Energy

Thanks in large part to rising power demand for data centers, policymakers have become increasingly supportive of nuclear energy—resulting in more than 200 nuclear-related bills filed in state capitols so far in 2025 (E&E News).

What’s going on: One of the few methods of electricity generation to have bipartisan backing, nuclear “has quietly gained traction in statehouses from Phoenix to Austin to Indianapolis” with dozens of state bills already either signed into law or now awaiting signature by governors.

Why it’s happening: “Unlike in the past, when nuclear power was pitched as a carbon-free back[stop] for aging coal plants, the selling point today is focused squarely on rising power demand, especially for power-thirsty data centers.”

• Nuclear power emits no greenhouse gases and can be generated year-round and in all weather.
• But efforts to make it more widely used in the U.S. have stalled in recent years, owing mainly to project delays and higher-than-anticipated costs.

What’s new now: “Desperate to bring economic investment and jobs to their states and districts, state legislators of both parties are courting ‘hyperscale’ data centers operated by technology titans” such as Amazon. “And lawmakers are keenly aware that power availability is at the top of the list of requirements.”

Case study: In Indiana, legislators have prioritized measures to hasten nuclear development.

• Lawmakers have passed bills to attract small modular reactors, the next generation in nuclear power generation “considered by many leaders in the state as a fitting replacement for an aging coal fleet. And Republican Gov. Mike Braun and other state officials see potential for making Indiana a manufacturing hub for the next-generation reactors.”
• Large projects in the state—including an $11 billion Amazon endeavor in New Carlisle—require large amounts of power.
• One state utility, AEP’s Indiana Michigan Power, is seeking $50 million in federal grants with the Tennessee Valley Authority for an early site permit to build a 300-megawatt SMR at the site of a coal-fired power plant that’s set to retire in 2028.

Other states go nuclear: “Arizona, Arkansas, North Dakota, Utah and Virginia have all enacted measures into law to encourage nuclear power.”

• The hardest-hitting bills authorize funding or financial incentives, such as Texas’ measure for a $350 million nuclear fund.

Our take: “Nuclear power is a critical component of the all-of-the-above energy strategy that we need to meet the demands of the manufacturing industry in the 21st century and to make America truly energy dominant,” said NAM Director of Energy and Resources Policy Michael Davin.

Many major business groups, including the NAM, are calling on Congress to preserve funding and resources for ENERGY STAR, a federal program that promotes energy efficiency in consumer products (E&E News, subscription).

The request: “Clear legislative authorization backs ENERGY STAR as a voluntary public–private partnership run by the federal government,” more than 30 business groups told legislators.

• “We respectfully request that ENERGY STAR not be supplanted by nongovernmental efforts that could significantly alter and overly complicate the program.”

The background: Environmental Protection Agency Administrator Lee Zeldin has announced plans to restructure the agency, including by eliminating the Office of Atmospheric Protection, which manages the ENERGY STAR program.

• The ENERGY STAR program sets efficiency standards for a range of products and materials, including air conditioners and heat pumps, allowing them to display the program’s logo if they meet the criteria.

Why it matters: “Electricity saved by ENERGY STAR helps free up space on the grid needed so the U.S. can lead the world to power and grow artificial intelligence, support the burgeoning crypto asset industry and bring more manufacturing plants back to our shores,” the associations said.

The NAM’s take: “The ENERGY STAR program is a prime example of how federal agencies should be partnering with the industry to promote energy-efficient products that save money for consumers,” said NAM Director of Energy and Resources Policy Mike Davin.

• “Instead of imposing top-down regulations, ENERGY STAR brings together the public and private sectors on a voluntary basis to create a win–win–win outcome for consumers, the environment and the economy.”

The U.S. produced a record amount of energy in 2024, according to the U.S. Energy Information Administration.

What’s going on: “U.S. total energy production was more than 103 quadrillion British thermal units in 2024, a 1% increase from the previous record set in 2023. Several energy sources—natural gas, crude oil, natural gas plant liquids, biofuels, solar and wind—each set domestic production records last year.”

The details: Natural gas has been the primary source of American domestic energy production—accounting for approximately 28% of total energy production last year—every year since 2011.

• Crude “was a record 13.2 million barrels per day in 2024, 2% more than the previous record set in 2023.”
• Natural gas plant liquids, which are fuels extracted from the processing of natural gas such as ethane and propane, totaled a record 4 trillion cubic feet in 2024, up 7% from 2023 and accounting for approximately 9% of total U.S. energy production that year.

Other sources: Solar, wind and biofuels also set records in 2024.

• Solar and wind production increased by 25% and 8%, respectively, as new generating capacity was added.
• Biofuels—which comprise biodiesel, renewable diesel and ethanol, as well as other biofuels like sustainable aviation fuel—accounted for “a record 1.4 million barrels per day, up 6% from previous records set in 2023.”
• Output from geothermal declined slightly from 2023.

The NAM says: “This data is clear evidence of the strength and success of an all-of-the-above energy strategy,” said NAM Director of Energy and Resources Policy Michael Davin.

• “Given the growth of artificial intelligence and data centers, we will continue to need record levels of energy generation. By continuing down this path, we could reach our goal of U.S. energy dominance on the world stage.”

The artificial intelligence–driven rise in energy demand from the tech sector is adding more strain to the U.S. power grid, boosting the risk of outages to “new highs,” regional power market executives said at a regulatory conference this week (POLITICO Pro’s ENERGYWIRE, subscription).

What’s going on: “Grid rules developed during periods of relatively slow growth aren’t equipped for the demands of Silicon Valley’s investment in artificial intelligence, extreme weather shocks and deep national and state political divisions over energy and climate policy, grid operators told members of the Federal Energy Regulatory Commission.”

• PJM Interconnection, which has 67 million customers in the eastern U.S., forecasts a 32-gigawatt power demand increase through 2030, “of which 30 is from data centers,” CEO Manu Asthana told FERC.
• Southwest Power Pool, with approximately 19 million customers in the Great Plains states, said it projects peak demand “to be as much as 75% higher 10 years from now,” largely due to data centers and electrification.

Why the outage threat is worsening: Extreme weather events and greater use of weather-dependent energy sources such as wind and solar make “outages … 125 times more likely to happen [now] than eight years ago.”

What’s needed: C-suite leadership told regulators there are steps that can—and must—be taken to mitigate the worsening risk. These include:

• Stabilized market rules and “find[ing] that intersection between reliability and affordability that works both for consumers and suppliers, and that intersection is getting harder and harder to find”;
• “[M]uch deeper insight” into future electricity supply and demand and probabilities of extreme weather;
• More and better real-time information about the effect of dangerous storms on gas pipeline deliveries to electric turbines;
• “[S]tronger modeling of fuel and capacity performance to assess reliability risk”; and
• The establishment of an agreed-upon profile of the risks operators likely face.

Adding to the problem: Making matters worse are the vastly different climate policies between states, which put regional power markets “in an impossible position,” FERC Chair Mark Christie said at the conference.

• One possible solution: give states more responsibility for fixing grid reliability problems on their own.

The NAM says: As the NAM recently told the House’s AI and Energy Working Group, led by Rep. Julie Fedorchak (R-ND), “A reliable, resilient modern grid is required to enable the historic growth in data centers, which in turn can contribute to manufacturing growth.”

President Trump signed several executive orders on Friday that call for the reform of the Nuclear Regulatory Commission and will speed up the permitting of new reactors in the U.S. (CNBC).

What’s involved: “Trump said Friday the orders focus on small, advanced reactors that are viewed by many in the industry as the future. But the president also said his administration supports building large plants.”

• “We’re also talking about the big plants—the very, very big, the biggest,” Trump said. “We’re going to be doing them also.”

Going faster: Building new power plants has been a tedious effort thanks to the long licensing and regulatory approval processes.

• Yet the appetite for more nuclear power is there, thanks to the electricity demand from the data centers powering the AI revolution.
• “Three Mile Island is expected to return to service with financial support from Microsoft . . . and Alphabet and Amazon are investing in small, advanced reactors,” CNBC noted.

More uranium: The EOs also aim to boost uranium mining in the U.S. and to increase domestic enrichment and processing capacity, according to an administration official.

• In addition, the orders also “aim to speed up reactor testing at the Department of Energy’s national laboratories.”

The NAM says: “These actions mark an important and timely step toward unleashing American energy dominance safely and responsibly. Nuclear-generated power is an important part of an all-of-the-above energy strategy, which is necessary to meet the power needs of a growing manufacturing sector, and the nuclear fuel supply chain is a critical manufacturing industry that we need to bring home,” said NAM President and CEO Jay Timmons.

• “Rebalancing regulations and expediting permitting reform to unleash American energy are key pillars of a comprehensive manufacturing strategy that Congress must act on so manufacturers can grow, hire and compete—and these orders reflect that vision by reforming the licensing and permitting systems that place burdens on manufacturers.”
• “The NAM looks forward to working closely with the National Energy Dominance Council, under the leadership of Secretary of the Interior Doug Burgum and Energy Secretary Chris Wright, as well as Congress to ensure these policies translate into durable results for manufacturers.”

Washington, D.C. – The National Association of Manufacturers today welcomed President Trump’s latest executive orders to expand the development of nuclear energy, streamline federal permitting and strengthen domestic fuel production. NAM President and CEO Jay Timmons issued the following statement:

“These actions mark an important and timely step toward unleashing American energy dominance safely and responsibly. Nuclear-generated power is an important part of an all-of-the-above energy strategy, which is necessary to meet the power needs of a growing manufacturing sector, and the nuclear fuel supply chain is a critical manufacturing industry that we need to bring home.

“The executive orders include measures to accelerate the licensing of next-generation nuclear reactors, open federal lands for energy infrastructure and increase domestic uranium production. Together, these actions address critical supply chain challenges and energy demands—particularly as the AI-driven economy continues to grow.

“Rebalancing regulations and expediting permitting reform to unleash American energy are key pillars of a comprehensive manufacturing strategy that Congress must act on so manufacturers can grow, hire and compete—and these orders reflect that vision by reforming the licensing and permitting systems that place burdens on manufacturers.

“The NAM looks forward to working closely with the National Energy Dominance Council, under the leadership of Secretary of the Interior Doug Burgum and Energy Secretary Chris Wright, as well as Congress to ensure these policies translate into durable results for manufacturers.”

Background:

Most recently, support for nuclear energy in the U.S. has climbed to 61% according to Gallup, reaching just one point below the all-time high in 2010. Support for accelerating the development and commercialization of both traditional nuclear energy plants as well as advanced modular reactors is vital to America’s energy future and the success of manufacturers in the U.S.

The NAM has long championed policies that drive investment in advanced nuclear power to meet rising U.S. energy demand fueled by electrification, advanced manufacturing and the surge in AI and data centers.

These include:

• Reforming the permitting and approval process to make it easier for reactor projects to locate on underused or abandoned sites;
• “Early licensing work” provisions to help deploy reactors more quickly at national security infrastructure sites; and
• A series of awards to encourage companies to develop advanced-reactor technology.

-NAM-

The National Association of Manufacturers is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs nearly 13 million men and women, contributes $2.93 trillion to the U.S. economy annually and accounts for 53% of private-sector research and development. The NAM is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the NAM or to follow us on Twitter and Facebook, please visit www.nam.org.

The Federal Energy Regulatory Commission has issued a new final supplemental environmental review for Venture Global’s CP2 liquefied natural gas project in Louisiana, bringing it a step closer to reality (E&E News, subscription).

What’s going on: FERC found that “the terminal and an associated compressor station wouldn’t cause ‘significant cumulative air quality impacts.’”

The project: “The CP2 facility has a nameplate liquefaction capacity of 20 million metric tons per year, but it could produce even more under peak conditions.”

• If approved expeditiously, the project could produce its first LNG by 2026, the company said last year.
• “With today’s [final environmental impact statement,] FERC has found twice-over that CP2 will have no significant air impacts,” Venture Global spokesperson Jess Szymanski said in an emailed statement to E&E News. “The project is ready to break ground and begin supplying U.S. allies with much-needed LNG as soon as the FERC Commission votes on the Final Order and issues a notice to proceed with construction.”

What’s next: The Final Order is slated for July, according to FERC’s website.

The NAM says: “LNG projects like Venture Global’s will help bolster the American economy by creating jobs here at home and enabling the U.S. to achieve energy dominance on the world stage,” said NAM Director of Energy and Resources Policy Michael Davin.

Aluminum is “an essential part of everything we do”—so we need to recycle more of it.

That’s the message from leading global aluminum and renewable energy company Hydro, based in Oslo, Norway, whose president and CEO, Eivind Kallevik, recently sat down with the NAM to discuss the importance of the metal to the U.S.

Ubiquitous and crucial: “Construction, automobiles, [energy and technology]—you’ll find an enormous amount of aluminum in all of that,” Kallevik told us. “Going forward, it will just become increasingly important.”

An energy imperative: The U.S. has an aging electrical grid—a matter on which the NAM has long issued a clarion call—and modernizing and expanding it to meet Americans’ energy appetite will require aluminum, and a lot of it.

• “There’s going to be a huge increase in demand for electricity, especially given [the growth in construction of] data centers,” said Kallevik.
• For vehicles to become more energy-efficient, they must be lighter, and “the best way of doing that is more aluminum.”

A workhorse: One of the metal’s best qualities is its ability to withstand nearly endless reuse, Kallevik said.

• “You can recycle it infinitely. If you sort it the right way, you will be able to take it back to exactly the same state it was in in the first place.”
• Hydro—which has operations in 17 states and employs thousands of people in the U.S.—has multiple aluminum recycling facilities throughout the country, including at sites in Pennsylvania, Indiana, Illinois, Louisiana, California and Texas.

Keep more at home: “The more [aluminum] you can keep onshore, the better it is” for manufacturing, the economy in general and national security, Kallevik continued, adding that aluminum is critical in many U.S. defense applications.

• “If the U.S. kept more scrap exports onshore, we would reduce dependence on third parties” for the metal, he said.

Policy and supply chains: Because building is a heavily energy-intensive process, “energy policy is going to be increasingly important” in the coming years, Kallevik went on.

• “To protect its industries, the U.S. needs to ensure a fair regulatory framework to ensure that everybody in a global context competes on a level playing field,” he told the NAM.
• And when it comes to shoring up domestic supplies of aluminum, “to be more self-sufficient, the short-term solution for the U.S. is recycling,” he said. “Use what’s on the ground today, and for tomorrow, build capacity.”

Washington, D.C. – Following President Donald Trump’s executive order to accelerate permitting and expand access to critical resources for manufacturing, National Association of Manufacturers President and CEO Jay Timmons released the following statement:

“For too long, red tape and burdensome regulations have stood in the way of the basic building blocks that power manufacturing in the United States, especially mining and processing the minerals manufacturers rely on to create jobs and dominate on the world stage. The administration is addressing those barriers, making it easier for manufacturers to access the resources we need to build the future in America.

“The NAM and our members will continue to serve as a resource to the Trump administration as it takes action to secure America’s supply chains and reduce reliance on countries like China when we have resources right here at home.

“A comprehensive manufacturing strategy—one that cements America’s position as the manufacturing superpower—depends on smart permitting reforms like the ones the administration is advancing. When manufacturers in the United States can invest with certainty, they plan, hire and win—and when manufacturers win, America wins.

“The NAM has long championed expediting the permitting process as a key pillar of our competitiveness agenda. When President Trump spoke at our September 2024 board meeting, he promised to deliver on this priority, and he has kept his promise. We look forward to continuing to work with his National Energy Dominance Council, under the leadership of Secretary of the Interior Doug Burgum and Secretary of Energy Chris Wright, to Make America Great for Manufacturing Again.”

-NAM-

The National Association of Manufacturers is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs nearly 13 million men and women, contributes $2.93 trillion to the U.S. economy annually and accounts for 53% of private-sector research and development. The NAM is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the NAM or to follow us on Twitter and Facebook, please visit www.nam.org.

At an NAM-sponsored breakfast at energy conference CERAWeek in Houston on Tuesday, Interior Secretary Doug Burgum assured NAM board members that the administration has a manufacturing strategy in place, particularly regarding permitting, infrastructure development and manufacturers’ access to reliable and affordable energy.

A comprehensive strategy: In his remarks opening the event, NAM President and CEO Jay Timmons discussed the five-pillar, comprehensive manufacturing strategy that the NAM has been urging the Trump administration to implement.

• “Secretary Burgum, I just want you to know we’ve been making the case for a coordinated, comprehensive manufacturing strategy to give us the predictability and the certainty that manufacturers need to plan, to invest and to hire here in the United States, and that strategy has five pillars—goals that I know you share,” Timmons said.
• The goals are making the 2017 tax reforms even more competitive and permanent; securing regulatory certainty; expediting permitting reform to unleash American energy dominance; increasing the talent pool; and implementing a commonsense trade policy—to expand access to markets while keeping manufacturing competitive.
• Timmons warned of the dire consequences the U.S. economy and manufacturers will face if lawmakers fail to extend the 2017 tax reforms. Among them: the loss of some 6 million American jobs, according to a recent NAM–EY study.

An economic backbone: “Manufacturing, as you know, has been the backbone” of the economy, Burgum said. “President Trump ran on bringing manufacturing back to the United States. His policies are driving to do that.”

Unleashing U.S. energy: Timmons praised President Trump for his day-one lifting of the previous administration’s liquefied natural gas export permit moratorium.

• The “recent NAM LNG study found that the U.S. LNG export industry could support more than 900,000 jobs and add $216 billion to GDP by 2044,” he said.
• Said Burgum: “We are looking at everything to try to, for the first time, [have] streamlined government. … [and] it’s happening. It’s happening quickly.”

“Optimistic about the future”: The administration’s commitment to “low taxes and cutting red tape”—on which President Trump’s recently created National Energy Dominance Council is focusing—“are all things that are going to help lower your cost and create opportunities,” Burgum continued.

• “Capital is flowing to the U.S. at record levels. … I’m very optimistic about the future.”

The last word: At another event at CERAWeek, a roundtable sponsored by Natural Allies for a Clean Energy Future, Timmons summed up manufacturers’ commitments.

• “Yes, we care about developing our natural resources to power our economy, certainly through manufacturing, but it’s also about people, here in the United States and around the world,” said Timmons. “The energy that we export, that is soft power for the United States. That expands our influence. That allows us to export not only our energy, but also our values. So I think that’s very, very important for our future.”