The U.S. Environmental Protection Agency (EPA) issued a proposal on Tuesday that seeks to restrict state and tribal oversight of water quality reviews and veto authority under the Clean Water Act (CWA).
The proposed rule targets Section 401 of the law, which grants states and tribes the power to review and approve permits for infrastructure projects such as pipelines and hydropower dams, based on potential water pollution risks. According to the EPA, the new rule would curb "regulatory overreach" and prevent states from slowing down or blocking projects that meet federal requirements, arguing that it is necessary to boost economic growth and streamline the permitting process.
This proposed change aims to undo the 2023 Biden administration rule, which had expanded the scope of Section 401, allowing states to impose lengthy delays on projects for reasons not directly related to water quality. The EPA's new rule would restore the law to its original intent, ensuring that the certification process is more efficient and predictable, with specific timelines and standardised procedures for both applicants and certifying authorities.
Administrator Lee Zeldin said: “The proposal restores the Clean Water Act to its intended purpose, protecting America’s water quality and ending the weaponisation of the law that has been obstructing infrastructure and energy projects vital to our nation’s economy.”
Environmental groups have expressed concern that the rule would undermine state and tribal authority to protect water resources. The Natural Resources Defence Council (NRDC) argues that it could leave vulnerable communities at greater risk of pollution from federally approved infrastructure projects, criticising the rule for limiting state and tribal oversight in favour of expedited development.
With the proposal scheduled for publication in the Federal Register, the EPA will open a 30-day public comment period, aiming to finalise the rule by the spring of 2026.
