Moving Past the Politics of Permitting Reform
Time is money. Energy project developers know this all too well, as their industry is hamstrung by time-consuming, onerous permitting requirements. To drive energy innovation, supply more affordable energy, and maintain America’s competitive advantage as a global energy leader, permitting reform must remain a top priority for Congress.
Energy powers nearly every aspect of the global economy. Dependable electricity keeps the lights on, the house cool or warm, and the phones charged. Even a temporary power outage that knocks out the internet and electricity can threaten lives and livelihoods.
High heating bills and soaring prices at the pump also send Americans into a tizzy. A recent poll from CNET found that 78 percent of U.S. adults have concerns over home energy costs. The same survey found that nearly a third of respondents rely on borrowing, payment plans, or government assistance programs to pay their energy bills. When households spend more on energy, fewer resources are available for food, healthcare, or entertainment.
Reliability is also a concern. The North American Electric Reliability Corporation (NERC) is sounding the alarm with warnings of future power outages throughout critical regions of the United States. It notes that power plants are being retired, and utilities are not allowed to bring new supplies online. PJM, an electric transmission operator, expressed similar concerns about the slow process of bringing the new generation online. CEO Manu Asthana says, “The market is sending a price signal that should incentivize investment in resources.” With the projected growth in artificial intelligence and data centers, that signal is only going to get stronger.
Hence the need for permitting reform.
Regulatory Gordian knots at all levels of government delay new energy infrastructure, whether it is a natural gas pipeline, a mine for the critical minerals necessary for defense and clean energy technologies, or new power plants. Not only does this increase costs and jeopardize grid reliability, but it also obstructs job creation, environmental goals, and the deployment of innovative, cleaner technologies.
Local zoning laws, increasing NIMBYISM, and frivolous lawsuits have stalled or killed new energy projects, many of which would relieve supply bottlenecks and reduce emissions.
Modernizing the permitting process does not mean easing requirements needed to protect public health and safety. At the federal, state, and local levels, the bar will still be set high. Yet reforms that improve transparency, reduce duplicative efforts, and upgrade outdated processes will allow project developers to deliver more energy, benefiting consumers and businesses alike safely.
Furthermore, a more expedient process will not ignore community needs and concerns but instead empower them. In fact, effective community engagement should be one area of bipartisan agreement.
Conservative groups like the Heritage Foundation cite the need for site- and situation-specific environmentalism “to reflect unique environmental characteristics and variables as well as the needs and desires of local populations.” Liberals and environmental NGOs have discussed this partly in the context of environmental justice. The Natural Resources Defense Council, for example, wants “to enhance community engagement and bring local interests to the table early in the planning process to make sure their voices are heard.”
With an abundance of natural resources, world-class energy companies, and entrepreneurs hungry to bring innovative technologies to the market, the United States is already a global energy leader.
Unfortunately, permitting challenges pose real-world impacts, and examples are replete in the United States across various sectors. For example, NewRange Copper Nickel in Minnesota witnessed its water permit cancellation by the U.S. Army Corp of Engineers in 2023, which postponed the extraction of enough nickel to build over 20 million EVs.
The SunZia Southwest Transmission Project, intended to stretch from New Mexico through Arizona and into California, was first approved in 2015 and has faced protracted litigation over permitting disputes and contradictory approvals from state and federal authorities. In 2022, a geothermal power plant in Nevada faced litigation over federal permits, thereby slowing the development of a firm, clean energy source.
Permitting for new energy projects routinely takes twice or three times as long in the U.S. compared to other industrial nations. If the United States wants to remain in the poll position when it comes to energy dominance and emissions reductions, we must fix the regulatory and permitting system. Bringing cleaner, more efficient energy generation online will benefit families through lower energy prices, boost economic productivity, and help the environment.
Good faith and bipartisan efforts have laid the groundwork for substantive reforms. Politics shouldn’t delay good policy.
Nick Loris is the Vice President of Public Policy at C3 Solutions and has over a decade of experience in climate and energy policy. His work has appeared in The Wall Street Journal, The New York Times, The Hill, and more.
Image: Irene Miller / Shutterstock.com.