OPINION:
Members of Congress on both sides of the aisle have called for permitting reform to ensure we can build the energy infrastructure our country needs and AXPC believes that modernizing federal permitting is an essential reform that can get bipartisan support this year.
American families have been crushed by the impacts of inflation. Reforming the permitting process for infrastructure and energy projects will help ease this burden by increasing access to U.S. energy production, which will lower costs on everything from groceries to gasoline to electric bills. Modernizing permitting for these projects will also help boost our economy by creating jobs and economic investment in communities and states across the country.
While efforts to address permitting as part of the Inflation Reduction Act (IRA) fell short last year, it shows political will to get something done across party lines and in both Chambers.
H.R. 1, the Lower Energy Costs Act, which passed the House with bipartisan support, included many provisions to reform, streamline, and cut red tape for America to build more energy infrastructure. And, just a few weeks ago, Senators Shelley Moore Capito and John Barrasso penned an op-ed highlighting the economic consequences of delayed permitting, activist efforts to exploit the broken process, and the national security concerns associated with a supply chain reliant on China due to our inability to build in America. They also highlighted how serious reform must benefit everyone, not just a few select interests.
Modernizing our permitting system can benefit all Americans by helping us build “all-of-the-above” infrastructure that we desperately need to meet growing energy demands.
Congressional Democrats and the President celebrated the IRA as a “historic climate bill,” but without significant permitting reform, those efforts will fall short. Renewable energy also needs permitting reform, as the regulatory burdens and layers of red tape don’t just affect oil and natural gas, they affect all energy infrastructure. The IRA was written to generously fund renewable projects, but if you cannot get the permits or the supplies to construct them or connect and upgrade the electrical grid, those subsidies will be for naught.
America’s oil and natural gas producers invest hundreds of millions of dollars in new technologies and innovations to further our nation’s climate leadership. However, the current system causes delays in the deployment of the very technologies and resources necessary to reduce global emissions and combat climate change. For example, we need permits to build infrastructure for hydrogen and CCUS and to build the pipelines needed to transport more natural gas and accelerate the transition away from coal.
Modernizing permitting will still protect the environment and incorporate community input. It will also provide clarity and predictable timelines for companies developing projects in America. And it would encourage investment in innovative and flexible technologies, and ensure we are meeting the world’s demand for clean, affordable, and reliable energy.
To this end, AXPC has outlined specific and actionable ways to modernize federal permitting, including reforms to the National Environmental Policy Act (NEPA), leasing, permitting and associated judicial review, Clean Water Act certifications, the Endangered Species Act, and mitigation policies.
For instance, NEPA must be modernized to ensure Congressional intent in enacted laws is acted upon by agencies. The NEPA process has been misused as a basis for endless litigation, and Congress should adopt reforms to NEPA to provide much-needed clarity and certainty into the legal process to the benefit of the agency, project proponents, and the American people. The current process benefits lawyers more than workers.
Congress should also make clear that the Mineral Leasing Act (MLA) cannot be circumvented to cancel quarterly oil and natural gas lease sales that are prescribed by law. Federal drilling permits, often intermingled with private mineral estates, should be streamlined to provide for quicker approval of projects known or estimated to have minimal impacts. Congress must ensure that consultations under the Endangered Species Act and state certifications under Section 401 of the Clean Water Act are applied fairly and not used as regulatory roadblocks.
The U.S. Energy Information Administration (EIA) predicts that global energy demand is expected to grow 47% in the next 30 years, and the world is going to need all sources of energy to meet that demand. The question is: will the United States be in a position to help meet that demand? Or will we continue to be hamstrung by a nebulous permitting process from the last century?
Modernizing federal permitting will increase energy supplies and decrease energy prices. It can also ensure Congress and the Administration can move forward to implement energy policies that benefit all Americans.
Washington policymakers across the ideological spectrum see that more efficient permitting will reduce costs and encourage investments in a range of energy projects. In addition to industry-wide efforts to reduce emissions from operations, many oil and natural gas producers are innovating to support the development of hydrogen, carbon capture, and other projects that will be needed in a lower-carbon future. Reducing regulatory burdens and cutting layers of red tape will benefit all energy development.
As part of a broader energy mix, American oil and natural gas production is an essential part of any successful long-term strategy to meet our security and energy needs. And, bipartisan solutions are essential, and more durable, to address our nation’s toughest challenges including taking a 20th century permitting environment and modernizing it for the 21st century.
• Anne Bradbury is CEO of the American Exploration and Production Council (AXPC), which represents America’s leading independent oil and natural gas producers. Prior to AXPC, Ms. Bradbury served as a top leadership aide for over a decade for some of the most important leaders in Congress.
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