Is NEPA Preventing Energy Development? Bryan Hannegan, Ph.D. Associate Director – Energy and Transportation White House Council on Environmental Quality July 2005

2 President Bush’s National Energy Policy Proposed May 2002 – more than 4 years ago Proposed May 2002 – more than 4 years ago Over 100 recommendations in four areas: Over 100 recommendations in four areas: increasing conservation and energy efficiency increasing conservation and energy efficiency expanding domestic production of conventional fuels in environmentally responsible ways expanding domestic production of conventional fuels in environmentally responsible ways diversifying our energy supply with more renewables, nuclear power and clean fuels diversifying our energy supply with more renewables, nuclear power and clean fuels modernizing and improving reliability of energy infrastructure modernizing and improving reliability of energy infrastructure Have implemented nearly all items that did not require legislation Have implemented nearly all items that did not require legislation Called on Congress to enact energy legislation by August Called on Congress to enact energy legislation by August Conference under way, many NEPA-related items under discussion Conference under way, many NEPA-related items under discussion

3 Energy Projects Task Force “The NEPD Group recommends the President issue an Executive Order to rationalize permitting for energy production in an environmentally sound manner by directing federal agencies to expedite permits and other federal actions necessary for energy- related project approvals on a national basis.” Executive Order signed by President Bush, May 2001, to establish interagency Task Force on Energy Projects Executive Order signed by President Bush, May 2001, to establish interagency Task Force on Energy Projects Senior policy officials meet on regular basis to coordinate permitting processes – more efficient, less costly, more effective Senior policy officials meet on regular basis to coordinate permitting processes – more efficient, less costly, more effective Identified energy projects through Federal Register notice; used projects to understand process reforms that needed to be made Identified energy projects through Federal Register notice; used projects to understand process reforms that needed to be made Pipeline safety, offshore LNG, hydro licensing, onshore oil & gas Pipeline safety, offshore LNG, hydro licensing, onshore oil & gas

4 CEQ NEPA Task Force National Environmental Policy Act (NEPA) process: inform federal decision-makers and to involve the interested and affected federal, state, local and tribal governments and the public in federal decisions affecting the quality of the human environment. National Environmental Policy Act (NEPA) process: inform federal decision-makers and to involve the interested and affected federal, state, local and tribal governments and the public in federal decisions affecting the quality of the human environment. CEQ NEPA Task Force was charged to find ways to make the NEPA process more effective, efficient and timely. CEQ NEPA Task Force was charged to find ways to make the NEPA process more effective, efficient and timely. First comprehensive NEPA review in over a decade First comprehensive NEPA review in over a decade Issued report September 2003 Issued report September 2003 TF reviewed current NEPA practices - over 600 substantive comments from Federal, State and local governments, Tribes, organizations, and individuals. TF reviewed current NEPA practices - over 600 substantive comments from Federal, State and local governments, Tribes, organizations, and individuals.

5 It’s Not NEPA, It’s How We Implement Task Force issued report, "Modernizing NEPA Implementation," Task Force issued report, "Modernizing NEPA Implementation," CEQ hosted four public roundtables – panels of NEPA experts and interested citizens around the country CEQ hosted four public roundtables – panels of NEPA experts and interested citizens around the country CONCLUSION: The NEPA statute and the CEQ implementing regulations are not impediments. CONCLUSION: The NEPA statute and the CEQ implementing regulations are not impediments. Instead, agency implementation practices need to be modernized, to take into account new practices and capabilities. Instead, agency implementation practices need to be modernized, to take into account new practices and capabilities. CEQ and the federal agencies are working to develop new guidance CEQ and the federal agencies are working to develop new guidance

6 Categorical Exclusions Develop guidance on how to develop and revise categorical exclusions (CEs) Develop guidance on how to develop and revise categorical exclusions (CEs) How does one describe a category of actions, substantiate the determination that the category of actions does not individually or cumulatively have a significant effect on the quality of the human environment, and involve the public in the development of CEs? How does one describe a category of actions, substantiate the determination that the category of actions does not individually or cumulatively have a significant effect on the quality of the human environment, and involve the public in the development of CEs? Develop guidance on applying a CE to specific proposed actions. Develop guidance on applying a CE to specific proposed actions. How can a CE be demonstrated as appropriate for a proposed action, and how can agencies better inform interested and affected parties? How can a CE be demonstrated as appropriate for a proposed action, and how can agencies better inform interested and affected parties? Develop guidance to federal agencies on ways to collaboratively monitor proposals that rely upon the use of CEs to satisfy NEPA. Develop guidance to federal agencies on ways to collaboratively monitor proposals that rely upon the use of CEs to satisfy NEPA.

7 Environmental Assessments (EAs) Develop guidance to address: Develop guidance to address: the requirements and contents of EAs; the requirements and contents of EAs; the appropriate range in size of EAs based on the magnitude and complexity of environmental issues, public concerns, and project scope; the appropriate range in size of EAs based on the magnitude and complexity of environmental issues, public concerns, and project scope; public involvement; public involvement; alternatives; and alternatives; and mitigation, particularly when the EA concludes with a mitigated finding of no significant impact. mitigation, particularly when the EA concludes with a mitigated finding of no significant impact. Develop guidance to federal agencies on ways to collaboratively monitor the use of EAs. Develop guidance to federal agencies on ways to collaboratively monitor the use of EAs.

8 Improved Collaboration Develop and publish a Citizens’ Guide to NEPA Develop and publish a Citizens’ Guide to NEPA Develop guidance on the components of successful collaborative agreements, provide examples (templates) applicable to various types of NEPA analyses and stages of the NEPA process (from initiation or scoping through publication). Develop guidance on the components of successful collaborative agreements, provide examples (templates) applicable to various types of NEPA analyses and stages of the NEPA process (from initiation or scoping through publication). Develop a “best practices” handbook with case studies that showcase the characteristics of successful collaborative efforts. Develop a “best practices” handbook with case studies that showcase the characteristics of successful collaborative efforts. Develop training for senior decision-makers that describes how a well run NEPA process benefits management. Develop training for senior decision-makers that describes how a well run NEPA process benefits management. Develop handbooks that describe how interested and affected parties (e.g., tribes, NGOs, permit applicants, state and local governments and the public) can be involved in the NEPA process and help inform and focus a timely process. Develop handbooks that describe how interested and affected parties (e.g., tribes, NGOs, permit applicants, state and local governments and the public) can be involved in the NEPA process and help inform and focus a timely process. Develop training for interested and affected parties on the principles of NEPA and NEPA requirements, agencies’ missions, scoping, collaboration skills, dispute resolution, and effective public involvement. Develop training for interested and affected parties on the principles of NEPA and NEPA requirements, agencies’ missions, scoping, collaboration skills, dispute resolution, and effective public involvement.

9 Adaptive Management & Monitoring Develop guidance on integrating the NEPA process with environmental management systems (EMS). Develop guidance on integrating the NEPA process with environmental management systems (EMS). Develop a “best practices” handbook on adaptive management processes and EMS with case studies that highlight successful characteristics. Develop a “best practices” handbook on adaptive management processes and EMS with case studies that highlight successful characteristics. Support demonstration projects that use EMS in conjunction with a NEPA process to make decisions that use the EMS to manage the operational and environmental effects of the decision in an adaptive management process. Support demonstration projects that use EMS in conjunction with a NEPA process to make decisions that use the EMS to manage the operational and environmental effects of the decision in an adaptive management process.

10 Develop a handbook to address the coordination of NEPA with other major environmental consultation requirements Develop a handbook to address the coordination of NEPA with other major environmental consultation requirements Section 404 of the Clean Water Act Section 404 of the Clean Water Act Section 7 of the Endangered Species Act Section 7 of the Endangered Species Act Section 106 of the National Historic Preservation Act Section 106 of the National Historic Preservation Act Clean Air Act Clean Air Act Work of Energy Project Task Force is addressing these areas through interagency MOU for specific types of energy projects Work of Energy Project Task Force is addressing these areas through interagency MOU for specific types of energy projects Longer-term innovation through use of information technology: improve early identification of permit needs and potential issues; allow greater coordination; prevent “reinventing wheel” Longer-term innovation through use of information technology: improve early identification of permit needs and potential issues; allow greater coordination; prevent “reinventing wheel” Align NEPA With Other Laws

11 Is NEPA Preventing Energy Development? No, but inefficient implementation of NEPA can delay or prevent energy projects from going forward. No, but inefficient implementation of NEPA can delay or prevent energy projects from going forward. The Bush Administration is working with all interested stakeholders to improve NEPA implementation. The Bush Administration is working with all interested stakeholders to improve NEPA implementation. Doing so will provide the energy resources America needs, and protect the environment America values. Doing so will provide the energy resources America needs, and protect the environment America values.