The White House Council on Environmental Quality (CEQ) has taken a significant step towards streamlining the permitting and environmental review process for solar and transmission projects on federal lands under the National Environmental Policy Act (NEPA). The recently released Bipartisan Permitting Reform Implementation Rule proposes a range of reforms aimed at advancing clean energy deployment, addressing climate change, promoting environmental justice, and safeguarding public health.

In response to the proposed rule, Sean Gallagher, senior vice president of policy for the Solar Energy Industries Association (SEIA), expresses his support, highlighting its importance in achieving a decarbonized economy while ensuring reliable and affordable power. He welcomes further collaboration with the administration in realizing the shared vision of clean energy.

The proposed reforms outlined in the rule are substantial and cover various aspects:

1. Accelerating the deployment of clean energy and essential infrastructure: The proposed rule aims to ensure efficient coordination of environmental reviews and establish project schedules and milestones. Additionally, the rule clarifies that projects with significant and long-lasting positive impacts will not require environmental impact statements. It encourages the use of programmatic environmental reviews that can cover multiple projects or categories.

2. Addressing climate change, protecting public health, and encouraging better environmental outcomes: The proposed rule emphasizes the consideration of climate change effects during environmental reviews. It advocates for the identification of reasonable alternatives to mitigate climate impacts and requires discussions on risk reduction, resiliency, adaptation measures, and potential disproportionate adverse effects on the environment and public health.

3. Advancing environmental justice and meaningful public engagement: Recognizing the importance of community involvement, the proposed rule encourages early interaction with communities. This fosters community buy-in, reduces conflict, and improves project design, potentially minimizing litigation. The rule mandates that agencies consider environmental justice during environmental reviews and incorporate measures to avoid or reduce disproportionate effects on communities. Moreover, agencies will need to consider the needs of affected communities when developing outreach and notification strategies.

4. Reversing provisions that jeopardize community input and create litigation risks: Certain changes introduced in the 2020 NEPA rule, such as onerous requirements for public comments, curtailed judicial review, and limitations on courts providing injunctive relief, are slated to be deleted by the proposed rule. This revision aims to restore community input and ensure the protection of public health and safety.

The proposed rule marks Phase 2 of CEQ’s NEPA rulemaking, building on last year’s targeted regulation that reinstated fundamental elements of NEPA regulations. These elements include the obligation for federal agencies to evaluate all relevant environmental effects, including those associated with climate change, during environmental reviews.

To access complete details on the proposed reforms, interested parties can visit the Federal Register. The proposed rule will be open for public comment through Friday, September 29, 2023, via Regulations.gov. CEQ will also be conducting virtual public meetings on the proposal on various dates, namely Saturday, August 26; Wednesday, August 30; Monday, September 11; and Thursday, September 21. For information on joining these public meetings, kindly visit the CEQ/NEPA webpage.

Disclaimer: The information provided in this research report is for informational purposes only and should not be interpreted as financial or investment advice. The energy market is highly volatile, and readers should conduct thorough research before making any investment decisions.