A new report quantifies what has been stated widely in general terms: The federal permitting process is delaying, downsizing and deterring clean energy projects.

Crux on April 7 announced a market analysis based on a February survey of 50 wind and solar developers and permitting professionals. It found:

• • nearly 80% of developers are siting projects to limit exposure to federal permitting requirements;
  • federal permitting issues contributed to delays of six months on average for approximately 11 GW of impacted capacity among the survey respondents;
  • all the developers surveyed reported higher project costs from federal permitting, and 58% said their total increases were by 6 to 10%; and
  • developers surveyed want predictability and certainty in the permitting process more than speed or simplicity.

Federal review goes far beyond proposals on federal land. It can be triggered by such things as endangered species and their habitat, wetlands, water bodies, historic sites, federal financing, migratory birds and airspace obstructions.

The combined effects can be significant: All respondents said federal permitting was a contributing factor in project delays or cancellations.

The developers surveyed said they were looking not for weakened environmental protections but for consistent application of those protections. Asked what change they would most like to see, 72% said more predictable outcomes. Faster timelines (12%), simpler processes (8%), greater agency staffing (6%) and better community/stakeholder engagement (2%) were far down on the collective wish list.

The focus of the Crux analysis is clean energy, but the authors make the point that the “arduous and complex” development process cuts across all energy technologies, including the fossil fuels favored by the current administration.

The permitting process can serve to filter out projects with economic problems, community opposition and other problems, they say, but it has become onerous.

In an introduction to the report, Thomas Hochman, director of energy and infrastructure policy at the Foundation for American Innovation, wrote that the Inflation Reduction Act was passed without a companion package of permitting reform measures. It is still needed, he wrote, even as many provisions of the IRA wind down: “Time is money — and Congress now has an opportunity to drive down the carrying cost of deployment with bipartisan permitting reform.

“The exact contours of the deal are still to be seen, but the core components — reforms to [the National Environmental Policy Act], the Federal Power Act, the Clean Water Act and the [National Historic Preservation Act] — would benefit every energy source and every energy developer.”