Shocking country’s energy policies, one volt at a time
June 9, 2025
During the first week of the new Presidential Administration, Donald Trump made it abundantly clear that he would honor his campaign promises regarding the country’s energy and environmental policies. The President’s agenda includes promoting fossil fuel development, reducing environmental regulations, and scaling back support (both political and financial) for renewable energy and international climate commitments. These policies pivot from the climate-centric strategies of the Biden and Obama administrations and demonstrate a renewed focus on U.S. energy independence through domestic production.
A hallmark of President Trump’s energy agenda is deregulation. The Administration has moved to ease environmental restrictions by declaring a national energy emergency, repealing and revising regulations (viewed as burdensome to energy producers), and limiting environmental oversight to expedite the permitting process for energy-related projects.
Domestic energy expansion
The President’s energy strategy places fossil fuels — oil, natural gas and coal — and now nuclear, at the center of U.S. energy production.
Over the past four months, executive orders declared a National Energy Emergency to fast-track the permitting and construction of infrastructure and facilities that supply, refine and transport energy; “unleashed” American energy by rescinding several prior executive orders and taking actions to eliminate regulations that hinder energy and economic development; identified and stopped all “unconstitutional” state and local laws that burden the identification, development, siting, production or use of domestic energy resources, which includes environmental, social and governance (ESG) initiatives and greenhouse gas emission limits; added sunset provisions for certain federal agencies to reduce regulations governing energy production; and reduced regulations restricting water flow.
Other executive orders opened more federal lands, including areas in Alaska, such as the Arctic National Wildlife Refuge, to promote domestic coal, oil, gas and mineral exploration. The stated goal is to revitalize the country’s coal industry by removing federal regulations and limits on coal production and coal-fired electricity generation.
The Biden-era moratorium on liquefied natural gas (LNG) exports was lifted and, as of May 19, 2025, the President directed the Department of Energy to streamline approvals for shipments to countries without free trade agreements with the U.S.
The country is on track to triple its export capacity by 2030.
On May 23, 2025, President Trump signed four executive orders aimed at accelerating the construction of nuclear power plants, including a new generation of small, advanced reactors that may offer the promise of faster deployment but have yet to be proven. The Nuclear Regulatory Commission has been directed to streamline its rules and take no longer than 18 months to approve applications for new reactors. The intended goal is to quadruple the production of the nation’s nuclear power plants from 100 gigawatts to 400 gigawatts by 2050.
According to the Administration, these efforts are intended to increase domestic production, enhance U.S. energy exports and reduce dependence on foreign energy sources.
Shifting away from renewable energy, climate change initiatives
Renewable energy and climate change initiatives suddenly face significant headwinds.
Federal agencies have been instructed to pause issuing new or renewed approvals, permits, leases or loans for wind projects on the Outer Continental Shelf pending environmental and economic reviews of the impact of such facilities.
On Day 1, the President froze billions of dollars for renewable energy initiatives under the Inflation Reduction Act and Infrastructure Investment and Jobs Act, which were deemed unnecessary or inefficient. The Administration seeks to cut $15 billion in renewable energy and carbon capture funding and $20 billion in grants under the Greenhouse Reduction Fund.
Thousands of farmers and small businesses, who were relying on the frozen U.S. Department of Agricultural grants for small-scale solar facilities and lower carbon energy projects, have been placed in limbo. The President cut $5.3 million in federal funds to retrofit low-income multifamily buildings in Massachusetts and California and $1.5 million to assess business models for electric vehicle carsharing in U.S. cities.
President Trump has once again rescinded the country’s involvement in the Paris Climate Agreement, citing the need to prioritize American economic interests. Even as the number of severe storms increases and global temperatures rise, the Administration is committed to rescinding financial and policy commitments to international climate initiatives. The Administration claims this will reorient the country’s focus towards economic efficiency and American prosperity in future international energy engagements.
As of May 26, the slim majority in the House of Representatives appears to be in support of the Administration’s efforts to phase out tax credits for electric vehicles and renewable energy investments.
The current proposed bill would eliminate tax credits for the purchase of electric vehicles, installation of rooftop solar panels, investment into energy efficiency, and for producing or advancing renewable energy development and research, including into hydrogen and battery storage.
The current Administration’s energy policies reflect a clear desire to prioritize fossil fuel development and relax environmental and energy regulation. These measures represent a significant reversal in our efforts to encourage renewable energy development, create technologies to reduce greenhouse gas emissions, and position the United States to be a world leader in technological advancement pertaining to renewable energy.
President Trump’s proposals to eliminate funding will blow the fuse on this country’s progress in investing in renewable energy and climate adaptation measures. Therefore, industries and developers should consider being proactive to take advantage of any existing funding prior to additional reductions or phasing out of incentives.
As many states, local governments and industries have taken it upon themselves to face the reality of climate change and continue to transition toward clean renewable energy, the long-term impacts of President Trump’s energy strategy remain to be seen.
Adam Dumville is an environmental and energy director with McLane Middleton, where he assists clients in matters involving environmental permitting, compliance counseling, energy facility siting, and defense of enforcement actions. He can be reached at adam.dumville@mclane.com.
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