API Welcomes Bipartisan American Affordability and Jobs Act to Modernize Permitting

WASHINGTON, September 30, 2026 — The American Petroleum Institute (API) today welcomed the introduction of the Bipartisan American Affordability and Jobs Act of 2026, a comprehensive permitting reform package aimed at cutting project delays, strengthening investment certainty and helping address affordability challenges facing American consumers.

"Washington has a generational opportunity to fundamentally transform a broken permitting system and help address the affordability challenges facing American consumers,” API President and CEO Mike Sommers said. “President Trump and Senators Capito, Lee, Whitehouse and Heinrich deserve credit for working across party lines to bring durable reform within reach. The bipartisan package would modernize NEPA, reduce duplicative reviews and unnecessary litigation, and provide greater certainty for critical projects. Congress should seize this moment and finish the job—making it easier to build the infrastructure America needs and helping keep costs down for consumers.”

The legislation advances key reforms outlined in API’s permitting plan and American Energy Security Framework, including enforceable timelines, more focused environmental reviews and stronger protections against litigation-driven delays.

In a letter to Senate Majority Leader John Thune and Senate Minority Leader Chuck Schumer, API urged the Senate to bring the legislation to the floor when lawmakers return in November, calling permitting reform an economic and affordability imperative and urging Congress to complete its work this year.

The Bipartisan American Affordability and Jobs Act of 2026 would:

• Clarify the scope of environmental reviews so agencies focus on impacts directly associated with a project, while keeping Clean Water Act Section 401 reviews focused only on water-quality impacts associated with a discharge.
• Strengthen protections for projects that have completed the permitting process and limit the ability of litigation to halt construction while agencies correct legal deficiencies.
• Establish clearer rules for legal challenges, including a 150-day filing deadline and requirements that challengers demonstrate direct harm.
• Reinforce statutory permitting deadlines and provide covered energy projects a path to judicial relief when agencies fail to meet them.

Why Permitting Reform Matters for Affordability

Lengthy permitting delays add costs, discourage investment and slow the infrastructure needed to deliver reliable energy. A more predictable system can help projects move faster and reduce those costs.

• An ICF analysis commissioned by API found that comprehensive permitting reform could reduce residential electricity bills by a combined $55.6 billion from 2026 through 2035, as well as support 705,000 jobs and nearly $24 billion in tax revenue by 2030.
• McKinsey estimates that construction costs can increase 24% to 30% over project permitting timelines, driven largely by rising material and labor costs and added overhead.
• More than 650 major infrastructure projects are currently awaiting federal approval, representing an estimated $1.1 trillion to $1.5 trillion in investment.

The American Petroleum Institute (API) represents all segments of America’s oil and natural gas industry, supporting nearly 11 million U.S. jobs. With approximately 600 members, API companies produce, process, and distribute the majority of the nation’s energy. Founded in 1919, API has developed over 800 standards to enhance operational and environmental safety, efficiency, and sustainability.

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