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EPA Proposes Rule to Curb State and Tribal Power Over Water-Permit Reviews

EPA says the change would speed permits for energy projects, including data center builds for AI, with a 30-day comment window before a planned spring final rule.

Overview

  • The proposal would narrow Section 401 reviews to direct discharges into federally regulated waters and limit the grounds for denying or conditioning permits.
  • States and authorized tribes would face stricter timelines, standardized application requirements, and obligations to fully justify any conditions or rejections.
  • Under Administrator Lee Zeldin, EPA says the change will streamline approvals for pipelines, energy projects, and data centers supporting AI infrastructure.
  • Assistant Administrator Jess Kramer called the 2023 Biden rule inefficient and said Section 401 should not be used to shut down projects for political reasons.
  • The move follows the Supreme Court’s Sackett decision that reduced waters covered by the Clean Water Act and continues a years-long policy swing across administrations.