Americans across the political spectrum lament that the United States cannot effectively build new infrastructure anymore. Major projects always seem behind schedule and over budget for decades on end. But Congress has a clear opportunity to help solve these problems by delivering a version of the Standardizing Permitting and Expediting Economic Development (SPEED) Act that can clear 60 votes in the Senate. The House version of the bill passed by a vote of 221-196.
The SPEED Act reforms the National Environmental Policy Act (NEPA) to improve the environmental review process. In its current form, review leads to excessive litigation and delays that drive up the cost of necessary projects. The Senate now has the opportunity to deliver a pragmatic bill that will make it easier to build power plants, transmission lines, and other projects that can help meet rising energy demand.
The SPEED Act includes targeted reforms to reduce unnecessary delays and mitigate project risk while maintaining an environmental review process and allowing for judicial review. The bill codifies NEPA as a procedural statute and narrows the scope of effects agencies may analyze to proximate cause, formalizing this year’s Supreme Court ruling in Seven County Infrastructure Coalition v. Eagle County. In practice, this should reduce the burden of paperwork in the NEPA process and standardize how lower courts respond to NEPA litigation. This will create more certainty for project owners and mitigate the risks of unexpected project delays.
Furthermore, the SPEED Act reforms NEPA to limit the remedy that a court may order. At present, if a project faces a lawsuit after completing the environmental review process, the court can issue an injunction that prevents the project from continuing until the litigation has finished. Most projects that face these lawsuits are still completed, following a successful appeal, but they are delayed for on average 4.2 years. These lawsuits are generally not successful in stopping a project but the delays translate into higher costs, as interest payments compound over those years of litigation. This is particularly burdensome now that interest rates are higher. At an interest rate of eight percent, a four-year delay will result in a project’s capital costs rising 36 percent. These costs are passed on to Americans via higher electricity prices, aging infrastructure, and fewer economic opportunities. The SPEED Act would allow new projects to continue while they are in litigation, reducing the hidden NEPA tax imposed by litigators and encouraging investment in other capital intensive projects.
Rising residential utility bills are eating into household budgets across the country. According to the U.S. Energy Information Administration, average residential electricity prices rose by 26.3 percent from January 1st, 2021 to January 1st, 2025. In order to prevent prices from rising further, Americans need new power plants and transmission lines to be built on time and within budget. Supply must rise to meet demand or consumers will continue to see costs rise. This is particularly important for lower-income Americans as electricity costs make up a larger portion of their income. Research from the American Council for an Energy-Efficient Economy found that the median low-income American household spends 8.1 percent of their income on energy. Even without the data center boom, electric vehicles and growing populations have increased demand the current grid cannot maintain. Americans need more infrastructure to meet the demands of the 21st century, and permitting reform is only the first step to meet those needs.
Under the status quo, projects face another major permitting risk: the president can direct federal agencies to stop projects even after they successfully navigate all of the legally required permitting processes. President Trump has paused leases and issued stop-work orders for offshore wind projects and President Biden used this authority to suspend valid oil and gas leases in the Arctic National Wildlife Refuge. The SPEED Act strips federal agencies of the authority to unilaterally revoke, suspend, or pause valid existing permits without clear evidence of fraud or immediate danger. This change will help to create more project certainty and prevent a future where energy infrastructure is further politicized, reducing investment and driving energy costs higher.
Comprehensive permitting reform is essential to tackle the cost of living crises in the United States and create new job opportunities. The SPEED Act’s reforms will help to reduce costs for ratepayers, encourage investment in critical infrastructure, and prevent further politicization of energy projects. The Senate should seize this opportunity to get the SPEED Act across the line to deliver for all Americans.