Modernize Permitting

We need to build cleaner, faster. Clean energy and grid modernization present tremendous economic opportunities, but burdensome and outdated regulations mean that new projects take five years on average to come online.

We have to move faster by enacting common sense reforms to the permitting process.


Upgraded transmission and new energy projects all start with a permit

Why do we need to build cleaner faster?

An era of unprecedented energy demand. America is at the dawn of a new age of energy demand fueled by robust economic growth, a revival of American manufacturing, strong advances in artificial intelligence (AI) and quantum computing. Over the next decade, energy demand growth is expected to increase by up to 18%. The U.S. needs to build new resources equal to double the size of the current Texas grid (for a total of 150 GW of new power) over the next decade to meet this demand.

These developments present immense opportunities for America to build big things as we once did, including thousands of new power plants, energy projects and transmission lines to connect to the grid at an unprecedented pace and scale.

Unmovable bureaucratic obstacles cause delays at every stage of project development whether it is federal permitting, lawsuits or local opposition. The American permitting system must be modernized to meet rising demand and ensure access to clean, reliable, affordable, and abundant energy.

Let America Build. The current process to permit needed energy infrastructure projects is a complex, disjointed framework across different federal regulatory bodies, states and local governments. Many projects are subject to a lengthy environmental review process under the National Environmental Policy Act (NEPA). NEPA requires federal agencies to assess proposed projects' environmental effects before making decisions. The average timeline for a project to obtain necessary NEPA reviews is 4.5 years, which may include litigation on the NEPA process. Even with this approval, a project still needs to secure its federal permits.

It’s time to face the facts: time is money, and the lengthy permitting process disincentivizes investment in energy infrastructure, halts development and reduces access to clean, reliable, affordable power. President Trump stressed the need for permitting reform in his executive order, “Unleashing American Energy.” However, a durable, legislative fix is required to get projects moving and ensure they keep moving regardless of changes in the Administration. Needed changes include utilizing AI and technology to streamline reviews, implementing a “permit-by-rule” process and reforming judicial review.

Solutions

Increase transparency and efficiency by deploying technology. Utilizing artificial intelligence (AI), machine learning and other automation technologies can help reduce the human capital burden of project reviews and increase transparency. The Trump Administration issued a presidential memorandum instructing agencies to move away from a paper-based application and review process and to utilize technology to streamline permitting, including providing transparency with a searchable database of pending permit applications. Technology reforms are the lowest-hanging fruit for bipartisan action to facilitate fast NEPA and permitting reviews.

Implement permit by rule. President Trump’s “Unleashing American Energy” executive order emphasized the need for faster permitting and identified permit by rule as a potential solution. Under this system, agencies must issue permits if applicants meet specific agency-developed standards and certify compliance. Agencies are then responsible for enforcing compliance and upholding all federal environmental and safety laws. This does not mean the project permit applicant is free from these environmental laws. Quite the opposite, each project must still comply with every federal environmental and safety law. Agencies would be responsible for compliance enforcement.

The FREE Act would codify permit by rule and reduce permit approval timelines from years to months. Responsibly streamlining permitting is essential to advancing American infrastructure and development.

Reform judicial review. The current system is overwhelmingly tilted in favor of those seeking to delay or block infrastructure projects. This uncertainty affects all energy development, where delays drive development costs and discourage investment. Limiting legal challenges to clear and material errors under natural resources laws, narrowing the scope of review, and enforcing statutory timelines for resolving disputes are needed first steps to limit frivolous litigation. A more predictable process benefits all parties involved. It allows claims to move forward when real harm occurs while limiting litigation that seeks to delay or cancel projects.