Subtitles section Play video Print subtitles - [Narrator] 900 wind turbines will soon cover this stretch of New Mexico Desert, transforming it into the largest wind farm in the Western hemisphere. The project, SunZia Wind, was greenlit in 2006, but it only just received a permit to start construction 17 years later. - Well, we clearly have a problem in how we're permitting projects. - [Narrator] One of the most elusive pieces of green energy projects in the US isn't raw materials, labor, or even money. It's a permit. More than 10,000 energy projects, the vast majority of them wind and solar, were waiting for permission to connect to electric grids at the end of 2022. We'll break down how this decades-long permitting process is becoming a major obstacle for developers and the country's efforts to fight climate change. To understand how the energy permitting process works let's head back to SunZia. Once completed, developers say it will sprawl across three New Mexico counties and supply power to more than three million households in Arizona and California. - It delivers in about 1% of the carbon goals for the country. It's certainly bigger than the Hoover Dam. I wanna share our gratitude to every person and company that's made today's achievement possible. (audience applauding) - [Narrator] Cary Kottler is the Chief Development Officer for Pattern Energy, the company behind SunZia. Developers first applied for federal approval in 2008. Environmental reviews started in 2009. In 2011, the project was fast tracked by the Obama Administration. When the project was conceived the company thought it would receive its permits in about five years. - I don't think anybody goes into a project thinking it'll take 15 years, and so it's had some twists and turns along the way. - [Narrator] Those twists and turns are tied to the local, state and federal permitting systems that can and do get delayed at any stage of the process. - With the SunZia project we really see the complexity, that you have the federal layer and then you have a lot of the local issues. - [Narrator] Sanjay Patnaik is a climate policy researcher at the Brookings Institution think tank. SunZia, like many other renewable energy projects, has faced a range of roadblocks when it comes to local permitting. - Oftentimes delays at the local level can be traced back to the strongest opposition because people feel really strongly about these projects going in their backyard, right? People don't want to give up their land for a transmission line, for instance, to aesthetic reasons, right? People don't want to wind farm right off the coast. - [Narrator] Figuring out whether local regulations allow for development can be tricky. - Let's assume a solar power plant, for instance, that covers multiple municipalities. You will need a permit from all of them and they have very different administrative capacities, different laws on the books. - [Narrator] This process plays out at the state level too. - We also have states that require right of way permits, for instance California, for transmission lines. We have a state where the project is located and then a transmission line goes through a state to another state where the consumers are located. And so that state that is in between doesn't get any of the benefits, that state only gets the costs and oftentimes states are not happy with that. They're trying to avoid that and are trying to put up roadblocks. - [Narrator] But one of the lengthiest parts of the process happens at the federal level. Each federal permit can take years or sometimes as much as a decade to get approved. - The longest is really the right of way permit where the median length is nine years and then we have others, such as Environmental Impact Statement on the NEPA that takes about 3.5 years as a median. - [Narrator] Many of these permits require repetitive paperwork and generate thousands of pages of government analysis. To understand how daunting this process can be, consider a power line. Transmission is crucial for renewable energy projects because the best sites for wind and solar farms are usually far from the cities and industries that consume the most electricity. For SunZia, this means building a 550 mile high voltage power line to transport more than 3,000 megawatts of wind power to Arizona and California. To construct it, developers needed permission from a patchwork of federal, state, local, and tribal agencies. - Citing transmission lines is not an easy thing. You need to take feedback from a lot of different people and that's what we try to do. And sometimes that takes a while. - [Narrator] As a result of negotiations with these stakeholders, SunZia's transmission lines have been rerouted six times. Building transmission lines in the US takes so long, if they are built at all, that it has become a major roadblock for expanding clean energy. (audience applauding) - The SunZia Project is a game changer for America's clean energy economy. - [Narrator] That's why White House officials like Senior Climate Advisor John Podesta are pushing for an overhaul of the permitting process. - We have to increase transmission, high performance interstate transmission by 60% and we have to permit it twice as fast as we've done over the last decade. - [Narrator] After 17 years of regulatory hurdles, Pattern Energy finally broke ground on SunZia in September. It's expected to be fully operational by 2026, meaning the permitting process took more than five times longer than the project's estimated construction timeline. Still, opponents of the SunZia project say the years-long saga can't be blamed on bureaucratic hurdles alone. The project altered part of its route, which also led to delays. - There were a lot of land negotiation issues, especially with the Department of Defense because of a military installation over there that further delayed the project. - [Narrator] And when companies finally get their projects approved, they often face another hurdle. The local grid is at capacity. New wind and solar projects can't be added unless parts of the grid are upgraded and that costs developers money. All of these delays lead some companies to walk away entirely. As time ticks by, rising material costs can destroy a project's viability. Options to buy land expire and customers can lose interest. After years of dramatic growth, large scale solar, wind and battery installations in the US fell 16% in 2022. - It's now law. (audience applauding) - [Narrator] The landmark Climate Bill President Biden signed last year provides $370 billion in subsidies to help make low carbon energy technologies cheaper than fossil fuels. But to keep up with that historic investment, the permitting process will need to speed up. - So the climate goals that the US has set, which is to become Net Zero by 2050 and to reduce greenhouse gas emissions by 2030 to half of 2005 levels, will not be possible without permitting reform that really speeds up the permitting process for renewable energy projects. - [Narrator] In May, Biden and US lawmakers made another run at streamlining the permitting system with the issue a central topic in negotiations to raise the debt ceiling. The bill includes modest steps to speed up reviews of federal permits under the National Environmental Policy Act, like allowing environmental reviews of multiple projects at a time. - This is not just a federal problem. At the level, there's nimbyism. What we're responsible for are the federal environmental reviews. So trying to get that consolidation, one single set of documents, combining reviews around endangered species with NEPA reviews is really important. - [Narrator] This could offer some help for both fossil fuel and clean energy projects but falls far short of what either party had wanted. - And at the very most senior levels, at the cabinet secretary level, we're meeting on a biweekly basis to look project by project, see where there are challenges but I think that there still needs to be work done, particularly for interstate transmission. - [Narrator] Consolidating the transmission permitting process at the federal level could be one way to reduce these bottlenecks according to a Brookings report. - And that means that individual states cannot put up indefinite roadblocks like we have seen in other projects, and we are proposing to do on the same transmission lines because that central authority from the federal government could really help overcome some of these roadblocks at the state level. - [Narrator] Ultimately, there's no silver bullet solution for fast tracking this permitting process. Policy experts say it will require expansive reform at the local, state and federal levels. (bright music)
B1 US WSJ narrator transmission federal project energy Red Tape Is Delaying Thousands of U.S. Energy Projects. Here’s Why. | WSJ 20 0 林宜悉 posted on 2023/10/05 More Share Save Report Video vocabulary