Reform proposal for the National Environmental Policy Act (NEPA) gains backing from electric utility companies
In a bid to modernize the National Environmental Policy Act (NEPA) and expedite energy projects, a bipartisan House proposal known as the Standardizing Permitting and Expediting Economic Development (SPEED) Act has been introduced. The sponsors of the bill are Rep. Jared Golden, D-Maine, and Rep. Bruce Westerman, R-Ark., who presented it in July 2023.
The proposal aims to shorten permitting timelines, simplify analysis, establish judicial review limitations, and limit the use of procedural efforts to block projects. It focuses environmental reviews on direct, significant impacts rather than hypothetical or tenuously connected effects.
The SPEED Act has garnered support from various sectors, including the National Rural Electric Cooperative Association and the Edison Electric Institute. The National Rural Electric Cooperative Association believes the legislation will streamline NEPA requirements for electric cooperatives applying for federal permits, while the Edison Electric Institute, representing investor-owned utilities, supports the SPEED Act as it will help build generation and transmission capacity for the nation's electric grid.
Drew Maloney, Edison Electric Institute President and CEO, stated that the legislation will help America's electric companies serve customers and achieve energy dominance. Similarly, Rep. Jared Golden emphasized that the problems with the NEPA process are energy-neutral and can be detrimental to both fossil fuel and renewable energy projects.
However, not everyone is in favour of the SPEED Act. Robert Glicksman, a professor of environmental law at the George Washington University Law School, cautioned against passing the SPEED Act now, suggesting that it would be more appropriate to evaluate the impacts of recent NEPA changes before rewriting the statute again.
The Supreme Court has recently shifted judicial review towards greater deference to agencies in their NEPA preparations. Yet, the SPEED Act further clarifies when a NEPA review is triggered by refining the definition of major federal action. Receiving federal grants or other types of funding would no longer automatically trigger NEPA under the SPEED Act.
It's worth noting that permitting reform has drawn bipartisan efforts in recent years, but previous proposals have failed to yield results. The SPEED Act, with its focus on creating reasonable timelines for agency decision-making and streamlining judicial reviews, could potentially change this trend.
Solar energy projects face the highest rate of NEPA litigation of all energy sources, according to ClearPath Action CEO Jeremy Harrell. With the nation's electric grid facing rapid demand growth and renewed efforts focusing on the need to add resources and maintain reliability, the SPEED Act could provide a much-needed boost to energy projects, including those in the renewable sector.
As the SPEED Act makes its way through the legislative process, it remains to be seen whether it will successfully navigate the complexities of environmental law and politics to become a reality. Regardless, its introduction marks a significant step towards addressing the challenges posed by lengthy permitting processes and potentially paving the way for a more efficient and sustainable energy future.
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