As demand rises, lawmakers revisit energy permitting rules

By EPN Staff

Bipartisan efforts are underway in Congress to reduce the time required for federal approval of energy projects, as lawmakers examine permitting processes that can delay development for several years.

The renewed focus on permitting reform comes as electricity demand increases in several regions, driven by manufacturing expansion and growing data center construction tied to artificial intelligence and cloud computing.

The SPEED Act, introduced by Representatives Bruce Westerman and Garret Graves, would impose a two-year limit on environmental reviews conducted under the National Environmental Policy Act (NEPA) and limit the scope of reviews to issues directly related to a project’s impacts. 

It would also allow developers to rely on previously completed environmental studies when conditions have not materially changed, which supporters say could reduce duplicative analysis and shorten review timelines.

The American Petroleum Institute recently released a report examining how unpredictable federal permitting timelines affect project costs and investment decisions across energy infrastructure sectors.

Why it matters

The National Environmental Policy Act, passed in 1970, requires federal agencies to evaluate the potential environmental effects of major projects through environmental assessments or more detailed environmental impact statements before approvals are granted. 

These reviews can involve multiple agencies, public comment periods, and legal challenges, which can extend timelines for large infrastructure projects by several years.

Federal permitting data shows that the NEPA process often takes four to five years on average for major infrastructure reviews, while analysis from industry groups estimates that about $1.5 trillion in investment is awaiting federal permits.

“Being a good steward of our environment does not mean we must tolerate a yearslong permitting process that is onerous, overly complex, and ripe for litigation abuse,” said Congressman Jared Golden of Maine. He continued that the United States “needs more modern infrastructure” alongside environmental protections. 

Golden said reforms in the bill are intended to protect the environment while allowing investments to move forward without prolonged delays.

The legislation maintains existing environmental standards and does not modify underlying statutory requirements. 

Federal agencies would still be required to complete environmental assessments or environmental impact statements, with changes focused on procedural timelines and interagency coordination rather than substantive review criteria.

The bigger picture

While the SPEED Act has cleared the House, it faces a higher bar in the Senate, where most legislation requires 60 votes to advance. 

The bill’s path in the Senate remains uncertain, with no floor schedule announced and some Democratic leaders expressing reservations about changes to NEPA. 

The legislation passed the House with support from 11 Democrats, including lawmakers from Texas and California, where large-scale energy and infrastructure projects are common.

At the agency level, federal departments are also exploring administrative steps to improve coordination with state regulators on environmental reviews and grid interconnection studies. 

Industry groups continue lobbying for administrative changes that would support market-driven energy expansion while lawmakers debate how to modernize review procedures without compromising safety standards.