In a significant move to accelerate domestic energy development, the U.S. Department of the Interior (DOI) has announced emergency permitting procedures that will dramatically compress environmental review timelines. Under these procedures, projects that typically require environmental assessments taking up to a year or more will now be reviewed in approximately 14 days, while full environmental impact statements – normally a two-year process – will be completed in just 28 days.
This expedited review process stems from President Trump's declaration of a National Energy Emergency, which the DOI press release cites as the authority for these emergency procedures to complete environmental reviews under the National Environmental Policy Act (NEPA), the Endangered Species Act (ESA) and the National Historic Preservation Act (NHPA). The DOI declaration warns that "inadequate development of domestic energy resources leaves us vulnerable to hostile foreign actors and poses an imminent and growing threat to the United States' prosperity and national security."
By invoking this authority, the DOI is relying on existing emergency provisions under NEPA, ESA and NHPA to significantly compress environmental review timelines.
Key Highlights and Impacts on Energy Sector
- Compressed NEPA Timelines: Environmental assessments are reduced from one year to 14 days, and environmental impact statements are reduced from two years to 28 days.
- Expedited ESA Consultations: The appropriate bureau needs only to notify the U.S. Fish and Wildlife Service that it is using emergency consultation procedures before proceeding with approval decisions.
- Streamlined NHPA Review: The notification and comment period is reduced to seven days.
- Wide Application: The procedures apply to multiple energy sources, including crude oil, natural gas, coal, uranium, biofuels, geothermal energy, hydropower and critical minerals.
The expedited permitting reviews apply to a broad range of traditional energy developments, including oil and natural gas, natural gas liquids, refined petroleum products, uranium, coal, biofuels, geothermal energy, kinetic hydropower and critical minerals.
During the last Congress, both political parties pursued an overhaul of federal permitting, but the legislative efforts failed to gain a consensus. Although the 119th Congress may take up permitting reform, DOI's announcement aims to benefit traditional energy development on public lands and offshore waters while advancing the Trump Administration's energy priorities.
Holland & Knight will continue to monitor the implementation of these emergency procedures and their impacts on energy project development.
