The bipartisan leaders of the U.S. Senate's two main energy and environment committees announced on September 30 that they have reached a deal on sweeping energy permitting reform legislation — aiming to speed federal reviews of energy and infrastructure projects, expand the transmission grid, and require data centers to cover all of their associated transmission costs. The Bipartisan American Affordability and Jobs Act of 2026 will not get a Senate vote before the November 3 midterm elections.
The bill was unveiled by Senate Environment and Public Works Chair Shelley Moore Capito (R-W.Va.) and Ranking Member Sheldon Whitehouse (D-R.I.), together with Energy and Natural Resources Chair Mike Lee (R-Utah) and Ranking Member Martin Heinrich (D-N.M.). It is the first time the bipartisan leaders of both committees have joined forces on permitting reform, breaking a years-long stalemate in which Democrats feared losing environmental protections and Republicans feared a deal that would only help renewables. "Permitting reform has stalled for years because Democrats feared losing environmental protections and Republicans feared a deal that would only help renewables. Sens. Heinrich, Lee, Capito and Whitehouse have shown there is a bargain that works for both sides," said Colin Mortimer of the Progressive Policy Institute (PPI).
At the bill's core is permit certainty: once a project is approved, its permit stands absent extraordinary circumstances, violations of law or a court order. The bill also seeks protections against any administration singling out and improperly delaying or denying permits for any class of energy projects. It would amend the National Environmental Policy Act, the Clean Water Act, the Endangered Species Act and historic-preservation reviews — imposing deadlines on environmental reviews and limiting some litigation. "The American people want lower energy bills, and they want more clean energy," Whitehouse said. "If we can pass this bill, we will flood the grid with clean, affordable energy and make data centers start paying their fair share." Capito called the agreement "a major step towards making it faster and more efficient and easier to build infrastructure projects, certainly without giving up any of the strong protections for our environment."
The bill requires data centers to pay for all of their associated transmission costs, preventing the costs from being passed on to other ratepayers. "Energy demand is rising, and businesses and communities need reliable, affordable power to keep pace," said Ryan Evans, executive director of Chambers for Innovation and Clean Energy (CICE). "Federal permitting should not pick winners and losers among energy technologies." Simon Mahan, executive director of the Southern Renewable Energy Association (SREA), said the deal puts the country "perhaps closer than ever to a more efficient permitting process for projects of all types, including solar and wind."
Talks had halted in December when President Donald Trump paused five offshore East Coast wind farms that were nearly complete. The effort accelerated in recent weeks after Trump reassured Democrats that wind and solar projects would be given better treatment in the bill. Whitehouse acknowledged that "nothing in the bill was easy" and said lawmakers still need clarity from the administration on "the question of returning to regular order for wind and solar projects" — an issue that remains unresolved. Capito said the "goal" is for the permitting bill to be the first vote taken after the chamber returns, adding that she looks forward to working with colleagues in both chambers and President Trump to get it signed into law. The Senate recesses after this week until after the midterms, and the House — which has not passed the bill — must also act after its recess.