As is often the case, the disaster unfolding in Los Angeles is exposing the inefficiency of government. There will be calls for reform at all government levels for decisions that failed to mitigate worst-case wildfire conditions. But common sense has a chance to prevail in the rebuilding. Both Los Angeles Mayor Karen Bass and Governor Gavin Newsome have signed executive orders that suspend permitting requirements for rebuilding efforts. These moves are to be applauded.
The orders implicitly acknowledge that permitting demands are onerous and time consuming. Mayor Bass’ Executive Order creates a permitting center for the burned areas that combines thirteen different agencies and subagencies. The Order directs all City departments to complete all reviews within 30 days of the application. It also explicitly orders that all reviews be conducted simultaneously, not sequentially. It then directs all the inspections to be done within two days.
The fact that thirteen agencies may be involved during a permitting process, and that their reviews are typically sequential, demonstrates the onerous path toward obtaining a permit. And that is just city-wide. State standards must also be satisfied. Thus, Governor Newsome’s Executive Order suspended two requirements for permitting: California Environmental Quality Act and the California Coastal Act. The Order also requires state agencies to identify other permitting requirements that “may unduly impede efforts to rebuild” and report them to him.
The statements accompanying their Orders demonstrate these executives know the normal process is difficult. Mayor Bass stated that “This order is the first step in clearing away red tape and bureaucracy….” Governor Newsome’s Order stated he is “committed to helping families …rebuild and recover without facing unnecessary costs and delays” and that the state can “expedite recovery from this disaster by eliminating barriers that unduly delay the rapid rebuilding of homes and other facilities….”
The government should remove obstacles to families and businesses during a time of such extreme hardship. But they should be removed always and for everyone. And there is a way to do just that: permit by rule.
Permit by rule represents a modernized, more streamlined, approach to permitting. It is already used in at least 38 states and a couple of federal agencies, including the EPA. It allows for all parties, government and applicant alike, to know exactly what the standards are to conduct the permitted activity. It avoids unnecessary delay and subjective reviews by the government.
This may seem too good to be true, but the concept is actually quite simple. First, the government creates a list of pre-set standards – essentially a list of conditions and requirements that someone must be able to satisfy to move forward with a project. Before applying, a would-be builder can check off items down the list with confidence that these are exactly the requirements the permitting agency expects to be fulfilled.
Second, when a party wishes to begin a project, it must provide notice to the government and must certify with a notice to the government that these standards are met. The government, in turn, is given a short period of time to acknowledge the certifications. The government agency is not given discretionary powers in reviewing. Rather, it only verifies that the proper certifications exist. If this is not done within the specified amount of time, the applicant is automatically granted an approval.
What happens if the standards are not, in fact, met? The government’s focus would actually be on these instances, but after the certification is acknowledged. The government would focus only on the bad actors through enforcement actions. That way, the vast majority of applicants who are satisfying the standards are not held up by needless review lags. Additionally, the burden on government is reduced, as it can focus only on a fraction of the prospective permittees.
Additionally, Permit by rule incentivizes applicants to follow the rules. There is no incentive for good-faith parties to apply before they can truthfully certify they have met all the pre-set standards. If a building project were to commence, only to have the permit revoked at a later date, a substantial investment would be lost.
Mayor Bass’ Order hits upon this type of effort. As a part of the executive order, she waives the requirement to obtain a demolition permit, “provided the applicant has submitted a timely notification prior to demolition … with information and documentation specified by the Department.”
We should encourage policy changes like these executive orders in times of disaster. But Los Angeles, California, and every other place should adopt permit by rule for any projects that can be streamlined the way that rebuilding homes can. Now that the inefficiencies of the old way to do permitting are more visible, it is time for new, and better, permitting.
Read Full Article »
