HR7329-119

What This Bill Does

The FREEDOM Act adds a new title to the Energy Act of 2020 focused on reliable energy, open markets, and federal permitting. It defines covered energy projects, authorizations, project sponsors, courts, capital contributions, unrecoverable losses, and related terms. For eligible energy projects seeking rights-of-way under the Federal Land Policy and Management Act, agencies must move quickly after notices and applications. The bill creates a DOE De-Risking Compensation Program for project sponsors whose enrolled covered energy projects suffer unrecoverable losses because authorizations are revoked, cancelled, vacated, remanded, stayed, suspended, or otherwise blocked in specified ways. Sponsors enroll after initiating permitting, pay premiums, and may receive compensation if the Court determines eligibility. A De-Risking Compensation Fund in Treasury receives premiums and appropriations. The bill also creates a notice-of-initiation process, agency project schedules, authorization deadlines, a mechanism for court-approved contractors when agencies miss deadlines, a Permitting Performance Fund, judicial causes of action for project sponsors, venue rules, petition requirements, expedited schedules, relief, civil penalties, appeals, and accelerated treatment of other parties' challenges to complex authorizations. Agencies generally may not terminate construction or operation of fully permitted projects except under specified circumstances. The Comptroller General must survey industry satisfaction with permitting within 180 days and annually thereafter. Separate geothermal provisions increase lease-sale frequency, address replacement sales, authorize regulations, and bar federal drilling permits for certain geothermal activity on nonfederal surface estates.

Who Benefits and How

Energy project sponsors benefit from tighter permitting schedules, new judicial-review tools, possible compensation for stranded capital, and protection against late-stage agency reversals. Geothermal operators benefit from more frequent leasing and fewer federal drilling permit requirements for qualifying nonfederal-surface activities. Investors, utilities, manufacturers, and lenders benefit if the de-risking program and funds reduce uncertainty around permits, court delays, and authorization reversals. State energy markets and energy consumers may benefit if covered projects reach construction and operation faster. Congress benefits from annual GAO surveys measuring industry satisfaction with federal permitting.

Who Bears the Burden and How

Federal permitting agencies must process notices, determine completeness, set schedules, meet authorization deadlines, respond to petitions, potentially accept court-approved contractor work, and avoid termination orders for fully permitted projects. DOE must administer the De-Risking Compensation Program, collect premiums, manage claims, and pay compensation from the Fund. Treasury Department must hold the Fund. Federal district courts, the D.C. Circuit, and the Court of Federal Claims must handle expedited petitions and issue decisions within tight timelines absent extraordinary circumstances. Environmental plaintiffs and community challengers face accelerated deadlines and narrowed procedural terrain. Federal taxpayers may fund appropriations to the de-risking and permitting funds. BLM and Interior must update geothermal leasing and nonfederal-surface permitting rules.

Key Provisions

• Adds a new Energy Act title for covered energy project permitting, compensation, deadlines, judicial review, and reporting.
• Creates a DOE De-Risking Compensation Program and Treasury fund for enrolled projects that suffer unrecoverable losses from authorization reversals or other covered events.
• Requires notices of initiation, project schedules, authorization deadlines, and court-approved contractor remedies when agencies miss milestones.
• Creates expedited judicial review, civil penalties, appeals rules, and accelerated treatment of third-party challenges.
• Improves geothermal leasing and bars federal drilling permits for certain geothermal activities on nonfederal surface estates.