The rule, which takes effect in November, reverses a Trump-era action that limited the ability of states and tribes to review pipelines, dams and other federally regulated projects within their borders.
Industry groups complained that a proposed rule issued last year could lead to unnecessary delays for a range of infrastructure projects, including pipelines, dams and bridges.
Former President Donald Trump had argued that states were improperly wielding the Clean Water Act to block needed fossil fuel projects.
New York, for example, has used its review authority to deny certain natural gas pipeline projects. Washington state refused to issue a permit for a coal export terminal in 2017.
In 2020, EPA officials said the Clean Water Act shouldn’t be used to hold infrastructure projects hostage and finalized its rule that curtailed state and tribal power.