U.S. Chamber: Cost of ‘Not In My Back Yard’ at $560 Billion and 250,000 Jobs

WASHINGTON, D.C.—A flawed permitting process for energy projects is the main contributor to roughly $560 billion in lost direct and private investment and 250,000 jobs, according to testimony delivered today by U.S. Chamber Senior Vice President William L. Kovacs before a joint meeting of the Senate and House Western Caucuses.

“The ‘Not In My Back Yard’ folks have abused a flawed permitting process to block 381 energy projects, nearly 44% of which involve renewable energy,” said Kovacs. “They have organized local opposition, changed zoning laws, opposed permits, filed lawsuits, and bled projects dry of their financing. It’s like an anchor on economic growth and job creation.”

“Congress could improve the permitting process for energy projects by adopting the commonsense procedures used for transportation projects and shortening the statute of limitations in which project opponents can file suit,” added Kovacs.

In his testimony, Kovacs warned that an avalanche of new regulations threatens economic growth and job creation and undermines the certainty businesses need to expand, grow, and hire. He noted that in 2007 there were approximately 110,000 federal regulations. He said that number is growing at a rate of 4,000 additional new regulations annually. In addition, these regulations are supplemented by thousands more guidance documents, administrative orders, and staff opinions. Many, if not most, of those regulations that are deemed to have a major economic or policy impact are litigated in the courts.

Kovacs noted the explosive growth in environmental regulations, which he said are now more complex and numerous than even tax regulations. “The math is simple,” said Kovacs. “Add a flawed permitting process and a rising tide of environmental regulations to the new mandates, taxes, and regulations in the health care bill and the pending financial reform bill and you get economic stagnation and fewer jobs. This has got to stop.”

A copy of Kovacs’ testimony can be found here:
http://library.uschamber.com/issues/testimony/2010/testimony-war-western-jobs

A complete list of blocked energy projects can be found here:
http://www.projectnoproject.com/.

The U.S. Chamber of Commerce is the world’s largest business federation representing the interests of more than 3 million businesses of all sizes, sectors, and regions, as well as state and local chambers and industry associations.