The US Council of Economic Advisers (CEA) published a report estimating that reducing environmental impact statement (EIS) review times from a baseline of 4.2 years to two years could increase gross domestic product (GDP) by 0.28% to 0.56% in the long run. That represents USD 82 billion to USD 164 billion in additional annual output, measured in 2024 dollars. The Bipartisan American Affordability and Jobs Act would establish enforceable deadlines requiring agencies to complete EISs within two years under the National Environmental Policy Act. Under that scenario, annual tax revenue could increase by USD 14 billion to USD 28 billion. For the average household, estimated annual benefits include real wage gains of USD 306 to USD 637 and electricity bill savings of USD 178 to USD 251. A separate scenario shortening reviews to one year puts the potential GDP increase at 0.41% to 0.83%, equivalent to USD 120 billion to USD 243 billion in additional annual output. The model links shorter approval delays to earlier investment returns, greater investment and a larger capital stock. Measured exposure is concentrated in infrastructure and energy, including mining, rail and utilities. The analysis covers EIS projects but excludes more numerous environmental assessments and potential benefits from reducing approval uncertainty and litigation costs. The estimated output gains would accumulate gradually as investment becomes productive, rather than materializing immediately.
US Council of Economic Advisers estimates permitting reform could add USD 82 billion to USD 164 billion in annual output
The US Council of Economic Advisers estimates that cutting environmental impact statement review times from 4.2 years to two could raise GDP by 0.28% to 0.56% in the long run, adding USD 82 billion to USD 164 billion in annual output. The report models enforceable deadlines contemplated by the Bipartisan American Affordability and Jobs Act and projects higher household real wages and lower electricity bills. Its estimates exclude environmental assessments and potential gains from reduced approval uncertainty and litigation costs.