PA Environment Digest Blog: Gov. Shapiro, Oklahoma Gov. Stitt Lead Bipartisan National Governors Assn. Group Recommending Energy Facility Permitting Reform To Address Nation’s Energy Crisis

On October 28, Gov. Josh Shapiro and Oklahoma Governor Kevin Stitt led a bipartisan, multi-state response from the National Governors Association to the nation’s energy crisis by sending a series of recommendations for federal permitting reforms to committee chairmen and ranking members in the U.S. Senate and House to help speed the delivery of critical energy infrastructure projects without compromising environmental protections.

Among the recommendations are--

Streamlining Federal Agency Permit Review

-- Require the adoption of common interagency digital systems, ePermitting, and common application fields/formats for digital submissions.

-- Ensure federal agency permitting staff have adequate personnel to make timely permit decisions.

-- Codify a technology-neutral prohibition on retroactive permit or lease cancellation, amendment, or alteration

National Environmental Policy Act Reform

-- Require FERC to be designated the lead agency for federal transmission reviews.

-- Require an agency other than the Department of State to be designated the lead agency for cross-border energy projects.

-- Reduce the statute of limitations for filing suit against an agency NEPA action from six years to one year or less.

-- Direct courts to set a time limit for an agency to act on a remand of six months, and require courts to prioritize cases reviewing energy project permitting decisions for the next five years.

-- Expanding Categorical Exclusions: Allow categorical exclusions or class-based environmental reviews to apply, contingent on approval by the relevant state’s Governor, for certain categories of responsible development on brownfields or previously disturbed lands.

-- Provide permit applicants with an expedited pathway to petition courts for a decision on a review that exceeds timelines codified in statute or set forth by the agency, and require a full refund of permit fees if these timelines are exceeded, unless the applicant causes significant and undue delay.

-- A money-back-guarantee system as implemented by several states, has led to significant improvements in state permitting.

Reforms On Interstate Energy Transmission

-- Require FERC to create a National Interest Designation Process that allows an electric transmission facility to be declared in the national interest after the hearing and consideration of several factors and consultation with affected states.

-- Allow groups of states to nominate National Interest Electric Lines.

Regional Transmission Organization Reforms

-- Determine by law that it is not just and reasonable for an RTO/ISO to fail to provide states or state organizations with jump ball or complementary filing rights, and, more broadly, require RTOs/ISOs to improve interregional planning and more robustly consider state alternative planning options.

-- Determine by law that it is not just and reasonable for an RTO/ISO to fail to fulfill an interconnection request for new generation and storage into the grid within six months of an initial complete application.

Nuclear Energy Regulation

-- Create rulemakings to allow for Environmental Assessments instead of Environmental Impact Statements when appropriate.

-- Finalize rulemakings creating a generic/programmatic EIS for the construction and operation of advanced nuclear reactors.

-- Create a new expedited design licensing pathway for reactors using the same, unmodified design as an existing licensed reactor.

-- Proactively certify likely variations on existing small modular reactor and microreactor designs likely to be produced at scale.

-- Allow NRC to certify states to perform parts of the siting review, with clear delineation of responsibilities and processes, in exchange for the state assuming responsibility for litigation arising out of siting decisions that are currently under NRC’s jurisdiction.

Federal Clean Water Act Reform

-- To the extent that public participation and consultation is required, ensure that engagement happens at the earliest possible stage of the project.

-- Codify statute of limitations for Clean Water Act challenges to Section 401 water quality certifications.

-- Provide states with an option to extend the duration of NPDES permits up to five additional years for certain projects unlikely to include significant changes in between permits, if the state determines that significant changes to the permit are not necessary.

-- Improve and codify processes for state primacy in Clean Air Act and Clean Water Act permitting. Expedite consideration of applications for primacy over Class VI wells.

-- Consider full or partial reimbursement for states with primacy or delegated responsibilities under the Clean Air Act, the Clean Water Act, and the Endangered Species Act.

Click Here for a copy of the letter.

Background On Recommendations

The letter was developed by the National Governor Association’s (NGA) Permitting Working Group that was announced in February and is co-led by Governor Shapiro and Governor Stitt.

The letter was co-signed by Colorado Governor Jared Polis, Connecticut Governor Ned Lamont, Indiana Governor Mike Braun, Louisiana Governor Jeff Landry, Maryland Governor Wes Moore, Massachusetts Governor Maura Healey, North Dakota Governor Kelly Armstrong, Rhode Island Governor Daniel McKee, Tennessee Governor Bill Lee, Utah Governor Spencer Cox, and Wyoming Governor Mark Golden.

As national leaders in energy production, Oklahoma and Pennsylvania have responded to increased energy demands by responsibly implementing permitting reforms to cut red-tape and advance energy innovation while working to lower costs for hard-working Americans – and they are now encouraging the rest of the country to follow suit.

Since taking office in 2023, Governor Shapiro has positioned Pennsylvania for long-term economic growth and success by implementing the PA Permit Fast Track Program, reducing permitting and licensing wait times for a wide range of permits from weeks to days, and eliminating the backlog of more than 2,400 permits for projects across the Commonwealth.

In 2024, Pennsylvania added more than 5.5 million megawatt-hours onto the grid – and today, the Commonwealth is producing more power than ever as the nation’s top electricity exporter.

“In Pennsylvania, we’re doubling down on our energy legacy by taking big, decisive steps to build new sources of power,” said Governor Shapiro. “My Administration has prioritized streamlining government to work for the people it serves and has responsibly sped up permitting to get new energy projects online and grow Pennsylvania’s economy. It’s far past time that we position the United States to do the same in order to win the energy and AI race, and lower energy costs for all Americans.”

Oklahoma is the nation’s energy leader, consistently ranking in the top 10 for energy generation, low cost of energy, and energy innovation.

Governor Stitt has long been a champion for Oklahoma’s energy industry with a free-market based approach that opens the door for more electricity generation.

This year, he spearheaded legislation to allow companies to build their own power generation for large projects.

“Oklahoma leads the nation for power generation because of our energy abundance agenda,” said Governor Stitt. “We aren’t picking winners and losers, and we aren’t letting the government stand in the way of companies building the power our nation needs. At a moment when power needs are at an all-time high and the rapid development of technology and A.I. is putting new demands on our grid, it’s more important than ever that we take our foot off the brake and ensure our energy industry can quickly innovate, build, and deliver power to Americans and our allies.”

Click Here for Gov. Shapiro’s announcement.

PA Oil & Gas Industry Public Notice Dashboards:

-- PA Oil & Gas Weekly Compliance Dashboard - Oct. 25 to 31 - 100 Criminal Charges Filed; 49-Hour Uncontrolled Shale Gas Well; Failed To Clean Up Conventional Well Spills For 1,364 Days And Counting [PaEN]

-- [Read Carefully!] PA Oil & Gas Industrial Facilities: Permit Notices, Opportunities To Comment - November 1 [PaEN]

-- DEP Invites Comments On Chapter 105 Permit For 3.9 Mile Shale Gas Well Pad Development Access Road, Staging Area In Loyalsock State Forest, Lycoming County [PaEN]

-- DEP Invites Comments On First Title V Air Quality Permit For the Calpine Mid-Merit II 1,449 MW Natural Gas-Fired Power Plant In York County; To Supply Power To Data Center Project [PaEN]

-- DEP Sets Dec. 1 Hearing On Revised Title V Air Quality Permit For The Monroe Energy LLC Trainer Refinery In Delaware County [PaEN]

-- [Read Carefully! An Unusual Number Of Hearings, Big Permits] DEP Posted 77 Pages Of Permit-Related Notices In November 1 PA Bulletin [PaEN]