Congressman Mike Kennedy of Utah’s 3rd District introduced the License to Drill Act on Mar. 20, aiming to ensure the federal government has the resources needed to process energy permits efficiently and without unnecessary delays. The legislation seeks to reauthorize the Application for Permit to Drill (APD) fee program, which is designed to streamline permitting and support ongoing American energy development.
The proposed bill addresses concerns about overreliance on foreign energy sources and the impact of permitting delays on jobs and energy prices. “We know the effects of overreliance on foreign nations for our energy; it is a risk that we must mitigate. We also know that permitting delays cost jobs and drive up energy prices for everyday Americans,” said Congressman Mike Kennedy. “America needs an all-of-the-above energy strategy, and that starts with a government that can keep up with demand. The License to Drill Act will streamline permitting so our critical energy projects stop waiting on Washington and start delivering the domestic production this country needs to remain independent and secure.”
Industry leaders voiced support for the bill, highlighting its importance in maintaining efficient operations at Bureau of Land Management (BLM) offices across several states. Rikki Hrenko-Browning, President of the Utah Petroleum Association, said, “BLM’s Project Offices in Utah are essential to keeping up with a high volume of drilling permits, rights‑of‑way, and complex environmental reviews… We’re grateful to Rep. Kennedy for recognizing how important this program is to Utah and for leading the effort to ensure PPIF doesn’t lapse just when the country needs more reliable American energy.” Melissa Simpson, President of Western Energy Alliance, added, “The Permit Processing Improvement Fund is one of the quiet success stories of federal energy policy… Reauthorizing PPIF is about making government work better, reach decisions faster, shorten timelines, and support frontline BLM staff in offices across the West.” Dan Naatz from the Independent Petroleum Association of America noted that extending this bipartisan program would help small and midsize companies continue supporting American energy production.
Other industry representatives emphasized how timely permit processing supports local economies by providing investment certainty and stable employment opportunities. Tim Stewart from U.S. Oil & Gas Association pointed out recent geopolitical crises as reasons why domestic oil production should not be hindered by bureaucratic delays: “With attacks in the Middle East and shipping disruptions in the Strait of Hormuz, it is more important than ever that America can rely on its own oil and natural gas.” Leaders from Colorado Oil & Gas Association, Montana Petroleum Association, Independent Petroleum Association of New Mexico, New Mexico Oil and Gas Association, North Dakota Petroleum Council, and Energy Workforce & Technology Council echoed similar sentiments regarding workforce stability and community benefits.
The APD fee program was first established by Congress in 2004 as an industry-funded initiative enabling BLM offices to process drilling permits more efficiently through direct applicant fees supporting staffing needs. Under current law, companies seeking drilling rights on public lands must submit an APD including environmental reviews coordinated across agencies; these fees directly fund BLM’s review capacity.
If enacted as proposed, every dollar collected through APD fees would be directed toward BLM’s Permit Processing Improvement Fund from fiscal years 2027 through 2037—ensuring continued support for timely domestic energy development.
