FREEDOM Act
- Bill Number
- H.R. 7329
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Energy
- Status
- Introduced
- Latest Action
- 2026-03-20: Referred to the Subcommittee on Commodity Markets, Digital Assets, and Rural Development.
- Last Updated
- 2026-07-02T08:07:10Z
AI-Generated Summary
Purpose of the Legislation
The FREEDOM Act (H.R. 7329) aims to reduce regulatory uncertainty and delays in federal permitting for energy and mineral projects. It seeks to boost U.S. energy security, economic competitiveness, and lower costs for American families by streamlining processes, enforcing timelines, and providing compensation for losses due to agency delays or revocations. The bill addresses issues like prolonged permitting that can cause financial losses for project developers.
Key Provisions
The bill adds a new Title XII to the Energy Act of 2020 and amends other laws. Key elements include:
Definitions and Scope
- Defines terms like "covered energy project" (infrastructure for energy development, carbon capture, or mineral extraction), "authorization" (permits, approvals, or consultations), and "lead agency" (the primary federal agency handling environmental reviews under the National Environmental Policy Act, or NEPA).
- Distinguishes "routine authorizations" (simpler permits) from "complex authorizations" (those needing environmental impact statements or other major reviews).
Federal Land Reforms (Subtitle B)
- Accelerates rights-of-way on federal lands for energy projects by requiring cost recovery agreements within 30 days of application.
- Mandates categorical exclusions (simplified NEPA reviews) for low-disturbance activities, such as small-scale surface work under 5 acres or maintenance on previously disturbed land.
De-Risking Compensation Program (Subtitle C)
- Establishes a program in the Department of Energy to compensate project sponsors for unrecoverable losses (up to their total capital investment, minimum $5 million) caused by agency revocations, delays, or failures to meet deadlines.
- Sponsors enroll after submitting a project initiation notice, paying an annual premium (1.5% of capital contributions, adjustable for program solvency).
- Claims are filed in the U.S. Court of Federal Claims, with de novo review (fresh evaluation of evidence); funds come from premiums and appropriations via a dedicated De-Risking Compensation Fund.
Permitting Timelines and Performance Fund (Subtitle D)
- Requires project sponsors to submit a "notice of initiation" detailing the project; lead agencies must confirm completeness within 30 days and publish a schedule with milestones and deadlines (90 days for routine authorizations, 1 year for complex ones, up to 2 years for environmental impact statements).
- Missed deadlines are treated as final agency actions subject to judicial review; exceptions for mutual agreements or disasters.
- Allows courts to approve third-party contractors to prepare reviews if agencies delay, with costs paid from a Permitting Performance Fund (funded by penalties and appropriations).
- Fund also covers attorney fees for prevailing sponsors.
Expedited Judicial Review and Enforcement (Subtitle E)
- Enables project sponsors to petition courts for review of agency actions, delays, or revocations, with exclusive jurisdiction in specified federal courts (e.g., D.C. Circuit or regional appeals courts).
- Petitions must be filed quickly (e.g., 60 days for final actions, immediately for delays); courts decide within 120 days, providing remedies like compelling action or compensation.
- Limits third-party challenges to complex authorizations, restricting vacatur (overturning) unless irreparable environmental harm is proven.
- Imposes daily penalties ($1,000–$100,000) on noncompliant agencies, deposited in the Performance Fund.
Limits on Halting Permitted Projects (Subtitle F)
- Defines "fully permitted project" as one with most required authorizations.
- Prohibits agencies from stopping or revoking permits unless there's immediate harm with no alternatives, or the permit is illegal with no other fix.
- Bars agencies from seeking voluntary court remands (returns for review) without sponsor consent.
Other Matters (Subtitle G)
- Requires annual Government Accountability Office surveys on permitting satisfaction and reports on agency performance and fairness across energy types.
Geothermal and Non-Federal Land Amendments (Section 4)
- Amends the Geothermal Steam Act: Requires annual lease sales (replacing biennial), adds cost recovery rules, creates a simultaneous permitting process for project phases, extends NEPA categorical exclusions to geothermal, and appoints a Geothermal Ombudsman for dispute resolution.
- Clarifies no federal drilling permits needed for oil, gas, or geothermal on non-federal lands if federal minerals are under 50% and surface is non-federal; requires state permit notifications and access for inspections.
- Limits federal surface regulation on non-federal lands in mixed-ownership units.
Significant Changes to Existing Law
- Energy Act of 2020: Adds enforceable timelines, compensation mechanisms, and judicial expediting not previously required.
- Geothermal Steam Act of 1970: Shifts to annual leasing, introduces cost recovery and an ombudsman, and exempts certain non-federal surface activities from federal permits (previously more restrictive).
- Energy Policy Act of 2005: Extends NEPA simplifications (categorical exclusions) to geothermal exploration, aligning it with oil and gas.
- Mineral Leasing Act: Reduces federal oversight on non-federal surfaces in split-estate scenarios, eliminating some permit, bonding, and mitigation requirements where federal ownership is limited.
- Introduces new funds (De-Risking and Performance) and court-approved contractors, shifting from discretionary agency processes to mandatory deadlines and remedies.
Potential Impacts
- Government Agencies: Increases workload for timely reviews and compliance; penalties and fund transfers could strain budgets but incentivize efficiency. May reduce litigation by streamlining processes.
- Citizens: Could lower energy costs by speeding infrastructure (e.g., power plants, pipelines), but risks faster approvals might overlook environmental protections, affecting communities near projects.
- International Relations: Enhances U.S. energy competitiveness by attracting investment, potentially reducing reliance on foreign energy/minerals; no direct international provisions, but could influence global supply chains for critical minerals and carbon capture.
Main Stakeholders Affected
- Project Sponsors/Developers: Energy companies (oil, gas, renewables, mining) benefit from faster permits, compensation for delays, and reduced risks, encouraging investment.
- Federal Agencies: Departments of Interior, Energy, Agriculture, and others (e.g., EPA, Army Corps) face stricter timelines, potential penalties, and contractor use.
- States and Tribes: States handle more permitting on non-federal lands; Tribes protected via exceptions for Indian lands, but may see indirect impacts from nearby federal projects.
- Environmental Groups and Citizens: Can intervene in reviews but face limits on challenging permits; potential for quicker project starts could raise environmental concerns.
- Taxpayers: Fund appropriations support programs; premiums and penalties offset costs, but delays' compensation might increase federal spending.
Notable Legal, Constitutional, or Political Implications
- Legal: Strengthens Administrative Procedure Act remedies (e.g., treating delays as unlawful) and NEPA processes with categorical exclusions and timelines; exclusive court venues and de novo reviews in compensation claims could shift power from agencies to judiciary, potentially increasing caseloads.
- Constitutional: Aligns with property rights by compensating for regulatory takings-like losses (e.g., permit revocations); limits on halting projects may raise due process questions if environmental laws are curtailed, but exceptions for harm preserve balance.
- Political: Bipartisan sponsors signal cross-aisle support for energy reliability; promotes "all-of-the-above" energy (fossil, renewable, minerals) without favoring types, but could spark debates on environmental deregulation vs. economic growth. GAO reporting ensures oversight for fairness.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (5)
Rep. Lawler, Michael [R-NY-17], Rep. Bacon, Don [R-NE-2], Rep. Gray, Adam [D-CA-13], Rep. Edwards, Chuck [R-NC-11], Rep. McDonald Rivet, Kristen [D-MI-8]
Recent Actions
- 2026-03-20: Referred to the Subcommittee on Commodity Markets, Digital Assets, and Rural Development.
- 2026-02-04: Referred to the Subcommittee on Water Resources and Environment.
- 2026-02-03: Referred to the Committee on Natural Resources, and in addition to the Committees on Agriculture, Energy and Commerce, Transportation and Infrastructure, Science, Space, and Technology, and the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2026-02-03: Referred to the Committee on Natural Resources, and in addition to the Committees on Agriculture, Energy and Commerce, Transportation and Infrastructure, Science, Space, and Technology, and the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2026-02-03: Referred to the Committee on Natural Resources, and in addition to the Committees on Agriculture, Energy and Commerce, Transportation and Infrastructure, Science, Space, and Technology, and the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2026-02-03: Referred to the Committee on Natural Resources, and in addition to the Committees on Agriculture, Energy and Commerce, Transportation and Infrastructure, Science, Space, and Technology, and the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2026-02-03: Referred to the Committee on Natural Resources, and in addition to the Committees on Agriculture, Energy and Commerce, Transportation and Infrastructure, Science, Space, and Technology, and the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2026-02-03: Referred to the Committee on Natural Resources, and in addition to the Committees on Agriculture, Energy and Commerce, Transportation and Infrastructure, Science, Space, and Technology, and the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2026-02-03: Introduced in House
- 2026-02-03: Introduced in House
Bill Versions
- Fighting for Reliable Energy and Ending Doubt for Open Markets Act — issued 2026-02-03 — PDF (78 pages)