Slashing energy development red tape, beating China in ‘AI arms race’ top priorities for nations’ governors

The Need for Streamlined Permitting in Energy Projects: A Call to Action

The approval process for energy projects in the United States has become a focal point of discussion among policymakers, with many arguing that the current system is overly bureaucratic and inefficient. At a recent conference in Washington, D.C., National Governors Association Vice Chair Kevin Stitt emphasized the urgency of addressing this issue, stating, "It shouldn’t take longer to approve an energy project than it takes to build it." Stitt, an Oklahoma Republican, highlighted how the slow and cumbersome permitting process at all levels of government not only hampers the nation’s ability to maintain its competitive edge but also poses a significant threat to national security. Specifically, he pointed to the challenges of staying ahead of China in areas such as cyberthreat prevention and energy dominance. The governors collectively agreed that permitting reform is one of the most critical issues to tackle as new state government sessions and a new administration begin. There was bipartisan consensus that the U.S. must move responsibly toward a future where it is secure from malign foreign actors in both cybersecurity and energy development.

Bipartisan Agreement on Permitting Reform and National Security

Stitt further emphasized the importance of permitting reform, noting that it is one of the rare issues where both Republicans and Democrats recognize the problem and largely agree on the solutions. "Permitting reform is one of those issues where both Republicans and Democrats recognize the problem, we largely agree on the solutions," he said. Stitt framed the issue as a national security matter, underscoring the need for the U.S. to streamline its permitting processes. He highlighted the importance of providing affordable and reliable energy to America’s allies, a role the U.S. is well-equipped to fulfill given its abundant resources. Interior Secretary Doug Burgum also spoke at length on the matter, stressing that America is in competition with foreign rivals like Russia, China, Iran, and North Korea, whether it likes it or not. Burgum emphasized the critical nature of this competition, particularly in the context of emerging technologies and cybersecurity threats.

The AI Arms Race and the Role of Energy

Burgum drew attention to the growing threat of cyberattacks, particularly those powered by artificial intelligence. "It’s key that we win the AI arms race with China," he said, highlighting the potential for bot-powered attacks to outperform human hackers in severity and scale. He warned that such cyber threats could lead to the collapse of critical infrastructure, such as the electric grid, and disrupt every aspect of American life without requiring foreign adversaries to deploy a single soldier. Burgum emphasized that winning this race requires not only skilled software developers but also a robust and reliable energy supply. "Winning that AI arms race doesn’t just take software developers, it takes more electricity," he said. Burgum and the governors also discussed the potential of nuclear energy and new technologies that allow for the portability of power generation, enabling plants to be located closer to where the energy is needed. This approach could help reduce transmission losses and improve efficiency.

State-Level Initiatives and Bipartisan Cooperation

The discussion also highlighted the importance of state-level initiatives in addressing these challenges. Stitt noted that when Pennsylvania Gov. Josh Shapiro issued an executive order requiring his administration to rule on infrastructure permit applications within two weeks or provide a refund to the applicant, he didn’t want to be outpaced by a Democrat on the issue. Stitt quickly issued his own order, reflecting the bipartisan urgency to address permitting delays. Shapiro also shared insights from Pennsylvania’s experience, including an audit of permit applications earlier in his term that revealed a backlog of 3,400 unprocessed applications. This led him to mandate the cataloging of all future permit applications, ensuring greater transparency and accountability. Pennsylvania’s energy legacy is significant, as it remains the nation’s second-largest energy net-exporter, despite the decline of industries like coal and steel. The state has a long history of energy production, dating back to the mid-1800s when the first North American oil discovery occurred in Venango County. In 2023 alone, Pennsylvania produced over 7 trillion cubic feet of natural gas, underscoring its role as a national energy leader.

Balancing Energy Development and Environmental Concerns

Despite its energy-rich history, Pennsylvania has grappled with the complexities of balancing energy development with environmental concerns. The state has experienced a push-pull dynamic on issues like fracking, with former Democratic Gov. Ed Rendell banning the practice on state parkland, Republican Gov. Tom Corbett reversing that decision, and Shapiro’s Democratic predecessor, Tom Wolf, reinstating the moratorium. Shapiro indicated that he would take a more measured approach to developing the Commonwealth’s resources responsibly. He cited the bipartisan SPEED Act, passed in Harrisburg, which aims to accelerate the permitting process while incorporating third-party reviews. This approach reflects a broader recognition of the need to balance economic development with environmental stewardship, ensuring that energy projects are both efficient and sustainable.

The Future of Energy and Cybersecurity: A Call for Collaboration

Looking ahead, the governors expressed optimism about the potential for progress, particularly with the support of the federal government. Burgum noted that the work of a governor is among the hardest but remarked that it is about to "become more fun than it’s ever been" due to the accessibility of the Trump administration. South Carolina Gov. Henry McMaster shared a lighthearted anecdote about the close collaboration between state and federal leaders, revealing that cabinet secretaries had shared their personal contact information following a White House meeting. McMaster joked that he had President Donald Trump’s number but was keeping it to himself for now. These exchanges highlight the importance of cooperation between state and federal governments in addressing the complex challenges of energy security and cyberthreat prevention. As the U.S. navigates an increasingly competitive and hostile global landscape, the ability to streamline permitting processes, leverage new technologies, and foster bipartisan collaboration will be crucial in ensuring a secure and energy-resilient future. The governors’ collective call to action underscores the urgent need for reforms that prioritize efficiency, innovation, and national security.