US energy permitting bill gains momentum but hurdles remain

An energy permitting bill that could have far-reaching consequences for projects across the US still faces a series of hurdles despite advancing in a lopsided vote in the Senate. The bill, known as the Bipartisan American Affordability and Jobs Act, would accelerate permitting reviews for <a href="https://www.thenationalnews.com/future/technology/2026/11/06/moratorium-on-data-centers-openai-compact/" target="_blank" rel="noreferrer" title="https://www.thenationalnews.com/future/technology/2026/11/06/moratorium-on-data-centers-openai-compact/">data centres</a>, mines, renewables and other infrastructure projects, and is the culmination of years of negotiations.

The measure passed a procedural vote by 73 to 25 in the Senate on Monday, with an approval process now expected to take place. However, significant challenges remain for the bill's final passage: the lame-duck session of Congress before the new Congress is sworn in next year, and President <a href="https://www.thenationalnews.com/tags/donald-trump/" target="_blank" rel="noreferrer" title="https://www.thenationalnews.com/tags/donald-trump/">Donald Trump</a>.

Mr Trump, who had initially pushed senators to vote in favour of the bill, said he would not approve any new wind turbine permits, setting up a key point of contention with Democrats. “He did not help last night. My phone blew up. The White House was like … 'sorry, he just says stuff. We all know that, right?'” Democratic Senator Martin Heinrich, one of the bill's co-sponsors, said during an event on Tuesday. “We have an alignment right now: the House, the Senate, and the White House that has real value to making energy cheaper and putting more clean energy online,” he said.

The bill also is the Democrats' first opportunity to tackle data centres after the party's <a href="https://www.thenationalnews.com/opinion/comment/2026/11/05/us-congress-democrats-republicans-donald-trump-middle-east-gulf-iran-israel/" target="_blank" rel="noreferrer" title="https://www.thenationalnews.com/opinion/comment/2026/11/05/us-congress-democrats-republicans-donald-trump-middle-east-gulf-iran-israel/">stunning midterms sweep</a>, when voters expressed anger and frustration over the projects and associated rising energy costs.

Included in the bill is a provision requiring large data centre operators to bear the incremental costs of generation, storage, transmission and distribution upgrades necessary to serve them. Estimates from consultants Grid Strategies say that, under the measure, data centres would pay $35 billion more for infrastructure over the next decade than under current policy. However, some Democrats argued they could take up a more ambitious package in the next Congress.

Reception for the measure has been mixed. The American Petroleum Institute, a powerful lobbying group representing major energy companies, said the bill “represents an important step toward modernising an outdated permitting system that has delayed critical energy infrastructure projects, increased costs and stymied investment by creating significant uncertainty”. Environmental group League of Conservation Voters and progressive think tank Centre for American Politics said the measure carried risks for public land and environment protection, while Native American groups argued it would weaken tribal sovereignty and protection for sacred sites.