Permitting Reform Bill Enters Critical Stretch as Congress Weighs Energy Approval Overhaul

Permitting Reform Bill Enters Critical Stretch as Congress Weighs Energy Approval Overhaul

Bipartisan Senators Unveil Comprehensive Permitting Reform Bill

Congress's permitting reform effort has entered a critical phase. On September 30, 2026, Senate Environment and Public Works (EPW) Committee Chair Shelley Moore Capito (R-WV) and Ranking Member Sheldon Whitehouse (D-RI), along with Senate Energy and Natural Resources (ENR) Committee Chair Mike Lee (R-UT) and Ranking Member Martin Heinrich (D-NM), introduced the Bipartisan American Affordability and Jobs Act of 2026 (BAAJA, S. 5653). The 417-page package is described as the most significant permitting reform considered by Congress in years, aimed at accelerating approvals for energy, infrastructure, transmission, mining, manufacturing, and other major projects.

Six Statutes Rewritten, NEPA Changes Deepest

BAAJA would amend the National Environmental Policy Act (NEPA), the Clean Water Act (CWA), the Endangered Species Act (ESA), the National Historic Preservation Act (NHPA), the Federal Power Act (FPA), and other statutes. The deepest changes target NEPA: the bill would expressly characterize NEPA as procedural and informational, providing that NEPA does not mandate a particular substantive outcome. It would redefine a "major Federal action" as a proposed agency action subject to substantial federal control and responsibility, excluding several actions involving limited federal participation and specified infrastructure activities. Greenberg Traurig LLP notes this amounts to the most substantial amendments to NEPA since its enactment in 1969.

45/90/120-Day Deadlines Close the Gap

The bill imposes firm post-review deadlines: the lead agency must issue a record of decision within 45 days of publishing a final EIS; federal agencies that participated in the review must decide outstanding authorizations within 90 days; non-participating agencies get 120 days. The Bipartisan Policy Center notes that while current law sets one year for an environmental assessment and two years for an EIS, no deadline applies to the final decision or to permits that follow — BAAJA is designed to close that last mile.

150-Day Litigation Window and Data-Center Cost Allocation

On litigation, BAAJA would shorten NEPA's statute of limitations from six years to 150 days and bar vacatur of projects for NEPA violations. On transmission and power, the bill would give qualifying transmission projects a more certain route to federal approval by changing FERC's authority from "may" to "shall" issue a permit after at least 45 days of public comment. It also provides that incremental power costs associated with large data centers must be allocated to those data centers, not to other power users.

Environmental Critics Warn of "Rubber-Stamping"

Environmental critics have pushed back hard. Brett Hartl, government affairs director at the Center for Biological Diversity, told States Newsroom: "The entire gist and purpose of this bill is to get to yes as fast as possible for every project under the sun. It doesn't matter if it's a good project or a bad project." Rep. Jared Huffman (D-Calif.), ranking member of the House Natural Resources Committee, said the bill "raises significant questions and concerns that would have to be resolved before most Democrats could support it." Still, supporters include a bipartisan group of former cabinet officials — including Janet Yellen and Mike Pompeo — who sent a letter to congressional leaders on October 20, 2026 urging passage.

House Passed SPEED Act; Senate Vote Likely After November

Timing is the biggest open question. The House passed its own version, the SPEED Act (H.R. 4776), on December 18, 2025 by a vote of 221-196. The Senate released BAAJA text on September 30, 2026 and immediately recessed ahead of the November 3 midterm elections. Sen. Whitehouse has said a vote on the Senate package will likely wait until the lame-duck session after the midterms. Capito said at a press conference her goal is "to have it be the first vote when we come back and at least to begin the process." Rep. Bruce Westerman (R-Ark.), House Natural Resources Committee chair, warned lawmakers are "running out of time." Whether the two chambers can reconcile their versions and send a bill to the President before year's end will determine whether permitting reform actually lands.