	Factors Affecting Federal Infrastructure Permitting

In our prior work, we identified a range of factors that can affect permitting  timeliness and efficiency. For the purposes of this statement, we have  categorized the factors into five broad categories: 1) coordination and  communication, 2) human capital, 3) collecting and analyzing accurate  milestone information, 4) incomplete applications, and 5) significant policy  changes. We found that better  coordination between agencies and applicants could result in more  efficient permitting. We have reported on coordination practices that agencies use to  streamline the permitting process, including the following. Designating a Lead Coordinating Agency

We have found that having a lead agency coordinate efforts of federal,  state, and local stakeholders is beneficial to permitting processes. For  example, in our February 2013 review on natural gas pipeline permitting,  industry representatives and public interest groups told us that the  interstate process was more efficient than the intrastate process because  in the interstate process FERC was designated the lead agency for the  environmental review. Establishing Coordinating Agreements among Agencies

Establishing coordinating agreements among agencies can streamline  the permitting process and reduce time required by routine processes. For example, in our February 2013 review of natural gas pipeline  permitting, we reported that FERC and nine other agencies signed an  interagency agreement for early coordination of required environmental  and historic preservation reviews to encourage the timely development of  pipeline projects. Human Capital

Agency and industry representatives cited human capital factors as  affecting the length of permitting reviews. Such factors include having a  sufficient number of experts to review applications. Some examples  include:  In June 2015 and in November 2016, we reported concerns  associated with BIA’s long-standing workforce challenges, such as  inadequate staff resources and staff at some offices without the  skills needed to effectively review energy-related documents. In  November 2016 we recommended that Interior direct BIA to  incorporate effective workforce planning standards by assessing  critical skills and competencies needed to fulfill BIA’s  responsibilities related to energy development. Collecting and Analyzing Accurate Milestone Information

Our work has shown that a factor that hinders efficiency and timeliness is  that agencies often do not track when permitting milestones are achieved,  such as the date a project application is submitted or receives final  agency approval to determine if they are achieving planned or expected  results. As we have found, having  quality information on permitting milestones can help agencies identify the  duration of the permitting process, analyze process deficiencies, and  implement improvements. Incomplete Applications

According to agency officials we spoke with and agency documents we  reviewed, incomplete applications are a factor that can affect the duration  of reviews. For example, in a 2014 BLM budget document, BLM reported  that—due to personnel turnover in the oil and gas industry—operators  were submitting inconsistent and incomplete applications for permits to  drill, which was delaying the approval of permits. After the Deepwater  Horizon incident and oil spill in 2010, Interior strengthened many of its  safety requirements and policies to prevent another offshore incident. In a July 2012 report, we found that after the new safety  requirements went into effect, review times for offshore oil and gas drilling  permits increased, as did the number of times that Interior returned a  permit to an operator. In conclusion, our past reports have identified varied factors that affect  the timeliness and efficiencies of federal energy infrastructure permitting  reviews. Federal agencies have implemented a number of our  recommendations and taken steps to implement more efficient permitting,  but several of our recommendations remain open, presenting  opportunities to continue to improve permitting processes.
Why GAO Did This Study

Congress recognizes the harmful effects of permitting delays on infrastructure projects and has passed legislation to streamline project reviews and hold agencies accountable. For example, in 2015 Congress passed the Fixing America's Surface Transportation Act, which included provisions streamlining the permitting process. Federal agencies, including the Department of the Interior and FERC, play a critical role by reviewing energy infrastructure projects to ensure they comply with federal statutes and regulations.
This testimony discusses factors GAO found that can affect energy infrastructure permitting timeliness and efficiency. To do this work, GAO drew on reports issued from July 2012 to December 2017. GAO reviewed relevant federal laws, regulations, and policies; reviewed and analyzed federal data; and interviewed tribal, federal, state and industry officials, among others.

What GAO Found

GAO's prior work has found that the timeliness and efficiency of permit reviews may be affected by a range of factors. For the purposes of this testimony, GAO categorized these factors into five categories.
Coordination and Communication. GAO found that better coordination between agencies and applicants is a factor that could result in more efficient permitting. Coordination practices that agencies can use to streamline the permitting process include the following:
Designating a Lead Coordinating Agency . GAO found having a lead agency to coordinate the efforts of federal, state, and local stakeholders is beneficial to permitting processes. For example, in a February 2013 report on natural gas pipeline permitting, industry representatives and public interest groups told GAO that the interstate process was more efficient than the intrastate process because in the interstate process the Federal Energy Regulatory Commission (FERC) was lead agency for the environmental review.
Establishing Coordinating Agreements among Agencies . In the February 2013 report, GAO reported that FERC and nine other agencies signed an interagency agreement for early coordination of required environmental and historic preservation reviews to encourage the timely development of pipeline projects.
Human Capital. Agency and industry representatives cited human capital factors as affecting the length of permitting reviews. Such factors include having a sufficient number of experts to review applications. GAO reported in November 2016 on long-standing workforce challenges at the Department of the Interior's Bureau of Indian Affairs (BIA), such as inadequate staff resources and staff at some offices without the skills to effectively conduct such reviews. GAO recommended that Interior incorporate effective workforce planning standards by assessing critical skills and competencies needed to fulfill its responsibilities related to energy development. Interior agreed with this recommendation, and BIA stated that its goal is to develop such standards by the end of fiscal year 2018.
Collecting and Analyzing Accurate Milestone Information. GAO's work has shown that a factor that hinders efficiency and timeliness is that agencies often do not track when permitting milestones are achieved, such as the date a project application is submitted or receives final agency approval. Having quality information on permitting milestones can help agencies better analyze process deficiencies and implement improvements.
Incomplete Applications. Agency officials and agency documents cited incomplete applications as affecting the duration of reviews. For example, in a 2014 budget document, BLM reported that—due to personnel turnover in the oil and gas industry—operators were submitting inconsistent and incomplete applications for drilling permits, delaying permit approvals.
Significant Policy Changes. Policy changes unrelated to permitting can affect permitting time frames. For example, after the 2010 Deepwater Horizon incident and oil spill, Interior issued new safety requirements for offshore drilling. GAO found that review times for offshore oil and gas drilling permits increased after these safety requirements were implemented.

What GAO Recommends

GAO has made numerous recommendations about ways to improve energy infrastructure permitting processes. Federal agencies have implemented a number of GAO's recommendations and taken steps to implement more efficient permitting, but several of GAO's recommendations remain open, presenting opportunities to continue to improve permitting processes.