Today we were delighted to host David Hill, Senior Advisor, and Xan Fishman, Executive Vice President of Energy, with the Bipartisan Policy Center (BPC). The BPC is a leading Washington-based nonprofit organization dedicated to bringing stakeholders together to address critical U.S. policy issues and identify areas of alignment for action. We were thrilled to visit with David and Xan for their latest insights on permitting reform, the policy environment in Washington, and the prospects for meaningful bipartisan legislation.
In our conversation, Xan and David highlight the issues with the current permitting system and the growing bipartisan recognition that permitting reform is essential to improving energy affordability, supporting economic growth, and strengthening U.S. competitiveness. We explore the role of competition with China, rising electricity demand from AI and data centers, and the uncertainty created by shifting policy priorities across administrations.
We discuss the Senate’s proposed permitting reform legislation, the Bipartisan American Affordability and Jobs Act, and its key provisions. Xan and David walk through proposed changes to transmission permitting, the National Environmental Policy Act (NEPA), judicial review, the Clean Water Act, and project certainty, as well as provisions supporting geothermal development and behind-the-meter resources. We touch on the importance of reducing litigation risk, providing greater certainty for infrastructure developers and investors, and addressing the ability of individual states to block interstate transmission lines and natural gas pipelines. We highlight industry support for the legislation, potential implications for competition and capital allocation, and how the Supreme Court’s Chevron and Seven Counties decisions relate to the broader permitting debate.
We examine the prospects for passing the legislation following the midterm elections and the challenges of moving a comprehensive bipartisan agreement through Congress. Xan and David share their insights on the importance of preserving the negotiated compromise, the potential impact of changes in congressional leadership, and why the upcoming lame-duck session could present an important opportunity for action. We also discuss the implementation process if the bill becomes law, including agency rulemaking and potential litigation, as well as the BPC’s broader energy policy priorities around electricity load growth, natural gas, critical minerals, and carbon accounting. We end with a fascinating overview of how Congress evaluates complex legislation, the role of congressional staff and committees, and the importance of personal relationships in achieving bipartisan compromise.
As mentioned, the Bipartisan Policy Center (BPC) has published a summary of the Senate permitting bill, the Bipartisan American Affordability and Jobs Act, available here. We greatly enjoyed the discussion and appreciate David and Xan for sharing their time and perspectives.
Mike Bradley kicked off the discussion by noting that market performance this week could be heavily influenced by several key economic reports, including September CPI, PPI, and Retail Sales. Together, these reports will provide insights into inflation and consumer spending trends and could influence the Federal Reserve’s next interest rate decision at the upcoming FOMC meeting.
Turning to energy commodity markets, WTI crude oil was trading near $93/bbl, down ~$1/bbl on the day but up ~$2/bbl for the week, as markets continued to react to missile strikes against Saudi Arabia. European natural gas prices were trading near $29/MMBtu, their highest level of the current cycle, amid concerns over low storage inventories heading into winter. By contrast, U.S. Henry Hub natural gas prices have remained largely unchanged year-to-date. He highlighted that speculative positioning in U.S. natural gas remains heavily bearish, with NYMEX net non-commercial positions approaching Covid-era levels, potentially setting the stage for a sharp upward price move if winter weather associated with El Niño proves colder than expected.
Turning to broader equity markets, the DJIA and S&P 500 were relatively flat, with investor attention focused on third-quarter earnings from major U.S. banks. Semiconductor stocks have been a significant headwind, declining ~8–10% over the past five trading days amid growing concerns about the sustainability of AI-related spending. In energy equities, third-quarter earnings season begins in earnest next week, with reports from major oilfield service, offshore service, and distributed generation companies expected to provide insights into upstream, offshore, and power-related capital spending trends through 2027.