E-Enterprise supported the development of a calculator that allows states, Tribes, and others to evaluate the potential for electronic permitting to drive efficiency and increased economic activity. The tool guides agencies through a series of questions to monetize the cost of processing time for environmental permits, which electronic permitting reforms can accelerate.
Inefficient permitting processes can unnecessarily delay beneficial economic activity
Permits ensure that covered projects or facilities take steps to monitor and mitigate potential negative impacts to public health, ecosystems, and natural resources. As essential tools for preventing pollution, permit programs must also strike a balance with supporting economic development and prosperity.
Electronic permitting systems can automate workflows and speed permit processing times. Agencies looking to implement e-Permitting tools can better understand the potential for a return on their investment by considering the benefits for the agency as well as the impacts across the state. Estimating those benefits can be challenging without a model and methodology.
An ROI calculator helps agencies estimate the value of increased economic activity associated with ePermitting
E-Enterprise supported the development of an Excel-based tool that calculates the return on investment (ROI) from implementing an electronic permitting system. The calculator guides users through a process to enter information about permitting processes and impacted industries before calculating that state’s unique cost data as reported to the U.S. Department of Labor, Bureau of Labor Statistics.
The tool uses that information to measure the opportunity cost of lost economic activity associated with waiting for the final permit decision. Project benefits are measured as the dollar value of additional days of economic activity per year.
The ROI calculator estimates the potential for increased economic activity and other efficiencies using three metrics:
- Time to Market (primary): Estimated gains in economic activity associated with reduced permit processing times.
- Trusted Transactions (secondary): Quantified value to regulated entities of realigning compliance staff to value-added use given reductions in uncertainty in information exchanges and indeterminate schedules.
- Right Info, Right Time (secondary): Estimated benefits of reducing time spent by the public and industry on searching for and accessing data (e.g. online driver’s license renewals vs. in-person).
- Other DW-SFTIES resources and tools
More information on the ROI Calculator
Agencies can consistently evaluate the impact of ePermitting to promote economic activity and protect the environment
The ROI calculator gives agencies a consistent and user-friendly way to estimate the potential benefits of ePermitting. Electronic systems can reduce permit processing times. Faster processing decreases the time to market and reduces operational delays for regulated facilities. Reducing unnecessary administrative delays increases economic activity and productivity. Permit applicants can also benefit from lower permitting-related costs and reduced scheduling uncertainty that can affect financing. The ROI calculator captures these potential benefits and helps agencies incorporate them into their investment analyses.
Try the ePermitting ROI Calculator!
Help your agency understand the potential economic impact of accelerated decisions through ePermitting.
Key Contacts
David Nicholas
U.S. EPA Office of Land and Emergency Management
nicholas.david@epa.gov
202-566-1927
