Sign In or Create an Account.

By continuing, you agree to the Terms of Service and acknowledge our Privacy Policy

Politics

What a President Can and Can’t Do Under the Senate Permitting Bill

How the bill would have affected (or not affected) the Keystone XL pipeline, the Lava Ridge wind farm, and other major project proposals.

•
Joe Biden.
Heatmap Illustration/Getty Images

O ne of the non-negotiables for Senate Democrats in putting together a bipartisan permitting bill was to limit the president’s ability to reverse federal project approvals or otherwise gum up the works for developments they simply dislike. The authors’ goal was to prevent a situation like the one we’re in now, where Trump has revoked permits for wind farms, refused to permit new ones, and tried to stop construction of fully permitted offshore wind projects.

But the language on “project certainty” in the Bipartisan American Affordability and Jobs Act is technology neutral — it would protect fossil fuels as much as clean energy. While Trump has perhaps gone the furthest of any president in using the authorities of the executive branch to enact his preferences, his Democratic predecessors have taken similar steps to stop mines, pipelines, and oil and gas drilling — often in the name of stopping climate change.

“This bill is clearly looking backwards at five to 10 years of case studies in how an executive branch can delay or revoke permits, and it is targeted at those case studies,” Travis Annatoyn, an attorney at the law firm Arnold & Porter and the former deputy solicitor for energy and mineral resources at the Interior Department under Biden, told me.

The bill section in question contains two key provisions. The first would make it illegal for a federal agency to rescind, terminate, or alter a federal authorization or permit, or to prevent the construction or operation of a project that has all of its necessary federal approvals — though there are exceptions for cases involving a court ruling, violation of a permit’s terms, fraud, or new environmental harms or threats to national security.

The second big provision would give companies a course of action if they suspect the federal government is discriminating against certain types of projects or unduly dragging out the permitting process. An applicant can sue the government for displaying a “pattern of disparate treatment,” defined as a “substantial increase” in delays or “improper” denials for a given project type compared to the previous five years. Applicants also have the right to sue if the government takes longer than a year to issue a decision on a permit after all of the applicant’s paperwork is deemed complete.

Environmental nonprofits, particularly those that work on public lands issues, are extremely worried about these provisions, as illustrated by a transcript of several groups discussing the bill on a conference call that was leaked to Punchbowl News last week. “A future administration will not be able to challenge anything that is in fact permitted during the presidency of the Trump administration,” Erik Shlenker-Goodrich of the Western Environmental Law Center said on the call, “which is going to create an incentive for all these data centers and fossil fuel companies to rush through a process, hoard leases, permits and authorizations, and then basically tell a future administration to go fly a kite.”

But constraining the power of the executive branch is tricky. Even if the bill passes as written, and its provisions work as intended, there will probably still be some ways by which a president could throttle permits if they are motivated enough to do so, Annatoyn said.

Case in point: The laws as written haven’t stopped Trump from testing their limits. The main advantage to these provisions would be clearer consequences in the courts, giving affected parties more confidence to file a suit, and compensation if they win. On the other hand, those affected parties would still need to have the resources to sue the government.

It’s helpful to apply BAAJA to past examples of executive energy decisions to see how they would fare under the law. I walked through some case studies with Annatoyn and Ben Schifman, the former attorney-adviser at the Interior Department’s Office of the Solicitor under Biden, to get a better understanding of what these provisions would do.

Biden could still have revoked the Keystone XL pipeline’s presidential permit

First proposed in 2008, the Keystone XL pipeline would have brought Canadian crude oil from the Alberta tar sands into the U.S. Almost immediately it attracted fierce opposition from environmental advocates, indigenous groups, and even Midwestern farmers, who eventually formed a coalition that staged attention-grabbing protests aimed at convincing the federal government not to approve the plans.

In a presidency-defining move, Barack Obama sided with opponents and rejected the project’s permit in 2015, stating that to prevent the worst of climate change, “we're going to have to keep some fossil fuels in the ground.” Trump later reversed that decision, however, approving Keystone in 2019. Then the project got held up in litigation brought by the Northern Plains Resource Council, a Montana environmental group, over one of its Clean Water Act permits.

When Biden took office in 2021, he signed an executive order reversing Trump’s reversal. Leaving the permit in place, he wrote, “would not be consistent with my Administration’s economic and climate imperatives.” A few months later, Keystone XL’s developer, TC Energy, officially canceled the pipeline.

Keystone is unique, however, because it would have crossed an international border, which requires direct presidential approval. Had BAAJA been in effect, Biden still would have been able to revoke the permit, Schifman told me. “Keystone is a really unusual example,” he said. “The president is not considered an agency under the Administrative Procedure Act, so it’s just not subject to review in the way an action by the Secretary of Interior or other agencies are,” he said.

Biden could maybe have canceled Arctic National Wildlife Refuge oil and gas leases

This bill’s effect is more ambiguous in this example. Trump’s 2017 Tax Cuts and Jobs Act required the Interior Department to hold two oil and gas lease sales on the Arctic National Wildlife Refuge’s coastal plain. Trump held a sale in January 2021, just before he left the White House, issuing nine leases. When Biden took office later that month, he signed an executive order directing his Interior Secretary, Deb Haaland, to conduct a new environmental analysis of the entire leasing program, citing “alleged legal deficiencies underlying the program.”

That June, Haaland concluded that there had been “insufficient analysis under the National Environmental Policy Act, including failure to adequately analyze a reasonable range of alternatives in the environmental impact statement,” and suspended the previously sold leases. Two years later, after completing a new environmental review, she canceled all the remaining leases in the Refuge. Biden’s Bureau of Land Management also later issued a new Record of Decision significantly downsizing the leasing program from 1.6 million acres to the minimum 400,000 required under the law.

When Trump began his second term, he directed his own Interior Secretary, Doug Burgum, to consider reversing the cancellation of the leases and to reinstate the Record of Decision that his first administration had issued in 2020. Ultimately, Burgum did not have to reverse the cancellations because the lessees had sued the government and a federal court sided with them, vacating the terminations in March 2025. (Alaska Native and environmental groups are currently appealing that decision.) Meanwhile, Trump’s Interior Department has issued a new Record of Decision reinstating the leasing program’s original 1.6 million acres.

There’s nothing in BAAJA that would seem to have prevented the Biden administration from conducting a new environmental analysis and issuing a new Record of Decision on the leasing program. It’s less clear whether it would have prohibited Haaland from terminating the leases. The word “lease” is conspicuously absent from the definition of a “federal authorization or permit” in this section of the bill, which would seem to have supported Haaland’s decision. But it’s an open question, Annatoyn told me, because the bill’s definition of federal authorization contains the catch-all phrase “or any other approval or order that is necessary … for the construction or operation at full capacity of a project.”

“I imagine if something like this gets passed, someone will make the argument that it includes leases,” Annatoyn said. It will be a question for the courts.

Obama could not have canceled the Spruce coal mine on the same grounds

In 2011, Barack Obama’s Environmental Protection Agency rescinded a key Clean Water Act permit for Spruce No. 1, which would have been the largest mountaintop-removal coal mine in West Virginia. The type of permit, known as Section 404, was for the discharge of dredged material, and it had initially been approved by George Bush’s Army Corps of Engineers in 2007. Under that section of the Clean Water Act, however, the Environmental Protection Agency administrator has broad authority to reject the Corps’ decisions about discharge sites “whenever” he or she determines, after notice and public hearings, that there would be unacceptable adverse environmental effects. The move was extremely controversial, as the EPA’s reversal came four years after the Corps approved the permit.

BAAJA contains an amendment to Section 404 that would seem to prevent exactly this kind of thing from happening again. It establishes a limited window during which the EPA can review and veto a given site for a discharge permit, beginning when the applicant first submits their complete application for the permit, and ending when the Corps approves it. That means a Section 404 veto post-permit would have been off the table.

Trump probably couldn’t have rescinded the Lava Ridge wind farm’s right of way permit

BAAJA appears tailor-made to prevent what happened here. In December 2024, Biden’s Interior Department issued a Record of Decision to approve the Lava Ridge wind farm in Idaho, set to be one of the largest such developments in the country. When Trump stepped into office in January, he issued an executive order asking his Interior Department to review that decision. Secretary Burgum canceled the permit last August, again citing unspecified “legal deficiencies in the issuance of the approval.”

Schifman said the Interior Department would not have been able to do this if BAAJA was the law of the land unless it provided evidence that fit one of those exceptions I mentioned earlier, such as a court order, or if Lava Ridge violated its permit.

Annatoyn agreed, but added that this is not a totally foregone conclusion. “The agencies can still inadvertently or deliberately choose to press on the limits of that prohibition — you know, test it or even violate it outright,” he said. At the end of the day, he added, Trump could still do this under BAAJA, and the burden would fall on the project developer to undertake a lengthy, expensive court fight to undo it.

Trump’s offshore wind stop work orders would have been a lot less likely

In December 2025, Burgum ordered the five offshore wind farms that were already under construction off the east coast to pause their work. He cited “national security risks identified by the Department of War in recently completed classified reports.”

While the courts quickly rejected those orders, BAAJA may have prevented them in the first place. The bill prohibits agencies from taking any action “to interfere with or prevent the construction or operation” of a project that has all necessary permits. And if the administration had chosen to issue the orders anyway, BAAJA would have at least given the affected companies the right to recover costs attributed to the delay, which in this case was millions of dollars per day. On top of that, the companies would be entitled to payment of 25% to 50% of their project’s total costs up to the time the government intervened.

Another reason BAAJA would have likely prevented Burgum’s December order, Annatoyn said, is that it contains a provision to bar serial attempts of the same action. Burgum had issued stop work orders on two of the five wind farms earlier in the year, both of which were struck down by courts. Under BAAJA, the companies would be entitled to injunctive relief preventing the government from taking the same action again unless it obtained a court order condoning the action from the same judge.

A tacit freeze on permits would become challengeable

The Trump administration has stopped permitting offshore wind projects altogether, and has kept onshore wind projects in a holding pattern despite a court’s order to resume the permitting process. Under BAAJA, wind companies would have new ammo to challenge this inaction and delay. They might be able to identify a “pattern of disparate treatment” or cite other language in the bill that limits the number of days the government can sit on a permitting decision. At the same time, the discrimination language is a new area of law, Schifman told me, so there’s some uncertainty as to how it would apply. And again, the burden would be on the company to bring a lawsuit.

🔒

You’ve reached your free article limit

Subscribe to Heatmap News for unlimited access to daily energy and climate coverage.
To continue reading
Create a free account or sign in to unlock more free articles.
or
Please enter an email address
By continuing, you agree to the Terms of Service and acknowledge our Privacy Policy
Energy

Net Power Surrendered Its Clean Dreams to Data Center Demand

The zero-emission pioneer is doing the dirty work for the AI boom.

A gas plant and a data center.
Heatmap Illustration/Getty Images

All kinds of companies have refashioned themselves to exploit the AI boom. A bitcoin miner became a data center developer, a shoemaker is building GPUs, and an electric vehicle company is integrating its powertrains into server racks.

Now, a company that once aspired to build one of the lowest-emitting power plants has pivoted to building one of the dirtiest in order to meet data centers’ requirement for speed to power above all. Net Power was founded to pioneer a new form of natural gas power plant with zero emissions, but it has given up on that technology and recently acquired 10 natural gas reciprocating engines that it plans to co-locate with a data center on the site intended for its first commercial plant.

Keep reading...Show less
Yellow
Politics

The Surprisingly Exciting Race to Be California’s Next Insurance Commissioner

Ben Allen wants to reform the existing market. Jane Kim wants a revolution.

California Insurance Commissioner candidates.
Heatmap Illustration/Getty Images, Ben Allen, Jane Kim

From Crescent City to Coronado, California voters are facing decisions on a down-ballot strewn with over a dozen propositions and a series of statewide Democrat-versus-Republican races with mostly foregone conclusions.

And then there’s the insurance commissioner.

In the race to oversee California’s insurance market, a $452 billion-in-premium-volume monster imperiled by insurer defections and disaster risks, Democratic State Senator Ben Allen, whose district includes Pacific Palisades, is facing off against Jane Kim, a progressive former San Francisco supervisor.

Kim has the support of Vermont Senator Bernie Sanders — it’s the first thing you see about her when you Google her campaign. She previously served as his California political director during the 2020 presidential race, and she appeared earlier this month at an event with the senator in support of the state’s proposed billionaire wealth tax.

Allen, by contrast, won the endorsement of the state’s Democratic Party and its two incumbent senators.

There has been little public polling of the race, but one September survey showed Kim leading Allen 25% to 18%, with more than half the electorate undecided.

“My opponent and I are not even running for the same office,” Kim told me. “He’s running for what this office used to be, and I’m running for what this office could be.”

Allen wasn’t worried about Kim’s characterization in my interview with him, telling me, “I want to fix the market that we have and make it work. My opponent wants to build a new state insurer that nobody has priced.”

Keep reading...Show less
AM Briefing

The Solar Stockpiler Smackdown

On Hungary’s Russian nuclear conundrum, why geothermal isn’t solar, and a funny use of gallium

Solar panels.
Heatmap Illustration/Getty Images

Current conditions: An ill-timed and dense fog blanketed Toledo yesterday amid an industrial chemical leak, with the low-lying cloud acting to trap the toxic glycidyl methacrylate in the air, forcing an evacuation • Super Typhoon Champi has become the most powerful storm of 2026 as it roars westward across the Pacific to Taiwan, leaving a damaged Guam in its wake • After Polo, Simon, Rachel, and Trudy, yet another tropical depression capable of striking western Mexico as a major hurricane has formed in the eastern Pacific.


THE TOP FIVE

1. ‘This is how you blow up a permitting deal’

That’s the money quote Politico nabbed Wednesday from Senator Sheldon Whitehouse, the Rhode Island Democrat who helped broker the Senate’s grand compromise to ease federal permitting on energy projects. The statement came a day after the Department of Justice filed a petition to reopen the permits on New England Wind, the 2.6-gigawatt offshore wind project from Avangrid. Just over a week ago, the Trump administration restarted a legal fight with Orsted over Revolution Wind, which is already generating electricity off the coast of Rhode Island. At the time, some White House observers saw the effort as President Donald Trump’s hard-nosed negotiating, designed to pressure skeptical Democrats into voting for the legislation lest the administration continue going after projects that the bill, if passed, would protect. But Ira Joseph, a fellow at Columbia University’s Center on Global Energy Policy, saw the latest move as evidence Trump can’t control his impulse toward vendetta. “An inevitable turn. It’s always personal and never about what policy would either benefit or hurt the public,” he wrote in a post on X. “Wind will always be associated with harming the family business. It’s always a King Claudius situation and he or she who whispers last, whispers loudest.”

Keep reading...Show less
Yellow