Trump plans energy overhaul: Lifting oil regs, exiting Paris accord
On his first day in office, Trump announced that he intends to initiate a revolution in the energy industry. One priority will be lifting regulations on oil extraction on federally owned lands. Another expected action is the USA's re-exit from 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 start implementing his plan immediately after his inauguration on Monday.
One of the main objectives will be a move toward what is termed "big oil," which refers to domestic extraction companies. Trump announced the reversal of Biden's decision to withdraw about 2.5 million square kilometres of U.S. waters from availability for oil and gas leasing. Changes in regulations are intended to facilitate the development of oil and gas 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 regarding oil transportation and to use authority to manage changes in how electricity is generated and transmitted.
These actions are expected to have a broad scope. According to a report cited by Bloomberg from the Brennan Center for Justice, declaring a state of emergency enables the president to access up to 150 special powers, typically used to respond to hurricanes, terrorist attacks, and other unforeseen events.
As the agency reminds us, Trump previously considered using this mechanism in his earlier term to avoid closing unprofitable coal and nuclear power plants nationwide. However, he did not follow through with this idea. It is uncertain whether Trump could effectively use these provisions to achieve the goal of building more power plants despite announcing plans to double the country's energy production.
In the USA, Trump is expected to use executive power to lift the moratorium on new American licenses for the export of liquefied natural gas (LNG).
He also intends to withdraw federal incentives for electric vehicles and relax strict government regulations on vehicle emissions and fuel efficiency.
There is a loophole
As reported by Bloomberg, the provisions contained in the Federal Power Act can be utilized by Trump and extraordinary powers found in other laws, including a statute from the Cold War era, initially used 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, asserting they are needed to help combat climate change and enhance domestic security, Bloomberg notes.
