The National Environmental Policy Act (NEPA) is a prime example of well-intentioned legislation gone horribly wrong, derailing essential infrastructure through unrealistic delays or outright cancellations, increased costs, and project uncertainty. Countless energy projects have been and currently are at risk, at a time when our energy needs are greatly expanding.
Chairman Bruce Westerman (R-AR) and committee member Jared Golden (D-ME) of the House Natural Resources Committee have sponsored the Standard Permitting and Expediting Economic Development Act (SPEED) to overhaul and simplify NEPA. Many of its provisions will streamline the outdated and abused permitting process. NEPA is past due for an overhaul.
NEPA began as a statutory measure more than 50 years ago with the goal of better protecting surrounding areas of infrastructure projects; however, it has evolved into a complicated and burdensome process with environmental impact statements (EIS) averaging 4.5 years and nearly 2,000 pages. Often considered the most litigated environmental statute, NEPA has become a “weapon used to…delay critical domestic energy projects.” Lawsuits and delays on top of considerable paperwork add significant costs.
To remain competitive in a global economy, infrastructure—specifically energy projects—need to be completed in a timely manner. Permitting reform is vital.
SPEED will improve the process, limiting litigation, hastening timelines, and cutting through much of the arduous red tape that complicates and prolongs countless projects. It clarifies that NEPA is a procedural statute only and does not mandate specific environmental outcomes.
The most far-reaching aspect of SPEED will be the legal changes and restrictions.
The Council on Environmental Quality’s (CEQ) annual NEPA surveys indicate that most litigation is currently initiated by activist groups and not individual members of the public. SPEED will allow only those who submitted relevant and substantive public comments to file lawsuits within a 150-day window. Litigants must demonstrate direct harm.
Environmental reviews must focus only on effects from the project itself and may not include effects that are speculative. No longer can agencies be asked by courts to evaluate environmental effects of a hypothetical future event, such as a related activity that could result because of the original project.
The Act also includes a provision to clarify what constitutes a “major federal action” to ensure that simply receiving federal funding does not automatically trigger a full NEPA review. NEPA was meant for “major federal actions significantly affecting the quality of the human environment,” not where the federal government merely contributes financial assistance. This will prevent unnecessary duplication of state and local reviews and restrict agencies from imposing full NEPA analysis.
It further removes the need for new studies if prior reviews have already yielded the necessary information and allows federal agencies to adopt categorical exclusions (CE) that were enacted by Congress for use in other agencies. Simplifying the process and reducing the bureaucratic involvement will expedite project approval and completion.
An amendment unanimously passed during markup blocks the executive branch from revoking energy permits after approval, as has been done by multiple administrations. This prevents federal agencies from canceling, suspending, or altering approved permits without cause.
Eliminating the distractions and clutter that delay much-needed infrastructure will provide more stability and certainty. Investors will regain confidence in supplying capital, bringing economic development and prosperity to communities across the country.
The SPEED Act has been endorsed by energy leaders because “rising energy demand and increasing power costs are exposing the immediate need for more energy infrastructure.” Businesses, workers, and consumers cannot afford the setbacks and delays the current system tolerates. Reforming the process and bringing energy online much quicker will provide more abundant and affordable energy.
Clear, rational, and common-sense permitting statutes are crucial to ensuring that projects advance through the permitting process toward completion. We cannot continue miring down potential infrastructure with endless bureaucracy and roadblocks. The inability to update and expand much-needed infrastructure could result in diminished economic growth and a decline in national wealth. It could push industries and jobs overseas.
The bipartisan SPEED Act passed committee last month. It should proceed to the House floor by the end of the year. Then it is up to the Senate.
The need to modernize NEPA cannot be overstated. We must improve how we execute the building and maintaining of America’s vast infrastructure if we want economic growth and prosperity. The status quo is not working.
Kristen Walker is an energy policy analyst for the American Consumer Institute, a nonprofit education and research organization. For more information about the Institute, visit www.theamericanconsumer.org or follow us on X @ConsumerPal.