On his first day in office, President Trump signed an historic number of executive orders, many of which were focused on energy policy issues. These orders provided a clear signal of President Trump’s policies and policy directives to federal agencies over the coming months.
The two most consequential energy-related executive orders were an order titled “Declaring a National Energy Emergency” and an order titled “Unleashing American Energy“:
Declaring a National Energy Emergency
This order begins by declaring that current energy supplies are inadequate to meet rising demand, citing the need for the United States to “remain at the forefront of technological innovation,” to drive the U.S. manufacturing, transportation, agriculture, and defense industries, and to reduce energy prices for Americans, especially those living on low- and fixed-incomes.
The order directs all agencies to “identify and exercise any lawful emergency authorities available to them, as well as all other lawful authorities they may possess” to expand energy production. The order also directs agencies to “expedite the completion of all authorized and appropriated infrastructure, energy, environmental, and natural resources projects” within their authority.
The order specifically directs the Army Corps of Engineers to utilize emergency permitting to expedite permitting and construction of energy supply projects. The Secretary of the Interior is likewise ordered to identify and utilize emergency authorizations to reduce the burden of the Endangered Species Act. Finally, the order creates an interagency task force to conduct a national-security focused assessment of energy, electricity, and refining infrastructure to protect the homeland and conduct operations abroad, with a focus on the Northeast and West Coast.
Unleashing American Energy
This order declares a policy of energy abundance and orders all agencies to review all agency actions to identify actions that impose an undue burden on energy development. The order revokes a number of Biden-era EOs that related to energy and environmental policy. The order also directs the Council on Environmental Quality to issue guidance and convene a government-wide working group to expedite permitting under the National Environmental Policy Act.
The order has an immediate impact on a number of renewable energy grant programs, as the order directs all agencies to “immediately pause the disbursement of funds appropriated through the Inflation Reduction Act of 2022 or the Infrastructure Investment and Jobs Act.” Within 90 days, all agency heads must submit a report to the National Economic Council (NEC) Director and OMB Director that makes recommendations on funds that have not yet been disbursed, and no funds may be disbursed without the approval of the OMB Director and the NEC Director.
Finally, the order directs agencies to expedite approvals for LNG exports, deepwater port development, and critical mineral development.
Looking Ahead
Both orders direct the Environmental Protection Agency, the Department of Energy, the Department of the Interior, and others to immediately begin rulemaking and policymaking activities. We expect these agencies to first reverse rules and policies issued by the previous administration. Many of these rules are currently being challenged in the courts, and we expect the Trump Administration to request a remand of these rules back to their issuing agencies for reconsideration.
We also expect agencies to utilize emergency powers in ways that may alter the regulatory landscape, potentially by suspending rules or expediting permitting processes. Whether these changes are permanent will likely depend on whether Congress takes action, potentially in the form of an energy policy package in the next 18 to 24 months.
Lastly, all actions taken by the Trump administration are likely to be challenged in the courts, which will cause delays and a new kind of analysis from the courts after Loper Bright Enterprises v. Raimondo.
More executive orders are anticipated in the coming days and weeks, and if the first day provides any indication, many of these will be focused on energy and regulatory issues.
