Power Lines on a Deadline: DOE’s Two-Year Bet

A new federal rule aims to cap transmission permits at two years while keeping environmental safeguards intact

12 Feb 2026

The US Department of Energy has introduced a permitting overhaul aimed at accelerating the construction of major interstate transmission lines, setting a target of completing federal authorisations within two years.

The reform, launched in spring 2024, addresses a process that has often taken more than three years and, in some cases, far longer. Transmission developers have had to navigate multiple federal agencies, overlapping environmental reviews and staggered approvals, contributing to delays, rising costs and investor uncertainty.

Under the new Coordinated Interagency Transmission Authorizations and Permits programme, known as CITAP, the Department of Energy acts as the lead agency. It is tasked with consolidating federal reviews into a single environmental document and aligning agency timelines. The intention is to replace parallel reviews with a coordinated process.

The changes do not remove environmental safeguards. Reviews required under the National Environmental Policy Act and other federal statutes remain in place. Instead, the department’s role is to synchronise agency actions and reduce duplication, rather than weaken standards.

For developers and investors, greater predictability may be as significant as shorter timelines. Transmission projects require substantial upfront capital and typically face long development periods. When permitting schedules are uncertain, financing becomes more difficult to secure. A clearer two-year federal target could improve the risk profile of large-scale investments.

The overhaul comes as electricity demand rises, driven by the expansion of data centres, the reshoring of manufacturing, wider electrification and the addition of new generating capacity. Grid operators have warned that new high-voltage lines are needed to connect regions, ease congestion and maintain reliability. Industry estimates suggest that if federal approvals are completed within two years, overall development timelines could fall by as much as 30 per cent.

Developers have begun adapting their approach, carrying out route studies, community engagement and environmental analysis earlier in the process in an effort to avoid delays once formal review begins.

Advocacy groups are closely examining the accelerated framework, and legal challenges remain possible. Whether the new coordination model delivers consistent results will shape the pace of grid expansion in the coming years.