Trump’s First-Day Executive Orders a Mixed Bag for Energy Sectors

January 23, 2025

In his first days in office, President Donald Trump issued several executive orders and presidential memoranda related to the energy industry. Some of the executive orders work to promote certain energy sectors, but others reflect a desire to limit continued growth in the renewable energy space, including through potential reductions in grants and other incentives that facilitate renewable energy projects. Below is a summary of each order and possible implications.

Declaring a National Energy Emergency

Trump issued an executive order declaring a national energy emergency stating, “the integrity and expansion of our Nation’s energy infrastructure is an immediate and pressing priority for the protection of the United States’ national and economic security” and that “[w]e need a reliable, diversified, and affordable supply of energy to drive our Nation’s manufacturing, transportation, agriculture and defense industries … and military preparedness.” The executive order states that these problems are most pronounced in the Northeast and West Coast.

The executive order requires the executive department heads to identify and exercise any lawful authorities available to facilitate the identification, leasing, siting, production, transportation, refining and generation of domestic energy resources on federal lands. It directs the federal departments to utilize all emergency authorities to expediate the completion, authorization and appropriation of infrastructure, energy and natural resource projects and to identify and use all lawful emergency authorities available to facilitate supplying, refining and transporting energy in and through the West Coast, the Northeast and Alaska. The executive order includes emergency regulations and permits under the Clean Water Act and Endangered Species Act Emergency Consultation Regulations. It requires the secretary of defense, in collaboration with the secretaries of interior and energy, to conduct an assessment of its ability to acquire and transport the energy, electricity or fuels needed to protect the homeland and conduct operations abroad.

The national energy emergency is the first declared in U.S. history. By doing so, Trump stated his intent to unlock new powers allowing him to expedite permits of mining projects or suspend certain environmental rules.

Unleashing American Energy

Signed by Trump on his first day, the executive order focuses on the national interest to “unleash” America’s affordable and reliable energy and natural resources. According to the text and the Trump administration, the focus on domestic energy will also rebuild America’s economic and military security.

The Trump administration issued what it said were clear policy goals for the United States to meet the energy needs for Americans:

  • Explore federal lands and water, including the Outer Continental Shelf, for energy exploration and production to solidify the United States as a global energy leader
  • Create jobs and prosperity and strengthen supply chains in the United States by establishing the U.S. as the leading producer and processor of non-fuel minerals including rare earth minerals
  • Assure that an abundant supply of reliable energy is readily accessible to every state in order to protect the United States’s economic, national and military security
  • Eliminate the electric vehicle mandate to promote true consumer choice for essential economic growth and innovation, remove the regulatory barriers to motor vehicle access, and terminate state emission waivers that function to limit sales of gasoline-powered automobiles
  • Roll back energy efficiency regulations for lightbulbs, dishwashers, washing machines, gas stoves, water heaters, toilets and shower heads to safeguard Americans’ freedom to choose from a variety of goods and appliances and promote market competition

The order further states that:

  • The Trump administration will ensure that all regulatory requirements for energy are grounded in clearly applicable law.
  • The global effects of a rule, regulation or action will be reported separate from its domestic costs and benefits to promote sound regulatory decisions and prioritize the interests of Americans.
  • The federal funding cannot be contrary to principles outlined in the executive orders, and all executive departments must provide opportunities for public comment.

The executive order requires all agency heads to review existing regulations to identify those that impose an undue burden on domestic energy resources (particularly, oil, natural gas, coal, hydropower, biofuels, critical minerals and nuclear energy resources), and to develop a plan to suspend, revise or rescind such measures.

The executive order ends all activities, programs and operations associated with the American Climate Corps. The executive order also revokes several presidential and regulatory actions:

  • Executive Order 13990 of Jan. 20, 2021, Protecting Public Health and the Environment and Restoring Science to Tackle the Climate Crisis, directed federal agencies to immediately review regulations conflicting with national objectives to improve public health and the environment.
  • Executive Order 13992 of Jan. 20, 2021, Revocation of Certain Executive Orders Concerning Federal Regulation, revoked “harmful policies and directives that threaten to frustrate the federal government’s ability to confront” environmental problems.
  • Executive Order 14008 of Jan. 27, 2021, Tackling the Climate Crisis at Home and Abroad, placed “the climate crisis at the forefront of foreign policy and national security planning.”
  • Executive Order 14007 of Jan. 27, 2021, President’s Council of Advisors on Science and Technology, established the President’s Council of Advisors on Science and Technology to make decisions from the “best available science and data.”
  • Executive Order 14013 of Feb. 4, 2021, Rebuilding and Enhancing Programs to Resettle Refugees and Planning for the Impact of Climate Change on Migration, directed the U.S. Refugee Admissions Program to enhance the program to take in refugees impacted by the climate crisis.
  • Executive Order 14027 of May 7, 2021, Establishment of the Climate Change Support Office, established the Climate Change Support Office to support bilateral and multilateral engagement to advance the U.S. initiative to address the global climate crisis.
  • Executive Order 14030 of May 20, 2021, Climate-Related Financial Risk, set forth the policy regarding the physical and transition risk in relation to financial risk associated with climate change.
  • Executive Order 14037 of Aug. 5, 2021, Strengthening American Leadership in Clean Cars and Trucks, set out the goal for 50% of all new U.S. sales of passenger cars and light-duty trucks to be zero-emission vehicles by 2023.
  • Executive Order 14057 of Dec. 8, 2021, Catalyzing Clean Energy Industries and Jobs Through Federal Sustainability, set out the goal for 100% carbon pollution-free electricity by 2030 and 100% zero-emission vehicle acquisition by 2035.
  • Executive Order 14072 of April 22, 2022, Strengthening the Nation’s Forests, Communities, and Local Economies, directed the federal agencies to pursue sustainable forest and land management backed by science along with conserving mature and old-growth forests.
  • Executive Order 14082 of Sept. 12, 2022, Implementation of the Energy and Infrastructure Provisions of the Inflation Reduction Act of 2022, lay out the implementation priorities of the Inflation Reduction Act upon its passage.
  • Executive Order 14096 of April 21, 2023, Revitalizing Our Nation’s Commitment to Environmental Justice for All, directed the relevant federal agencies to implement and enforce the nation’s environmental and civil rights laws to prevent pollution and provide a climate-resilient environment.
  • Executive Order 11991 of May 24, 1977, Relating to Protection and Enhancement of Environmental Quality, furthered the purpose and policy of the National Environmental Policy Act, the Environmental Quality Improvement Act of 1970 and Section 309 of the Clean Air Act.

The executive order directs the heads of executive departments to undertake all efforts to eliminate delays with their respective permitting process and use all authorities, including emergency authorities, to expediate their federal permits, including a potential revision or reimagining of the National Environmental Policy Act (NEPA) process. According to the Trump administration, the goal of the executive order is also to prioritize accuracy in environmental analyses through the end of the Interagency Working Group on the Social Cost of Greenhouse Gases.

One of the most significant sections of the executive order is Section 7, which “terminates the Green New Deal.” It directs all agencies to immediately pause the disbursement of funds appropriated through the Inflation Reduction Act (IRA) or the Infrastructure Investment and Jobs Act (IJA), including but not limited to funds for electric vehicle charging stations made available through the National Electric Vehicle Infrastructure Formula Program. Although Section 7’s effect on the renewable energy tax credits under the IRA is unclear, it appears that the order is aimed at targeting grants, loans and contracts under the IRA and IJA, not tax credits. The IRA’s direct pay mechanism under Section 6417 of the Internal Revenue Code is not likely to be affected by this language since direct pay is a statutory method for claiming a tax refund and not a grant, loan or contract. If the executive order is interpreted to halt direct pay, it will likely be subject to considerable legal scrutiny and ultimately be overturned as taxpayers sue for direct pay payments that they are entitled to by statute.

Additionally, the executive order directs the secretary of energy to restart reviews of applications for approvals of liquified natural gas export projects as expeditiously as possible and to consider the economic and employment impacts on the United States and on the security of allies and partners that would result from granting such applications.

The executive order also requires the secretary of interior, secretary of agriculture, administrator of the Environmental Protection Agency, chairman of the Council on Environmental Quality and heads of other relevant agencies to revise undue burdens on the domestic mining and processing of nonfuel minerals.

Unleashing Alaska’s Extraordinary Resource Potential

According to the executive order, Alaska holds an abundant and largely untapped supply of natural resources including energy, mineral, timber and seafood. Given this, the Trump administration directs the United States’ departments and agencies to maximize the development and production of natural resources efficiently and effectively on federal and state lands in Alaska. Federal departments and agencies are directed to prioritize the development of Alaska’s liquified natural gas potential.

Temporary Withdrawal of All Areas on the Outer Continental Shelf from Offshore Wind Leasing and Review of the Federal Government’s Leasing and Permitting Practices for Wind Projects

The memorandum halts federal offshore wind energy leasing and directs federal administrative agencies to cease the issuance and renewal of permits and approvals for onshore and offshore wind projects.

Temporary Suspension of Delegated Authority

Following the executive orders and presidential memoranda on Jan. 20, 2025, the acting secretary of interior Walter Cruickshank released an order to implement a target and time-limited evaluation of relevant decisions at the Department of Interior. The order temporarily suspends for 60 days the following actions:

  • Publishing any notice in the Federal Register including proposed or final agency action related to the NEPA
  • Issuing, revising or amending the Resource Management Plans
  • Granting rights of way of property or interests in property
  • Approving plans of operation or amending existing plans of operations under the General Mining Law of 1872
  • Issuing any final decision related to R.S. 2477 claims
  • Appointing, hiring or promoting personnel
  • Issuing any onshore or offshore renewable energy authorization including a lease, an amendment to a lease, right of way or any other agreement required to allow for renewable energy development

The temporary suspension on most actions conducted by Department of Interior staff is in place for 60 days.