Government red tape, bureaucratic delays cost taxpayers millions

Common Good

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The estimate that $1.7 trillion will be needed through the end of the current decade to address infrastructure needs in the United States is staggering. But, here’s something more disconcerting. Delays in securing approval and permitting for infrastructure projects over a similar time period will cost taxpayers more than double that amount – in excess of $3.7 trillion!

Permits alone for infrastructure projects have been known to take 10 years – or more. Such delays, which significantly add to the cost of projects, have caused some public officials to question whether the red tape and the time involved in getting a project launched is worth the effort.

Regulatory agencies must find ways to move quicker. Common Good, a nonpartisan coalition that works to simplify government, advocates for overhauling the entire regulatory processes for large public projects. They want a mandate that forces everything to be completed in two years. Not only would such action encourage more infrastructure investment, but it would also jump start the rebuilding of the nation’s infrastructure.

Loosening the regulatory reins would result in more energy conservation through renewable power and modern transmission lines. It would result in enhanced port waterways, new and updated water treatment plants and safer bridges and airports. It would also help mitigate rail and traffic congestion, create jobs and ensure public safety. And, experts say the economic and environmental benefits of a modern infrastructure system would “dramatically” exceed the costs of those upgrades.

But, with some of the nation’s 50- to 100-year-old infrastructure in critical decline, projects need to be launched now. Common Good’s infrastructure report, Two Years Not Ten Years, Redesigning Infrastructure Approvals, reports that the United States could rebuild its aging infrastructure “at about half the total cost with a two-year approval process.” Funding was once what slowed down major infrastructure projects. Now, the regulatory process is the “deal killer.”

Here’s an example. The city of New York needed to raise the roadway on the Bayonne Bridge, a project that would save the city $3 billion. The only other options were to build a new bridge or a tunnel. The concept and the planning were completed, but permitting turned into a five-year process that included a 10,000-page environmental assessment and 10,000 pages of additional permitting and regulatory materials. These types of delays create huge and often unnecessary costs for taxpayers.

Increased project costs are not the only detriment. The nation’s global competitiveness also is at risk. The condition of a country’s infrastructure impacts economic activity. Too many countries are already ahead of the United States.

Germany has already implemented permitting reforms and Australia is in discussions to do the same. Canada plans to reduce project permitting to two years for federal projects. It’s time for every state, as well as the federal government, to find ways to shorten permitting and regulatory processes. Too much is at stake!

For updates on the infrastructure permit process, assistance with public-private partnerships or information about additional upcoming government contracting opportunities, contact Strategic Partnerships, Inc.