This week, the heads of the Department of the Interior (DOI), Department of Energy (DOE), Federal Energy Regulatory Commission (FERC), the Department of Transportation (DOT), the Army Corps of Engineers, and others signed a Memorandum of Understanding (MOU) implementing the One Federal Decision process. This MOU marks a major step in reforming how the federal government permits and approves major infrastructure and capital projects.This week, the heads of the Department of the Interior (DOI), Department of Energy (DOE), Federal Energy Regulatory Commission (FERC), the Department of Transportation (DOT), the Army Corps of Engineers, and others signed a Memorandum of Understanding (MOU) implementing the One Federal Decision process. This MOU marks a major step in reforming how the federal government permits and approves major infrastructure and capital projects.
An MOU is a formal agreement that lays out how two or more parties operate. Between federal agencies, MOUs are used to formally define relationships in context of statutory requirements or other mandated interaction that is otherwise undefined. MOUs help agencies outline timelines, procedures, and other essential responsibilities in executing policy goals.The One Federal Decision MOU implements Executive Order (EO) 13807. This EO, signed in August 2017, mandated federal agencies that are involved in permitting to establish timelines for environmental review and permitting process, with the goal of reducing the time and steps that it takes to authorize construction of a given project.
This MOU provides several agreements to streamline the permitting process:
• A goal of two years to complete all permitting reviews;
• Each agency will have 90 days to submit a plan to implement the One Federal Decision;
• Agencies will actively communicate throughout the permitting process for a given project;
• Agencies will conduct concurrent reviews (such as under NEPA), so that permit reviews are not stalled in one office; and,
• Direct agencies to cooperate with FERC proceedings if necessary.
Further, this MOU establishes clearer designations for lead and cooperating agencies, outlines specifics for project planning, concurrence and scoping, and dispute resolution. This MOU has significant impacts for the natural gas and energy industries. The two-year target for review will significantly reduce the time it takes to permit major projects, thereby reducing costs and potentially making projects more attractive. Additionally, allowing concurrent reviews not only increases the speed at which projects can be evaluated, but can safeguard against certain agencies from slow walking or delaying projects. The MOU will also help clarify lead agencies and promotes communication, which should help reduce confusion or misinformation.
For questions on this article, please contact Doug MacGillivray of APGA staff by phone at 202-464-742 or by email at
dmacgillivray@apga.org.