The Players

The energy industry’s future will depend on how Washington responds to growing demand while accommodating disparate views on production. 

That won’t be easy. 

Energy policy has long been a divisive issue in American politics. Democrats and Republicans have clashed for decades over the government’s role in the debate and ensuring clean energy.

Democrats continue to push for a transition to cleaner sources such as wind and solar. 

“The future of energy is toward renewables because they are the cheapest, easiest and fastest to deploy,” said Sen. Angus King (I-Maine), whose state relies heavily on that kind of clean energy. “There’s no reason to use any energy resource, if you’re talking about electricity, other than renewables.” 

Republicans, however, have favored ramping up production of fossil fuels. Nuclear energy, which has advocates and adversaries in both camps, remains in the middle of that debate. 

“I’m excited about the nuclear portions of the reconciliation bill and more domestic exploration,” said Shelley Moore Capito (R-W.Va.), who leads the Senate Committee on Environment and Public Works. 

The GOP domestic policy bill, signed into law on July 4, maintains tax credits for nuclear production and generation. 

At the center of the energy production debate is the U.S.’ complicated permitting process. While all sides agree the system needs a revamp, there are stark differences in how to approach it.  

These are some of the key players driving the energy sector into the future. 

Sen. Martin Henrich (D-N.M.)

As Lee’s counterpart on the Energy and Natural Resources panel, Heinrich will be heavily involved with any permitting negotiation. New Mexico is a significant energy producer, and Heinrich has often said permitting reform will be critical for the energy transition. 

Heinrich is also a co-chair of the Senate’s AI caucus and understands well the energy demands of that technology. He has been critical of the Republican effort to move away from supporting the wind and solar industries. But Heinrich has also shown he’s interested in making progress on bipartisan energy policy, which makes him a critical player in the Senate.

Rep. Frank Pallone (D-N.J.)

Pallone serves as ranking member of the Energy and Commerce Committee. He will be a crucial vote for any bipartisan deals with Guthrie and Republicans on energy policy. 

Pallone is a big defender of renewable energy sources and, like nearly every Democrat, has pushed for the U.S. to remain committed to the Paris Agreement’s decarbonization goals. Given his green bona fides, Pallone could be an obstacle for efforts to relax environmental laws in favor of expanded fossil fuel production.

Rep. Scott Peters (D-Calif.) 

Unlike the other players here, Peters doesn’t chair any committees. However, the California Democrat is often sought out by Republicans as a partner for bipartisan deals on energy issues. 

Peters has said he wants to make progress on permitting reform negotiations and has been a point of contact for those talks. He was a sponsor of the Fix Our Forests Act, which made changes to forest management laws, with House Natural Resources Committee Chair Bruce Westerman (R-Ark.). The two have also been in talks for permitting legislation and will try to push through a new bipartisan deal on that front.

Federal Energy Regulatory Commission

FERC, which regulates energy projects as well as interstate transmission, could be a battleground for the different sides trying to shape the future of energy. The agency is key in permitting projects and, therefore, a common target for environmental activists. 

Trump has directed the agency to establish sunset dates (predetermined expiration dates for laws and programs unless renewed) for energy production regulations, which will drive a lot of input from both industry and lawmakers. 

Nuclear Regulatory Commission

Many energy policy experts say nuclear energy will be a crucial source in the future, and the NRC will be at the forefront of the development of nuclear power.

Part of nuclear’s draw is its limited carbon footprint. 

In May, Trump issued an executive order calling for the restructuring of the NRC, which he said has “failed” to make nuclear power safer and cheaper. The administration is also pushing accelerated licensing timelines for nuclear reactors. 

Democrats have, however, sounded the alarm on the administration’s moves to remake the NRC, warning that they could accelerate the effects of climate change. They’ve also opposed Trump’s firing of a Democratic commissioner and said the president is attacking the agency’s independence. 

Environmental Protection Agency

The EPA always finds itself the punching bag between the energy industry and environmental advocates. 

Under Trump, the agency recently proposed a rule that would repeal environmental protections that the Obama and Biden administrations put in place under the Clean Air Act. 

The Trump EPA has said the restrictions for greenhouse gas emissions rules and the Mercury and Air Toxics Standards are costly and burdensome on the power sector and have caused closures of multiple coal-fired power plants.

Democrats and public health advocates warn that easing those regulations opens the door for increased air pollution in the U.S. 

Influence

American Petroleum Institute

This powerful trade group represents the interests of the gas and oil industry and wields great influence on Congress, advocating for more domestic oil and gas drilling.

The group has praised the GOP reconciliation bill, given that it opens new lease sales for both onshore and offshore oil and gas projects. Now that the bill has passed, API is expected to push lawmakers to make progress on permitting reform. 

Environmental Defense Fund

The EDF is one of the most influential environmental advocacy groups in Washington. The group has been pushing back hard against the Trump administration’s energy policies, seeking to stymie policies through lawsuits.

EDF holds a big sway with Democrats on Capitol Hill and could influence bipartisan energy talks. The group supports permitting reform to ease clean energy projects and has pushed for Congress to make transmission faster and more reliable. 

American Fuel and Petrochemical Manufacturers

AFPM spends millions of dollars on lobbying for the interests of petrochemical producers and refiners. 

The group notched a big win recently when the Senate voted to overturn the EPA’s rule authorizing California’s restrictions on gas-powered cars and trucks. The AFPM also praised the reconciliation bill, which repeals tax incentives for electric cars. The group will keep pressing Congress not to interfere in the auto industry in favor of electric vehicles.

American Clean Power Association

The American Clean Power Association is a leading advocate for clean energy industries, which took a massive hit in the reconciliation bill through the removal of tax credits for green sources like wind and solar. 

It argues that the new law is setting the U.S. back on the production of renewable sources, which it says is the future of energy. Despite this, the group will continue to push Congress on its priorities, which include permitting reform. 

— Diego Areas Munhoz, Kenzie Nguyen, Anthony Cruz