H.R. 689: Full Responsibility and Expedited Enforcement Act

This bill, known as the Full Responsibility and Expedited Enforcement Act (or the FREE Act), aims to reform the federal permitting process to make it more efficient and reduce delays in obtaining permits. Here are the key elements of what the bill proposes:

Key Findings

Congress acknowledges several issues with the current permitting system:

• Most agencies use a permitting system that allows wide discretion and lack of deadlines, leading to delays and increased costs.
• This inefficient system can hinder timely issuance of permits, impacting both the government and applicants.
• There is a strong need to minimize unnecessary delays and expenses in federal permitting.
• A proposed solution called "permit by rule" could streamline this process.

Permit by Rule Process

Permit by rule allows for a clearer, faster permitting process by establishing specific written standards that applicants must meet to obtain a permit. Key details include:

• Applicants would certify that they comply with defined standards.
• Agencies would have a strict deadline for reviewing applications, intended to reduce waiting times significantly.

Agency Reporting Requirements

Each federal agency will have to assess and report on its permitting system within 240 days of the bill's enactment. This report must include:

• A list of all types of permits issued.
• The requirements for obtaining each permit.
• A detailed description of the review process, including average processing times.
• Identification of permits suitable for the permit by rule approach and the challenges in transitioning to this system.

Agencies could also solicit public comments while preparing their reports.

Establishing the Application Process

Within a year after submitting the initial report, each agency must create a specific permit by rule application process that includes the following:

• Clear certification requirements for applicants.
• A simplified application that only includes necessary certifications and any supporting documents.
• Approval of applications if they meet the criteria and are not responded to within 180 days.

Oversight and Compliance

Agencies must maintain audit and enforcement capabilities regarding permit compliance. This includes:

• Audit applications and verify compliance with standards.
• Provide reasons for disapproving applications and allow applicants opportunities to correct issues prior to final decisions.
• Enable appeals in federal court for applicants whose permits are denied, suspended, or revoked.

Congressional and GAO Oversight

Further oversight is established through required reports to Congress on the implementation of this process and a review by the Government Accountability Office (GAO) on the accuracy and progress of agency reports.

Concurrent Systems

Agencies have the flexibility to maintain both the traditional permitting system and the permit by rule system, allowing applicants to choose which to use for their permit applications.

Consequences for Delays

If agencies fail to submit the required reports on time, they may have to cover the attorney fees of applicants who file claims against them for unreasonable delays in permit processing.

Relevant Companies

• XOM (Exxon Mobil Corporation) - Likely impacted due to its need for permits for oil and gas exploration and production, potentially benefiting from faster processing.
• DVN (Devon Energy Corporation) - May experience changes in the permitting process for drilling operations, aiming for quicker permit approvals.
• COP (ConocoPhillips) - Might benefit from streamlined permitting in energy projects that typically face lengthy approval times.