Regional study ranks Iowa as leader in business permitting process

Des Moines-Governor Tom Vilsack today announced results of an independent report showing Iowa compares favorably with seven other Midwestern states - the top competitors for corporate investment projects - in helping companies obtain key permits required for facility construction and start-up.

"This confirms what we have known: Iowa is a great place to do business, and getting better all the time," Vilsack said.

The report, "Comparison of Select Iowa Permitting Processes" was prepared by Deloitte Consulting and provides an in-depth evaluation of Iowa regulatory permit delivery times as compared to Illinois, Minnesota, Missouri, Nebraska, North Dakota, South Dakota and Wisconsin. The evaluation compared processing times for air quality permits, wastewater permits and historical preservation review.

Results showed Iowa outperformed competitor states in timely issuance of air quality permits, averaging 15 days for minor source construction permits, compared to 40 days in Illinois, 180 days in Minnesota, 83 days in Missouri, 180-270 days in Nebraska, 30-60 days in North Dakota, 90-180 days in South Dakota and 120 days in Wisconsin. Iowa compressed the process for issuing air quality permits - without sacrificing actual time spent reviewing a permit application - by applying "lean manufacturing" principles to the overall permit process.

"Iowa appears to have the most streamlined minor and major source permitting processes," the report said. "Iowa also generally allows more pre-permit site and construction work."

The streamlined process resulted from an intensive, weeklong "Kaizen" review, a business process improvement technique inspired by Japanese methods used to improve efficiencies in corporations. The effort focused on collecting data on the permit process, targeting waste and rapidly implementing recommendations. The Iowa Coalition for Innovation and Growth funded the project with support from the Iowa Business Council. The review team included DNR staff and representatives from regulated industries.

"This is real regulatory reform resulting from an innovative public-private partnership," Vilsack said. "Iowans can be proud of how well business and government are working together to break through difference and improve processes."

Iowa ranked in the middle of states in processing wastewater permits, and was below average in historic preservation review.

"I am confident that when we complete our application of lean manufacturing principles to the wastewater permit and historic preservation review processes, Iowa will be the leader in those areas as well," Vilsack said. "We plan to take that process and implement it in every department of state government involved in permits and licenses, so that our state will be the best in all areas of regulations."

The complete Deloitte study will be available Friday on the Iowa Department of Economic Development website, www.state.ia.us/ided.