As lawmakers returned from August recess, AFS is urging Congress to take swift action on bipartisan permitting reform this fall. The federal permitting process for infrastructure projects––including transportation, energy, water systems, and other critical systems—is often lengthy, costly and redundant, and greatly affects industries served by metalcasters. 

In early September, AFS joined over 200 trade associations on a coalition letter to the chairs of the House Natural Resources and Senate Energy and Natural Resources committees calling on lawmakers to enact durable federal permitting legislation for critical infrastructure projects this year, with these four key principles:

1.    Predictability––clear timelines and scope for project reviews.
2.    Efficiency––improved interagency coordination to optimize resources.
3.    Transparency––accessible visibility into project milestones and schedules.
4.    Stakeholder Input––consistent opportunities for input from all relevant parties.

Stop Meritless Law Suits

The letter stressed how outdated and inefficient permitting processes are delaying critical infrastructure projects, driving up costs, and postponing benefits like improved roads, better public transit, and affordable energy. Data from Lawrence Berkeley National Laboratory shows, as of 2022, it took an average of five years for an energy infrastructure project to move from initial permitting to operation, more than double the time it took in 2000. 

Compounding these delays, nearly 30% of major energy and infrastructure projects requiring an environmental impact statement face predevelopment litigation, often based on meritless or duplicative claims under the National Environmental Policy Act (NEPA), according to Stanford University. These lawsuits have become a tool to delay or price projects out of existence. Delays discourage investment and threaten our energy security. Many projects take even longer or are ultimately cancelled as funding is lost or companies decide to invest in regions with more stable and predictable permitting regimes.

‘SPEED’ Act in the House

Momentum for permitting reform is growing in Congress, with broad support from business groups, energy producers, labor unions, and policymakers.  As hearings continue and legislation takes shape, there’s potential for meaningful reforms, and reduce unnecessary legal challenges.

Recently, there was more progress on permitting reform as federal agencies—reflecting reforms by Congress and court rulings—released new NEPA procedures that will simplify the process for some businesses to get permits for infrastructure projects.

A new permitting reform legislation was introduced in the House––the Standardizing Permitting and Expediting Economic Development (SPEED) Act––at the end of July. Supported by AFS, it would update how federal agencies conduct environmental reviews under the national permitting precedent for over 50 years. The SPEED Act would narrow the federal agency’s review requirements, focusing only on effects directly linked to the proposed project.  Additionally, it would allow agencies to use existing environmental reviews for other federal, state, and tribal statutes that meet the NEPA requirements to avoid duplicative reviews.

 The bill sets clear deadlines for completing reviews, limits judicial reviews for NEPA claims, and expands the use of categorical exclusions. The House committee is expected to act on the legislation this fall. AFS will continue to actively advocate in support of permitting reform and provide updates to the membership on the legislative developments.