The US energy sector faces a major challenge: how to build and upgrade the infrastructure needed to meet the growing demand for clean and reliable power. The current permitting process is slow, complex, and costly, hindering the development of renewable energy projects and increasing prices for consumers. However, some solutions are emerging to simplify and accelerate the approval of energy projects, both at the legislative and judicial levels.
The High Cost of Permitting Delays
The US has a vast potential for renewable energy, but it is not fully exploited due to the lengthy and uncertain permitting process. According to a report by the American Council on Renewable Energy, the US could generate 50% of its electricity from renewables by 2030, creating 1.5 million jobs and saving $100 billion in health and environmental costs. However, this scenario requires a significant increase in the deployment of renewable energy projects, which currently face multiple regulatory hurdles and legal challenges.
The average time to complete an environmental impact statement under the National Environmental Policy Act (NEPA) is 4.8 years, and it can take up to 10 years for some projects to receive final approval. These delays add uncertainty and risk for investors and developers, who have to allocate significant capital and resources to these ventures. Moreover, they increase the costs of construction and operation, which are ultimately passed on to consumers in the form of higher electricity and gas bills.
The permitting delays also affect the reliability and security of the US energy system, as they prevent the timely upgrade and expansion of the transmission and distribution grids. This can result in congestion, blackouts, and increased dependence on fossil fuels and foreign imports. Furthermore, the slow deployment of renewable energy projects undermines US efforts to reduce greenhouse gas emissions and combat climate change.
The Legislative Solution: The Building American Energy Security Act
One of the proposals to streamline the permitting process for energy projects is the Building American Energy Security Act of 2023, introduced by Senator Joe Manchin, the chairman of the Senate Energy and Natural Resources Committee. The bill aims to set clear and reasonable deadlines for the review and approval of energy projects while maintaining environmental standards and public participation.
The bill would establish a two-year timeline for major project reviews and a one-year limit for lower-impact ones. It would also empower project sponsors to seek court orders if agencies miss deadlines. Moreover, it would require a single coordinated environmental review, limit excessive litigation delays, and prioritize efforts of national strategic importance.
The bill has received bipartisan support from lawmakers and stakeholders, who see it as a sensible and balanced solution to speed up the development of critical energy infrastructure and create jobs while protecting the environment and the public interest.
The Judicial Solution: Revisiting the Chevron Doctrine
Another way to simplify and accelerate the permitting process for energy projects is to revisit the Chevron doctrine, a legal principle that grants deference to federal agencies in interpreting ambiguous statutes. The doctrine, established by the Supreme Court in 1984, has been criticized for allowing agencies to expand their regulatory authority and discretion, creating uncertainty and inconsistency for regulated entities and the public.
The Supreme Court has an opportunity to reconsider and restore the proper balance of power between the legislative, executive, and judicial branches in a case involving the interpretation of the Clean Water Act. The case, United States Army Corps of Engineers v. Hawkes Co., Inc., challenges the jurisdiction of the Army Corps of Engineers over wetlands and other waters of the US. The case could have significant implications for the permitting process of energy projects as well as other sectors that depend on access to water resources.
The Supreme Court should clarify the scope and limits of the Chevron doctrine and ensure that agencies act within the boundaries of the law and the Constitution. This would reduce the regulatory uncertainty and complexity that hamper the development of energy projects and enhance the accountability and transparency of the administrative process.
The Benefits of Faster Permitting for Energy Projects
By simplifying and accelerating the permitting process for energy projects, the US can unleash its energy potential and reap multiple benefits for the economy, the environment, and society. Faster permitting would:
- Unlock investment in renewable energy projects, creating jobs, income, and innovation
- Lower the costs of energy production and consumption, saving money for households and businesses
- Improve the reliability and security of the energy system, reducing the risk of blackouts and dependence on foreign sources
- Reduce greenhouse gas emissions and air pollution, mitigating climate change and improving public health
- Enhance public participation and trust in the regulatory process, ensuring that energy projects are in the public interest and respect environmental standards
Faster permitting for energy projects is not only desirable but also feasible. With the right legislative and judicial reforms, the US can overcome the permitting challenges and achieve its energy goals.
