Permitting Reform Can Ensure a Lasting Manufacturing Renaissance

Newsweek

2 days ago

For manufacturing to continue growing our economy, creating jobs and developing the best products in the world, the United States must update its permitting laws and procedures. Permitting delays and associated costs make it harder for manufacturers to compete and win in the global economy. To fulfill President Donald Trump's plan to build America into a manufacturing powerhouse, permitting reform needs to go hand-in-hand with the administration's industrial strategy, which also includes tariffs on steel, tax cuts, and deregulation.
Construction workers are pictured.
Construction workers are pictured.
Getty Images
Bold actions are needed to fix the generational difficulties of building in the U.S. The administration has taken strong steps to alleviate the issues, such as the permitting technology action plan and the move to drastically cut approval times for energy projects. However, this requires a comprehensive, whole of government approach. The solutions must come from Congress and the administration to ensure certainty that cannot be wiped away with a new administration. Any reforms should do the following:
—Ensure Regulatory Certainty
Constantly shifting regulations are a nightmare for compliance and raise costs for all manufacturers. For instance, under the prematurely revised particulate matter (PM2.5) standard, the compliance level shifted from a tough but achievable number to an aspirational goal that is impossible or implausible for manufacturers to achieve. If the revised standard remains, economic growth will stall, as under the revised standard, the naturally occurring background levels of airborne particulate matter may put much of the country into non-attainment, meaning no construction permits will be issued. Manufacturing thrives on certainty, ensuring that regulations are achievable and stable helps manufacturers plan long-term and make positive investment decisions.
—Streamline the Paperwork and Process
Obtaining permit approvals for critical infrastructure projects often takes years. Before the 2023 debt ceiling deal, the White House Council on Environmental Quality issued a report stating that environmental impact statements, which are mandated under the National Environmental Policy Act (NEPA), took on average four and a half years. The mandatory studying of potential environmental impacts under NEPA takes longer than building a new steel mill. Streamlining the permitting process and reducing the endless required studies can ensure America is able to take advantage of incoming investment opportunities.
—Reform Litigation and Case Review
NEPA is the most litigated federal environmental statute. There are few limits to who can sue and when they can sue, which can dramatically delay the time to begin construction. Tightening limits on who can litigate and expediting review of cases is vital to ensuring swift adjudication. Putting a stop to endless delay tactics through the courts will help more projects break ground and bring much needed economic growth.
—Create an Approval "Shot Clock"
Manufacturing depends on access to our nation's plentiful natural resources. However, restrictions on the development of these resources are hindering our ability to strengthen domestic supply chains and making manufacturing more reliant on raw material imports. The National Mining Association reports that Australia and Canada, two countries with environmental protections that are arguably more stringent than those in the United States, have mine permitting processes that last two to three years on average, whereas in the U.S. the permitting process averages seven to 10 years. Creating a shot clock for approvals can dramatically expedite much needed projects.
—Expand One Federal Decision
One manufacturer reported lengthy delays of up to an entire year for the issuance of permits by the U.S. Army Corps of Engineers due to the failure of the U.S. Fish and Wildlife Service to complete the informal consultation required for confirming no adverse project impacts under the Endangered Species Act. For an entire year, potential workers sat on the sidelines and a community lost out on economic opportunity waiting on informal paperwork that should not have taken longer than 90 days to complete. Having a single point of contact for all federal permitting decisions can ensure that no project waits years for an agency without primary jurisdiction to act.
Permitting affects every aspect of our lives—from our economic security to our national security. If we fail to modernize existing processes, we risk falling behind international competitors. However, if we create lasting solutions that make the federal process more efficient, we can make America a global manufacturing powerhouse again.
Philip K. Bell is president of the Steel Manufacturers Association.
The views expressed in this article are the writer's own.