Permitting Reform: A Bipartisan Imperative for US Energy Transition, Says Ramez Naam

Permitting reform is the single most critical action to accelerate clean energy deployment in the United States, according to technologist and investor Ramez Naam. He argues that such reform must encompass both renewable and fossil fuel infrastructure to achieve legislative passage, despite the primary goal of boosting clean energy.

"Permitting reform is by far the #1 thing we can do to accelerate clean energy in the US. Even if it eases permitting for oil and gas infrastructure as well. And indeed, it must to get passed," Naam stated in a recent social media post. This perspective highlights the political realities of advancing comprehensive energy policy.

The current permitting landscape in the U.S. presents significant hurdles for energy projects. While federal permitting durations have seen some decrease, the primary bottlenecks for clean energy projects, such as solar and wind farms, often lie at the state and local levels. These include restrictive local ordinances, zoning issues, and strong community opposition, leading to project delays or outright cancellations.

For instance, between 2008 and 2021, 49% of 53 utility-scale wind, solar, and geothermal projects studied faced permanent cancellation, with another 34% experiencing significant delays. These issues are exacerbated by complex grid interconnection processes, which have slowed over the past two decades, with over 1,000 projects withdrawn from interconnection queues annually. The economic impact of these delays is substantial, with the Niskanen Center reporting that NEPA reviews alone average four years and cost $4.2 million per project.

Recent legislative efforts, such as the Fiscal Responsibility Act of 2023, have included some federal permitting changes, particularly for transmission lines. However, experts like Naam emphasize the need for broader, more encompassing reforms that address all levels of government. The bipartisan nature of such reform is often seen as essential for overcoming political gridlock and unlocking the full potential of both clean energy and necessary traditional energy infrastructure.