Federal government now pays energy developers for permit delays—up to their full investment
H.R. 7329 — FREEDOM Act · Filed by Josh Harder (D-CA) · 5 cosponsors · Introduced Feb 3, 2026 · Referred to committee
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What it does
This bill creates a federal permitting fast-track system for energy and mineral projects, imposing strict timelines on agencies (90 days for routine permits, 1 year for complex ones) and establishing a compensation program that pays project sponsors up to their full capital investment if federal agencies miss deadlines, revoke permits, or cause project cancellation. It also allows courts to hire private contractors to complete environmental reviews at agency expense if agencies fall behind, and shields agencies from liability for halting fully permitted projects only under narrow conditions.
Why we flagged it
The bill's core mechanism is a mandatory permitting timeline coupled with a federal compensation program that reimburses energy developers for losses caused by agency delays or permit revocation. While framed as regulatory reform, the operative effect is a private-sector risk-transfer: developers pay a 1.5% premium and gain the right to sue the federal government for full capital losses, shifting regulatory risk from private investors to taxpayers.
What the text implies
- The De-Risking Compensation Program creates an open-ended federal liability: any project sponsor with $5M+ invested can sue for full capital losses if an agency misses a deadline or revokes a permit, potentially creating a multi-billion-dollar unfunded liability if the compensation fund is exhausted.
- Categorical exclusions for 'low-disturbance activities' (surface disturbance <5 acres, previously disturbed land, activities within 5-year window) bypass environmental review entirely, weakening NEPA compliance and public notice for projects that may have cumulative impacts.
The full analysis lists 5 implications of this text.
Who stands to gain
energy infrastructure developers (oil, gas, renewable, mining); mineral extraction companies; engineering and environmental consulting firms (hired as court-approved contractors)