Portman and McCaskill Introduce Federal Permitting Improvement Act of 2015

Press Release

U.S. Senators Rob Portman (R-Ohio) and Claire McCaskill (D-Mo.) today introduced the Federal Permitting Improvement Act of 2015, bipartisan legislation designed to streamline and improve the federal permitting process, which is currently laden with uncertainty and unpredictability that hinders investment, economic growth, and job creation. The Federal Permitting Improvement Act is modeled on the commonsense, bipartisan permit-streamlining reforms of the 2006 and 2012 transportation bills and recommendations from the President's Jobs Council, as well as other studies. U.S. Senators Angus King (I-Maine), Joe Manchin (D-W.Va.), Roy Blunt (R-Mo.), Ron Johnson (R-Wis.) and Rand Paul (R-Ky.) are original cosponsors.

"We've made a lot of progress expanding job opportunities and getting folks back to work, but we shouldn't let up now," McCaskill said. "Infrastructure projects create good-paying jobs, and employers can't afford lengthy, unnecessary delays because of an uncoordinated bureaucracy. We need a streamlined process that allows businesses and communities working on large projects the freedom and independence to get them off the ground."

"Under the current U.S. system, many major job-creating projects get bogged down in a lengthy approval process and never see the light of day," Portman stated. "By streamlining the federal permitting process, our bill will help promote expansion, economic growth, and the hiring of American workers right here at home."

"Our federal permitting system is plagued by too many layers of bureaucracy and poorly coordinated processes. Although well intended, the resulting lack of coordination severely delays -- if not completely derails -- the ability to move forward with important infrastructure projects," King said. "Maine suffered from a similar problem when I was Governor, which is why we created a sensible system of "one-stop regulatory shopping,' which vested the responsibility of coordinating and issuing a final permit within one lead agency. This bill would follow Maine's lead by creating a similar system at the federal level for major capital projects, helping to ensure that the permitting process doesn't become a barrier to improving American infrastructure. Our country is in desperate need of the work and the jobs that these projects can create. The government should be a partner in helping to provide them, not an obstacle."

"Because of the current dysfunctional permitting process marked by never-ending delays, valuable infrastructure and other construction projects are stalled or cancelled entirely," said U.S. Chamber of Commerce Senior Vice President of Environment, Technology, & Regulatory Affairs Bill Kovacs. "And when those projects go away, so do the jobs associated with them. The Chamber recognizes and appreciates the tireless efforts of Senators McCaskill and Portman to address this problem through the introduction of the bipartisan "Federal Permitting Improvement Act.' By streamlining the environmental review and permitting process, this legislation would get projects back on track, and allow for job creation and economic growth. This bill -- a commonsense approach that builds on successful provisions for environmental review management found in previous transportation legislation -- is a critical component to improving and reforming this country's regulatory process. By cutting the "red tape" that has hindered development and maintaining meaningful environmental reviews, S. 280 will allow for the advancement of important projects that could also provide jobs for millions of Americans."

"If there was ever an issue that could be considered a no-brainer for Congress, The Federal Permitting Improvement Act is it," said North America's Building Trades Unions President Sean McGarvey. "Streamlining the process through which important infrastructure projects gain approval is critical for the overall economic health of the American economy, as well as the individual economic interests of the skilled craft construction professionals I represent. Any way you slice it, this is a jobs bill."

"Manufacturers rely on our nation's vast interconnected infrastructure to support and supply every sector of the economy," said Rosario Palmieri, vice president for infrastructure, legal and regulatory policy at the National Association of Manufacturers (NAM). "The Federal Permitting Improvement Act would greatly improve the permitting process by removing many bureaucratic delays that slow important construction projects. Currently, a myriad of overlapping and duplicative processes leads to extensive delays, uncertainty and higher costs for both privately-funded and government-funded projects. The result is structural decay, lost jobs and an inefficient use of resources. Infrastructure is not keeping up with the demands of a growing economy and manufacturers in the United States are placed at a competitive disadvantage when the infrastructure is not there or in decline. Manufacturers appreciate the leadership of Senators Portman and McCaskill on this issue. To maintain our global competitiveness, we must do better than the status quo. Permitting reform will ensure that infrastructure is performing at a pace to keep up with the needs of business."

The United States ranks 41st in the world in "Dealing with Construction Permits," a key World Bank metric measuring how easy it is to actually build something.

Businesses seeking to undertake major capital projects often must run the gauntlet of a dozen separate agency approvals and reviews. That process is plagued by a lack of coordination, few deadlines, insufficient transparency, and litigation exposure as long as 6 years after securing all required approvals. State and local government authorities face the same obstacles when they seek federal permits for infrastructure projects. The resulting uncertainty surrounding major capital projects makes new construction and investments less attractive and hinders job creation. Several recent reports have highlighted the need for modernization of the permitting process, including the 2011 Year-End Report of the President's Jobs Council, the Business Roundtable's Permitting Jobs and Business Investment, and the Chamber of Commerce's Project/No Project report.

The Federal Permitting Improvement Act would improve the permitting process for major capital projects in three ways: better coordination and deadline-setting for permitting decisions; enhanced transparency; and reduced litigation delays. The bill is limited to economically significant capital projects, defined based on the size of the initial investment (more than $25 million). The bill covers major capital projects across all sectors, including renewable or conventional energy production, electricity transmission, surface transportation, aviation, ports and waterways, water resource projects, broadband, pipelines, and manufacturing.

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