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- [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)