Wants to include climate change risks in environmental permits. When you build something, such a house or store, you typically need a permit (or three) from the local or state government. Bigger projects require federal approval, such as an oil pipeline or a rail line. So, the larger the project, the more information the government requires as part of those permits.
In order to get a permit, you need to conduct some studies and write a few reports, typically these include an economic feasibility and an environmental impact statement. For federal permits, these studies are made public. This “public comment period” gives everyone, including other businesses, a chance to voice their opinions on the project.
Now, Obama wants to change the rules. He is proposing that the federal permit process should include risks and impacts from climate change. These climate risks will be part of the environmental impact statement.
Businesses do not like permits - but not for the reasons you’d expect. It’s very expensive to conduct the required economic and environmental studies. Businesses have to hire specialists just for these permits. Often, these studies delay projects, which makes the projects more expensive to build.
The biggest complaint is that rules are inconsistent - they’re difficult to comply with, unclear in their intent, guidelines are always changing, and (worst of all) they’re unevenly enforced. Sometimes a politician will intervene - essentially subverting the law. Political intervention creates an atmosphere of unfairness and favoritism (but, that is discussion for another post).
In the permitting world, lawsuits abound. And lawsuits compound the costs of building and it generally pisses off a lot of people.
So, when you hear complaints that “environmental permits hurts jobs” it’s not that the developer hates the environment, it’s that the rules are a convoluted, expensive mess. It’s also a clever way for politicians to dismantle environmental regulations because, after all, the rules “hurt jobs” - a line that resonates with the voting public.
Thus, from the perspective of business, Obama’s proposal to increase the rules for environmental permits has businesses - and the politicians that they’ve bought - shaking in their boots.
Queue a big political fight on this one.
President Barack Obama is preparing to tell all federal agencies for the first time that they should consider the impact on global warming before approving major projects, from pipelines to highways.
The result could be significant delays for natural gas- export facilities, ports for coal sales to Asia, and even new forest roads, industry lobbyists warn.
“It’s got us very freaked out,” said Ross Eisenberg, vice president of the National Association of Manufacturers, a Washington-based group that represents 11,000 companies such as Exxon Mobil Corp. (XOM) and Southern Co. (SO) The standards, which constitute guidance for agencies and not new regulations, are set to be issued in the coming weeks, according to lawyers briefed by administration officials.
In taking the step, Obama would be fulfilling a vow to act alone in the face of a Republican-run House of Representatives unwilling to pass measures limiting greenhouse gases. He’d expand the scope of a Nixon-era law that was first intended to force agencies to assess the effect of projects on air, water and soil pollution.
“If Congress won’t act soon to protect future generations, I will,” Obama said last month during his State of the Union address. He pledged executive actions “to reduce pollution, prepare our communities for the consequences of climate change, and speed the transition to more sustainable sources of energy.”
Via the excellent Bloomberg.com