Bipartisan Senate Deal Would Streamline Energy, Infrastructure Permitting
The Senate has reached a bipartisan deal to advance legislation that would speed up permitting reviews for new energy and infrastructure projects.
Under the current permitting process, duplicative permitting delays cost manufacturers nearly $8 billion annually, and the National Association of Manufacturers (NAM) reports a weighted-average permit approval time of 10 months. The proposed legislation, dubbed the Bipartisan American Affordability and Jobs Act, aims to speed up the timetable while maintaining a commitment to environmental stewardship. To accomplish that streamlining, the 417-page bill would reform parts of the National Environmental Policy Act (NEPA), Clean Water Act, Endangered Species Act, Federal Power Act, and National Historic Preservation Act. It would also provide project certainty once federal permits are issued, impose new agency decision deadlines, and narrow several judicial review windows.
“America is entering a new era of energy demand,” Sen. Martin Heinrich (D-N.M.), one of the bill’s cosponsors, said. “We have an enormous opportunity to build big things again to meet this moment — to build more generation, expand our grid, create more jobs, lower energy costs, and make sure we have the energy we need to compete. It should not take decades to build the infrastructure our country needs. Our Bipartisan American Affordability and Jobs Act will help us get to ‘yes’ or ‘no’ on energy projects faster, while protecting important environmental safeguards and protecting the ability of tribes to formally consult during these processes.”
The bill would also require data centers — a key driver of the country’s increasing energy demand — to pay for all of their associated electricity transmission costs.
“Comprehensive permitting reform will unleash growth and investment across the board,” said Jay Timmons, NAM president and CEO. “This agreement will benefit energy projects of every type, help bring critical infrastructure online faster and deliver on permitting reform priorities for all manufacturers — large and small.”
NAM and other business advocacy groups applauded the bill and urged Congress to move expeditiously to pass it. The Senate is not expected to vote on the bill until after the midterm elections on Nov. 3. Assuming it passes the Senate, it would still need to be approved by the House before heading for the president’s desk.
“Manufacturers are all in on this game-changing agreement and getting it across the finish line,” Timmons added. “Our nation’s permitting system is outdated and burdensome, delaying projects across industries and contributing to rising costs across the economy.”