Senators from both parties unveiled a draft bipartisan bill on Wednesday aimed at streamlining federal permitting for energy and infrastructure projects amid rising electricity demand from data centers and artificial intelligence.

The legislation, titled the Bipartisan American Affordability and Jobs Act of 2026, emerged from negotiations led by Republican Sens. Shelley Moore Capito of West Virginia and Mike Lee of Utah, along with Democratic Sens. Sheldon Whitehouse of Rhode Island and Martin Heinrich of New Mexico. It seeks to shorten environmental reviews and limit litigation under laws such as the National Environmental Policy Act while preserving core environmental protections.

Proponents highlighted provisions that would ease siting for interstate transmission lines, strengthen protections for already-permitted projects against political interference, and require large load centers like data centers to cover their associated transmission costs rather than passing expenses to ratepayers. The changes target yearslong delays that have hindered both fossil fuel and renewable energy developments.

Environment and Public Works Chairman Capito described the proposal during a Capitol press conference as a major step toward faster and more efficient infrastructure builds. The bill also includes measures to restrict challenges under the National Historic Preservation Act and bolster the Federal Energy Regulatory Commission's role in coordinating reviews.

Industry groups welcomed the framework. Manufacturers and energy sector organizations noted that permitting bottlenecks have cost the economy billions annually and delayed critical projects. The package reflects priorities such as enforceable timelines and reduced duplicative reviews.

A vote on the measure is not expected until the lame-duck session following the November midterm elections. Negotiators expressed optimism about advancing the bill despite the political calendar, citing broad support for addressing grid strain and energy affordability.

The effort underscores rare bipartisan agreement on energy policy at a time when demand growth requires expanded production across sources. Lawmakers positioned the reforms as essential to lowering costs and enabling domestic manufacturing and infrastructure expansion.