The Senate is preparing to vote on a massive, controversial permitting reform bill that could significantly accelerate energy projects and potentially lower utility bills for Americans. The legislation, known as the Bipartisan American Affordability and Jobs Act (BAAJA), has gained bipartisan support but faces criticism from environmental advocates who fear it sacrifices safety and oversight for speed.
Introduced on September 30th by a group of four senators calling themselves the “four corners”—Shelley Moore Capito (R-WV), Sheldon Whitehouse (D-RI), Mike Lee (R-UT), and Martin Heinrich (D-NM)—the bill aims to address rising energy costs and the encroachment of data centers on local communities. Whitehouse stated in a press release that if passed, the bill would flood the grid with clean, affordable energy and ensure data centers pay their fair share.
The bill seeks to overhaul outdated permitting rules that the Bipartisan Policy Center says can turn reviews that once took months into processes lasting years or decades due to lengthy legal battles. To combat this, BAAJA would set a 45-day deadline for lead agencies to issue decisions on projects following an environmental review under the National Environmental Policy Act (NEPA). It also establishes a strict 150-day limit for anyone to challenge a project in court over alleged violations of several major environmental and preservation acts.
Furthermore, the bill would strip courts of the ability to halt a project entirely if a federal agency violates NEPA, instead requiring the agency to correct the issues. It also narrows the scope of projects subject to NEPA, creating exclusions for transmission upgrades and certain pipeline expansions. Additionally, projects receiving federal loans or grants, or those that have already undergone similar state environmental assessments, would no longer trigger a NEPA review.
The legislation has drawn support from both ends of the energy spectrum. The US Oil & Gas Association issued a statement saying, “Pass the frickin’ bill so we can start building things again.” Conversely, the Natural Resources Defense Council (NRDC) warned in an email that data centers would not need to answer to local concerns regarding wetlands or gas pipelines under this legislation. Christy Goldfuss, executive director of the NRDC, told The Verge that people would be shocked to realize representatives are rushing such a consequential decision.
Environmental organization Earthjustice Action expressed concern that the bill amounts to “rubber-stamping permits under the Clean Water Act” and “blocking interference from States and Tribes.” President Abigail Dillen of Earthjustice Action stated in a blog that the bill delivers a “precision strike for developers of dirty data centers” by enabling the fast delivery of gas to fuel data center build-outs.
From a developer perspective, Wood Mackenzie reports that permitting reform could benefit "behind-the-meter" projects where data centers build their own gas generation. Siddhant Warrier, a research analyst for Wood Mackenzie, told The Verge that the bill clears the way for all technologies to get onto the grid quicker rather than favoring one specific type.
The bill also aims to provide “project certainty” by barring federal agencies from canceling or suspending approved permits in most cases. It even allows developers to sue for damages incurred from project delays due to “disparate treatment.” The NRDC warned this could lead to a slew of industry lawsuits resulting in taxpayers paying billions of dollars to private industry.
The Bipartisan Policy Center indicates the Senate could vote to move the bill forward as early as next week. While Xan Fishman of the Bipartisan Policy Center expects President Trump will want to sign the bill if the current Republican-controlled Congress acts, he noted that newly empowered Democrats could choose to drag out the debate until next year to make fewer concessions.
