Bill to ease Big Tech project permits advances in House

The House of Representatives on Tuesday voted to advance legislation favored by Big Tech heavy hitters such as OpenAI, Meta, and Microsoft to reform the process for obtaining federal permits for projects to build out artificial intelligence infrastructure in the United States.

Backers of the bill, the SPEED Act, argue it is key to helping the U.S. beat out China and other global competitors for leadership in AI.

The bill cleared a crucial procedural vote 215-209 on Tuesday in the House. A final vote by the House on the bill could take place later this week.

“For companies like OpenAI that are investing in data centers, networking, and supporting infrastructure across the United States, a more efficient and predictable permitting process is essential,” Chan Park, head of OpenAI’s U.S. and Canada policy and partnerships, wrote in a letter supporting the bill.  

The SPEED Act would blunt the 1969 National Environmental Policy Act, which mandates federal reviews for projects that could affect the environment before permits are issued. 

Efforts over the years to reform NEPA have been thwarted by Democrats who have sided with environmental advocates against Republican lawmakers aligned with business interests.

But recently, as AI has been seen as an increasingly important sector, support has grown among Democrats for easing the permitting process. 

And pressure has increased on Congress as China laps the U.S. in building out AI infrastructure, and as energy-hungry AI data centers stress an aging electric grid. 

“We’ve made it entirely too difficult to build big things in this country, and if we do not reform that, that will be a powerful gift that we are giving to China,” said Rep. Dusty Johnson, R-S.D., a member of the House Select Committee on the Chinese Communist Party, in an interview with CNBC.

“Absent a meaningful reform of NEPA, it’s going to be difficult for us to get where we need to go,” Johnson said. 

In a sign of bipartisan support for reform efforts, the SPEED Act was co-sponsored by House Natural Resources Committee Chair Bruce Westerman, R-Ark., and Rep. Jared Golden, a Maine Democrat.

The Data Center Coalition, a group representing major tech companies that are building data centers, said that “comprehensive permitting reform is a must-have to win the AI race, grow the U.S. economy and secure America’s continued global leadership.”

“Unfortunately, transmission and generation constraints across the country are restricting economic growth, including the development of the U.S. data center industry,” said Cy McNeill, the group’s director of federal affairs.

McNeill said that industry “is seeking to continue investing hundreds of billions of dollars in the U.S. annually to build America’s digital infrastructure.”

The SPEED Act would tighten the timelines for federal agencies to conduct reviews under NEPA and limit the law’s ability to hamstring a project. 

The bill also shrinks the current six-year statute of limitations for challenging a…