As energy-hungry project developers across the nation drive unprecedented demand growth for electricity, critical minerals, and all the supporting infrastructure, the permitting reform conversation has once again moved to center stage in Washington D.C.  While some elements from legislative efforts of the last Congress remain sticky, others have enjoyed broad support from industry and Hill players alike – in particular, the need to increase transparency and efficiency to help modernize a byzantine and often inaccessible permitting process. 

The federal environmental review process, while well intentioned, has long lacked clarity for both project developers and local stakeholders. As a direct result, project timelines and costs have increased significantly. These delays have made it difficult to build just about anything in America, likely aiding the growing advantages of global competitors who don’t face similar constraints. During a period where we expect electricity load growth to increase by a factor of five, there is broad consensus that reforms aren’t optional – they’re a dire need. 

Litigation has long been a major hurdle for energy projects, with National Environmental Policy Act (NEPA) lawsuits delaying both fossil fuel and clean energy project implementation by 3.9 years on average. While affected stakeholders should have the ability to express concerns or litigate a project if necessary, the vast majority of cases are not filed by community leaders themselves and agencies ultimately win 71 percent of these lawsuits defending their decisions. These inefficiencies highlight the need to update the who, what, and when of judicial review to balance community input, investment certainty, and process efficiency. 

A contributing factor to this litigation may be the lack of transparency within the existing federal permitting process. Projects often require approvals from different federal agencies that may not have clear, unified processes for reviews, and there are limited signals to stakeholders on when and how to engage. In addition, many agencies still use paper-based systems with no requirement to bring the process online and increase accessibility. Integrating robust public involvement from the earliest stages can help build trust and identify areas of conflict before they lead to delays or litigation. 

Digitizing the permitting process has been discussed as one way to increase transparency and efficiency throughout multiple Congresses and Administrations. The recent bipartisan introduction of the ePermit Act is the most significant step in creating the kind of cohesive system across the federal government that would speed up reviews, enhance accessibility, provide project transparency, and in result, save taxpayer dollars. The ePermit Act introduced in the House by Representatives by Reps. Johnson (SD) and Peters (CA), requires the creation of data standards, a universal permitting taxonomy, and an interoperable digital permitting portal. 

Would something as noncontroversial as migrating permitting online move us towards a more efficient process? Multiple states have already modernized their own systems and seen meaningful benefits. For example, estimates show that the Arizona Department of Environmental Quality’s digital portal creation contributed to a 91% decline in permitting timeframes and $150 million in annual economic benefits. In addition, the Council on Environmental Quality (CEQ), who would oversee implementation, recently completed a study required by the Fiscal Responsibility Act (FRA) of 2023 looking at the technical needs and benefits of a digitalized permitting process. Many key takeaways from CEQ’s study were directly incorporated into the ePermit Act. 

There is broad consensus that America’s permitting system is outdated, putting our energy and infrastructure security at risk. Overdue reforms like digitizing the process will help us enhance efficiency and transparency for project proponents, government agencies, and the general public leading to better outcomes. While not a silver bullet on its own, pairing it with other commonsense updates to our permitting regime would enable America to once again build at rapid pace and scale. The ePermit Act can help uphold the rigorous environmental standards Americans in communities across the nation rely on, while leveraging new technologies to meet 21st century challenges.