Governors eye increased role in energy permitting

By MIKE LIVINGSTON

State House News Service

Published: 02-25-2025 11:00 AM

Bolstered transparency and a money back guarantee are a few of the ideas being floated by governors to smooth the path for energy projects in the face of growing power demands.

Chief executives of several states raised those ideas and others during the National Governors Association’s Winter Meeting in Washington, D.C., as their states grapple with increasing energy constraints that if left unaddressed could hamper economic development.

“We have found one of the biggest issues that holds us back from doing even more in this space is permitting,” Pennsylvania Gov. Josh Shapiro, a Democrat, said during a panel discussion.

“I’ve heard this consistently from businesses and organized labor alike, from communities that want to see transformation because their neighborhoods have often times been left behind and want to see more opportunity.”

The livestreamed discussion underscored bipartisan frustration over the pace of permitting as demand growth continues thanks to the proliferation of data centers and large-energy users in the cryptocurrency and artificial intelligence spaces.

In the 13-state PJM Interconnection region alone, which includes the bulk of Ohio and smaller portions of Indiana, Michigan, North Carolina and Tennessee, leaders of the regional transmission organization have predicted that dynamic will push demand to outpace supply by 2030.

Acknowledging that landscape, U.S. Secretary of the Interior Doug Burgum told governors the Trump Administration aims to empower states to move more into the driver’s seat.

“Your job is going to be more fun when you’ve got less red tape and you can get things done,” he said in remarks delivered at the NGA conference.

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A former North Dakota governor, Burgum called the role one of the hardest but most important jobs.

“But I want to tell you that your job is about ready to become more fun than it ever has been, because in this administration, your role as governor is key to driving America forward,” Burgum said.

Indiana Gov. Mike Braun, a Republican, pushed governors to take a more active role in driving the policy debate during the panel discussion following Burgum’s remarks.

“I would like to hear the discussion among governors, because it generally gets back to the federal government,” the former U.S. senator said. “I was there – it’s like watching paint dry. Everything takes a long time to get done.”

Both Braun and Republican Gov. Kevin Stitt of Oklahoma described their surprise at the massive size and energy needs of data centers coming online, with some of those requiring one gigawatt of power. Stitt noted that Burgum told governors that is the equivalent need for the entire City of Denver.

“That’s how massive these factories and how energy-intensive they are,” Stitt said.

Shapiro offered several ideas for other states to consider. He said an executive order directing a catalog of all permits issued proved illuminating.

“No. 1, we discovered we issued about 3,400 different permits and, No. 2, we discovered we were moving too damn slow across the board and so we set out to change that,” he said.

The state endeavored to provide more certainty in permitting timelines, including a money back guarantee, he said.

“So if we say it’s going to take 14 days to get your permit and we hit that 15th day, we will give you your money back,” he said. “Now I know a whole lot of folks in industry here, you all don’t want your money back. You want your permit. But the money back guarantee is something that I think holds our bureaucracy accountable.”

Pennsylvania has also fast-tracked its permitting processes, providing “total transparency” through a public-facing website “holding the bureaucracy and the company or industry accountable for making sure we have the information we need in order to process that permit quickly,” he said.

“I think it’s making a difference when businesses are thinking about where they want to site and communities are thinking about the options they have,” he said. “And I think Republican and Democratic governors all understand that speed to market is so critical, especially in that energy space.”

The pace of federal government permitting underscores the need for states to take the lead, Democratic Gov. Michelle Grisham of New Mexico agreed.

“I think this is a really good time to highlight states’ work, to think about ways how we can show the federal government that we can do it,” she said.

Republican Gov. Mark Gordon of Wyoming suggested states target the area of environmental permitting as they take a more active role in the space.

“So my question is: if we don’t see the federal government getting things done on time, can the state take that over?” he asked, calling it an “incentive for the federal government to get the job done on time instead of dragging it on for several weeks.”

Although Burgum’s assurance was well met by some, Democratic Gov. Andy Beshear of Kentucky had a different assessment of the federal government given the flurry of executive orders coming from President Donald Trump in his early months in office.

Some of the spending programs Trump sought to pause for further review in recent orders, Beshear said, could prove “transformational” for Kentucky.

“We also need some answers from our federal government about what programs are and are not going to be there in the next couple of years,” Beshear said. “I think all of us – regardless of our party – need at least (to know) what that’s going to look like as soon as possible so we’re not chasing permits on programs that might not be supported in the coming years.”

South Carolina’s Gov. Henry McMaster, a Republican, in contrast, said he has been encouraged by the initial actions of Trump and his team – noting that Burgum and other cabinet secretaries provided governors their cell phone numbers in an encouraging sign.

“It is indeed a new day,” McMaster said, calling Burgum and U.S. Energy Secretary Chris Wright “exactly in the right position, exactly at the right time.”