Trump vows sweeping energy revolution: Regulations to drop
On his first day, Trump announced that he would initiate a revolution in the energy industry. The priority will be lifting regulations on oil extraction on federal government-owned lands. The USA is also expected to re-exit the Paris climate agreement.
Bloomberg reports that Donald Trump is prepared to invoke extraordinary powers as part of his plan to boost national energy production. According to the announcement, he will begin implementing his plan immediately after his inauguration on Monday.
One of the main objectives will be to favor "big oil," meaning domestic extraction companies. Trump announced the reversal of Biden's decision to withdraw about 625 million acres of U.S. waters from availability for oil and gas leasing. The regulation changes are intended to facilitate oil and gas development on federal lands.
During the election campaign, Trump promised that declaring a state of emergency in the energy sector would increase production and respond to the growing demand resulting from the rapid implementation of artificial intelligence.
Special powers
As Bloomberg explains, using emergency provisions will allow the president to grant special permissions for oil transportation and authorize changes in electricity generation and transmission.
These actions are expected to have a very broad impact. According to a report cited by Bloomberg from the Brennan Center for Justice, declaring a state of emergency allows the president to use as many as 150 special powers, typically employed to respond to hurricanes, terrorist attacks, and other unforeseen events.
The agency recalls that Trump considered using this mechanism during his previous term to prevent the closure of unprofitable coal and nuclear power plants across the country. However, he did not implement this idea. It remains uncertain whether Trump could effectively use these provisions to build more power plants, even though he has announced plans to double the country's energy production.
In the USA, it is expected that Trump will use executive power to lift the moratorium on new American licenses to export liquefied natural gas (LNG).
He also intends to withdraw federal incentives for electric vehicles and impose strict government regulations on vehicle emissions and fuel efficiency.
There is a loophole
Bloomberg writes that Trump can use the provisions of the Federal Power Act and extraordinary powers from other laws, including a Cold War statute initially utilized by President Harry Truman to increase steel production during the Korean War.
Previously, Joe Biden invoked the Defense Production Act to encourage American production of renewable energy technologies, including solar panels, fuel cells, and heat pumps, claiming they are needed to help combat climate change and enhance domestic security, Bloomberg reminds.
