President Donald Trump changed the country’s energy policy through a suite of executive orders in the first few weeks of his second term, including the declaration of an energy emergency.
It’s a major shift from the Biden administration, which counted among its key priorities expanding renewable energy and addressing climate change, with the capstone of those efforts encompassed in the Inflation Reduction Act.
Trump declared the emergency through executive order, citing the National Emergencies Act. The executive order claimed that the Biden administration’s policies caused high energy prices and that it resulted in energy generation that didn’t meet the nation’s needs.
According to the U.S. Energy Information Administration, energy production increased from 2020 to 2023, with 2023 being a record year for energy production in the U.S. The amount of energy produced also exceeded the amount consumed by nearly 10 quads, with total energy consumption at 93.59 quads and production at 102.83 quads.
In a January report a week before Trump’s emergency declaration, the EIA forecasted an increase in crude oil production and a drop in price per barrel. But it did forecast a nearly doubling in natural gas spot price from 2024 to 2026.
The order also states that the problems are most pronounced in the northeast and the west coast.
To address this, the order directs federal agencies to expedite existing processes and to take immediate steps to help facilitate new energy projects. Solar and wind energy are excluded from the energy emergency.
The emergency declaration will change the country’s energy landscape in a few ways. Federal agencies have been directed to help develop and deliver energy projects, and they have the ability to use eminent domain or the Defense Production Act to do it, albeit subject to presidential approval. It also directs the Environmental Protection Agency to consider emergency waivers to allow for the sale of gasoline containing 15% ethanol year-round.
For projects already in progress, the order calls for expedition. It directs agencies to use all lawful emergency and other authorities available to speed up the completion of energy projects, and to facilitate the supply, refining and transportation of energy in and through the west coast, the northeast and Alaska.
But the order declaring the emergency didn’t come in isolation. The president also issued three related energy orders, two of which target specific areas within the country.
The broadest of the three is Unleashing American Energy, and it asserts that in recent years, regulations have driven up costs, weakened national security and impeded the development of the country’s natural resources.
The act encourages energy exploration and production on federal land and water, including on the Outer Continental Shelf. This directive comes just two weeks after former President Joe Biden instituted a ban on oil and gas leasing on more than 625 million acres of federal waters. It also sets a goal for the U.S. to become the leading producer and processor of non-fuel minerals, including rare earth minerals.
The order also eliminates some policies related to electric vehicles. As part of that directive, the elimination of the federal EV tax credit is considered. It orders federal agencies to review all existing regulations and agency actions that impose an undue burden on the identification, development or use of domestic energy resources, giving particular attention to oil, natural gas, coal, hydropower, biofuels, critical mineral and nuclear energy resources.
It also rescinds a suite of climate-related executive orders issued under the Biden administration, including the termination of all activities, programs and operations associated with the American Climate Corps.
The disbursement of funds appropriated through the Inflation Reduction Act or the Infrastructure Investment and Jobs Act has also been paused through the order.
On America’s east coast, the president temporarily withdrew lands on the Offshore Continental Shelf from wind energy leasing. Part of the reasoning for the pause is based on the importance of marine life and the U.S. fishing industry.
The pause doesn’t affect leasing related to other purposes, including leasing for oil, gas, minerals and environmental conservation.
On the other side of the country, the president issued an executive order titled “Unleashing Alaska’s Extraordinary Resource Potential.”
According to the new order, it is the policy of the U.S. to “fully avail itself of Alaska’s vast lands and resources for the benefit of the Nation and the American citizens who call Alaska home.”
To do so, the policy aims to maximize the development and production of natural resources in the state. It orders the expedition of permitting and leasing of energy and natural resource projects and prioritizes the development of Alaska’s liquified natural gas potential.
The order reverses many of the restrictions the Biden administration put in place on oil and gas development in the state.