PolicyBrief
H.R. 689
119th CongressJan 23rd 2025
FREE Act
IN COMMITTEE

The FREE Act aims to streamline federal permitting processes by requiring agencies to explore and implement "permitting by rule," a system designed to reduce delays and costs through clear standards, applicant self-certification, and strict deadlines for agency action, while still allowing for compliance verification and enforcement. It also mandates agency reporting to Congress and allows for legal recourse with fee recovery for applicants facing unreasonable delays or unjustified agency actions.

Celeste Maloy
R

Celeste Maloy

Representative

UT-2

LEGISLATION

FREE Act Aims to Slash Permit Wait Times to 180 Days: New 'Permitting by Rule' System Could Speed Up Approvals, but Raises Concerns

The Full Responsibility and Expedited Enforcement Act, or FREE Act, is trying to fix the notoriously slow federal permitting process. The core idea? Swap the current system, where agencies have huge leeway and often miss deadlines, for a 'permitting by rule' approach. This means clearly defined standards, simple applications, and – crucially – a hard 180-day deadline for agencies to approve or deny.

Fast Track or Fast Fail?

The FREE Act mandates a shift in how agencies handle permits. Within 240 days, every agency has to report to Congress, detailing every permit they issue, the steps involved in review, and how long it typically takes (SEC. 3(a)(1)). They also have to figure out which permits could be handled under the new 'permitting by rule' system, and flag any challenges. Within a year of that report, agencies must set up the 'permitting by rule' process (SEC. 3(b)(1)). This new system requires agencies to spell out all requirements upfront. Applicants just submit proof they meet those requirements. If the agency doesn't act within 180 days, the permit is automatically approved (SEC. 3(b)(1)).

Real-World Rollout: Who Wins, Who Loses?

Imagine a small business owner wanting to expand their operations, needing a federal permit for construction. Under the current system, they might face months, even years, of delays. The FREE Act could drastically shorten that wait. Or consider a farmer needing a permit for water usage. 'Permitting by rule' could streamline that process, letting them get to work faster. However, the Act also lets applicants appeal agency decisions directly to a U.S. district court, with the agency having to prove they were right to deny or revoke a permit (SEC. 3(b)(4)). This could be a game-changer for businesses, but it also shifts the balance of power. The bill defines terms like 'agency,' 'rule,' and 'completed application,' but the definition of 'substantive standard' is pretty broad, potentially leading to legal battles (SEC. 3(f)).

The Catch: Speed vs. Scrutiny

While the FREE Act aims for efficiency, there are potential downsides. The strict 180-day deadline might force agencies to rush, potentially overlooking crucial details, especially in complex environmental permits. Agencies can audit applications and revoke permits later (SEC. 3(b)(4)), but the burden is on them to prove wrongdoing. The Act also allows agencies to run both the old and new systems concurrently if they think the old system offers something valuable (SEC. 3(d)). While this provides flexibility, it could also create confusion, with applicants unsure which system to use, and potentially doubling the workload for agencies.

Finally, if an agency misses the initial report deadline, they could be on the hook for permit applicants' legal fees if a court finds the agency unreasonably delayed the permit process (SEC. 3(a)(4)). The Government Accountability Office (GAO) will also be keeping tabs, reporting on the accuracy of agency reports and the overall progress of implementing the Act (SEC. 3(e)).