Biden Administration Fast-Tracks Clean Energy Permits
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The Biden administration has released rules aimed at accelerating permits for clean energy and requiring federal agencies to consider the climate impact and effects on low-income communities before approving projects. The rules, stemming from bipartisan debt ceiling legislation, also prioritize projects with strong environmental benefits and introduce more review layers for projects potentially harmful to the climate or local communities. The move is part of Biden’s larger environmental policy push before the November presidential election and could expedite implementation of his signature climate law, the 2022 Inflation Reduction Act.
Biden Administration Accelerates Clean Energy Permits
On Tuesday, the Biden administration launched new rules to expedite permits for clean energy and implement thorough evaluations on climate impact and effects on low-income communities before approving projects like highways and oil wells.
These changes were necessitated by Congress in a debt limit deal last year, which revised the National Environmental Policy Act (NEPA), a key 54-year-old law. NEPA mandates environmental considerations and public consultations before green-lighting any federally-permitted project.
The bipartisan debt ceiling legislation featured environmental law reforms intended to hasten approval for major construction projects, including oil pipelines, highways, and power lines for wind and solar-powered electricity. The rules, issued by the White House Council on Environmental Quality, aim to guide federal agencies when implementing these reforms.
Moreover, the rules also outline further requirements to prioritize projects with significant environmental benefits while imposing rigorous review for projects potentially harmful to the climate or surrounding communities.
“These reforms will deliver smarter decisions, quicker permitting, and projects that are built better and faster,” said Brenda Mallory, chair of the council. Additionally, the rules will protect communities from pollution and environmental harms resulting from poor planning while ensuring projects are built in appropriate locations.
This development is part of Biden’s efforts to pass a string of substantial environmental rules ahead of November’s presidential election. These include policies to curb climate-warming pollution from cars, trucks, power plants and oil and gas wells; protection of sage grouse and other endangered species; bans on asbestos; and removal of forever chemicals from drinking water.
The Tuesday rules could expedite the implementation of Biden’s flagship climate law, the 2022 Inflation Reduction Act. The law, which includes at least $370 billion in tax incentives to expand renewable energy, could face challenges if construction of transmission lines for renewable energy or electric vehicle charging stations is delayed in the permitting process.
Historically, the construction, oil and gas, and real estate industries have argued that NEPA’s permitting requirements hamper business. However, the law has often enabled communities affected by major projects and environmental groups to delay or prevent projects.
Effects of New Rules on Environmental Policy
During Trump’s presidency, some protections under the environmental law were removed, only for Biden to reinstate them later. Biden, seeking Republican support to lift the federal debt ceiling last year, agreed to expedite federal approvals for all kinds of projects, regardless of their environmental impact.
The new rules cut down the time frame for environmental impact analyses of proposed projects to two years. A recent government study indicates these analyses average 4.5 years.
Moreover, the new rules allow projects with long-term environmental benefits to receive expedited reviews or bypass them entirely. They also require federal agencies to identify environmentally preferable alternatives to proposed projects early in the review process.
The rules also direct agencies to evaluate whether a proposed project would reduce the pollution that disproportionately affects low-income and minority communities.
“This is a significant move as it prioritizes projects with environmental justice benefits, such as transmission lines that bring renewable energy to the market,” said Ted Boling, an environmental lawyer with experience in the environmental quality council.
However, major business groups and the fossil fuel industry, including the Chamber of Commerce and the American Fuel and Petrochemical Manufacturers, have criticized the new rule. They argue it increases analysis complexity, reduces the environmental review process’s efficiency, delays decision-making, and ultimately blocks critical investments.
Studies indicate that the current cycle of environmental policy ‘erase and replace’ between Republican and Democratic administrations harms the economy. Presumptive Republican nominee, Mr. Trump, has promised to dismantle much of Biden’s environmental legacy if re-elected. Yet, finalizing the rules this spring provides them some level of legal protection since a rule published more than 60 legislative days before the end of the presidential term cannot be overturned by a simple majority vote in Congress.
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