Senate Permitting Bill Would Overhaul Federal Reviews for Energy Projects
A bipartisan Senate bill introduced September 30, 2026 would add NEPA decision deadlines, FERC project exclusions, 150-day suit limits and new remedies against agencies that revoke or delay permits.
According to Vinson & Elkins, the Bipartisan American Affordability and Jobs Act of 2026, introduced September 30, 2026 by a bipartisan group of senators, is a sweeping federal permit reform package. It would add hard agency deadlines (seven days after an environmental assessment, 45 days after a final EIS, and 90- or 120-day clocks for participating and non-participating agencies), exempt many in-right-of-way interstate gas pipeline and electric transmission activities from NEPA and NHPA review, and narrow Clean Water Act Section 401 certification to direct discharges, with nine-month state deadlines for FERC pipelines and certain lines. It also sets a 150-day statute of limitations for environmental suits, funnels most NEPA, ESA and NHPA claims to the courts of appeals, and makes remand without vacatur the default remedy. Notably for developers, the bill would bar adverse post-permit actions against fully permitted non-federal projects and create government-paid remedies, including 25-50 percent of project costs to date, if the government loses such a suit. Energy clients should care because the NWP 12 and Section 401 items track live litigation. Key caveat: the Senate is unlikely to act before the midterms.