State Permitting Playbook: Part II – The Foundation for American Innovation

Aligning Environmental Permitting with Sustainable Development Goals for National Progress

Introduction: Regulatory Hurdles to Sustainable Development

The United States’ capacity to achieve key Sustainable Development Goals (SDGs), particularly SDG 9 (Industry, Innovation, and Infrastructure) and SDG 8 (Decent Work and Economic Growth), is significantly impeded by complex environmental permitting systems. These regulatory frameworks, developed over fifty years, challenge the nation’s ability to build and maintain resilient infrastructure, foster technological innovation, and ensure global competitiveness in strategic industries essential for a sustainable future.

The Dual Impact of Environmental Legislation on the SDGs

While foundational environmental laws have been crucial for advancing environmental protections, their current implementation often creates conflicts between different SDG targets. This regulatory sclerosis can hinder progress on economic and infrastructure-related goals.

• Foundational Laws: Landmark federal legislation, including the National Environmental Policy Act (NEPA), the Clean Air Act, the Clean Water Act, and the Endangered Species Act (ESA), were established to protect natural resources and public health, aligning with SDG 14 (Life Below Water) and SDG 15 (Life on Land).
• Unintended Consequences: Over time, the application of these laws has led to significant delays and costs. This inefficiency acts as a barrier to developing the sustainable infrastructure required for SDG 11 (Sustainable Cities and Communities), deploying clean energy projects for SDG 7 (Affordable and Clean Energy), and implementing solutions for SDG 13 (Climate Action).

State-Level Action: A Catalyst for Achieving the 2030 Agenda

State governments are pivotal in translating federal environmental mandates into practice, as they issue over 75 percent of all authorized permits. This decentralized authority presents a critical opportunity for states to build more effective and accountable institutions, in line with SDG 16 (Peace, Justice, and Strong Institutions), and to pioneer regulatory reforms that balance environmental stewardship with sustainable economic development.

A Strategic Framework for State-Led Reform

A proposed playbook offers a strategic framework for state legislators to reform environmental permitting, thereby accelerating progress towards a broad range of SDGs. The framework is designed to enhance policy coherence for sustainable development by addressing key regulatory areas.

1. Analysis of Key Environmental Laws: The first part examines the state-level implementation of four critical legal frameworks, identifying issues and proposing reforms that support a balanced approach to the SDGs.
   • State Environmental Policy Acts (SEPAs)
   • The Clean Air Act
   • The Clean Water Act
   • State Endangered Species Acts (SESAs)
2. Tailored State-by-State Recommendations: The second part provides individualized analysis for 49 states, recognizing unique challenges and opportunities. This approach fosters targeted action and promotes SDG 17 (Partnerships for the Goals) by equipping state policymakers with specific tools to drive sustainable growth and innovation.

SDGs Addressed in the Article

SDG 8: Decent Work and Economic Growth

• The article directly connects the streamlining of environmental regulations to economic outcomes. It argues that current “sclerotic” processes “hinder economic development” and that reforms can “foster economic growth, attract investment, and maintain their competitive edge.” This aligns with SDG 8’s goal of promoting sustained, inclusive, and sustainable economic growth.

SDG 9: Industry, Innovation and Infrastructure

• This goal is central to the article’s premise. The text opens by stating that the United States faces “significant challenges in its ability to build and maintain critical infrastructure, develop new technologies, and compete globally in strategic industries.” The proposed reforms are aimed at facilitating development in sectors like “manufacturing, energy production, and technology development,” which are core components of SDG 9.

SDG 16: Peace, Justice and Strong Institutions

• The article focuses on the role of governmental institutions and legal frameworks. It critiques the current system of environmental laws (NEPA, Clean Air Act, etc.) and permitting processes for having “grown increasingly sclerotic.” The call for states to “streamline permitting processes, reduce unnecessary bureaucratic hurdles, and create more efficient regulatory frameworks” is a direct call to develop more effective and accountable institutions, which is the essence of SDG 16.

SDG 17: Partnerships for the Goals

• The article discusses the interplay between federal and state governments, noting that “states have significant autonomy and flexibility in implementing and enforcing environmental laws.” The “playbook” itself is presented as a tool to enhance policy coherence and share best practices among state legislators, reflecting the collaborative approach promoted by SDG 17 to achieve sustainable development.

Specific SDG Targets Identified

Targets under SDG 9: Industry, Innovation and Infrastructure

1. Target 9.1: Develop quality, reliable, sustainable and resilient infrastructure, including regional and transborder infrastructure, to support economic development and human well-being.
   • The article explicitly identifies the challenge to “build and maintain critical infrastructure” as a primary issue caused by regulatory hurdles. Streamlining permitting is presented as a direct solution to facilitate infrastructure development.

Targets under SDG 8: Decent Work and Economic Growth

1. Target 8.2: Achieve higher levels of economic productivity through diversification, technological upgrading and innovation.
   • The article mentions the need to “develop new technologies” and enhance competitiveness in “strategic industries.” Reforming regulations is framed as a way to unlock this potential for innovation and increased productivity.

Targets under SDG 16: Peace, Justice and Strong Institutions

1. Target 16.6: Develop effective, accountable and transparent institutions at all levels.
   • The core argument of the article is that regulatory institutions have become inefficient (“sclerotic,” “lengthy delays,” “excessive costs”). The proposed playbook aims to help state policymakers create “more efficient regulatory frameworks,” directly addressing the effectiveness of these institutions.
2. Target 16.b: Promote and enforce non-discriminatory laws and policies for sustainable development.
   • The article is centered on reforming the implementation of environmental laws (NEPA, CWA, etc.) to better balance environmental protection with economic development, which is a key aspect of creating coherent policies for sustainable development.

Indicators for Measuring Progress

Implied Indicators

• Time required for permitting: The article repeatedly mentions “lengthy delays” as a key problem. A direct indicator of progress would be a reduction in the average time it takes to secure environmental permits for infrastructure and industrial projects.
• Cost of regulatory compliance: The text points to “excessive costs” associated with the current system. An indicator would be the measured cost for businesses to comply with and navigate the permitting processes. Progress would be a reduction in these costs.
• Investment in key sectors: A stated goal of the reforms is to “attract investment” in industries like manufacturing and energy. An indicator of success would be an increase in capital investment in these sectors within states that implement reforms.
• Efficiency of regulatory bodies: The article describes the system as having “unnecessary bureaucratic hurdles.” While harder to quantify, indicators could include the number of steps in a permitting process, the number of agencies involved, or business satisfaction surveys regarding the efficiency of the regulatory framework.

Summary Table of SDGs, Targets, and Indicators

Source: thefai.org