Proposed US Senate legislation grants FERC authority to issue transmission permits when in the public interest, eliminating state-level NIETC (Nationally Interested Electric Transmission Corridor) veto authority.
A bipartisan Senate bill introduced Wednesday would, in most cases, prevent the revocation or suspension of previously issued federal permits for energy projects and strengthen the Federal Energy Regulatory Commission's siting authority for transmission. The Bipartisan American Affordability and Jobs Act, sponsored by Senators Sheldon Whitehouse (D-R.I.), Martin Heinrich (D-N.M.), Mike Lee (R-Utah), and Shelley Moore Capito (R-W.Va.), builds on two earlier bills that stalled in Congress: the Energy Permitting Reform Act of 2024 and the Standardizing Permitting and Expediting Economic Development Act of 2025.
Advanced Energy United expressed optimism about the bill's prospects, with a spokesperson stating that industry enthusiasm is high and that the Senate may vote after the November elections. At the press conference, Whitehouse noted that amendments will be considered when the Senate reconvenes in November.
Permitting reform negotiations had stalled in December after President Trump issued stop work orders against five offshore wind projects. A deal emerged in recent weeks after Trump signaled to Democratic lawmakers that wind and solar projects would receive better treatment under the new bill. The legislation creates a right for projects to sue over a pattern of disparate federal treatment based on project type.
The new bill aims to ensure that all federal agencies treat applications for permits fairly and efficiently, and grants applicants the right to sue if permits are improperly denied or unreasonably delayed due to disparate treatment. Whitehouse acknowledged that questions remain about how the Trump administration will treat wind and solar projects going forward, but stated that the administration's initial proposal signals a good-faith willingness to reach agreement.
Courts have already weighed in on the administration's offshore wind orders. In April, U.S. District Judge Denise Casper of Massachusetts granted a preliminary injunction filed by clean energy organizations challenging federal decisions to pause permitting or add review levels for solar and wind projects. The courts ruled against the administration on all five offshore wind projects, clearing the way for work to resume.
Beyond permitting neutrality, the legislation significantly expands federal transmission authority. It eliminates National Interest Electric Transmission Corridors and grants FERC the power to issue permits for construction or modification of transmission facilities based on consistency with the public interest. The bill also eliminates the federal right of first refusal for incumbent utilities, removing their automatic right to build new regional lines, and requires FERC to establish regional consolidated interconnection and transmission planning processes, similar to the model FERC approved for the Southwest Power Pool in March.
The transmission provisions are designed to address grid congestion and reduce obstacles to new line construction. The bill mandates that transmission costs be fully assigned to data center operators and other computational loads of 20 MW or greater, minimizing cost burdens on other customers. For loads meeting this threshold, the legislation imposes exit charges and bars their incremental costs from being recovered from other customers.
The bill also reduces state authority under the Clean Water Act's Section 401 to block gas pipeline applications, a change with potential implications for gas-constrained regions like the Northeast. Stakeholders acknowledge that the bill will likely undergo modifications during the legislative process, but view the core provisions as substantive steps toward accelerating energy development.