Cotton Says Sanders Permitting Order Will Boost Energy Development and National Security
Governor Sarah Huckabee Sanders has signed a new executive order directing state agencies to streamline permitting for economic development projects, a move aimed at helping Arkansas attract new industry while supporting infrastructure and energy development.
The directive focuses on how quickly Arkansas can approve projects that require multiple state permits, an issue that has increasingly affected energy generation, manufacturing, and large-scale investments.
Executive Order 26-04 requires cabinet-level agencies and regulatory boards that issue permits, licenses, or certifications to conduct a full review of their approval processes within 120 days. The review will focus on eliminating unnecessary steps, identifying regulatory barriers that slow approvals, and modernizing permitting systems through digitization. Agencies are also expected to recommend changes that could shorten approval timelines while maintaining environmental and public health protections.
The order applies to agencies overseeing major development projects, including the Arkansas Department of Energy and Environment, the Department of Agriculture, the Department of Labor and Licensing, and the Department of Health. The goal, according to the order, is to improve the speed, predictability, and transparency of state permitting decisions.
Rather than creating new programs, the order directs agencies to review their existing processes and identify where delays exist. Within 180 days, agencies must submit improvement plans outlining process changes, potential legislative fixes, and implementation timelines.
The announcement comes as Arkansas continues to compete for major industrial and technology projects that require large amounts of electricity and infrastructure investment. Energy development, including power generation, transmission upgrades, and supporting infrastructure, often requires approvals from multiple agencies, which can lengthen project timelines.
The order notes that state permitting systems should protect natural resources while also fostering “infrastructure improvements, upgrades to existing systems, agricultural production, manufacturing, power production, support for energy independence, [and] economic development projects.”
U.S. Senator Tom Cotton told the Arkansas Reporter that modernizing permitting processes is critical not only for economic growth but also for national security.
“Energy generation that is vital to our economy and national security is too often hindered by outdated government regulations,” Cotton said. “Thankfully, the Working Families Tax Cut, along with Governor Sanders’s executive order, eliminates the unnecessary bureaucratic red tape and drives economic development in our state.”
Those installations form part of the nation’s defense industrial base, where energy capacity and industrial infrastructure increasingly intersect with national security.
Energy policy has increasingly intersected with economic development as states compete to attract major projects tied to artificial intelligence, advanced manufacturing, and defense supply chains. These industries require large amounts of electricity and reliable energy infrastructure.
Arkansas already holds a competitive position in business recruitment. Recent rankings cited in the executive order include a 2023 Site Selection Magazine ranking placing Arkansas seventh nationally for micropolitan development projects and a 2025 Forbes Advisor ranking naming Arkansas the third-best state to start a business. Reducing regulatory delays could strengthen those advantages by giving companies greater certainty when planning major investments.
Any recommended statutory changes could ultimately be considered by the Arkansas General Assembly in future legislative sessions. For industries dependent on infrastructure development, including utilities, manufacturing, and energy production, the review could determine how quickly large projects move from proposal to construction in Arkansas.