NEPA Changes Aim to Speed Up Wind and Solar Projects, Despite Delays and Lawsuits
The National Environmental Policy Act (NEPA) is often criticized for slowing down energy projects, including wind and solar. However, a recent study shows that about 60% of these projects complete the formal NEPA process within two years. Congress is considering changes to further expedite reviews, as delays and lawsuits can hinder project development.
NEPA requires federal agencies to assess environmental impacts before executing major federal actions. In 2023, lawmakers adopted changes via the Fiscal Responsibility Act to shorten review times and increase categorical exclusions. Despite this, one-third of solar projects and half of wind projects exceeded the two-year deadline.
Court challenges claiming NEPA violations can cause significant delays. In recent years, one-third of solar projects and half of wind projects faced such challenges, leading to the termination or significant delays of several projects. Other delays can occur post-NEPA review, with some projects taking over eight years to become operational.
The Trump administration's executive order declared a national energy emergency and reduced NEPA review lengths for certain energy projects, excluding solar and wind. Congress is now considering further changes to reduce lawsuits and expedite reviews.
While the NEPA process can be lengthy and complex, recent changes aim to streamline it for wind and solar projects. However, delays and lawsuits remain significant obstacles. Congress continues to explore ways to expedite federal environmental reviews and reduce barriers to renewable project development.
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