Trump orders permitting agencies to embrace tech

Dive Brief:

• As the White House continues to overhaul the environmental review and permitting process, President Donald Trump signed a memorandum on April 15 that will require federal agencies to integrate technology into their review workflows in order to accelerate the processing time for infrastructure projects.
• The order requires the Council on Environmental Quality, in consultation with the National Energy Dominance Council and other relevant permitting agencies, to issue a Permitting Technology Action Plan within 45 days of the memo’s issuance. After a further 90 days, officials will be required to use the new system.
• Goals of the order include eliminating the use of the paper-based application and review process and reducing unnecessary project delays. The changes will affect a variety of infrastructure projects such as roads, bridges, mines, factories and power plants, according to the White House. 

Dive Insight:

The White House said its actions will digitize permit applications, expedite reviews, enhance interagency coordination on projects and give sponsors more transparency and predictability on project permitting schedules. 

The memo also orders the CEQ’s chairman, after 15 days, to establish an interagency Permitting Innovation Center, which will build prototype tools for this purpose.

“We need to drill more, map more, mine more and build more — all while innovating faster than our global competitors,” said Doug Burgum, secretary of the Interior, in the announcement.

The order follows a swath of permitting changes that Trump started the day of his inauguration. On Jan. 20, Trump signed executive orders that cut back the White House’s National Environmental Policy Act rulemaking powers and declared a “national energy emergency” in order to speed up permits for oil, gas, nuclear, coal, hydropower and biofuel projects, along with mines that gather critical materials.

Both sides of the aisle have supported permitting reform. Although the Biden administration rolled back many of Trump’s changes from his first time in office, it sped up permits for clean energy projects and data centers. However, many environmental groups are skeptical about any permitting changes that could benefit the fossil fuel industry, according to Utility Dive. 

Contractor optimism

Contractors have also been taking notice of the administration’s efforts — Dallas-based AECOM’s CEO Troy Rudd was bullish on the outlook for infrastructure projects and the prospect of permitting reform during the company’s earnings call on Feb. 4, despite uncertainty around funding freezes for the Infrastructure Investment and Jobs Act and the Inflation Reduction Act.

“If there is environmental permitting reform, there certainly is going to be more work to be done because that should accelerate projects,” Rudd said during the call. “So, we look broadly in the U.S., and we see that we’re aligned with the objectives around infrastructure.”

In addition, building industry groups such as the Associated General Contractors of America, the Laborers’ International Union of North America and the Clean Air Task Force testified before Congress on Feb. 19 regarding federal environmental review and permitting issues.

Coral Gables, Florida-based MasTec’s CEO, José Mas, told investors during the company’s full-year earnings call on Feb. 28 that a “gas-fired generation renaissance” was on the horizon.

“The overarching theme is the unprecedented level of demand on our communication, power delivery, generation, civil and pipeline infrastructure customers,” Mas said during the call. “In every segment we operate, our customers are facing increased demand for their services.”