Following the release of the AI Action Plan, the President issued three separate EOs, with EO 14318 targeting the environmental permitting for data centers and supporting infrastructure. The EO focuses on new data center projects that support AI and require greater than 100 megawatts (MW) of new energy which would capture the largest AI data campuses and hyperscaler facilities. To supply that new energy demand, the EO again focuses on energy sources it considers “dispatchable baseload” sources, such as: natural gas; coal power; nuclear power; geothermal power equipment. Notably it does call out “backup power supply” which would seem to capture battery storage, but not if tied to wind or solar.
Definitions:
Data Center Project – AI focused facility requiring greater than 100 MW of new load
Covered Components – Energy Infrastructure, Natural gas turbines, coal power equipment, nuclear power equipment, geothermal power equipment, and any other dispatchable baseload energy sources, including electrical infrastructure (including backup power supply); Semiconductors and related materials; networking equipment and related materials; Data storage
Covered Component Project – Infrastructure comprising covered components or a facility with the primary purposes of manufacturing or otherwise producing Covered Components
Qualifying Project – at least $500M of project sponsor financial commitment; Requires an incremental load increase of greater than 100 MW; Protects national security; or so designated by the Secretary of Defense, Interior, Commerce or Energy
The EO directs agencies to coordinate and identify relevant discretionary funding or financial assistance programs that can leveraged to invest in domestic AI development and deployment. With those funding sources identified, the EO goes on to direct specific actions to facilitate efficient environmental reviews:
- Directs the agencies and the Council on Environmental Quality to create new categorical exclusions for data center projects for qualifying projects
- Establishes policy that, for the purposes of qualifying projects under the EO, federal financial assistance that comprises less than 50% of the total project costs “shall presumed not to constitute substantial federal control and responsibility” and is therefore not a “major federal action” which triggers evaluation under NEPA.
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One strategy captured by the EO may help ameliorate the coordination issues is the emphasis on using the FAST-41 process for a qualifying project. Administered by the Permitting Council, the FAST-41 program requires agencies to commit to a permitting timetable and holds agencies accountable to meeting those agreed-upon dates. The EO instructs the Permitting Council Executive Director to add Qualifying Projects to the Permitting Dashboard as “transparency projects” and then work with the project sponsor to “cover” those projects under FAST-41. In its most basic terms, a transparency project has a project schedule but is not accountable to that schedule. Once covered under FAST-41, the Permitting Council has tools to encourage timely decision making in line with the permitting timetable.
Consistent with Pillar II of the Plan, the EO goes on to direct:
- Administrator of the Environmental Protection Agency to identify brownfield and superfund sites suitable for use by Qualifying Projects and develop guidance to help expedite permitting of eligible reuse of contaminated sites.
- Secretary of the Army to explore new Nationwide Permits under Section 404 of the Clean Water Act and Section 10 of the Rivers and Harbors Act.
- Departments of Interior, Energy, and Defense to identify compatible federal lands under their jurisdiction for siting Qualifying Projects.
- Department of Interior and Commerce to develop programmatic approaches to compliance with the Endangered Species Act for construction of Qualifying Projects on federal lands previously identified in response to the EO.