The Environmental Protection Agency on Tuesday proposed limiting how states and federally authorized tribes can use Clean Water Act Section 401 to block major projects over water-quality concerns, including natural gas pipelines and some infrastructure associated with data centers, according to the Associated Press.
The EPA said the proposal would constrain local water quality reviews for federally regulated projects while still allowing states and authorized tribes to protect their environment and avoid unnecessary delays. The agency framed the change as part of President Donald Trump’s broader effort to accelerate new fossil fuel infrastructure and related projects.
Jess Kramer, the EPA’s assistant administrator for water, said in remarks shared with reporters that “When finalized, the proposed rule will increase transparency, efficiency and predictability for certifying authorities and the regulated community.” She added that it “will also ensure states and authorized tribes adhere to their Section 401 role.”
Under the Clean Water Act, states and some authorized tribes can review the effects federally regulated projects have on water quality within their borders. Pipelines, dams and other projects can cross or affect rivers, streams and wetlands, and the reviews have been used to scrutinize disruptions that have previously slowed or stopped projects.
The AP cited an example from 2017, when New York regulators rejected a pipeline permit, saying there were not sufficient protections for hundreds of streams and wetlands. The EPA said the proposed change is similar to a rule it proposed during Trump’s first term, including clearer descriptions of what applicants must submit to states, strict deadlines for reviews, and requirements that states fully explain why conditions were placed on a developer or why a permit was rejected.
The proposal would reverse earlier direction from the Biden administration. In 2023, the EPA strengthened states’ and tribes’ authority to conduct water quality reviews, and the agency said at the time that states should be able to “holistically evaluate” a project’s impact on local water quality, AP reported. The Trump administration, the story said, wants to do away with that broader authority and focus Section 401 reviews on direct releases to federally regulated waters.
The EPA is pursuing the change as fewer waters are federally regulated under the Clean Water Act after the Supreme Court’s 2023 decision in Sackett v. EPA, which limited the federal government’s power to regulate millions of acres of wetlands. Moneen Nasmith, director of national climate and fossil fuel infrastructure at Earthjustice, said Congress allows states and tribes to review projects when they affect water quality, fishing and drinking water, and to reject proposals that would do too much damage.
Nasmith disputed the EPA’s rationale, saying, “EPA’s claims that states and tribes are overreaching are baseless,” and adding that “This proposed rule is trying to solve for a problem that does not exist.” She argued the proposed limits would undercut the review authority Congress provided for impacts on water-related resources.
The EPA said the new approach also aligns with the administration’s priorities under Administrator Lee Zeldin, who expanded the agency’s focus beyond the environment and public health to include economic “pillars,” such as restoring America’s energy dominance and making the U.S. “the artificial intelligence capital of the world.” With demand for new data centers increasing, the AP report said some of these projects will need state water quality permits subject to Section 401 review.
Kramer said the updates would matter because the projects “need to be able to move forward with certainty,” adding, “This makes what we are doing in the 401 space crucial, right? Those projects, they need to be able to move forward with certainty.”
The EPA said it expects to issue a final rule in the spring after a public comment period.