H.R. 689 — FREE Act

This section states congressional findings that federal permitting systems grant agencies broad discretion with government review of each application, lack enforceable time constraints, and result in delays, costs, and occasional stalling of permits; declares a compelling interest in avoiding such delay and expense; and describes "permit by rule" as a streamlined alternative involving specific standards, applicant certification of compliance, agency verification within deadlines, and a post-approval focus on audits and enforcement of violators.

This section directs the Director of the Office of Management and Budget to issue guidance to agency heads, within 120 days of enactment, on implementing permitting by rule (i.e., a process under which agencies establish rules allowing permit applicants to self-certify compliance with specified requirements and standards, with permits deemed granted after 180 days absent agency action). It requires each agency head to submit to Congress, relevant congressional committees, and the Comptroller General, within 240 days after issuance of the guidance (extendable by 90 days with notice), a report listing and describing each type of permit issued by the agency; statutory and regulatory requirements; review steps and timelines; handling of deficient applications; protected interests; and a determination of whether permitting by rule could wholly or partly replace the current system (including anticipated challenges and mitigation for infeasible permits). If an agency misses the deadline, it must pay prevailing applicants' attorney fees and costs for court claims of unreasonable delay filed during the noncompliance period. It further requires each agency, within 12 months after submitting the report, to establish by rule a permitting by rule process for each applicable permit type, under which (1) applicants submit certifications of compliance with specified requirements and standards (plus optional supporting documentation); (2) agencies notify applicants of missing certifications within 7 days; (3) agencies may audit applications and request documentation; and (4) agencies may disapprove applications only upon identifying specified deficiencies.