EPA Aims to Streamline Clean Water Reviews

Proposed EPA rule limits state review scope under the Clean Water Act, sparking debate over speed versus oversight

26 Feb 2026

The US Environmental Protection Agency has proposed revisions to Section 401 of the Clean Water Act, a move that could reshape how states review federally permitted infrastructure projects.

If adopted, the changes would limit state assessments to water quality impacts directly linked to discharges into regulated waters. The proposal would affect permitting for water systems, energy facilities, ports and large industrial developments.

Section 401 allows states and certain tribes to certify that projects affecting US waters comply with water quality standards before federal permits are granted. In recent years, some state reviews have extended beyond direct discharge effects, adding conditions that industry groups say increased uncertainty and lengthened approval timelines.

EPA said the revisions are intended to restore clarity and predictability to the certification process, while supporting economic growth and infrastructure investment. Agency officials have stressed the need for timely and consistent decisions.

Industry bodies, including the American Water Works Association, argue that clearer federal standards would help utilities address ageing infrastructure by reducing permitting risk and aligning construction schedules with financing plans. Engineering and construction companies have also indicated that greater certainty could improve capital planning and project delivery.

The proposal comes as billions of dollars in federal funding and private capital flow into US water infrastructure. Supporters say a narrower review framework could reduce costly delays and speed the deployment of approved projects.

Environmental organisations and some state and tribal representatives, however, have raised concerns that limiting the scope of review could weaken oversight of broader ecological impacts. Legal analysts note that earlier iterations of Section 401 rules have faced court challenges, suggesting that further litigation is possible if the measure is finalised.

For now, the rule remains at the proposal stage. Its final form and durability will depend on the regulatory process and potential judicial review. Developers, utilities and public agencies are expected to reassess permitting strategies and timelines as debate over federal and state authority continues.