The United States is falling behind in energy and infrastructure development, and the culprit is our own federal bureaucracy. This can change if Congress implements significant permitting reform, repeals decades of senseless and duplicative regulations, and restores regulatory order by returning power to the states as our founding fathers intended.
While states like Texas can approve and begin construction on critical projects in a matter of months, federal approval for natural gas projects, for example, including obtaining a permit and beginning construction, takes an average of 3.5 years. This is an unacceptable delay that hampers economic growth, energy security, and job creation.
Texas state and local authorities, for example, have proven they are better equipped to handle infrastructure approvals efficiently. This is partially because they employ seasoned professionals to conduct thorough inspections, ensuring safety and compliance without the burden of excessive red tape. It’s also because the state legislature and governor recognize the value the industry brings to the state. The industry alone pays more in taxes than the majority of individual state budgets. Last year it paid more than $27 billion, which funds public school education, infrastructure projects, emergency services and other services.
Texas has proven that states have the ability and authority to efficiently and effectively conduct inspections, provide oversight and build critical infrastructure needed to ensure the prosperity and security of its citizens without the weight of double sided bureaucratic red tape. Texas and other state governments have successfully done this without interference from federal courts or agencies like the Federal Energy Regulatory Commission (FERC), which faces frequent legal challenges that further delay progress. As a result, pipelines, refineries, and other essential infrastructure projects are often stalled or canceled due to FERC court battles and endless regulatory hurdles.
Meanwhile, China and other global competitors are rapidly expanding their energy capacity because they don’t face the same bureaucratic obstacles as those created by multiple federal agencies and regulatory bodies. While the U.S. debates and delays, our adversaries are outpacing us in energy production and infrastructure investment.
It doesn’t have to be this way.
If American politicians are serious about maintaining energy independence and economic competitiveness, we must reform our approval process. States should have greater autonomy to manage their infrastructure projects without unnecessary federal interference. A streamlined, state-led approach would ensure that projects move forward safely, efficiently, and in a timely manner – providing jobs, lowering energy costs, and securing America’s place as a global energy leader.
The U.S. Senate Committee on Environment & Public Works recently held a hearing addressing the need for permitting reform. Its chair, Shelley Moore Capito, R-W.Va, argued, “For too long, critical projects such as energy and infrastructure projects, along with industrial projects as well, have been trapped in a cycle of redundant reviews, shifting goalposts, and regulatory uncertainty.”
She’s right: federal regulatory uncertainty drives up energy costs and dissuades businesses from making long-term investments in the fossil fuel industry. In states where fossil fuel energy production depends on federal permitting, which was halted under the Biden administration, billions of dollars in losses were reported that directly impacted local communities, school districts, and state revenues.
As the federal government advanced even more restrictions on federal land, the Texas oil and natural gas industry, led by those operating in the Permian Basin, not only broke production records but also reduced methane emissions by 76%. Additionally, seven oil producing basins in the U.S. also reported a staggering 87% drop in methane emissions. The Texas industry is also leading in job creation and technological advancements.
Texas has accomplished records despite federal bureaucrats over the last 50 years implementing a slew of regulations and multiple judicial rulings created duplicative, contradictory and unnecessary requirements. Its success is due to having the support of the governor and legislature, Texas ingenuity, skilled laborers committed to hard work, and nearly all production occurs on private land out of the reach of federal bureaucrats.
Congress has created duplicative and contradictory mandates through numerous permitting and operational requirements stipulated by the National Environmental Policy Act, Clean Water Act, Clean Air Act, Endangered Species Act, and others. Many of them duplicate state permitting and regulatory requirements, slowing down a process when state efforts are more efficient and, in many cases, carry heavier penalties than their federal counterparts.
States like Texas are already leading in regulatory reform and efficiency, illustrating that federal oversight is not needed. Texas also provides oversight and requires violations be immediately reported to the Texas Commission on Environmental Quality.
The good news is under the Trump administration, Congress has a real opportunity to streamline and repeal excessive federal regulations. Congress has the power to slash restrictive red tape, create a firm foundation for growth and remove the uncertainty that has hamstrung major investments from pouring into the oil and gas industry.
By returning regulatory authority to the states, which the 10th Amendment guaranteed, “The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people,” Congress can restore regulatory order and usher in a new golden age of American energy independence and dominance.
