Trump Declares Energy Emergency, Unleashing Sweeping Policy Overhaul on Day One
President Donald Trump is set to unleash a dramatic transformation of US energy policy on his first day back in office, invoking emergency powers to boost domestic fossil fuel production and reverse climate change efforts initiated by the Biden administration, Bloomberg reports.
These sweeping changes, according to sources familiar with the matter, are slated to begin within hours of Trump’s inauguration on Monday.
Trump’s plan centers on declaring a national energy emergency, granting him access to special presidential powers aimed at compelling policy shifts that facilitate new oil and gas development on federal lands. He also intends to dismantle Biden-era climate regulations, fulfilling key campaign promises. These actions will impact the entire US energy industry, from extraction to consumption, though many will initiate lengthy regulatory processes.
The exact nature of the emergency declaration remains unclear, but it is expected to provide the president with significant control over crude oil transportation and electricity generation. Trump has cited the growing energy demands of artificial intelligence as justification for the emergency, a concern he voiced during his campaign and reiterated at an event Sunday.
A national emergency declaration could allow Trump to access roughly 150 special powers intended for unforeseen events like hurricanes or terrorist attacks, as detailed by the Brennan Center for Justice. While the full scope of how these powers will be applied to energy policy is uncertain, previous attempts to use similar authorities during his first term to prop up coal and nuclear plants proved ultimately unsuccessful.
This move represents a stark policy reversal in Washington, where environmentalists have long urged Biden to declare a climate emergency. Instead, Trump is clearly prioritizing fossil fuel production, setting the stage for likely legal challenges and political backlash.
In addition to the emergency declaration, Trump is expected to take the following actions on his first day:
• Lift the moratorium on new US licenses to export liquefied natural gas (LNG): Reversing a Biden-era policy, this will likely incentivize increased US gas exports.
• Roll back federal incentives for electric vehicles (EVs): This policy change signals a move away from promoting EV adoption and towards traditional vehicles.
• Dismantle stringent government regulations governing vehicle pollution and fuel economy: Trump has often referred to these regulations as an “EV mandate,” and their rollback is expected to impact the auto industry significantly.
• Reverse Biden’s decision to withdraw 625 million acres of US waters from oil and gas leasing: This action, which has already faced legal challenges from the American Petroleum Institute and several Gulf states, could open up vast offshore areas for drilling, though it will likely trigger further legal battles.
Trump’s administration may also leverage emergency authorities within other laws, including the Defense Production Act, which Biden used to encourage renewable energy manufacturing.
