West Virginia and Oklahoma Make Energy and Permitting Reform Top Priorities for 2025
Permitting reform is a key issue that can increase efficiency, improve project development speed, and attract new business and jobs.
America’s demand for energy continues to grow, especially during the winter months when the need for reliable, affordable energy puts significant strain on infrastructure, grids, and family checkbooks. Now is the perfect opportunity for states to partner with the new Administration and enact principled policies that streamline the approval of vital infrastructure projects.
This problem of energy demand has been exacerbated in part due to steep regulatory barriers that slow and restrict new energy development. Supply-side availability of energy is often hindered by federal, state, and local permitting regulations that can delay or terminate innovation and investment.
New energy projects must receive approvals from regulatory agencies before construction can begin. The National Environmental Policy Act (NEPA) is a 1970 federal law that requires federal agencies to study the environmental impact of infrastructure projects before granting permits to build. However, the law has become an extreme hurdle to any proposed plan for development. Like many government regulations, the current interpretation of NEPA has expanded far beyond reasonable consideration and has unnecessarily raised barriers to energy infrastructure development.
Under NEPA, developers must conduct a thorough Environmental Impact Statement, which assesses any foreseeable environmental consequences of their project. These statements often require developers to consider impacts far beyond those that can be reasonably considered within the scope of the proposed project. Failure to adequately fulfill these requirements and complete the necessary paperwork results in the delay or denial of a permit to build. Meanwhile, investments remain stagnant and unprofitable, which can cause investors to pressure developers to reach a resolution.
Permitting reform and the revision of burdensome regulations imposed by NEPA are now top legislative priorities to unleash American domestic energy production. Following President Trump’s Day One executive order, federal agencies are now called to expedite the permitting and judicial review process for new projects.
At the state level, West Virginia is leaping forward in attracting businesses and expanding pro-growth investments. Governor Patrick Morrisey announced in his first State of the State address that the Mountain State will become a leader in expediting new projects through permitting reform.
And last month, Oklahoma Governor Kevin Stitt similarly remarked that “permitting delays weaken U.S. economic growth, security and competitiveness,” and that “governors from both parties are working together to inject some common sense into our permitting process.” Governor Stitt announced that he and Pennsylvania Governor Josh Shapiro will form a bipartisan working group on permitting reform, with an emphasis on NEPA, judicial review, and siting.
While Members of Congress debate NEPA reform at the federal level, states should consider ALEC’s common sense model policies to foster market competition, promote critical infrastructure investments, and speed the development of all-of-the-above energy in their communities.
Our Model Resolution Supporting Individual Property Rights; Private Land Use for Energy Development affirms the right of individuals to develop energy projects on their private property. Enabling property owners to freely enter into energy projects and oil, gas, and mineral rights agreements on their land supports new market opportunities for expanding energy availability.
Many states, particularly in the West, are also restricted on how energy projects can be regulated and managed on the large swaths of federal lands within their own state borders. ALEC’s Model Resolution Supporting States’ Ability to Permit and Regulate Oil and Gas Development on Federal Lands within Their Borders calls on Congress to provide states greater authority to permit and regulate oil and gas drilling on these federal lands, as states ultimately know how to best utilize the land and natural resources in their own backyard.
Excessive bureaucratic red tape and ambiguous, overlapping jurisdictions can delay projects for years or even decades. Some energy projects spend a longer time in the approval process than it would take to build them. Energy generated in the US is cleaner and safer than the rest of the world’s, but burdensome, unnecessary regulations restrict innovation and development.
Permitting reform is a key issue that can increase efficiency, improve project development speed, and attract new business and jobs. When it comes to advancing energy projects that spur innovation and investment, start with cutting red tape.