A sweeping permitting overhaul that supporters say would bring energy projects online faster and potentially reduce Americans' utility bills is moving through Congress with backing from both parties. The Senate could vote to advance the Bipartisan American Affordability and Jobs Act as early as next week, according to the Bipartisan Policy Center, setting up possible passage before the year ends. The legislation carries implications for the data center buildout powering AI, because it would speed reviews for the gas pipelines and other infrastructure those facilities rely on.
The bill was introduced September 30 by four senators who call themselves the "four corners": Shelley Moore Capito (R-WV), Sheldon Whitehouse (D-RI), Mike Lee (R-UT) and Martin Heinrich (D-NM). Whitehouse said passage would flood the grid with clean, affordable energy and make data centers pay their fair share. The measure has drawn support from both climate and renewable energy groups and fossil fuel interests, including the US Oil & Gas Association.
Under the bill, a lead agency would have 45 days after completing an environmental review under the National Environmental Policy Act to issue a decision on a project. NEPA would no longer apply to certain projects, including transmission upgrades and some pipeline expansions, and to many projects receiving federal loans or grants or that have already undergone a similar state assessment. Court challenges over alleged violations of NEPA, the Clean Water Act, the Endangered Species Act or the National Historic Preservation Act would face a 150-day limit, and courts would be barred from halting a project outright, instead forcing agencies to correct problems.
The bill would also make it easier for large projects, including data centers, to qualify for general permits under the Clean Water Act, which the Army Corps of Engineers issues for discharges with minimal adverse environmental effects. Environmental groups argue that would strip public participation requirements for individual projects. Christy Goldfuss, executive director of the Natural Resources Defense Council, said data centers would not need to answer to local communities' concerns, and Earthjustice Action President Abigail Dillen described the bill as a precision strike for developers of dirty data centers.
Xan Fishman, executive vice president of the Energy Program at the Bipartisan Policy Center, said the senators swung big with a strong bipartisan compromise. He attributed lengthy delays to legal battles, saying agencies spend more time preparing for lawsuits, and that well-intentioned bureaucratic processes can spiral out of control. Fishman said he expects President Trump would want to sign the bill if the Republican-controlled Congress acts, and that the White House has been very involved in negotiations. The midterm elections could complicate its path, however, giving Democrats a better chance to press their priorities and potentially pushing debate into next year.
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