Policy and Legal

Following his release of the White House’s AI Action Plan yesterday—which the NAM embraced for reflecting manufacturers’ priorities—President Trump signed executive orders that will help put that plan into action. These include an important EO aimed at accelerating and streamlining the permitting process for data centers, which aligns with many of the NAM’s AI permitting policy recommendations.

The big picture: The EO directs agencies to accelerate permitting and offer financial incentives to “covered components”—key energy products and infrastructure essential to the buildout of data centers.

• These include infrastructure such as transmission lines, natural gas pipelines, substations and much more, along with natural gas turbines, nuclear power equipment and other power-generating systems. Also included are semiconductors and related materials.

Environmental review: Importantly, the EO directs the Council on Environmental Quality to speed up the interagency permitting process via existing categorial exclusions under the National Environmental Policy Act.

• It also requires the CEQ to coordinate the development of new categorical exclusions to that statute.
• In addition, any federal loans or other financial incentives below 50% of a project’s cost won’t qualify as “major Federal action” under NEPA and therefore won’t incur additional review requirements.

More speed: The EO directs the Federal Permitting Improvement Steering Council to work with executive agencies and project sponsors to expedite permitting reviews by listing projects on the FPISC’s Permitting Dashboard.

• A “covered project” designation on the FPISC dashboard helps projects by providing expedited interagency reviews, dispute resolution and timeline accountability.

Mobilizing the EPA: The Environmental Protection Agency will help expedite permitting by developing or modifying regulations under the Clean Air Act; the Clean Water Act; the Comprehensive Environmental Response, Compensation and Liability Act; and the Toxic Substances Control Act.

• The exact details of these regulatory changes are under development. The NAM will continue to engage with policymakers as they develop these procedures.
• Meanwhile, the EPA will also identify appropriate Superfund and Brownfield sites that can be used for projects.

Water and endangered species: The EO also directs several agencies to identify typical construction activities at qualifying projects over the next 10 years that could be eligible for expedited review under Section 7 of the Endangered Species Act.

• Meanwhile, the Army Corps of Engineers will determine whether an activity-specific nationwide permit under Section 404 of the Clean Water Act and Section 10 of the Rivers and Harbors Act should be issued, which would also speed up the permitting process.

Federal lands: Lastly, the EO directs the Departments of Energy, Interior and Defense to make federal lands available for the development of AI data centers and related infrastructure.

A major advance: There remains a great deal of specificity to be filled in by executive agencies for implementation,” said NAM Vice President of Domestic Policy Chris Phalen, “but this EO represents a major advance for American technological and energy dominance.”

The MI’s take on the White House’s AI Action Plan: Upon release of the AI Action Plan, Manufacturing Institute President and Executive Director Carolyn Lee applauded the plan in posts on X and LinkedIn, noting it “ensure[s] the manufacturing workforce has the necessary skills to leverage AI.

• Lee added, “[As] AI becomes a national priority, long-term success in manufacturing hinges on how well we prepare our workers to integrate it. But the success of any AI strategy depends on workforce readiness. Tools and tech can enhance production but only if the workers utilizing them are prepared to adapt, apply and lead with AI.
• “That’s why the Manufacturing Institute is focused on leading efforts to close that skills gap. Transformation of American manufacturing won’t come from technology alone, but from the trained and empowered workers who know how to use it. …”
• “We are glad to see an emphasis on AI skill development in publicly funded programs to support this. Ensuring that AI training programs qualify as eligible educational assistance will amplify the investment manufacturers make to skill their workforce and meet AI-driven career opportunities.”
• “The administration’s responsiveness to the rapid piloting of new approaches to workforce challenges created by AI is necessary and will be welcomed by manufacturers as they navigate AI innovations.”

Included in the mix: The White House featured the NAM’s statement alongside other industry leaders in a write-up touting broad support for the plan.