House Passes Permitting Reform Bills to Cut the Red Tape Holding Back American Manufacturing and Economic Growth
WASHINGTON, D.C. – Today, Congressman Brett Guthrie (KY-02), Chairman of the House Committee on Energy and Commerce, celebrated the House passage of legislation to cut unnecessary and burdensome requirements under the Clean Air Act, support domestic manufacturing and energy production, and ensure American communities and manufacturers aren’t penalized for pollution they did not create.
In order to unleash American energy, strengthen our electricity grid, and grow our manufacturing base, it’s essential that undue permitting requirements are not standing in the way of innovation. For years, certain unnecessary Clean Air Act requirements have posed costly burdens for manufacturers and energy producers that have led to higher costs for hard-working families. Today’s passage of these bills is an important step toward supporting greater affordability.
H.R. 6398, the Reducing and Eliminating Duplicative Environmental Regulations Act (RED Tape Act) eliminates an outdated EPA review requirement for environmental impact studies when other agencies are already doing the work, and H.R. 6409, the Foreign Emissions and Nonattainment Clarification for Economic Stability Act (FENCES Act) protects states from being penalized for foreign emissions they cannot control.
“Energy and Commerce Republicans are delivering commonsense legislation that addresses the burdensome requirements holding back American energy and manufacturing. The RED Tape Act eliminates an outdated and redundant review requirement for the EPA, while the FENCES Act ensures American communities and manufacturers aren't penalized for pollution they did not create,” **said Chairman Guthrie. **“Together, these bills provide foundational permitting reforms our communities need to onshore manufacturing and create family-sustaining jobs. Thank you to Congressman Joyce and Congressman Pfluger for their work on these vital pieces of legislation.”
“The passage of the RED Tape Act is a critical step toward restoring efficiency and predictability in the federal permitting process. Unnecessary and duplicative regulations drive up costs, delay projects, and prevent necessary development that would benefit our workforce, businesses, and constituents,” said Congressman Joyce. “As energy demands rise, an efficient permitting process will become even more essential to meeting our energy needs, unleashing American energy dominance, and strengthening our position in the global race for critical minerals and advanced manufacturing.”
“The passage of my FENCES Act is a win for American businesses and workers who have been unfairly penalized for pollution beyond their control. By ensuring that foreign emissions and natural events, such as wildfires, are not counted against air monitoring data, this bill brings long-overdue fairness and certainty to the permitting process,” said Congressman Pfluger. “This means fewer delays, lower costs for consumers, and more confidence for businesses looking to invest and create jobs. It is a practical, commonsense fix that protects our economy and the integrity of our air quality standards.”
BACKGROUND:
H.R. 6398, the RED Tape Act—Rep. Joyce (PA-13)
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The RED Tape Act removes the duplicative requirement in Section 309 of the Clean Air Act that directs EPA to assess and provide feedback on EISs prepared by other agencies under the National Environmental Policy Act for federal construction projects, significant federal actions, and proposed regulations.
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In the decades since NEPA and this obscure CAA provision were enacted, federal agencies responsible for preparing EIS documents have developed considerable expertise assessing the impacts of their actions under NEPA. EPA is regularly involved in the NEPA review process as a cooperating agency, making the secondary review under Section 309 unnecessary, duplicative, and inefficient.
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In its 2025 decision in Seven County Infrastructure Coalition vs. Eagle County, Colorado, the Supreme Court ruled that upstream and downstream impacts of a federal action fall outside the scope of an EIS under NEPA. In light of this decision, EPA’s separate review and comment on broader environmental impacts of proposed federal action are no longer appropriate.
H.R. 6409, the FENCES Act—Rep. Pfluger (TX-11)
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Congress has always recognized that pollution originating outside our borders shouldn’t penalize American communities. That’s why the Clean Air Act allows states to adjust their air quality plans when foreign emissions prevent them from meeting federal standards. However, guidance from EPA under the previous administration narrowed the relief, limiting it to only human-caused emissions from abroad.
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The FENCES Act restores the original intent of the law. It clarifies that all foreign emissions, whether natural or man-made, are excluded from consideration when determining whether a state meets national air quality standards or when reviewing new facility permits.
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The bill allows states to account for foreign emissions earlier in the regulatory process, instead of forcing them to wait until the very end and risk costly delays or federal sanctions.
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Currently, it is rare for EPA to grant states relief for foreign emissions in the National Ambient Air Quality Standards process. The current provision only applies to a state’s final State Implementation Plan. States should not be penalized for foreign emissions beyond their control; this bill would expand the 179B provision to cover attainment designations and not just final SIPs.