/>iThe Trump Administration is beginning to roll out its policy plans to “dominate” the global energy space. These plans tackle energy transition issues in a dramatically different manner than did the Biden Administration, particularly by leaning into fostering the development of resources, including fossil fuels, nuclear, and hydroelectric power that provide reliable “baseload” supply. This comes as no surprise given President Trump’s promise to “drill, baby, drill” at the inauguration.
We previously reported on the Trump Administration’s early plans for energy policy, and in the weeks since those plans are coming into sharper focus. Key policy blueprints include the following:
- A memorandum released by US Department of Energy (DOE) Secretary Chris Wright on February 5 classified as a plan for “Unleashing the Golden Era of American Energy Dominance” and framing out DOE’s initial slate of actions.
- An executive order issued on February 14 establishing the “National Energy Dominance Council” to advise the president on ways to increase domestic energy production and take full advantage of the nation’s “amazing national assets” including oil, natural gas, biofuels, uranium and critical minerals, geothermal heat, and the “kinetic energy of moving water. The council is tasked with preparing a detailed report on the state of “energy dominance” to be prepared within 100 days.
The council will be made up of at least 17 cabinet members and other federal officials, and the US Secretary of the Interior will serve as the Council Chair. The executive order stresses the importance of energy dominance on national security, and the Energy Dominance Council chair will be given a seat on the National Security Council.
We break down the policy framework, which dovetails with the USEP Environmental Protection Agency’s priorities (summarized here), and accompanying context for the Trump Administration’s energy-related plans below. Highlights include:
- Renewing focus on fossil fuels like oil and natural gas in place of wind and solar.
- Prioritizing lowering the cost of energy to consumers instead of emissions reductions.
- Promoting nuclear technology.
- Preparing for increased energy demand.
- Streamlining government oversight.
Renewed Focus on Oil and Natural Gas
In a stark contrast from the Biden Administration’s focus on wind and solar, the Golden Era plan focuses heavily on fossil fuels by calling to refill the Strategic Petroleum Reserve and ending the Biden Administration’s pause on natural gas exports to countries without free trade agreements. DOE announced its first natural gas export permit approval on February 14.
The 100-day Energy Dominance report will also include specific recommendations for approving natural gas pipelines in New England, California, Alaska, and other areas “underserved by American natural gas.” Separately, President Trump has promised to revive the Constitution Pipeline, intended to transport natural gas from Pennsylvania to New York, which has been stalled since 2020.
In terms of advancing renewable energy, the Golden Era plan mentions only the potential for research and development funding for geothermal and hydropower.
Pivoting From Emissions Reduction to Cost Reduction
Citing the need to reduce inflation and compete with the global economy, DOE plans to roll back Biden Administration efforts to combat climate change in favor of policies that reduce costs for industry and consumers.
Touting the ease at which America’s fossil fuel reserves can be deployed for use, DOE seeks to prioritize the development of these resources instead of Biden Administration priorities such as wind and solar. To this end, DOE’s Golden Era plan announces an end to “net-zero” policies, stating such policies result in higher energy costs and reduced energy reliability without meaningfully reducing global emissions. Additionally, DOE announced it will postpone appliance efficiency mandates and will conduct a comprehensive review of efficiency standards using consumer choice and affordability as a “guiding light.” The postponement echoes arguments made by conservatives in challenges to Biden Administration energy efficiency standards. (For more, see here.)
In addition, the Energy Dominance report will include advice on “identifying and ending practices that raise the cost of energy” as well as ways to encourage private sector and state and local government investments in energy production and infrastructure.
Promoting Nuclear Technology
DOE’s Golden Era plan also includes efforts to launch the “long-awaited American nuclear renaissance” with the goal of leading the world in the “commercialization of affordable and abundant nuclear energy.” Without many specifics, the plan announces that DOE will work to fund nuclear research and development and enable the “rapid deployment and export of next-generation nuclear technology.” The plan further acknowledges the need to modernize nuclear weapons systems and pursue nuclear nonproliferation agreements.
The “Energy Dominance” report will also include recommendations on actions federal agencies can take to facilitate bringing small modular nuclear reactors online.
Preparing for Increased Electricity Demands
The Trump Administration desires to make the United States “the Artificial Intelligence Capital of the World.” (For more, see here and here.)
Artificial intelligence (AI) technology requires significant electricity. While abandoning its predecessor’s focus on “electrification” to reduce emissions, the Trump Administration seeks to ensure electricity production necessary for new technology. The Golden Era plan calls for research and development investments into “true technological breakthroughs” including high-performance computing, quantum computing, and AI. The plan further calls for improvements and expansion of the electrical grid, including a “renewed focus to growing baseload and dispatchable generation.”
Citing the goal of leading the world in AI, the Energy Dominance report will include recommendations on “rapidly and significantly increasing electricity capacity.”
Limiting Government Oversight
Finally, in keeping with the Trump Administration’s overarching theme of government efficiency, the “Golden Era” plan promises to streamline the “burdensome federal permitting process,” with specific focus on expediting the approval and construction of energy infrastructure. As part of this process, the Trump Administration is expected to roll back enforcement of the National Environmental Policy Act (NEPA) with the announcement of an interim rule called “Removal of National Environmental Policy Act Implementing Regulations.” Of late, NEPA-related decisions, including the regulations underlying NEPA regulations, have been under increased scrutiny with cases pending before both the US Supreme Court and the DC Circuit Court of Appeals. (See discussion here.)
