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Big changes are coming to U.S. energy policy with the start of a new administration. Some of the first actions taken by incoming President Donald Trump were to declare an “energy emergency” and remove the country from the 2015 Paris climate agreement.
The incoming administration moved swiftly to rescind the Biden’s administration’s work to reduce greenhouse gas emissions and meet global climate goals through advancing renewable energy sources and the adoption of electric vehicles.
The executive orders issued in the first days of the new administration seek to maximize oil and gas production, speed permitting, reduce “burdensome” regulation, and pause permitting for all wind energy projects. The administration also revoked a 2021 executive order that set a target for 50% of all vehicles sales by 2030 to be electric.
Actions taken also freeze unspent funding for a nationwide EV charging station network and pause the disbursement of funds under the Inflation Reduction Act (IRA)and Bipartisan Infrastructure Law (BIL), which are providing billions of dollars in grants and tax incentives for clean energy programs, EVs, environmental pollution, and infrastructure. Part of that funding provides about $70 billion for grants to states to develop clean energy programs and projects, and Pennsylvania stands to receive about $700 million.
The administration also moved to end the Biden administration’s Justice40 initiative and all diversity, equity and inclusion (DEI) programs in federal agencies. As a follow-up, all agencies’ DEI program staff were ordered to be placed on leave while a reduction-in-force plan is developed.
The “Unleashing American Energy” executive order argues that the former administration’s burdensome regulations and focus on transitioning away from fossil fuels is affecting reliable electric generation, driving up prices, and harming national security. The action also lifts a year-long pause on permitting of new liquefied natural gas export projects, which will allow the U.S. to export even more of its abundant gas supply to overseas markets.
It remains to what will happen to various clean energy programs funded through the IRA and BIL, including the ARCH2 clean hydrogen hub project, which has received $30 million and was set to get up to $925 million in federal funding to develop a regional network of clean hydrogen producers, infrastructure and end users. The ARCH2 project is one of seven around the country funded through the legislation, and is now in the planning phase. Other programs involving decarbonization will also be affected.
Many of these actions are likely to cause confusion in the coming days at a number of federal agencies that oversee energy related decision-making, and others are likely to be challenged in court. It also remains to be seen how states, including Pennsylvania, that are receiving federal funding to support clean energy programs, will be affected.