A BAAJA Blast of High-Energy Permitting
Friday, October 30th, 2026 12:01 amTLDR: Please email your senators and email your House representative and ask them to support the BAAJA permitting bill.Summary: The Bipartisan American Affordability and Jobs Act, a large bipartisan bill focused on permitting energy projects, is being considered in the Senate soon, and the House by the end of the year. The bill puts deadlines and procedural requirements on federal processes around permits, while requiring community engagement and preserving laws that protect the environment. The law is technology neutral: clean energy projects and fossil fuel projects both benefit. Despite helping some fossil fuel projects, the bill is still expected to be a big climate win because most new projects use clean energy, and because the bill's electric transmission provisions will enable renewable energy supply to connect to electricity demand, which is crucial for a green transition. The bill is a compromise between Republicans and Democrats through several years of careful negotiation. As with any compromise, both sides have parts they get excited about and parts that they don't love. Despite the negatives, Congress should pass this bill: a better deal isn't likely to happen, and the solution to a permitting process which is too slow isn't "wait several years to fine-tune the fix." Don't make the perfect the enemy of the good. Urge Congress to pass BAAJA.
For folks who are interested in learning more about the 400+ page bill and its affects, I've summarized several topics, including concerns and reasons some people oppose the bill. Those who want to nerd out even deeper are encouraged to read the Bipartisan Policy Center's section-by-section analysis. My friend Daniel Palken dove deep on the Volts podcast if you're up for listening to a 2-hour conversation. Curious where a member of Congress or an advocacy organization stands on the bill? See the BAAJA tracker. The Columbia Center on Global Energy Policy has a great interactive timeline for typical energy projects under the status quo and with BAAJA.
- Why is permitting important to the climate?
- Permitting is important in the fight against climate change because we need to build low-carbon energy and transportation systems to replace the polluting systems we have today. Over the last decade wind, solar, and batteries have become cheaper sources of electricity than natural gas. This cost advantage is a big win for clean energy: rather than relying on regulation to limit fossil fuels, the natural inclination of economic players will be to buy the cheaper resource. 92% of energy projects installed last year were solar, batteries, or wind! The problem is no longer incentivizing clean energy projects, it's now building clean energy projects fast enough to keep up with demand. The federal permitting process has become a big barrier to that clean energy buildout: it often takes four years to get a permit for a project, and a lawsuit about a bureaucratic technicality can derail the whole thing up to six years later, well after construction has begun. BAAJA sets time limits on the permit process and 5-month deadlines to file lawsuits, which creates a timeline a developer can plan around. This streamlined process doesn't change what kinds of projects are allowed to be built: if a project shouldn't be built because it runs afoul of environmental laws then it will still be denied a permit. By having a predictable process with deadlines, federal agencies can approve good projects faster and also deny bad projects faster.
The impact of permitting and economic incentives on clean energy deployment can be seen in Texas. In a state that's legislatively hostile to climate change concerns, rapid development of wind and solar energy has made it the state with the most renewable energy on the grid. These projects are generally deployed on private land and ERCOT (the Texas grid operator) has a low-bureaucracy process for connecting to the grid and a robust wholesale power market. Texas regulators didn't have to be convinced of the environmental and social benefits of clean energy: market forces and geographic advantages made it an easy choice.
- Why transmission permitting is especially important
- While the slow permitting process currently impacts both clean energy and fossil fuel projects, transmission line permitting is an especially large problem for renewables. Utility-scale solar and wind projects can only be built in open land where there's ample sun and wind, like the American midwest and southwest. These ideal clean energy locations are often far away from large industrial and population centers that need lots of electricity, so new high-voltage power lines need to be built, and existing power lines need to be upgraded. A large wind or solar project can get permitted and ready to provide electricity in four or five years, but it often takes well over ten years to permit and build a long-distance transmission line. With American electricity demand growing 1.7% per year but transmission deployment growing only 1% per year, the natural outcome is rising prices. BAAJA has several provisions which will let America build more transmission faster, enabling clean energy to connect to the grid and out-compete natural gas:
- Deadlines on filing lawsuits cut several years off the timeline, and help electrical generation projects know there will be a line to connect to.
- If a state government doesn't act on a permit application, FERC can take over the process. The current process requires getting state and local permits everywhere the transmission line passes through, but a state that's neither generating nor consuming the electricity doesn't have a lot of incentive to act on the request. This "federal backstop" authority is estimated to save more than five years for a typical long-distance transmission project. Incidentally, FERC already handles permitting for interstate natural gas pipelines, so it's currently easier to build a polluting natural gas power plant next to Chicago and send send gas there from North Dakota than to build a wind farm in North Dakota and send the electricity to Chicago.
- FERC will also coordinate and require inter-regional and intra-regional transmission planning. The American electrical grid is managed by several independent regional transmission organizations and independent system operators. Anyone familiar with organizational dynamics can predict that these organizations have tended to be more focused on transmission projects within their own borders than electric lines which can share power between regions. This leads to higher electricity prices (a region can't import low-cost wind and solar energy from another region) and reliability challenges (Winter Storm Uri famously took out power in much of Texas, even though neighboring states had excess capacity they couldn't transfer).
- What laws and regulations are changing?
- The need for permitting reform is driven by six decades of incremental complexity and bureaucracy that has built up around important and well-intentioned laws. BAAJA creates deadlines for processes required by those laws, and sets clear paths in the court system for challenges, simplifying a corner of the judicial world that's kind of ossified into a tarpit. Current laws generally don't provide a cause of action for a legal filing, so environmental lawsuits generally go through the Administrative Procedure Act, a general-purpose and slow-moving law. BAAJA sets timelines, judicial guidelines, and makes changes to the following laws:
- NEPA, the law requiring federal agencies consider effects on the environment and requiring environmental assessments and environmental impact statements. Under BAAJA, NEPA still requires agencies consider the environment in their decision, but tries to prevent environmental analysis paralysis. The judicial reforms also limit the remedies: if a court finds a technical problem with a permit, the problem is referred back to the agency to fix the permit rather than cancelling the whole project. Lawsuits can still stop a project if the federal agency's decision was "arbitrary and capricious," the developer engaged in fraud, etc.
- The Clean Water Act changes in BAAJA limit the reasons a state can deny a permit to direct pollution concerns, along with some other changes. This prevents states from using CWA permitting to achieve climate targets or apply a more holistic view of water systems. It also prevents the EPA from vetoing a permit in some circumstances, but still requires involvement from the Army Corps of Engineers.
- The Endangered Species Act consultation with the Fish and Wildlife Service can be performed by a state wildlife agency instead of the federal government under the law, if they prove they can do a good job. It's not clear how many states will take this opportunity, but they might have a better understanding of local animal populations and habitat.
- The National Historic Preservation Act Section 106 requires federal agencies to evaluate permitted projects' impacts on historic properties. This involves consulting with state and tribal historic preservation offices to identify affected properties. BAAJA would limit this scope to direct impacts: a transmission line miles away from a historic building couldn't be denied because it affects the viewshed of the site. It also limits the scope of review to the parts of a project the agency controls: a federal loan guarantee for a wind project on private land wouldn't need to investigate whether the farmhouse might qualify for the National Register of Historic Places.
- Why permitting reform makes energy more affordable
- Since electric utilities are generally local monopolies, state Public Utility Commissions review proposed rate changes to ensure increases are due to actual increased cost. When more low-cost renewable electricity is available, a PUC can push back on a utility's proposed rate increase due to rising natural gas prices. The transmission planning process in BAAJA also lets those cost savings flow around the country: a PUC can tell a utility they can't charge customers to build a new expensive power plant when they could import cheaper electricity from a neighboring region. The bill also gives FERC the authority to prevent utilities from building more deluxe infrastructure than needed in order to make more money from a guaranteed ROI rate.
The impact of data centers on local electricity prices has also become a hot topic recently. Data centers bring high demand for power, and when demand grows faster than supply, prices go up. BAAJA requires utilities to charge data centers for both their use of existing infrastructure and the additional costs for a utility to build new infrastructure to handle the load. (Current rules only allow utilities to charge for one or the other.) This has been described as requiring data centers to pay more than their fair share and will avoid households subsidizing data center power. With bipartisan opposition to data center buildouts and big tech, this is both good politics and good economics.
- Why do some groups oppose BAAJA?
- While the bill has received broad support from many climate groups, some environmental groups have opposed BAAJA. These groups have legitimate concerns: the bill is a compromise, and will lead to some fossil fuel projects getting built which could otherwise be delayed or stopped under the status quo. I think of this opposition as stemming from three types of objections: technical, philosophical, and political.
- Technical objections are about specific parts of the bill and their likely impacts. Groups raising these objections may support a more efficient permitting process, but are concerned that changes will result in specific types of harm, such as changes to what can be denied under the Clean Water Act. These are important concerns, and some groups make different judgments about whether the tradeoffs are worthwhile. I specifically want to highlight technical objections related to NHPA Section 106 consultations. This part of the bill has faced opposition from groups like the National Congress of American Indians and the National Trust for Historic Preservation, both of which represent groups involved in the project consultation and review. This is somewhat different than opposition from environmental groups who advocate or litigate for or against a permitted project, this is opposition from people doing the work of making sure a proposed project gets permitted in a way that won't cause harm. I think this is also an area where BAAJA advocates have less expertise: lots of clean energy policy wonks and advocacy groups have studied NEPA and environmental laws and deeply understand the proposed changes, but a lot of these folks readily admit they're not experts in archaeology or historic preservation. When the Senate takes up BAAJA there will be a "manager's amendment" which is expected to create some technical changes to the NHPA sections, but the details are not yet public.
- Philosophical objections include the belief that we shouldn't support any policy which benefits fossil fuel development. These groups might support a bill which improves permitting only for renewable energy and transmission, but can't say yes to something which will benefit oil and gas in the short term. I respect the values of care and purity driving these groups, but I'm not persuaded that the tradeoff isn't worthwhile: the status quo has already allowed widespread fossil fuel development, and keeping the status quo in place will only delay the timeline for clean energy to replace dirty energy. There are also what I might call existential objections by groups whose whole modus operandi is using the current system of environmental laws and regulations to challenge and delay development projects. BAAJA will significantly weaken the strategy of using lawsuits and administrative procedure to make projects so long and uncertain that developers give up or don't try. Since this is the main activity some activist groups do, their organization might not survive. While this strategy has had some success at blocking environmental and social harm, it also tends to favor the status quo, and the status quo is a world of increasing climate change that will cause widespread environmental and social damage. The status quo permitting process has been used against clean energy and transmission projects as much (if not more) than dirty energy projects, leading developers to design projects to avoid federal permitting if at all possible. As a result, although more than 20% of land in the continental US is federally owned, only about 3% of renewable energy generation is on federal land. And while a lot of that land is inappropriate for development—we shouldn't build a wind farm in a wilderness area—there is an awful lot of non-sensitive BLM land in the arid west that would be a great home to the energy of the future. I would love to see the environmental movement pivot from trying to block anything that changes the current world and instead focus on co-creating the world we want to live in.
- Political objections come from groups who support many parts of BAAJA, but are arguing for a "no" vote this year. These voices, including climate activist Bill McKibben, see likely big wins for Democrats in the midterm elections and are urging the party to turn down BAAJA and hold out for a better deal in the next Congress. While the instinct to try for a better prize after winning is understandable, this is unlikely to be a successful strategy for several reasons. First, a permitting reform bill will need at least 60 votes in the Senate due to the filibuster, and President Trump will need to sign it. Even a huge blue wave next week won't lead to 60 Democratic Senators, so a new permitting bill will still need to have Republicans at the negotiating table, and they will insist on many of the same provisions that left-leaning groups are worried about. At the end of 2024 the GOP House decided to wait for a better deal on a smaller permitting bill; in this Congress they got more Republican priorities but also more Democratic priorities. Neither party is expected to accept less than they've been able to negotiate so far if we do it all again. Trump is also less likely to veto a bill coming from a Republican majority, particularly since part of the BAAJA deal is that the Trump administration will unblock several wind projects that it's kept in administrative limbo. Some political objections have also come from groups worried about giving the Trump administration any further legal tools, since it has a track record of skirting the spirit and the letter of the law: better to wait until a Democrat is in the White House before legislating they say. BAAJA is designed to push back on this style of administrative shenanigans; if BAAJA had been in pace in 2025 it would have been easier to challenge the executive branch's unfair treatment of wind energy, so why not make it active in 2027 rather than waiting for it to limit a Democratic administration's hand?
Finally, most durable legislation is bipartisan. Democrats were able to pass the Inflation Reduction Act (the largest climate funding bill in history) in 2022 with a slim majority, then watched much of it get repealed in 2025 with the One Big Beautiful Bill because Republicans didn't have a stake in the IRA. A bipartisan compromise bill that sticks around for decades will do more for Democratic priorities than a perfectly crafted bill that only survives for three.
The political case to hold out for a better deal also runs into practical challenges. Congressional staffers are a limited resource, and many of them on the EPW and ENR committees have spent a majority of their working time in the last two years on this bill, building on two years of work by ENR staffers on the previous permitting bill. The four Chairs and Ranking Members of these two committees were the key negotiators of the bill; next year those positions are likely to rotate and the new committee heads and their staff will need to come up to speed on the issues, and will bring their own priorities. (The current gang of four includes Senator Whitehouse, who's been perhaps the biggest climate champion in the Senate in the past decade, but he probably won't be the Chair next year.) Even if Democrats had the votes for a better-deal bill, it's unlikely it would get passed until the end of 2028, and might well get vetoed by Trump out of spite if nothing else. If Democrats achieve a trifecta in the 2028 election, a permitting bill would still take a long time to craft, getting enacted in 2030 at the earliest. The solution to the problem of not building clean energy fast enough is not to wait four years to craft rules for maximum velocity. That's enough time to build several big solar and wind projects under BAAJA and complete the transmission planning for the electrical grid of the 2030s. Don't make the perfect the enemy of the good. The Senate should pass BAAJA this year and the Democrats can use their majority position next year to craft new legislation to tackle other important climate and environmental challenges rather than trying to solve the same problem every two years.
If you've made it this far, congratulations on your long attention span! Please remember to email or call your senators and your your House representative now; the Senate is expected to start voting on the 9th or 10th. Also don't forget to vote by Tuesday. Happy Halloween!