A new permitting reform bill introduced in the House would help protect reliable power nationwide by reducing delays for electric cooperatives making improvements to their systems, NRECA CEO Jim Matheson said in a letter to congressional leaders supporting the legislation.
The Standardizing Permitting and Expediting Economic Development (SPEED) Act would streamline the requirements imposed by the National Environmental Policy Act on electric co-ops applying for federal permits to build new generation, transmission and distribution capacity, strengthen existing systems or perform crucial maintenance work.
The lead sponsors of the bill, House Natural Resources Committee Chairman Bruce Westerman, R-Ark., and Rep. Jared Golden, D-Maine, say it would shorten permitting timelines and reduce the frequency of “frivolous litigation” that holds up construction of crucial infrastructure.
One of the big changes in the bill is that receiving federal grants or other types of funding would no longer automatically trigger NEPA, meaning co-ops wouldn’t have to go through the review process every time they get federal money for an improvement project.
“NEPA has become increasingly complex, unpredictable, and unworkable over time,” Matheson wrote in a July 30 letter to Westerman and Golden.
“The SPEED Act includes much-needed reforms to modernize environmental permitting and support electric co-ops’ energy development … Prolonged environmental reviews and legal challenges not only delay these new projects but also hinder vegetation management and routine maintenance for existing systems.”
The delays and hurdles created by NEPA increase costs for not-for-profit co-ops, which are forced to pass them on to consumer-members, Matheson said. He urged Congress to pass the bill.
“The SPEED Act offers meaningful solutions … These reforms would ensure agencies concentrate on direct, foreseeable environmental impacts within their expertise and legal mandate.”
The bill’s introduction comes as federal agencies under the Trump administration are releasing new NEPA procedures that will simplify the permitting process for co-ops’ energy and broadband projects.
NRECA has welcomed those changes while also lobbying Congress to update the law for a more permanent fix.
NEPA is well-intentioned, Westerman said, but it has become “bad for both our environment and the economy.”
“With commonsense upgrades, we can cut red tape and enable the United States to build once again while setting the standard for environmental stewardship,” the chairman said.
“The SPEED Act will help launch America into a future where we can effectively innovate and implement to revitalize our infrastructure, meet skyrocketing energy demands, lead the world in the AI race and work in harmony with our natural environment.”
Golden said that “being a good steward of our environment doesn’t mean we must tolerate a yearslong permitting process that is onerous, overly complex and ripe for litigation abuse.”
“America must get back into the business of building,” the congressman said. “We need modern infrastructure. We need robust power production that does not discriminate between energy sources. These investments will create jobs, support our economy, keep prices down and help us maintain energy independence.”
Erin Kelly is a staff writer for NRECA.