As President-elect Trump gears up for his return to the White House, significant energy policy shifts loom large. He aims to swiftly reverse many of Biden's initiatives, focusing on natural gas and electric vehicle regulations. The complexities of LNG export approvals and California's emissions standards spark heated debates. Meanwhile, the future of the Inflation Reduction Act hangs in balance, with unspent funds at risk. On the horizon, an executive order allows AI data centers on federal land but mandates clean energy requirements.
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Quick takeaways
Trump's Day One actions will focus on undoing Biden's energy policies, but many initiatives may face legal challenges and delays.
The auto industry is divided on Trump's potential rollback of EV regulations, highlighting ongoing tensions in energy policy and innovation.
Deep dives
Trump's Day One Energy Orders
President-elect Trump plans to initiate a series of executive actions targeting energy and environmental policies as he resumes office. His approach includes a regulatory freeze, pausing all ongoing government actions to give his administration time to take control. However, many actions will be symbolic or merely the beginning of longer processes, particularly in areas like liquefied natural gas (LNG) project approvals. Actual project permits will require a detailed process to withstand potential legal challenges, meaning immediate approvals are unlikely despite promises of aggressive action.
Impact on Electric Vehicle Regulations
Trump's administration is expected to address electric vehicle (EV) policies significantly, particularly by rolling back regulations set by the Biden administration that promote heightened EV sales. Despite the complexity of these regulations, Trump's focus may include canceling a recent California rule requiring zero emissions from new cars by 2035, which is likely to spark legal disputes about his authority. The auto industry holds mixed views on these changes, as many support the current standards to strengthen EV sales. Additionally, Trump may seek to cancel unspent allocations from the Inflation Reduction Act, although the official processes surrounding these funds are intricate and will face challenges.
President-elect Donald Trump is preparing to resume his time in the White House with an extensive set of executive actions, including those that will target energy and the environment in major ways and seek to undo many of President Joe Biden’s moves in these areas. POLITICO’s Alex Guillén unpacks what Trump is aiming to do on Jan. 20th and what the implications will be for energy and climate. Plus, the Biden administration has issued an executive order that allows for the construction of data centers for supporting artificial intelligence on federal land — but with the requirement that they be powered by new clean energy projects.