Senate Passes Bipartisan Energy Bill with Data Center, Transmission Reforms

The Senate passed the Bipartisan American Affordability and Jobs Act (BAAJA) on November 9, 2026. Lawmakers voted 73-25 to invoke cloture on the motion to proceed to the bill, clearing a key hurdle in a lame-duck push for energy infrastructure reform. This marks the chamber's first major legislative action since Democrats won control of both chambers in the November 3 midterm elections. Twenty-two Democrats joined in the affirmative vote. The bill now moves to the House for consideration.

Data Center Cost Reforms

The legislation directly targets the growing grid impact of data centers. It mandates the Federal Energy Regulatory Commission to rewrite transmission pricing rules within 90 days. The new rules must ensure data centers pay for their share of grid infrastructure plus the specific upgrade costs they trigger. This aims to prevent new facilities from shifting these expenses onto other electricity customers.

States are granted further authority. They may impose additional requirements on data center interconnections beyond the federal cost-recovery standard. Options for states include charging data centers above cost, restricting their grid interconnection, requiring them to bring their own generation, or capping their power draw. The bill's provisions are projected to make data centers pay approximately $35 billion more over a decade compared to current law.

Transmission and Permitting Reforms

A core section of the BAAJA bill seeks to accelerate the approval of major transmission lines. For projects of 230 kilovolts or more, the legislation sets a one-year deadline for state permitting decisions. If a state fails to act within that window, the developer can seek a federal backstop permit from FERC.

The bill also dramatically shortens litigation timelines under the National Environmental Policy Act (NEPA). Lawsuits challenging projects would have to be filed within 150 days, a sharp reduction from the current default period of up to six years. Furthermore, the legislation would end the federal blockade of clean energy projects on federal lands and includes permit-certainty provisions that bar administrations from revoking issued permits. It would also allow developers to sue over the disparate treatment of different energy sources.

Industry and Opposition Reactions

Utility and energy industry groups have rallied behind the bill. The Edison Electric Institute, representing investor-owned utilities, endorsed the legislation following the inclusion of the transmission changes. Support also comes from a broad coalition including the American Clean Power Association, the American Petroleum Institute, and manufacturing groups.

Opposition is led by environmental and tribal organizations. Groups including the Natural Resources Defense Council, the League of Conservation Voters, the Sierra Club, and the National Wildlife Federation oppose the bill. Tribal nations have also voiced opposition. Critics argue the changes undermine environmental reviews and provide excessive permit certainty for projects. With the bill advanced, FERC is tasked with implementing the transmission pricing reforms within 90 days.