President Donald Trump is set to release two directives designed to ease state restrictions on energy projects and avoid "unnecessary red tape" that delays oil and gas production.
The two executive orders, which Trump is set to announce tomorrow at an engineering training facility near Houston, will attempt to streamline permitting and encourage investment, a White House official said.
The new initiative could help address growing industry concern that permitting delays for pipelines serving Marcellus shale gas producers and the Permian basin have become a key bottleneck to Trump's push to expand oil and gas production.
Details from the executive orders have not been disclosed. But industry officials anticipate it could try to limit the circumstances under which states can use "section 401" water permits to block pipeline construction. The White House official said the order will allow families and businesses in "states with energy restrictions" to access affordable energy, reduce regulations and also help energy companies avoid "unnecessary red tape."
Industry officials hope the order restricts states from blocking pipelines for reasons they contend have little to do with protecting water quality. Dan Eberhart, the chief executive of US oilfield service company Canary, said the strategy of blocking pipelines has forced energy commodities to compete for space on rail and public roads, raising energy prices and increasing truck traffic. Other industry officials echoed those remarks.
"I hope what the administration is trying to do here is bring some rationality back to this, respecting states' rights to weigh in at some level, but the states also have to respect the federal process," Natural Gas Supply Association president Dena Wiggins said.
EPA administrator Andrew Wheeler, asked about the executive order yesterday, said the agency could "maybe help with permitting" and also provide technical assistance to permit applicants and states. Speaking generally about all environmental permits, Wheeler said EPA and states need to provide more certainty to the public by reaching timely permit decisions.
"We collectively owe it to all [permit applicants] to give them an up or down decision," Wheeler told a group of environmental regulators yesterday at a conference near Washington, DC, held by the Environmental Council of the States.
