A coalition of food and agriculture associations signed on to a letter supporting the Energy Permitting Reform Act (S.4753). This bipartisan legislation seeks to ensure a more streamlined permitting and siting process for new energy projects, which may facilitate more power generation from a diverse array of energy sources and transmission infrastructure. It also directs FERC to consider the impact of future regulation on electricity reliability and clarifies their role in planning and cost allocation based on specific economic and reliability benefits. The bill has advanced through the Senate Energy and Natural Resources Committee.
Please reach out to Max Camateros-Mann at [email protected] with any questions.
Dear Chairman Manchin and Ranking Member Barrasso:
The undersigned food and beverage manufacturing organizations write in support of S. 4753, the Energy Permitting Reform Act of 2024, and urge the passage of this bill to bolster America’s grid resilience. Food and beverage manufacturers serve as a keystone in their local economies as major employers and members of the food and agriculture value chain. They are also vital suppliers of food that millions of Americans rely on. The crucial food security and rural development benefits provided by these facilities depend on a predictable and consistent power supply.
Interruptions of power – even briefly – can burden food and beverage manufacturing facilities with significant recovery times, during which no new product can be produced. Without power, manufacturers typically need to discard large amounts of product to ensure food safety, resulting in significant waste and higher financial losses. These periods of downtime can also have a significant impact on supply chains, affecting both the farmers who depend on these facilities for market access and the consumers who rely on the goods they produce. The substantial operational costs from power interruptions are eventually passed on to consumers, increasing food price inflation and undermining food security.
Ensuring energy reliability and resilience is crucial for both American food manufacturing and the broader American economy. However, demand for power is rapidly increasing and has reached its highest level in 30 years. Sluggish energy supply growth has caused many regional grids to forecast energy shortfalls during times of stress within the next 10 years. In the face of extreme weather events and transition risks, proactive measures are needed to help mitigate evolving challenges and ensure grid resilience and reliability.
S. 4753 offers practical solutions to enhance the transparency and efficiency of the federal permitting process, enabling energy projects to bring much-needed power generation and transmission infrastructure online more quickly. We also applaud the legislation for facilitating federal leasing for a diverse array of power generation projects, as increased power supply will shield the grid and those it serves from the risk of energy shortfalls. Lastly, the bill also provides clear direction to FERC to improve long-term planning and cost allocation based on specific economic and reliability benefits.
The bipartisan support for this legislation highlights both the importance of taking action and the bill’s potential positive impact. The food and beverage manufacturing industry thanks you for your work to secure floor consideration and passage during the 118th Congress and the committee’s commitment to continue work on grid resilience in the 119th Congress.
Sincerely,
Alliance for Chemical Distribution
American Bakers Association
American Beverage Association
American Frozen Foods Institute
Corn Refiners Association
International Fresh Produce Association
North American Millers’ Association
Peanut and Tree Nut Processors Association