Senate advances energy permitting bill with grid upgrade costs for data centers
- FERC & Federal Grid Capacity News
Marin Holt
- 0
- 7 minutes read
- Senate vote to advance the permitting bill: 73-25
- Groups urging House passage: 300 groups
- SEIA estimate of new solar capacity, 2028-2035: 167 GW
The Senate voted 73-25 to advance the Bipartisan American Affordability and Jobs Act of 2026, opening debate on federal energy permitting changes. Reuters reported that the vote invoked cloture on a motion to proceed. It did not constitute final Senate passage.
The legislation would speed approvals for power plants, transmission lines, mines and other infrastructure projects across the United States, according to Reuters. It would also require large data centers to pay more of the grid upgrade costs needed to serve them.
Solar Power World reported that rising electricity costs associated with demand sources including grid-connected hyperscale data centers prompted the bill. The package has drawn support from solar companies alongside objections over tribal sovereignty, sacred sites and environmental protections.
Democratic senators Martin Heinrich of New Mexico and Sheldon Whitehouse of Rhode Island co-authored the bill, Reuters reported. Their Republican partners were Shelley Moore Capito of West Virginia and Mike Lee of Utah.
Industry support meets unresolved objections
The Solar Energy Industries Association and hundreds of solar and energy storage companies support the legislation, according to Solar Power World. More than 300 groups signed a letter urging the House to pass it.
SEIA estimates that passage could spur 167 GW of new solar capacity between 2028 and 2035, Solar Power World reported. The association also projects a 20% reduction in the country’s CO2 emissions.
Revisions added tribal consultation requirements and expanded states’ role in transmission planning, according to Reuters. They also established a Department of Energy program to help communities address data-center impacts.
The National Congress of American Indians nevertheless urged Congress to halt consideration, Reuters reported. The organization said the bill would weaken tribal sovereignty and protections for sacred sites.
The League of Conservation Voters and Center for American Progress said the revisions improved the package, according to Reuters. Both still identified significant risks for public lands and environmental protections.
Why It Matters
The bill links faster infrastructure approvals with a larger grid upgrade cost obligation for large data centers. Its next hurdle remains Senate passage, followed by House approval, according to Reuters.
Senator Catherine Cortez Masto supported opening debate but opposed final passage unless lawmakers removed provisions affecting the National Historic Preservation Act, Reuters reported. She cited tribal concerns, leaving those provisions a specific point of contention as debate proceeds.
Critical Perspective
SEIA estimates that the legislation could spur 167 GW of new solar capacity between 2028 and 2035, but that projection assumes the proposal survives serious political resistance. The 73-25 procedural vote merely opened debate, and final passage faces hurdles from lawmakers like Senator Catherine Cortez Masto, who opposes the bill unless provisions altering the National Historic Preservation Act are stripped out. At the same time, the National Congress of American Indians warned that the measure weakens tribal sovereignty, while environmental groups flagged lingering risks to public lands. Can bill sponsors preserve the data center grid cost requirements and buildout goals without sacrificing the tribal and environmental safeguards demanded by key senators?
