The proposed BAAJA bill addresses permitting delays for energy projects and expand transmission capacity in the US
It offers renewable energy developers legal recourse over discriminatory federal permitting practices
The bill is expected to face a Senate vote after the November 3, 2026 midterm elections
Four US senators have introduced a bipartisan legislation to reform federal permitting processes and accelerate energy and infrastructure development amid growing electricity demand.
Proposed by Republican Senators Shelley Moore Capito and Mike Lee, and Democratic Senators Sheldon Whitehouse and Martin Heinrich, the Bipartisan American Affordability and Jobs Act of 2026 (BAAJA) aims to ensure faster permitting processes while protecting the environment.
One of the provisions in the bill is to protect renewable energy developers against discriminatory federal permitting practices. Under Section 1402, applicants for solar, onshore wind, offshore wind and energy storage projects could challenge federal agencies in court over permits that they believe were improperly denied or unreasonably delayed demonstrating a “pattern of disparate treatment”.
This should be good news for the solar energy industry since the US government’s elevated scrutiny and lengthy permitting processes under the One Big Beautiful Bill Act (OBBBA) have put some 450 solar projects, representing several GWs of capacity at risk. These account for 36% of all new planned power capacity in the US (see DOI Permitting Delays Put 450 US Solar Projects At Risk).
According to a recent E2 analysis, 216 clean energy projects canceled, closed or downsized between January 2025 and May 2026 cost the US economy an estimated $68 billion in private investment. E2 attributes the setbacks to federal policy changes, particularly the OBBBA, and broader restrictions on clean energy development, including solar and wind permitting curbs (see US Clean Energy Cancellations Cost $68B In Investments).
A Crux survey of 50 solar and wind project developers and permitting professionals found that federal permitting requirements affected around 11 GW of project capacity in 2025 meaning they were either delayed or cancelled. The analysts noted that most developers are now deliberately siting projects to avoid triggering federal permitting requirements, indicating significant market distortion.
The Head of Government Affairs & Public Policy at Crux, Hasan Nazar said that the proposed bill could make federal permitting more predictable, but highlights that some provisions remain unresolved. According to him, “Some components of the agreement remain in flux, including whether to restore the regular order of wind and solar permitting.”
Reacting to the proposed bill, the Southern Environmental Law Center (SELC) raised concerns that it could weaken environmental protections and facilitate the development of oil and gas projects.
“The Trump administration has unlawfully terminated and stonewalled wind and solar deployment while they roll out the red carpet for fossil fuels,” SELC stated. “While some who support this bill do so in the hope of more clean energy, assurances from the White House that they will stop attacks on wind and solar projects should be treated with extreme skepticism.”
Nevertheless, the Solar Energy Industries Association (SEIA) has welcomed the proposal. In a brief note, SEIA CEO Tim Pawlenty said, “This is exactly the kind of bipartisan action America needs to meet growing energy demand, put downward pressure on energy prices, and deploy more affordable, reliable solar and storage for American families and businesses.”
Among the other provisions proposed in the bill is to accelerate the build out of power lines and transmission capacity to accommodate more power into the grid. The bill also requires data centers to pay for all of their associated transmission costs.
“The American people want lower energy bills, and they want more clean energy. Our permitting reform plan gets us a long way toward both of those goals. If we can pass this bill, we will flood the grid with clean, affordable energy and make data centers start paying their fair share,” said Whitehouse.
The bill is expected to come up for a Senate vote after the November 3, 2026, midterm elections. It will then need to pass the House before landing on President Donald Trump’s desk to be signed into a law.
