Trump Enacts Executive Order Boosting US Energy

Trump’s Second Term Begins with New Executive Order on American Energy

Shortly after his second inauguration, President Donald J. Trump issued a new executive order, Unleashing American Energy. The order seeks to promote energy exploration and production on federal lands and waters, secure consistent energy supplies, and position the United States as a leading producer of nonfuel minerals.

Order Aims for Increased Domestic Energy and Consumer Choice

The new order intends to boost domestically produced energy supplies and outlines key policy changes to reform demand-side energy policy. These changes include scrapping electric vehicle (EV) mandates, including state waivers and subsidy programs for EV purchases, and eliminating efficiency standards. The order champions consumer choice in goods and products like appliances. Furthermore, it clarifies that all regulations should be based on law and distinguish between domestic and foreign benefits during rulemaking.

Revoking of Biden Era’s Climate Policies

In a significant move, the executive order rescinds all 12 of President Biden’s executive orders on climate change, environmental justice, EVs, the Inflation Reduction Act, and sustainability. It also terminates the American Climate Corps. The order dictates that any related funds or resources allocated to abolished entities or programs must be disposed of according to applicable law, and any contracts for projects initiated under the revoked orders must be terminated as swiftly as possible.

Directives for Energy Resource Development and Regulation

The order instructs an immediate review of all agency actions that impact the development of domestic energy resources including oil, natural gas, coal, hydropower, biofuels, critical minerals, and nuclear energy. Within 30 days of identifying any agency action that unduly burdens domestic energy production, agencies are to develop and start action plans to rescind or revise those actions. The Attorney General must also be notified to take appropriate steps in any pending litigation related to the identified agency actions.

Changes to Greenhouse Gas Regulations and Permitting Processes

Trump’s executive order also disbands the Interagency Working Group on the Social Cost of Greenhouse Gases and orders the EPA to provide new guidance on the “social cost of carbon” within 60 days. This could even entail removing it from the calculation of any permitting or regulatory decision. Until then, the guidelines from OMB Circular A-4 of September 17, 2003 will apply to all rulemaking proceedings. The EPA is also directed to review and make recommendations on the legality and applicability of  “Endangerment and Cause or Contribute Findings for Greenhouse Gases Under Section 202(a) of the Clean Air Act,” Final Rule, 74 FR 66496 (December 15, 2009), the foundational action underpinning all of EPA’s greenhouse gas regulations.

Streamlining of Permitting and Development of Energy Infrastructure

The order seeks to improve permitting processes by directing the EPA, the Department of Interior (DOI), and the Department of Defense to eliminate delays or inefficiencies. As for NEPA, the Council on Environmental Quality (CEQ) is instructed to propose rescinding its NEPA implementation regulations and issue new implementation guidance within 30 days. Furthermore, the National Economic Council and Office of Legislative Affairs are tasked with preparing recommendations to Congress to streamline the permitting and development of energy infrastructure projects.

Allocation of Funds for Energy Development

The executive order also suspends the disbursement of any additional funds appropriated under the Inflation Reduction Act and Infrastructure Investment and Jobs Act. Agency heads are directed to review their processes and policies for issuing grants or funding the appropriated money to ensure they are in line with the goal of efficiently developing domestic energy resources. The Director of OMB is charged with providing guidance on how agencies should prioritize considerations involving federal funding. Agencies are required to assess whether enforcement discretion can be used to advance domestic energy resource development and submit a report to the OMB detailing such instances within 30 days.

Revival of Liquefied Natural Gas Export Projects

The Department of Energy is instructed to expedite reviews of applications and approvals of liquified natural gas export projects. For projects that had previously been approved by the Maritime Administration (MARAD) under the Deepwater Port Act of 1974 (DWPA),  MARAD must determine whether modifications to these projects would result in adverse environmental impacts significantly different from those evaluated at the time of initial approval. The order also sets expedited timelines for review and reporting to the President and Department of Transportation.

Promotion of Domestic Mining of Non-Fuel Minerals

This executive order also encourages American mining of non-fuel minerals. The DOI, Department of Agriculture (USDA), EPA, and CEQ are directed to identify any agency actions that impose undue burdens on domestic mining and take steps to rescind these actions. The DOI and USDA are required to reassess public lands previously withdrawn from mining consideration. The DOI is also required to consider updating the U.S. Geological Survey’s list of critical minerals and prioritize and expedite geologic mapping of the United States with a  focus on identifying unknown deposits of critical minerals. Relevant agencies are directed to evaluate whether foreign mining projects use exploitative practices, have national security implications, or unlawfully or unduly restrict U.S. commerce. Finally, the Secretary of State and other relevant agencies must submit a report to the President with policy recommendations to enhance the competitiveness of American mining within 60 days.