US Energy Department Announces Up to $42 Million for Constitution Pipeline
Key Facts
The US Department of Energy announced it would use up to $42 million in funding to advance Williams' Constitution natural gas pipeline project under Title III of the Defense Production Act. The announcement is part of the use of federal appropriations for energy projects deemed vital to national security, according to the department's statement outlining the legislative framework for the funding. The department said the Working Families Tax Cuts Act allocated $1 billion for these projects, the appropriation underpinning support for the pipeline. The department specified its contribution to Constitution as "up to $42 million" to fund eligible pre-construction and permitting activities. The project aims to transport gas from the Marcellus Shale region to markets in the northeastern United States, according to Williams' description of the project.
Activities eligible for funding include engineering and site preparation, according to the Energy Department, as part of the preparations required before construction begins. The funding can also cover environmental reviews associated with the project, alongside assessments forming part of the approval process. Eligible uses include the costs of securing regulatory approvals, tying federal support to the preparatory work and permitting procedures specified by the department. The department described the scope of support as covering "eligible pre-construction and permitting activities," the phase addressed by the funding announcement. On the regulatory front, Williams is seeking to reinstate the Federal Energy Regulatory Commission certificate, while the New York Department of Environmental Conservation opposes the company's request to reissue the certificate and bypass the state's regulatory authority.
Constitution's planned additional transportation capacity is about 650,000 dekatherms per day once operational, according to a project fact sheet published by Williams. The company says this capacity is equivalent to the daily needs of about 3 million homes in the northeastern United States, a comparison it uses to illustrate the volume of supplies the pipeline is intended to carry. The pipeline is set to connect directly to the Iroquois and Tennessee interstate transmission systems, according to the company's project page. The project design thus provides for transporting gas from the production region to northeastern markets through connections to existing interstate transmission networks. On the potential economic impact, Williams cited an S&P Global study on savings from lower gas prices in the region. The study estimated that Constitution could generate total savings of up to $11.6 billion, an estimate the company presented in discussing the project's benefits.
On the environmental review, a notice of availability of the environmental assessment for the Constitution and Wright Interconnect projects was published in the Federal Register on August 26, 2026, as part of the proceedings handled by the Federal Energy Regulatory Commission. The assessment concluded that approval of the projects would not constitute a major federal action significantly affecting the quality of the human environment, according to the published text. That conclusion covers both projects within the scope of the environmental assessment prepared by commission staff, while the approval decision remains with the commission itself. The commission treats the assessment as an independent analysis by its staff that it considers when reviewing the projects and their regulatory proceedings. The notice explicitly stated that "the environmental assessment is not a decision document," maintaining the distinction between the environmental review's conclusion and regulatory approval of the projects.
The New York Department of Environmental Conservation, meanwhile, opposed Constitution Pipeline Company's request to reissue the federal certificate, according to the department's statement on the state's position on the project. Its opposition includes the attempt to bypass New York's regulatory authority under the Clean Water Act, the central dispute identified by the department in its objection to the company's request. The department said it had not waived its authority under the law, maintaining the state's role in proceedings related to the project. It said it "will explore all available options to vigorously defend our state's rights," underscoring its determination to defend those powers. Williams had announced the withdrawal of its application for a water permit for the project from the New York Department of Environmental Conservation, while preparing to submit additional filings.
Williams identifies reinstatement of the Federal Energy Regulatory Commission certificate in the fourth quarter of 2026 as the project's next targeted regulatory milestone, according to the schedule published on its project page. The target follows publication of the notice of availability of the environmental assessment in August and comes amid New York's opposition to reissuing the certificate and bypassing its authority under the Clean Water Act. On operations, the company sets the fourth quarter of 2028 as the target for starting pipeline operations and transporting gas to northeastern markets. Williams presents that date as part of its project plan, alongside its target for reinstating the federal certificate and preparations to submit additional filings after withdrawing the water permit application. According to the company's announced schedule, the next targeted milestones begin with certificate reinstatement in the fourth quarter of 2026, ahead of the targeted start of operations in the fourth quarter of 2028.