Federal bill aims to reform permitting, would reportedly expedite building and manufacturing

A recent bill introduced in the U.S. Senate promises cheaper energy, more jobs, and responsible growth nationwide, according to the bill sponsors.

U.S. Sens. Shelley Moore Capito (R-WV), Mike Lee (R-UT), Sheldon Whitehouse (D-RI), and Martin Heinrich (D-NM) introduced the Bipartisan American Affordability and Jobs Act of 2026 (BAAJA) on Sept. 30.

The sponsors say the BAAJA provides certainty that permitted energy and infrastructure projects will retain their permits, except under extraordinary circumstances, violations of law, a court order, or targeted reforms for energy projects.

The bill would expedite project approvals by amending the National Environmental Policy Act, Clean Water Act, Endangered Species Act, and National Historic Preservation Act.

“For far too long, our broken and outdated federal environmental review and permitting processes have stood in the way of energy reliability, secure jobs, modern infrastructure, and economic growth,” said Capito in a press release about the bill. “The bipartisan reforms we secured in this deal will transform our nation’s ability to power our economy and fuel future growth, while continuing to protect the land, water, and wildlife we all cherish.”

Lee added that permitting often delays building infrastructure.

“[W]hat too often stands in the way is a permitting system that takes too long and costs too much,” he said. “After years of work in Congress and many months of negotiations, I’m proud we’ve reached a bipartisan agreement to fix this broken process and get America back to building.”

John Bozzella, president and CEO of the Alliance for Automotive Innovation (Auto Innovators), made a similar argument in support of the bill as it relates to the automotive industry, backing the bill sponsors’ plan to increase domestic production of critical manufacturing elements.

“The auto industry in America supports our economic and national security,” Bozzella wrote in a statement of support for the bill. “For the auto sector to remain competitive in today’s global marketplace, it’s essential to have reliable access to energy and the critical minerals that power our advanced vehicles.

“Sens. Capito, Whitehouse, Lee and Heinrich understand this dynamic and have a plan to make American permitting more predictable by increasing domestic production of elements that are critical to the country’s largest manufacturing sector. We know that when those supply chains are disrupted, it can ripple across the country’s industrial base.”

He added that the bill is key to increasing advanced manufacturing, economic growth, jobs, and protecting the country’s defense base.

The Automotive National and Economic Security Act of 2026 was introduced in the U.S. House in August to study the national and economic security risks foreign adversaries, such as China, pose to the U.S. automotive industry, according to a press release from bill sponsor Rep. Diana Harshbarger’s (R-TN). She co-sponsors the bill with Rep. Debbie Dingell (D-MI).

The study would examine:

• • “Foreign ownership of, and state-directed investment in, U.S. automakers by foreign military organizations, political parties, and state-owned enterprises.
  • “Joint ventures, subsidiaries, and commercial partnerships between U.S. manufacturers and foreign adversaries.
  • “Transfers of critical and emerging technologies to foreign adversaries.
  • “Impacts on U.S. national security, economic competitiveness, and intellectual property protection.”

The Bipartisan Policy Center published an explainer of the 411-page BAAJA, drilling down to how each environmental and energy act listed above would change if the bill passes.

The National Environmental Policy Act’s procedural provisions would be rewritten “along three lines: scope of review (what agencies must analyze), which projects get reviewed at all, and how long the process takes,” according to the explainer.

The Bipartisan Policy Center adds in its explainer that the BAAJA would amend the Clean Water Act to reduce friction caused by some of the provisions on linear infrastructure and industrial facilities permitting while still protecting waters.

The explainer states the BAAJA would tighten consultation and approval timelines under the Endangered Species Act “without changing the jeopardy standard or the criteria for listing a species.”

BAAJA would “write a narrower definition” into Section 106 of the National Historic Preservation Act. Section 106 deals with funding and permit issuance for projects that affect historic properties.

“The result is that the federal approval, not the entire project footprint, would set the boundaries of review,” the explainer states.

The Bipartisan Policy Center covers several other aspects of the proposed amendments, including power sector emissions, electricity costs, grid data access, ratepayer protection from data centers, and more.

According to Whitehouse, if the BAAJA passes, the U.S. power grid will be flooded with clean, affordable energy.

“America is entering a new era of energy demand,” he said in the release. “We have an enormous opportunity to build big things again to meet that moment — to build more generation, expand our grid, create more jobs, lower energy costs, and make sure we have the energy we need to compete. It should not take decades to build the infrastructure our country needs.”

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