Key Takeaways
- The Senate voted 73-25 to invoke cloture on the motion to proceed to the permitting reform bill, clearing the way for floor debate and amendments.
- A revised manager’s amendment exempts certain vertically integrated utilities from new planning requirements, preserves utility rights of first refusal and requires developers to seek state approval for one year before pursuing federal siting.
- The amendment clarifies that agencies may modify or revoke permits in response to court orders and removes several contested historic preservation changes, though some tribal organizations still oppose the bill.
- If the Senate passes the bill, it moves to the House, where its prospects depend on securing enough bipartisan support.
After Senate negotiators released an amendment intended to address concerns raised by lawmakers, utilities, environmental organizations and tribal governments, the Senate voted 73-25 on Nov. 9, 2026, to invoke cloture on the motion to proceed to the Bipartisan American Affordability and Jobs Act (BAAJA) of 2026. The vote cleared a significant procedural hurdle to bring the legislation closer to Senate consideration. The vote paves the way for the Senate to formally take up the bill, debate its provisions and consider potential amendments. Senate action is expected to continue throughout the week, with additional procedural votes and negotiations over amendments likely as lawmakers work toward final passage in the Senate and consideration by the House of Representatives.
Notable changes include:
- Transmission Planning and Utilities: The amendment maintains the bill’s core transmission reforms while addressing concerns raised by Republican regulators and southeastern utilities. It exempts certain vertically integrated utilities from new coordinated generation and transmission planning requirements, preserves existing utility rights to build transmission infrastructure (right of first refusal), and requires developers to pursue state approval for one year before seeking federal intervention instead of going through state and federal approvals simultaneously. In exchange, the amendment expands federal siting authority to cover state-owned land and certain advanced transmission technologies and gives developers greater flexibility in financing new transmission projects by allowing developers to use the cost allocation formula even when projects receive approval entirely through state processes.
- Environmental Protections and Permitting Certainty: In response to concerns from environmental organizations and legal advocates on project certainty, the amendment clarifies that federal agencies may modify or revoke permits in response to court orders, addressing criticism that the original language could shield unlawfully issued permits. It also expands protections against discriminatory federal permitting practices and requires court approval of certain legal settlements.
- Tribal Consultation and Historic Preservation: Following objections from tribal governments and organizations, the amendment removes several controversial changes to the National Historic Preservation Act, including provisions affecting culturally significant properties and tribal historic preservation authority. However, several tribal organizations continue to oppose the legislation and call for the removal of the remaining historic preservation reforms.
- Data Centers and Ratepayer Protections: Responding to growing concerns about data center development and electricity costs, the amendment establishes a new Department of Energy technical assistance program to help state, local and tribal governments evaluate proposed data center projects. It builds on existing provisions allowing states and utilities to require data centers to cover infrastructure costs associated with their operations. To close a potential loophole that would have disadvantaged larger behind-the-meter natural gas generation at data centers, the amendment limits the provision to resources under 5 megawatts (MW).
- Transmission Oversight and Consumer Costs: The amendment preserves provisions allowing state regulators and the Federal Energy Regulatory Commission (FERC) to scrutinize certain local transmission investments that could increase electricity costs. It also expands oversight to include replacement infrastructure, addressing concerns raised by consumer and utility watchdog organizations.
Next Steps
With cloture invoked on the motion to proceed, the Senate must complete the remaining procedural steps before formally taking up the bill. Senators may then consider the substitute amendment, additional amendments and eventual final passage. If approved by the Senate, the legislation would move to the House for consideration, where its prospects will depend on securing sufficient bipartisan support.
McGuireWoods and McGuireWoods Consulting continue to monitor Senate floor activity and any further amendments and will provide updates as the legislation advances. For more information, contact the authors or a member of McGuireWoods Consulting or McGuireWoods’ Energy Enforcement & Regulatory Counseling Practice Group.