President Trump is trying to reshape the nation's energy future by blocking any transition away from fossil fuels. And he's testing the limits of presidential power to make that happen.
The order signed by Trump on Monday makes it easier and cheaper for companies to produce oil and gas and allows the government to shut down approved clean energy projects.
Some actions are within his authority, while others may violate federal law or go against judicial decisions. Among other things, Trump has raised the possibility of revoking the Environmental Protection Agency's authority to regulate greenhouse gases, granted by the Supreme Court, and proposed cutting off funding for electric vehicle charging stations already authorized by Congress.
“Congress passed landmark infrastructure and climate investments, and now President Trump is illegally diverting that money away from American businesses, communities, and workers,” said Congressman Frank Pallone, D-New Jersey. We are trying to stop it,” he said.
The move also emphasizes an underlying tension. Trump has declared that the United States faces an energy crisis and wants to block thousands of megawatts of wind power projects planned to power homes and businesses. He talks about strengthening American manufacturing, but plans to rein in the electric vehicle industry, which has invested billions of dollars in new factories across the country.
“The term 'energy emergency' is an excuse to introduce hostile initiatives to the energy transition that is already taking place and halt progress in solar and wind power, electric vehicles, batteries and renewable energy production. '' said Robert N. Stubbins, director of the Environmental Economics Program at Harvard University.
Experts say the United States is not facing an energy crisis by any economic indicator. The United States is the world's largest producer of oil and natural gas, and oil prices are around $76 per barrel, about the same as the average cost over the past 20 years, adjusted for inflation. Gasoline prices, at about $3.13 per gallon, have fallen about 3% over the past 12 months.
But Dr Stubbins said: “In the event of a real energy emergency, the right thing to do would be to take energy conservation initiatives, such as increasing the supply of all forms of energy and tightening efficiency standards for cars and homes.” he added. Household appliances such as dishwashers and stoves – to reduce demand. Rather, Trump's executive order aims to loosen those requirements so that appliances consume more energy and cars burn more gasoline.
The oil and gas industry has donated more than $75 million to Mr. Trump's presidential campaign, and he has promised to dramatically roll back environmental regulations to lower costs and increase profit margins. He promised to give them virtually free access to American lands and waters. At a fundraising dinner this spring, Mr. Trump told oil and gas company executives that they should donate $1 billion to his campaign, saying more could be recouped through tax cuts, cost cuts and higher profits. said.
“There's a growing sense of confidence that the cost of doing business will not go up,” said Steve Pruett, CEO of Elevation Resources, a West Texas oil and gas producer.
Some executives worry that increased drilling could lead to an oversupply of oil, lowering prices and profits, but most would like to see restrictions on where exploration and drilling can occur. Not there. And many people don't want wind power, solar power, or electric cars to expand in a way that reduces demand for fossil fuels.
“Today is a new day for American energy, and we have moved quickly to chart a new path where American oil and gas are embraced, rather than restricted,” said Mike Somers, president of the American Petroleum Institute. I commend President Trump.” Industry organizations.
Former President Joseph R. Biden Jr. made fighting climate change a priority and sought to move the United States away from fossil fuels, the burning of which contributes to global warming, but Mr. Trump has made a sharp U-turn. is aiming for.
His definition of energy is almost entirely limited to fossil fuels, although he makes exceptions for hydroelectric power, geothermal power, and nuclear power. An executive order defines the term “energy resources” as “crude oil, natural gas, leased condensates, liquid natural gas, refined petroleum products, uranium, coal, biofuels, geothermal, flowing water motion, and critical energy.” He said that it has been done. mineral. ”
There was no mention of solar panels, wind turbines and battery storage, three of the fastest growing sources of electricity in the United States.
Chris Wright, the fracking executive Trump chose to head the Department of Energy, summed up the position of many Republicans in 2023 when he said: , Either. “
Under pressure from Democrats during his Senate confirmation hearing last week, Wright made it clear that he believes climate change is a “global challenge that needs to be solved.” He told lawmakers he supports all forms of energy, including renewables, but fossil fuels will dominate the energy system for some time to come.
Still, experts say around the world renewable energy and electric vehicles are playing an increasingly important role in the global economy.
Last year, solar panels and wind turbines produced more electricity than the nation's coal-fired power plants for the first time in history. In China, sales of new electric cars have outpaced sales of new gasoline cars. Approximately 25% of new cars sold in California are now electric.
“The transition is already underway,” said Stephen A. Cohen, director of Columbia University's master's program in sustainability management. “We are seeing more than just the beginnings of movement in the direction of renewable energy around the world.”
The new Trump administration's efforts to stop that are “symbolic politics,” Dr. Cohen said. It may slow down during Trump's four years in office, but “in the long run, it's not going to stop,” he said.
But renewable energy companies feared short-term disruption and sought to answer Mr. Trump's calls for lower energy costs themselves.
“By freezing investment in the technology needed to power our grids and vehicles, we will reduce costs, create abundant energy, and become global energy domination,” said Heather O'Neill, president of Advanced Energy United. “Our ability to win the competition for rights is threatened.” An industry association whose members include wind power, solar power, and battery companies.
The president ordered federal agencies to stop spending money that Congress authorized when it passed the bipartisan Infrastructure Act of 2021 and the Anti-Inflation Act of 2022, which pumped hundreds of billions of dollars into clean energy and electric vehicles. commanded. The order prohibits the government from distributing funds to manufacturers of electric vehicles, wind turbines, solar panels and other clean energy, even if grants or loans have already been approved and binding contracts have been signed. It appears that the purpose is to prevent this.
“At the end of the day, the federal government has entered into legal agreements with these recipients,” said Geelan Huber, who led implementation of the Control Inflation Act program at the Environmental Protection Agency under the Biden administration. “Executive orders do not give government agencies magical powers to override properly enforced laws and regulations.”
Another executive order increases the likelihood that companies will cancel or modify offshore wind leases they have already obtained. Before terminating or amending existing wind leases, the Trump administration will review existing permits to see if there are environmental reasons to cancel them.
Trump's order “specifies that the administration can terminate or modify existing wind energy leases and provides sufficient authority to do so,” said Timothy Fox, managing director at consulting firm Clearview Energy Partners. I think there may be,” he said.
But experts said other directives were vulnerable to legal challenges.
For example, by declaring a national energy emergency, Trump will circumvent environmental laws such as the Endangered Species Act to expedite approvals for oil, gas and coal drilling, mining, pipelines and other facilities. claiming authority.
Patrick Parenteau, professor emeritus of environmental law at Vermont Law School, said the law defines an emergency as an imminent threat to life and property.
“These contingency plans are in place to prepare for disasters like what's happening in the Palisades,” Parenteau said, referring to the fires raging in Los Angeles. “They're not for 'I want to drill, baby, drill,'” he said.
Whether Trump's actions survive could depend on federal courts, where hundreds of Trump-appointed judges can hear cases.
“Litigation is guaranteed,” said Jody Freeman, director of the Environmental and Energy Law Program at Harvard Law School. and former President Obama White House staffer. But he added that the Trump administration “may say, 'We're willing to roll the dice.'”
Trump also directed federal agencies to eliminate the “social cost of carbon,” a little-known but powerful metric used by the government to defend the cost of environmental regulations. This refers to the economic damage caused by droughts, floods, fires, and other events exacerbated by climate change.
The Biden administration calculated the cost per ton of carbon dioxide at $190 and used that figure to defend the cost to industry of limiting carbon dioxide from tailpipes and smokestacks. An executive order signed by President Trump on Monday said the calculation was “characterized by logical flaws, an insufficient basis in empirical science, politicization, and a lack of legal basis.”
Richard Revesz, who helped set costs under the Biden administration, called the executive order unreasonable. “That paragraph literally makes no sense at all,” he said, adding that the calculation relies on the work of economist William Nordhaus, who developed the concept of the social cost of carbon.
“How can we say that reliance on the work of Nobel laureates is insufficient evidence for empirical science?” Lebbs said.
Abigail Dillen, president of the environmental group Earthjustice, said Trump's executive order was “completely out of line” for a president who wants America to control its future.
“Perhaps the biggest competition of the future is who will command clean energy,” Dillen said. “Even if they want more drilling, the majority of Americans also want clean energy moving forward.”
Rebecca F. Elliott Contributed to the report.
