The U.S. Congress needs to pass a bipartisan permitting reform bill to accelerate the construction of energy infrastructure and thereby maintain its economic and industrial competitiveness with China. This bill, titled the "American Access and Job Creation Act of 2026," was introduced in the U.S. Senate at the end of September and is expected to be discussed after the midterm elections on November 9.
Details of the Permitting Reform Bill
The bill includes strengthening legal deadlines for key reviews, revising environmental regulations, and requiring data centers to pay for new transmission lines that serve them. The permitting reforms are particularly supported by the American Petroleum Institute and major energy companies, who believe this bill will provide greater assurance for investment in energy infrastructure projects.
Opponents of the bill consider it an anti-environmental law and a "backroom deal" to expedite the construction of large data centers and fossil fuel infrastructure. However, a group of former economic and national security advisors, including senior officials from various U.S. administrations, emphasize that the United States cannot afford to let energy infrastructure projects remain stalled for years, as this would be detrimental to competition with China.
U.S. Competitive Advantages
These individuals wrote in a letter to congressional leaders: "While the United States has major advantages in technology, capital markets, attracting global talent, and natural resources, these advantages diminish when a company cannot quickly build a factory or if the necessary infrastructure takes several years to develop."
These officials, including former Secretary of State Mike Pompeo and former Treasury Secretary Janet Yellen, believe that the inability to build infrastructure poses a threat to U.S. national security and economic growth. According to them, "procedural barriers disrupt efforts to reform the path forward."
While U.S. energy and industrial construction faces permitting challenges, China is focusing on building energy infrastructure as part of its industrial strategy. For example, over the past 15 years, China has built more high-voltage transmission lines than the United States has in its entire history.
In 2024, China accounted for 31.5% of the global value added in knowledge and technology-based production, while this figure for the United States was 20.7%. This data was reported by the National Science Foundation of the United States.
Pressure on Congress to Pass the Bill
The American Petroleum Institute has urged lawmakers to vote on this bill when they return to Congress in November, emphasizing that "Congress has a rare bipartisan opportunity to pass meaningful permitting reforms that will help reduce costs, strengthen U.S. competitiveness, and enable the construction of energy and infrastructure projects to meet rising demand."
BP, one of the oil and gas giants with a significant presence in the United States, has also called on Congress to pass permitting reforms this year. Meg O'Neill, the company's CEO, stated, "Comprehensive permitting reforms will help unlock the full potential of American energy and strengthen domestic energy security."
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