Little-known permitting agency eager to be 'help desk' for big energy projects

A relatively little-known, eight-year-old federal agency could play a key role in modernizing and decarbonizing the US energy sector.

After getting a major cash boost from the Inflation Reduction Act, the Federal Permitting Improvement Steering Council wants to help more energy projects navigate the complex maze of needed federal authorizations, new executive director Eric Beightel said in a July 27 interview.

"The biggest thing for me is that the permitting council is seen as a help desk, as a permitting technical support for our project sponsors and agencies," Beightel told S&P Global Commodity Insights. "We want to be seen as a partner in the process."

In late June, President Joe Biden tapped Beightel to take over as head of the council. Created through the Fixing America's Surface Transportation Act of 2015, the council is tasked with improving the transparency and predictability of permitting for large or complex critical infrastructure projects. As part of that work, the council maintains an online dashboard that allows agencies, developers and the public to monitor permitting developments.

Under the council's FAST-41 process, certain projects are eligible for a comprehensive, integrated federal permitting timetable and enhanced collaboration with participating agencies. To qualify for the FAST-41 program, projects must have a price tag of at least $200 million and be subject to the National Environmental Policy Act (NEPA), among other criteria.

Covered projects include renewable and conventional energy, electric transmission, transportation, broadband, manufacturing and carbon capture. The recent law to raise the US debt ceiling made energy storage projects eligible as well.

Although the council has no decision-making authority, it can help project sponsors and the 13 federal agencies with members on the council to identify and quickly resolve issues.

"We are here to help get these projects through the process, to get to a decision," Beightel said. "And we do that best with open, honest communication across all parties."

Big portfolio, budget boost

The permitting council oversees a nearly $100 billion project portfolio. To help speed the transition to cleaner energy, the Biden administration and Democrats in Congress included $350 million for the permitting council in the Inflation Reduction Act (IRA) of 2022, which contained hundreds of billions of dollars for clean energy- and climate-focused tax incentives and programs.

The IRA's funding for the council equaled about 10 times the agency's typical annual appropriations. Those resources are aimed at supporting an expected surge in clean energy and other infrastructure investment from the IRA, as well as the bipartisan infrastructure law of 2021 and the CHIPS and Science Act of 2022.

"We are working with our federal partners to identify what immediate needs they have to ensure they have the capacity necessary to field the incoming ... investment dollars from [those laws]," Beightel said.

Portions of the IRA funding will also go to data services, cross-government IT solutions, and to help tribal nations engage in infrastructure project development.

"So many of the projects that we are talking about, whether it be oil and gas or transmission or solar or mining, are occurring on previously undisturbed or somewhat protected lands ... that have major tribal interests," Beightel said. "We need to make sure that they have the resources available to them to be able to effectively engage in these processes, so their voices are heard."

Energy emphasis

Previously, Beightel worked on infrastructure permitting issues at the US Transportation Department and the Office of Management and Budget, where he held advisory roles. Despite his transportation-heavy background, Beightel's work at the council will focus substantially on energy, including carbon-free sources. The Biden administration has set a goal to decarbonize the power sector by 2035 and put the US on a path toward net-zero emissions by midcentury.

"Clean energy is a huge part of our portfolio right now," Beightel said, noting that over half of current FAST-41 projects are for renewable energy. "So we are very much invested in renewable energy generation as part of our covered projects."

Electric transmission is also an "essential" part of the council's work, Beightel added. Clean energy proponents, the Biden administration and some lawmakers in Congress are pushing to expand the federal government's ability to site and permit large transmission lines regarded as critical to the clean energy transition. The Federal Energy Regulatory Commission is also working on several rules that could help grow and modernize the electric grid.

Absent those types of policy changes, the council will continue to help form "robust early involvement processes" and try to learn from projects that successfully moved through federal permitting, Beightel said.

But he warned against any future policies that could limit time frames for public engagement on infrastructure projects, even as the US tries to move quickly on climate change.

"We don't want to go fast for fast's sake," he said. "We want to go fast with intention and ensure that we are incorporating the perspectives of those who are most affected by the construction and the effects of the project."

Turning to oil and gas pipelines, Beightel said those projects often encounter the same types of hurdles as transmission lines given their length and complexity.

"We are trying to apply ... best practices across all the infrastructure sectors, and because those long linear projects run into similar problems, we are able to do that," he said.

Beightel also called for more stability around Clean Water Act permitting. "We are in a nonstop pendulum swing of where we make jurisdictional determinations, what waters are subject to the Clean Water Act, and that creates a lot of uncertainty on the project sponsors," he observed.

While Congress and agencies weigh more permitting policy changes, Beightel said he wants to show the value of the council as a convening body that can provide and demonstrate best permitting practices.

"My goal is to really grow that role for the agency as a resource for partners — federal, state, local, tribes and sponsors — to help them move their projects," Beightel said.

Doing that will require both government and project developers to "start having difficult conversations early. Let's troubleshoot at the beginning what those obstacles or opportunities may be down the road so we can start to position the project now for success later," Beightel said.

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