On September 30, the leaders of the Senate Environment & Public Works Committee and Senate Energy & Natural Resources Committee released the Bipartisan American Affordability and Jobs Act of 2026 (S. 5653), a bipartisan, comprehensive permitting reform package intended to speed up federal approvals for energy and infrastructure projects.
View a summary of the legislation section-by-section.
Why It Matters for Cities
The bill makes major administrative changes to the National Environmental Policy Act (NEPA), Clean Water Act, Endangered Species Act, transmission permitting, energy leasing, and project certainty requirements. Cities encounter these laws whenever they build projects supported by federal funds or sited on federal land, as both cooperating agencies and project sponsors. The changes could significantly affect local housing, broadband, transportation, and water projects. Although the details are still under review, the National League of Cities and other local government groups see several wins that ensure local involvement, improve efficiency, and bolster project certainty.
Key Provisions for Cities
Included in NEPA review process. The bill redefines "cooperating agency" to include counties, boroughs, parishes, cities, and other political subdivisions of a state. This would make local governments part of the NEPA process from the start, with the ability to submit comments, data, and scoping information. It also addresses recent inconsistency in how federal agencies have handled local participation.
A narrower definition of "major Federal action." Only a "major Federal action" triggers NEPA review, and the bill narrows that definition in two ways:
- Receiving federal grant or loan funding would not, by itself, make a project a major federal action, particularly when the funding agency does not control the project's outcome.
- Projects that replace lifeline infrastructure, such as transportation facilities, water systems, and other public works, would fall outside the definition.
Clear deadlines. The bill sets deadlines for every step of the environmental review process. Environmental assessments would have a one-year deadline, and environmental impact statements a two-year deadline.
Permit certainty. Once a project has a federal authorization, the federal government could not interfere with its construction or operation, with limited exceptions. An agency could rescind, suspend, or materially change a permit only for narrow reasons and with clear and convincing evidence. For communities that have spent years planning and investing in a project, this is a significant protection.
Endangered Species Act changes. The bill would create a durable definition of "best available scientific and commercial data." It would require the U.S. Fish and Wildlife Service to consider state-contributed data during consultations, and it shortens review timelines.
Federal lands. The bill would speed federal decision-making for projects on federal lands. Local governments that host federal land would see faster permitting for geothermal and other energy projects, which could affect revenue sharing with local governments.
Ratepayer protection. The bill would require data centers to cover the full cost of electrical grid upgrades and prevent them from passing those costs to ratepayers. The provision has more teeth than the version in the House bill that passed recently.
GMA and other local government groups are still analyzing the impact of several provisions, including:
- The "shot clocks" that set deadlines for NEPA, historic preservation, and other reviews.
- State preemption language related to the Clean Water Act.
What Happens Next
Senate leaders aim to bring the bill to the floor in November and are anticipating broad bipartisan backing. The House is expected to take up the measure soon after, though its route through the Rules Committee and full chamber remains uncertain. House lawmakers have already advanced several permitting‑related bills this Congress, including the Standardizing Permitting and Expediting Economic Development (SPEED) Act (H.R. 4776), which passed in December 2025 by a 221–196 vote. Federal agencies, like the Federal Communications Commission (FCC) and the Environmental Protection Agency (EPA), are also following suit on the regulatory side of expediting environmental reviews and permitting.
GMA will continue monitoring the legislation’s progress and ensure that Georgia cities’ perspective is considered as Congress works toward a final package.