Over the past two decades, wind and solar energy have rapidly expanded across the United States, delivering low-cost, emissions-free power to the grid while stimulating economic growth. The potential for further scaling these renewable energy sources remains immense. However, realizing this potential requires addressing the complex and often cumbersome permitting processes that can delay or hinder projects.
To overcome this challenge, it is essential to view permitting as a multi-layered system encompassing federal, state, and local jurisdictions. By identifying and resolving inefficiencies within and between these layers, we can streamline the process, accelerate the deployment of clean energy technologies, and foster innovation while advancing a more sustainable and abundant energy future.
The current state of wind and solar energy
Since the turn of the century, large-scale onshore wind and solar farms have experienced remarkable growth, adding 250 gigawatts of capacity and now accounting for 20% of the U.S. capacity mix. These technologies enjoy support across the political spectrum thanks to their many benefits—reducing consumer prices, diversifying energy supplies, and spurring job creation all while promoting cleaner air. Despite their growth, significant hurdles remain. Mastering the permitting process is crucial to unlocking further deployment.
Understanding layered permitting
Permitting for energy projects is inherently multi-layered, as illustrated by Niskanen’s research on onshore wind and solar farm development. Consider these dynamics:
- Restrictive local ordinances: 395 local ordinances in 41 states impose stringent requirements that could block renewable energy development.
- State roles: A recent inventory found that in 94% of states, at least one state-level entity has a role in project permitting, while at the same time 73% of states allow local authorities to set standards for project setbacks, height, and acreage limits.
- Interconnection delays: Wait times for grid interconnection permits have risen dramatically to over 4 years; for much of the country, large project interconnection is a regional process overseen at the federal level, with state processes governing the remainder.
- Federal reviews: While fewer than 5% of onshore wind and solar projects have required major federal reviews so far (e.g. NEPA Environmental Impact Statements, Clean Water Act Section 404 permits, and Endangered Species Act Habitat Conservation Plans), these can pose substantial delays when triggered. Notably, some federal permits are administered by state agencies.
Wind and solar project developers point to local ordinances, interconnection, and community opposition as the top drivers of cancellations and delays for their projects.
The interaction between permitting layers adds complexity. For example, lengthy local permitting can delay state authorizations or stretch out interconnection processes, further clogging grid queues. This underscores the need to enhance individual permitting processes while improving coordination across jurisdictions.
States leading the way
States are pioneering innovative approaches to improve permitting efficiency. These examples provide valuable insights:
- Indiana: The voluntary “wind-ready communities” program provides a supportive framework for counties to establish clear, standardized requirements for wind energy development. This approach reduces uncertainty for developers and signals to the market that the community welcomes project development, while preserving local control. More wind- and solar-friendly local ordinances in Indiana and elsewhere would significantly offset the impacts of restrictive ordinances.
- Virginia: The state has implemented a “permit by rule” system for renewable energy projects that meet predetermined criteria. This streamlined approach provides clarity on requirements upfront and can significantly reduce permitting timelines while maintaining environmental standards. Projects that satisfy specific conditions regarding size, location, and environmental impact receive automatic approval upon completing the checklist of prerequisites. There are many similar opportunities for intentional design in state-level reviews to enhance permitting efficiency.
- Oregon: Advanced mapping tools help developers and stakeholders identify promising project locations by overlaying natural resources considerations, military, and other land use data. Relatedly, the Federal Energy Regulatory Commission’s Order 2023 enhances interconnection queue transparency nationwide by mandating public heatmaps with location-by-location data on available grid capacity. Better use of data in early efforts can avoid conflicts and streamline more detailed site selection stages.
- Texas and the Midwest: The energy zones approach, pioneered in several states, designates areas particularly suitable for renewable energy development due to strong resource potential such as high wind speeds. This proactive planning helps align transmission expansion with attractive renewable energy sites, and can also be used to navigate permitting complications. For example, a review by scholars at Rice University’s Baker Institute noted that for one proposed energy zone in the Texas Panhandle, over 100 county commissions and city councils passed resolutions supporting wind and transmission expansion in the area—whereas some other proposed energy zones were more controversial, and were modified based on citizen input in the course of the planning process. The energy zones approach is a means to tie all of the above strategies together into a cohesive system.
These strategies, whether implemented individually or in combination, have the potential to significantly accelerate the deployment of wind and solar energy.
Tailoring to infrastructure types
The relative significance of permitting layers depends on the type of infrastructure. Onshore wind and solar projects, which so far have predominantly relied on private lands, are heavily influenced by state and local permitting processes. In contrast, offshore wind and geothermal projects often require substantial federal involvement, as they are typically located on federal waters or lands. This distinction highlights the need for a flexible, infrastructure-specific approach to permitting reform, ensuring the streamlined expansion of diverse clean energy technologies.
Laboratories of democracy and the role of federal support
While state and local governments play crucial roles and have the flexibility to develop their own permitting frameworks, federal agencies can provide essential support to states in addition to improving federal-level processes. The DOE’s R-STEP initiative, for instance, offers technical assistance, state-to-state convening, and best practices guidance to support state and local renewable energy permitting processes. To date, the program has awarded $29 million to 16 state collaboratives, including the Iowa State University Extension, the Mississippi Energy & Natural Resources Division, and the University of Wisconsin-Madison Division of Extension.
There remains significant potential to expand and deepen the program’s impact. Another promising federal-state permitting partnership is the Federal Permitting Improvement Steering Council’s initiative with New Mexico’s Renewable Energy Transmission Authority. This initiative leverages federal resources to streamline permitting for state grid projects, enabling the delivery of wind and solar energy to regional markets.
Recent federal housing bills signal Congressional interest in leveraging federal partnerships with states to enable domestic construction and development. The Housing Supply and Innovation Frameworks Act by Representatives Flood (R-NE) and Blunt Rochester (D-DE) provides guidance and resources to state and local officials to boost the nation’s housing abundance. Expanded federal support for the multiple layers of clean energy permitting is an important component of energy permitting reform.
Conclusion
Permitting is a layered process that requires thoughtful design and improvement at every level. Achieving success requires reforming individual permitting processes at the federal, state, and local levels, as well as improving integration across jurisdictions.
States will remain vital as laboratories of permitting innovation, developing new approaches that can be tailored and adopted in other regions. The federal government can amplify these efforts by promoting information sharing, offering technical and financial resources, and supporting the standardization of best practices across jurisdictions.
As we strive to scale clean energy deployment to unprecedented levels, improving and optimizing this layered permitting system becomes more critical than ever. By drawing on state successes and fostering seamless coordination across all levels of government, we can uphold robust environmental and community protections while accelerating the transition to a cleaner energy future.