Stuck in limbo: How energy permitting delays are costing you more
Rising energy costs are hitting American families and businesses hard. Higher utility bills, pricier commutes — energy costs are making everything more expensive.
And one big issue is making everything worse: an outdated, inefficient, and overly complicated federal permitting process.
For energy companies, it often takes longer to navigate the bureaucratic hoops than to actually build or upgrade energy infrastructure.
That’s why a couple years ago, Americans for Prosperity’s policy team got its boots on the ground to uncover how red tape is stalling energy projects in six states.
STALLED BY RED TAPE: HOW BUREAUCRACY IS MAKING ENERGY COSTLY
Electricity doesn’t simply appear in our homes. It requires a vast and complex supply chain that often needs upgrades to keep up with ever-growing demand.
Yet reviews and lawsuits delay construction, drive up costs, and create uncertainty on necessary upgrades and new projects — if they don’t block them altogether.
The result? Consumers end up paying higher energy bills as new energy projects are forever stuck in regulatory limbo.
Here’s how the federal permitting process is at the heart of America’s failure to fulfill our energy potential:
- Costly delays: Endless red tape and lengthy reviews from federal and state authorities are stalling energy projects, wasting time and driving up costs for everyone.
- High compliance costs: Skyrocketing compliance expenses force businesses to spend millions, and guess who ends up paying the price? You, through higher energy bills.
- Uncertainty for developers: Unpredictable permitting deters investment, with projects often stalled (or outright canceled) by lawsuits or prolonged reviews.
- Discouraging innovation: Overcomplicated regulations are crushing small innovators and startups, blocking groundbreaking energy solutions that could transform our future.
HERE’S HOW RED TAPE IS HURTING YOUR STATE.
Senseless regulations are having a real effect on the lives of millions of Americans — and our policy team found just a few examples of how a cumbersome permitting regime is making your life more expensive.
In Arizona: The Resolution Copper Mine has been in permit purgatory for over 12 years, with the federal government taking years to finish the environmental impact review needed before construction starts.
In Montana: The $680 million Millenium Bulk Terminal Project was canceled after a 10-year legal battle with the state’s environmental department over water leases, costing the state hundreds of jobs and millions of dollars in tax revenue.
In Nevada: The Gemini Solar Project, the largest solar installation in America, took over five years to secure its permits. As a result, the project is almost two years behind schedule.
In Ohio: Federal inaction forced the cancellation of the Sweden Valley pipeline, which would have supplied reliable energy to thousands of Ohio households.
In Pennsylvania: The cancellation of the PennEast Pipeline, after years of delays, robbed the state of a chance to get cheap, reliable natural gas and cost 12,000 jobs and millions of dollars in tax revenue.
In West Virginia: After spending five years and $3 billion in endless lawsuits and permitting fights, the Atlantic Coast Pipeline project was canceled in 2020, costing West Virginians over 17,000 jobs.
TO BRING PRICES DOWN, WE NEED PERMITTING REFORM. NOW.
Federal permitting is creating huge bottlenecks in our energy industry, costing Americans time, money, and opportunities — that’s why we need to overhaul the current permitting system to unleash American energy.
The good news is that the Trump administration has taken some critical first steps toward reform by:
- Rolling back harmful Biden-era rules and regulations
- Temporarily freezing additional energy regulation without previous authorization from department heads
- Encouraging energy exploration and production in federal lands
But we need to keep the momentum strong — urge Washington to seize this chance for permitting reform. Sign the pledge to cut unnecessary regulations and unlock America’s energy potential.
Visit the Prosperity is Possible website to find policy solutions and get involved in advocating for affordable energy for all.
