Friday, November 22, 2024

Opinion: To keep electricity prices low and beat China, Utah needs energy abundance

Must read

Utah is quietly becoming an energy and national security leader. This year, Utahns will have the lowest electricity rates in the country, drawing from a diverse grid that includes solar, hydroelectric, wind, geothermal and fossil fuels. Low electricity prices are benefiting consumers while also driving investment from energy-heavy industries, especially AI.

Already, companies have announced plans to build two new AI data centers in Utah, adding to Utah’s 27 existing facilities. A $600 million data center is being planned in West Jordan and another data center campus in Eagle Mountain will cover over 600 acres. Data centers like these will not only bring new investment into our economy but will also help America win the AI arms race with China, providing infrastructure to train powerful new models. With low energy costs and an AI-friendly business environment, Utah will likely see more projects. However, increased demand could increase electricity prices.

To meet the AI challenge and keep prices low, Utah must do one thing: build more energy infrastructure. Without more energy, electricity prices and emissions will increase, harming Utah consumers. Thankfully, our leaders can take commonsense steps to build energy dominance in Utah: streamlining permitting and preserving key energy tax credits. We need every electron.

Our federal leaders can begin by strongly supporting energy permitting reform. Recent permitting action in D.C. gives our federal delegation the chance to bolster Utah energy. Cutting cumbersome red tape will unleash energy, mineral and transmission resources, especially on our public lands. This will bolster Utah’s economy and also increase our energy supply.

Reducing red tape around energy projects will also help reduce emissions. Almost all — 97% — of new electricity capacity in 2024 comes from clean energy sources. With the average environmental impact statement taking 4.5 years to complete, reducing these timelines will increase investment in cleaner energy. Recent analysis suggests that by 2050, comprehensive permitting reform will reduce emissions by the equivalent of one year of U.S. emissions.

State and local leaders can also ensure a streamlined permitting process at home. For instance, families like mine have benefited from installing rooftop solar; taking steps to make installation easier can expand these benefits. Shortening permitting timelines for home solar installations will allow more Utahns to take advantage of our abundant sun, increasing our energy supply and families’ resilience to power outages.

Streamlining permitting for other energy projects is important, too. We can start with our state lands. Allowing assets like solar, wind and geothermal to be developed on already permitted oil and gas state land leases is an excellent way to reduce permitting timelines and achieve energy abundance. Increasing clean energy development on our state lands will also increase funding for public schools. However, for investment to pour in, energy economics must remain stable.

To unlock our energy potential, Utah’s leaders cannot hamstring development by attacking recent energy tax credits, yet some in Congress have these credits in their sights.

While conservatives can legitimately criticize the process by which they were passed and the flaws of their legislative vehicle, a wholesale repeal of recent energy tax credits would hinder energy projects already under construction and increase electricity prices. In August, 18 House Republicans signed a letter making this exact point. Completely repealing the energy tax credits — many of which have conservative support — would disrupt investments already made, strand billions of dollars in assets and hurt our ability to secure long-term energy dominance.

Safeguarding investment in America’s domestic clean energy economy is crucial in our competition with China. Undermining these clean energy investments would increase electricity prices and emissions, not only harming our climate but also exposing Utah, already among the worst states in air quality, to health-threatening pollution. Our federal delegation should support, not undermine, these investments to protect the health and finances of Utah families.

Utah’s brand of commonsense conservatism can meet today’s challenges. Our principles of limited government, community and thoughtful stewardship have grown our economy and conserved our natural resources. There’s a reason why the U.S. News and World Report has named Utah the top state in the country two years in a row.

But we aren’t without challenges. To keep electricity prices low, beat China on AI and improve our environment, we must unleash Utah energy. By removing government barriers and preserving private sector investment, Utah can build energy abundance for generations to come.

Isaiah Menning is the external affairs manager at the American Conservation Coalition (ACC). He is from Murray, Utah. Follow him on X @IsaiahMenning.

Latest article