Analysis by Energy Workforce President Tim Tarpley
Last week, Senators Tom Cotton (R-AR) and Cortez Masto (D-NV), both members of the Energy and Natural Resources Committee, introduced the FREEDOM Act, which would prevent Federal Agencies from revoking permits or issuing stop-work orders on products unless they meet very specific requirements under limited circumstances.
Specifically, the FREEDOM Act has four major pillars:
- Enforceable deadlines: Binding federal decision deadlines of 90 days for routine authorizations, one year for complex ones, and two years where a full NEPA environmental impact statement is required. Missed deadlines automatically trigger “unreasonable delay” status under the Administrative Procedure Act.
- Access to the courts: A fast, practical remedy for project sponsors when agencies miss deadlines or act unlawfully, without limiting courts’ existing authority.
- Court-approved contractors for stalled reviews: When an agency misses its deadline and still won’t act, courts can approve a sponsor-proposed contractor to complete the analysis, funded through a new $50 million Permitting Performance Fund.
- Protection for fully permitted projects: Once a project holds the substantial majority of its permits, no agency may halt, suspend, or revoke approval except to address a clear and immediate harm with no viable alternative.
The hope for this legislation is that it could help jump-start a larger permitting reform package, which needs to move by August of this year to have a chance of passing this Congress. Democrats have been hesitant to engage on permitting reform due to opposition to some of the Administration’s moves to cancel renewable energy projects that had permits for construction; however, the bill’s language could also benefit traditional oil and gas projects, which could come under threat in future administrations.
Overall, the language benefits everybody and should be supported by supporters of all forms of energy. The hope is that if the FREEDOM Act, or similar language, is included in a larger permitting reform package, a bipartisan agreement could be found that would pass the 60-vote threshold in the Senate, which will be necessary for passage. That being said, time is certainly of the essence. July is do-or-die for permitting reform, and with the midterms approaching quickly, there is significant fear that many on the Democratic side may withhold support and take their chances after the midterms for a better deal. If this turns out to be the scenario, we could end up waiting for another two years to get something done. EWTC will continue to advocate for comprehensive permitting reform, which we believe is absolutely necessary to ensure that America and the world will have adequate supplies of vital energy.
Tim Tarpley, Energy Workforce President, analyzes federal policy for the Energy Workforce & Technology Council. Click here to subscribe to the Energy Workforce newsletter, which highlights sector-specific issues, best practices, activities and more.
