A new bipartisan energy bill in the Senate aims to prevent administrations from blocking permits for entire categories of energy projects, including solar and wind initiatives.
The proposed legislation, known as the Bipartisan American Affordability and Jobs Act, would prohibit any administration from delaying or denying permits for whole classes of energy projects, as noted in a fact sheet from Democratic Senator Martin Heinrich of New Mexico, the bill’s sponsor.
This means that administrations would face legal repercussions if they attempted to block permits for all solar or wind projects, among others, according to the fact sheet.
In a recent interview, Republican Senator Kevin Cramer from North Dakota, who serves on the Senate Environment and Public Works Committee, emphasized that the bill’s provisions for expedited judicial review are “the most important part” of the legislation.
Cramer explained that the new rules would give opponents a 150-day window to file lawsuits against permitted projects, contrasting sharply with the current six-year period. “Just think about that,” he remarked.
“Lawfare becomes more effective with numerous litigants involved, and if anyone can become a plaintiff, the chances of needing to be successful to disrupt the whole process diminish significantly,” Cramer added.
Heinrich introduced the bill alongside Republican Senators Shelley Moore Capito of West Virginia and Mike Lee of Utah, as well as Democratic Senator Sheldon Whitehouse from Rhode Island, according to a release from the Senate committee.
Thomas Hochman, a senior fellow at the Foundation for American Innovation, mentioned that while the bill’s provisions for permitting certainty are innovative, their effectiveness will rely on judicial interpretation and enforcement.
“BAAJA [the Bipartisan American Affordability and Jobs Act] employs a multi-layered strategy which is likely to significantly limit an administration’s ability to systematically target projects they disfavor,” Hochman stated.
The legislation raises the requirements for revoking permits, introduces new legal grounds for developers facing discriminatory permitting actions, and imposes strict deadlines for federal decision-making on energy project permits.
“While these measures won’t ensure that every project receives approval, they will complicate politically motivated delays,” Hochman indicated.
A spokesperson from the Senate Energy and Natural Resources Committee remarked that the Biden administration’s recent actions demonstrated how swiftly the executive branch could manipulate the permitting process to hinder American oil and gas production.
“Section 1402 allows recourse if a future administration resorts to similar tactics,” the spokesperson noted, adding that a specific part of the bill protects natural gas pipeline projects, enabling developers to contest patterns of improper or unreasonable denial or delay of permits.
The offices of Whitehouse, Heinrich, and the American Clean Power Association did not provide immediate comments in response to inquiries.
Capito and Lee lead the Environment and Public Works and Energy and Natural Resources committees, while Whitehouse and Heinrich serve as the leading Democrats on those panels.
The bill would also allow energy and infrastructure projects with approved permits to maintain their status unless extraordinary circumstances arise, violations occur, or a court orders otherwise, as stated by the committee.
Heinrich’s office reported that during the Trump administration, all offshore wind permits were stalled and more than 500 clean energy projects faced delays.
“Any permitting agreement must ensure that no administration can exploit the process for mere political gain,” Heinrich said in a speech in January.
An Interior Department representative expressed eagerness to collaborate with Congress to foster reforms that enhance American energy leadership, cut costs, and generate jobs.
François Poirier, CEO of pipeline operator TC Energy, commented that the bipartisan framework “enhances permitting certainty for all energy types, from renewables to natural gas.”
“Revamping the permitting system is the most significant action Congress can take right now to provide relief for consumers,” Poirier added, urging Congress to pass such reform.
According to Karen Harbert, president and CEO of the American Gas Association, simplifying an overly complex permitting process would expedite the establishment of essential energy infrastructure.
Hochman noted that reforms to the National Environmental Policy Act and the National Historic Preservation Act could benefit a wide range of projects, including wind and solar, oil and gas, geothermal, pipelines, and power lines.
He highlighted that litigation under these laws often delays or halts energy projects, so reforms aimed at limiting court orders that stop projects over procedural issues would create a beneficial impact if implemented.
Cramer pointed out that the Clean Water Act enables states to exert control with minimal justification, particularly affecting interstate natural gas pipeline projects, a situation he believes the permitting bill would help address.
Under the proposed legislation, data centers would be required to cover the complete costs of their transmission needs rather than making such payments optional, according to Heinrich’s fact sheet.
The committee spokesperson mentioned that Lee is optimistic about bipartisan support in the House for the idea that utility customers should not unfairly absorb data center interconnection costs.
Additional provisions would grant the Federal Energy Regulatory Commission greater authority over major interstate power lines, allowing federal and state reviews to occur simultaneously.
The Bureau of Land Management would have a maximum of 60 days to issue geothermal drilling permits, and low-impact geothermal exploration would not face new environmental reviews, as stated in the fact sheet.
A new, time-restricted consultation process under the National Historic Preservation Act would coincide with National Environmental Policy Act assessments, giving Tribes a legal role in evaluating the potential impacts of projects on historic and cultural sites.
Capito commented that federal environmental review processes have often obstructed energy reliability, job security, modern infrastructure, and economic growth for too long.
Lee remarked on the historical context of American infrastructure projects, expressing that while America’s resources and talent are still plentiful, a cumbersome permitting system often impedes progress.
Whitehouse stated that the bill would “flood the grid with clean, affordable energy” while ensuring data centers contribute appropriately to infrastructure costs.
Heinrich reiterated that the legislation would hold data centers accountable for grid upgrades, instead of shifting those costs to American families.
“Our bill reinforces that principle,” he remarked.
John Nagle, a policy manager at the Pacific Legal Foundation, expressed that Americans should not have to deal with lengthy and unpredictable government processes merely to build homes or develop new energy resources.
According to research by the Pacific Legal Foundation, the average permitting time under the National Environmental Policy Act exceeds 500 days.
