to adopt a similar sense of urgency in advancing permitting reform for energy transmission and domestic critical mineral development. Ultimately, energy infrastructure reform is not solely about reducing bureaucratic delays; it is a fundamental necessity for enhancing national security, economic resilience, and sustaining America’s status as a global leader in the context of Great Power Competition. As co-chairs of the SAFE Center for Grid Security, Admiral Michelle Howard and Paul Segal assert that prioritizing these reforms is essential for safeguarding the future of the U.S. and maintaining its competitive edge on the global stage.
