Full Committee Oversight Hearing

Committee on Interior and Insular Affairs

2025-07-22

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Source: Congress.gov

Summary

The meeting focused on the effectiveness and challenges of the National Environmental Policy Act (NEPA) and its permitting processes [ 00:33:19-00:33:22 ]

. While some members highlighted NEPA's role as a cornerstone of good governance and environmental protection, others characterized it as an outdated and cumbersome system leading to significant project delays and increased costs [ 00:33:22-00:33:25 ] [ 00:39:34-00:39:45 ] . Discussions revolved around balancing the need for timely infrastructure development and energy security with robust environmental safeguards and community engagement [ 00:36:51-00:36:52 ] .

Themes

Challenges with NEPA and Permitting

NEPA is frequently cited as a major roadblock, causing projects to face extensive delays, increased costs, and even abandonment [ 00:33:25-00:33:38 ]

. The average Environmental Impact Statement (EIS) can be 661 pages long and take 4.5 years to complete, sometimes over seven years for highway projects, with additional time spent on pre-NEPA activities [ 00:33:48 ] . Litigation is a significant factor, as NEPA is the most frequently litigated environmental statute, with an average resolution time of over four years [ 00:34:09 ] . Many projects face "bureaucratic limbo" before the formal NEPA process even begins, costing millions and leading to project deaths [ 01:02:00-01:02:22 ] . This complexity and redundancy, often driven by overly broad interpretations of environmental impacts, contribute to projects taking 10 to 15 years or more . The cumulative effect of these delays on public projects is estimated to cost the U.S. economy trillions of dollars [ 00:34:28 ] . Specific sectors, including transportation, energy, mining, forest management, and water infrastructure, are severely affected, impacting economic growth and national security [ 03:38:08-03:38:13 ] .

Importance and Benefits of NEPA

Despite calls for reform, NEPA is praised as a "cornerstone of democracy and good governance" for ensuring transparency and accountability in federal decisions . It mandates that federal agencies consider environmental, health, and cultural consequences, and engage communities before acting . NEPA is seen as a "look before you leap" statute, promoting informed decision-making and public disclosure . Public participation is crucial, as studies show it can significantly improve projects and decision-making by offering valuable local knowledge and identifying potential mitigation strategies . Furthermore, NEPA helps protect environmental health, ensuring air, water, and lands are preserved for future generations .

Proposed Reforms and Solutions

Various solutions were proposed to address NEPA's inefficiencies. Recommendations include empowering states to take on more NEPA responsibilities for faster reviews and cost savings . Enforcing "one federal decision" rules to meet statutory timelines and page limitations, along with standardizing documents and limiting post-agency litigation, is also suggested . A critical point for accelerating permitting is increasing the number of experienced professionals at permitting agencies . Integrating technology like e-permitting, geographical information systems, and AI can streamline processes, make information more accessible, and improve efficiency . There is also a push for greater clarity and certainty in NEPA regulations, including statutory changes that would limit litigation delays and focus environmental reviews on direct, foreseeable impacts . The Fiscal Responsibility Act (FRA) introduced page and time limits for EISs and EAs, and the Supreme Court's "seven county" decision aims to limit judicial overreach and injunctions [ 00:35:34-00:35:41 ]

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Political and Ideological Divides

The discussion was marked by significant partisan division, particularly concerning the motivations behind NEPA reform efforts. Some members argue that NEPA has been "weaponized" by special interest groups to halt essential projects, turning the process into a "proxy referendum battle" over energy policy [ 00:34:02 ]

. Concerns were raised about perceived "attacks on wind and solar" and new bureaucratic hurdles placed on clean energy projects, such as the Interior Department's directive requiring secretarial sign-off for such permits . Critics also highlighted the instability caused by previous administrative actions that dismantled unified NEPA regulations, leading to agency "chaos" and increased litigation . Conversely, some Democratic members expressed skepticism that current reform proposals are a "Trojan horse" designed to eliminate NEPA and prioritize fossil fuel interests, citing massive cuts to federal agencies and legislative attempts to weaken environmental protections . The debate also touched upon the economic implications of energy choices, with discussions about the rising costs for consumers due to project delays and the repeal of clean energy tax credits .

Tone of the Meeting

The tone of the meeting was largely contentious and partisan, especially during the initial statements and exchanges between members . There was palpable frustration among Republican members and some witnesses regarding the perceived overreach and inefficiencies of NEPA, which they argued hinders economic growth and energy independence [ 00:33:19-00:33:25 ]

[ 01:01:34-01:01:53 ] . Democratic members, while acknowledging the need for "modern reforms," emphasized NEPA's critical role in environmental protection, transparency, and community input, often expressing skepticism about the true intentions of broader reform efforts . Despite the strong partisan divisions, there were attempts to identify areas of "bipartisan effort" and "common ground" by the Chairman and some members, particularly concerning the use of technology and the need for greater clarity in the permitting process [ 00:36:57 ] . However, these efforts were often overshadowed by sharp criticisms regarding the political weaponization of NEPA and administrative actions seen as favoring certain energy sectors over others .

Participants

Transcript

The Committee on Natural Resources will come to order.  Without objection, the chair is authorized to declare recess of the committee at any time under Committee Rule 4F.  Any oral opening statements at hearings are limited to the chairman and the ranking minority member.  I ask unanimous consent that the gentleman from California, Mr. Peters, be allowed to participate in today's hearing.  Without objection, so ordered.  You're good now, Scott.  I now recognize myself for an opening statement.   Good morning.  I appreciate all of you being here today to discuss one of the most critical issues I believe that's facing America, and it's our outdated and cumbersome permitting process.  The National Environmental Policy Act, or NEPA, was initially intended to promote informed decisions and assess the environmental impacts of major federal actions.   Today, however, NEPA has mutated into a significant roadblock to carrying out the infrastructure and energy projects essential to America's energy and national security needs.  To quote the recent Supreme Court decision on NEPA in seven-county infrastructure coalition versus Eagle County, Colorado,   Quote, 1970 legislative acorn has grown over the years into a judicial oak that has hindered infrastructure development under the guise of just a little more process, end quote.  NEPA reviews have become limitless and excruciating exercises requiring agencies to amass behemoth environmental treaties which increase project costs and create delays for projects ranging from transportation and infrastructure to forestry, conservation, and energy development.   In 2020, the average length of a final environmental impact statement or EIS was 661 pages, and the average time to complete an EIS was a whopping four and a half years for all projects and over seven years for federal highway administration projects.  Notably, these figures do not include the time spent on pre-NEPA activities, which add even more time to the process.   As a project proponent, once your behemoth NEPA document is completed, you're likely to face frivolous litigation from dark money special interest groups that have built business models around litigation to delay and block projects under NEPA.
According to a recent study by the Breakthrough Institute, NEPA is the most frequently litigated environmental statute, and NEPA-related litigation takes an average of over four years to resolve, adding time and increasing costs   and increasing uncertainty when you have a project with a federal nexus.  These delays have a significant impact on projects cost, some of which are passed along to taxpayers.  In fact, an analysis by Common Goods shows that a six year delay in construction on public projects cost the US economy over $3.7 trillion.  Let me repeat that.   These six-year delays on construction projects cost the U.S.  economy on public projects.  We're not talking about energy and other projects.  We're talking about road construction and those sort of things.  $3.7 trillion with no return on it to the American public.   For many projects, years of delay and increasing costs are a base case scenario.  In many cases, projects are permanently halted by the courts or mired in endless reviews and appeals, prompting project proponents to simply give up.  This is especially egregious given that NEPA is purely a procedural statute, a point that the Supreme Court yet again clarified in the seven-county decision.   Thankfully, this case has restored some sanity in the NEPA process by limiting reviews and clarifying the lower courts should not use NEPA as a tool to block projects.  While the committee was able to secure meaningful changes to NEPA in the Fiscal Responsibility Act, these changes were largely ignored by the previous administration's Council on Environmental Quality,   in their Phase 2 NEPA rulemaking, which also added new requirements to NEPA not found in the statute.  This initiated a chamber action that began with a lawsuit from 20 states and culminated in a court decision that vacated the Phase 2 rule, finding that the Phase 2 rule exceeded CEQ's authority under NEPA and that CEQ lacked statutory authority to promulgate any rulemaking implementing NEPA.
The Trump administration's CEQ has issued guidance to agencies to follow in their respective NEPA rulemaking efforts.  This guidance finally directs agencies to faithfully implement the reforms made in the FRA.  While the Trump administration's actions are a positive step forward, Congress must still act to provide long-term certainty for both agencies and the regulated community.   I know that some of my colleagues on the other side of the aisle may try to portray efforts to amend NEPA as benefiting only a select few.  However, the truth is that amending and reforming NEPA will aid all sectors of our economy, creating benefits for all Americans.  We have discussed previously energy demand is skyrocketing and the AI arms race is underway.  If we want to ensure a future where America remains a beacon of liberty and freedom, we must reform our permitting processes to bolster energy   and national security and enhance American economic competitiveness.  I look forward to hearing the testimonies from some of today's leading experts on the issue and also I want to say that this should be a bipartisan effort and I think it will be a bipartisan effort because I think   Republicans and Democrats alike see that the process needs to be fixed not only to get some certainty in the project investment, but also to protect the environment and to achieve the goals that were put in place many Congresses ago when NEPA was passed and when the underlying statutes like   and MMPA and the ones that Energy and Commerce has jurisdiction over.  If we really want to implement these statutes and see America grow and also see our economy and our environment thrive, then it's time to do NEPA reform.  With that, I yield back and recognize Ranking Member Huffman for an opening statement.

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