Columbia Energy Exchange

Senator Alan Armstrong on Building American Energy Infrastructure

Brief

Senator Alan Armstrong used his first months in the Senate to press a practical, CEO‑informed agenda for permitting reform focused on predictability and litigation reform. Drawing on nearly 40 years at Williams (15 as CEO) and his prior public roles (former chair of the National Petroleum Council), Armstrong told Jason Bordoff he is frustrated by Senate floor dynamics but optimistic there is a narrow, bipartisan window to act. His core diagnosis is procedural: long, duplicative reviews and permissive judicial remedies — especially NEPA case law built around the “arbitrary and capricious” standard and post‑hoc state §401 reviews — make project approvals ripe for delay and litigation monetization. He illustrated the harm with industry examples (a finished regional energy access project vacated by the D.C. Circuit; recurring problems with the Constitution pipeline and Transco) to argue courts should remand regulatory defects rather than routinely vacate permits and that standing should be limited to parties who can show real harm.

Armstrong outlined specific policy fixes: require concurrent federal‑state review within a single EIS led by a named federal agency (often FERC for interstate infrastructure), codify §401 timing and water‑quality standards so states can’t change rules midstream, tighten judicial standards and timelines, and protect lawfully issued permits from automatic vacatur. He emphasized the bill is energy‑source neutral — no implicit subsidies, no single‑state veto — and said industry groups from renewables to hydropower have coalesced around the approach. Jason Bordoff pressed environmental and equity concerns; Armstrong insisted reforms won’t degrade protections and cited the Supreme Court’s “Seven Counties” decision as helpful guardrails against speculative, distant impacts (e.g., generalized GHG chain effects) being shoehorned into project NEPA reviews. He also warned of an emerging political fault line: NGOs and some left‑leaning members who depend on litigation and §401 as leverage may resist reform. Finally, Armstrong tied permitting to geopolitics and markets — noting rapid growth in data‑center demand, divergent global gas prices during recent Hormuz shocks, and the risk that constraining infrastructure will push costs onto consumers and hamper U.S. competitiveness. He urged congressional committees (EPW, Energy & Natural Resources) to draft and drop legislation quickly to seize the bipartisan opening.

Why it matters

Senator Alan Armstrong (R‑Oklahoma), appointed after Markwayne Mullen's resignation, told Jason Bordoff he has been in the Senate since “March 22” and drew on nearly 40 years at Williams (15 years as CEO) to draft permitting reform legislation.

Key details

  • Armstrong identified three technical choke points his bill targets: reforming NEPA judicial standards (particularly the “arbitrary and capricious” doctrine), fixing duplicative timing under the Clean Water Act §401 so states review concurrently with the federal EIS, and limiting courts from vacating lawfully issued permits (favoring remand instead); he tied these to real cases including a billion‑dollar regional energy project vacated by the D.C. Circuit.
  • He argued states should be part of a single concurrent EIS led by one federal agency (e.g., FERC for interstate pipelines/transmission) and proposed limiting state ability to change water‑quality standards mid‑process — all while insisting reforms will not weaken environmental protections but restore predictability.
  • Armstrong pointed to litigation economics — “sue and settle” monetization — and named Section 401 as a tool that has blocked pipelines and transmission lines (citing Arkansas and Missouri transmission stoppages) as a primary reason projects loop back to repeat EIS reviews.
  • Industry coalition building: Armstrong said the rollout of his bill had broad industry buy‑in (ACORE, hydropower, transmission developers, NextEra) and he cited Senate committee levers — EPW and Energy & Natural Resources (Capito, Whitehouse, Lee, Heinrich) — as the likely path to a bipartisan drafting and drop.
  • On demand and markets Armstrong warned data centers and AI compute growth have re‑energized U.S. electricity demand; he highlighted divergent gas prices during recent geopolitical shocks (Asian/European LNG near $20/MMBtu vs. < $3/MMBtu in the U.S.) and said reliance on Permian/Haynesville supply could leave the U.S. vulnerable without more infrastructure.
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