Senate Permitting Reform Deal Faces Data Center Backlash — SkimNews

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- A bipartisan Senate group is nearing a permitting reform deal, with leaders from both parties' energy committees negotiating the language; Politico reports senators plan to finalize the bill after the midterm elections, following the Energy Permitting Reform Act of 2024, which made it out of committee but never reached a full Senate vote.
- Data centers are a "toxic" subject for voters across party lines, said pollster Alex Lundry of Redbud Consulting — if permitting reform is framed as serving data centers, "the polling results get way worse," leaving legislators up for reelection in a messaging bind.
- The draft bill would reduce environmental and social effects agencies must consider, loosen Clean Water Act and Endangered Species Act requirements for transmission and pipeline permits, and make permits less vulnerable to post-issuance lawsuits — easing construction for both renewable and fossil projects alike.
- Solar power and batteries are projected to account for almost 80% of new US power generation expected in 2026, while natural gas was the largest single electricity source in 2025 — both industries back the reform, with Solar Energy Industry Association president Tim Pawlenty warning the country would be "constipated" without it.
- President Trump has signaled he would stop blocking renewable energy projects to court Democrats, but Senator Sheldon Whitehouse, the top Democrat on Senate Environment and Public Works, said they need "more clarity on exactly what return to regular order for wind and solar projects looks like."
- The House separately passed a bill urging states (but not requiring them) to force data centers to pay for their own electricity generation to shield consumers from rising bills — a bill now stalled in the Senate, where some Democrats call it too soft-handed.
- Lundry's September poll found 71% of respondents agreed making renewables a bigger share of energy supply is "the right move," and 70% said energy bills rose in the past year — while the pollster warned the "competitive with China" framing lawmakers use to justify the buildout "isn't anymore" effective with voters.
Why it matters: If passed, the bill would cut environmental reviews and make permits lawsuit-resistant for both renewable and fossil projects, easing the path for natural gas — the power source data centers rely on most, per the source. But with data centers "toxic" to voters and 70% reporting higher bills, lawmakers face a messaging bind that risks pushing the deal past the midterms.
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