Exclusive: Manufacturers group wants to speed up permitting to boost AI
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A leading business group — in a report shared exclusively with Axios — is trying to jump-start efforts in Congress to cut red tape so that new AI and other projects can roll out more rapidly.
Why it matters: The National Association of Manufacturers (NAM) carries considerable clout with Republicans.
- Its report released Wednesday argues that streamlining the permitting process is key to prevailing in AI and fulfilling President Trump's "energy dominance" agenda.
- Overhauling permitting is one of the few areas of widespread agreement on Capitol Hill, though a compromise has remained elusive.
Driving the news: The group's report says AI "has become integral to modern manufacturing." Sixty percent of the manufacturers NAM surveyed expect to deploy artificial intelligence by 2027, while 80% say it's essential to growing their business by 2030.
- But it said bureaucratic red tape remains a hindrance to further progress.
- "Unclear timelines, lack of agency coordination, overlapping statutes and endless litigation continue to drive up the costs of critical projects or halt them altogether," it said.
- "Permitting reform underpins our energy, AI and manufacturing future—now is the time for Congress to act."
Catch up fast: NAM is one of several prominent groups to recently call for Congress to hasten work on permitting.
- A bipartisan group of more than a dozen governors — led by Oklahoma's Kevin Stitt and Pennsylvania's Josh Shapiro — put out a package of priorities Tuesday to improve permitting and regulatory processes for energy infrastructure projects.
- The American Petroleum Institute also launched a seven-figure ad buy last month that pushed lawmakers to pass a comprehensive permitting overhaul.
Zoom in: Unlike other actions that have been done through executive orders, many of those involved say a successful overhaul must have the force of law to ensure certainty throughout subsequent presidential administrations and Congresses.
- The Senate Environment and Public Works Committee is working on a bipartisan permitting package to overhaul the National Environmental Policy Act (NEPA).
- In July, House Republicans revived a push to overhaul environmental reviews in what they say would be a way to unlock fossil fuels and renewable energy alike.
Reality check: Democrats and Republicans remain apart on specifics.
- Republicans and some Democrats have argued that NEPA, which guides federal environmental reviews, has unreasonably delayed infrastructure projects and opened the door to frivolous lawsuits.
- But some Democrats are suspicious of what they consider attempts to weaken NEPA.
NAM's report contends that the judicial review process under NEPA allowing court challenges of agencies' decisions "has long been abused, with incredibly lengthy and often frivolous litigation too often holding up projects."
- It said manufacturers need a workable statute of limitations on appeals, as well as guardrails that limit legal action to affected stakeholders that offer substantive public input and clearer limits on when courts can invalidate an agency's action.
- Its report also urges that lawmakers invest more heavily in solar, wind and battery storage in addition to nuclear and fossil fuels.
- "These assets are key to America's diverse energy portfolio, which has powered manufacturers' global competitiveness," it said. "Policymakers
should embrace all sources of energy and ensure that both tax and regulatory policies encourage greater investments in the domestic production of all energy technologies."
