WASHINGTON, D.C. — February 26, 2025 – Leaders from the construction and energy sectors, including representatives from the National Association of Home Builders (NAHB) and the Associated General Contractors of America (AGC), testified before the U.S. Senate’s Committee on Environment & Public Works last week, urging lawmakers to streamline federal permitting and environmental review processes.

The hearing, chaired by Sen. Shelley Moore Capito (R-W.Va.), focused on modernizing regulatory systems to remove inefficiencies while upholding environmental protections.

‍Balancing Efficiency & Environmental Responsibility

“Our legislation needs to look at every stage of these processes to find efficiencies while balancing public health, the environment, and the needs of our economy,” said Capito in her opening remarks. “Let me be clear, modernizing these processes does not mean cutting corners or weakening environmental and public health protections.”

Speakers at the hearing highlighted how delays and regulatory uncertainty have driven up costs, halted projects, and discouraged investment in development.

Permitting Delays & Regulatory Costs

Carl Harris, NAHB chairman, noted that developers frequently abandon projects due to unclear regulations under the Clean Water Act (CWA) and Endangered Species Act.

“The CWA is well known among the regulated community because it is unclear which parts of the land parcel are considered a ‘waters of the United States’... and therefore require a federal wetland permit under the CWA,” Harris said. “To discover this answer, it can take over a year for the landowner to receive a response from the government.”

He also cited a 2021 NAHB study, which found that regulatory costs account for 24% of the final price of a new single-family home.

“Regulatory reforms that chip away at this block help reduce the overall cost of construction, which will help increase housing supply,” Harris added.

AGC Calls for Standardized Permitting Rules

The Associated General Contractors of America (AGC) joined the call for reform, emphasizing that permitting inconsistencies and prolonged National Environmental Policy Act (NEPA) reviews create barriers to construction.

“Project delays caused by prolonged National Environmental Policy Act reviews, permitting, and litigation increase costs and harm the construction workforce by delaying job creation, disrupting hiring, and reducing economic activity,” said Leah Pilconis, AGC general counsel. “...To safeguard jobs and keep critical infrastructure moving, AGC urges Congress to support an environmental permitting and approval process that enhances project certainty, minimizes litigation risks, and prevents unnecessary delays.”

Political Debate on Permitting Reform

While Sen. Sheldon Whitehouse (D-R.I.), ranking member of the committee, supported permitting reform—particularly for clean energy projects—he criticized the Trump administration for blocking billions in obligated federal funds.

“Billions in obligated funds remain frozen, behind a fog bank of contumacy, in blatant disregard of constitutional separation of powers, direct court orders, and basic principles of law,” Whitehouse said. “Until the administration shows it will honor its oath to faithfully and impartially execute the laws, we can have zero confidence that any legislative compromise on permitting reform will be executed lawfully.”

Next Steps for Permitting Reform

The Senate committee has kept the hearing record open until March 21, allowing additional industry representatives and stakeholders to submit their comments on environmental and permitting processes.

Other organizations testifying included:
✅ The Laborers’ International Union of North America (LIUNA)
✅ The Clean Air Task Force

As Congress debates potential changes, industry leaders hope for a more predictable, streamlined permitting process that maintains environmental safeguards while ensuring infrastructure and housing projects can move forward without excessive delays.

Originally reported by Mary Salmonsen in Construction Dive.