President Donald Trump took steps Monday to cut back the White House’s National Environmental Policy Act rulemaking powers and to speed up permits for energy infrastructure projects powered by oil, gas, nuclear, coal, hydropower and biofuel, as well as efforts to mine critical minerals.
Trump also directed his administration to prepare recommendations for Congress on how to reform the federal construction permitting process.
Following an energy-focused inaugural address in which he declared “We will drill, baby, drill,” Trump signed an executive order declaring a national energy emergency. The directive calls for the use of emergency regulations, including under the Clean Water Act and the Endangered Species Act, to expedite energy infrastructure projects.
In Section 5 of a Monday directive titled Unleashing American Energy, the president revoked a longstanding executive order that gives the White House Council on Environmental Quality the power to craft rules for how agencies comply with NEPA.
NEPA, other permit changes
The president’s Unleashing American Energy order directs the chair of the White House Council on Environmental Quality, currently Brenda Mallory, to provide guidance on implementing NEPA and to propose rescinding CEQ’s NEPA regulations within 30 days.
Trump’s actions follow a surprise finding last year by the U.S. Court of Appeals for the District of Columbia Circuit that CEQ has no authority to write regulations, E&E reported, cutting back the White House’s role in orchestrating environmental reviews for major projects. Instead of creating rules for how federal agencies should comply with NEPA, CEQ would provide guidance and head a coordinated effort to update relevant agencies’ environmental review procedures.
The order also directs agencies to eliminate delays within their respective permitting processes, such as through the use of general permitting and permitting by rule. It dictates that agencies use all possible authority, including emergency powers, to expedite federal permits “for any project an agency head deems essential for the Nation’s economy or national security.”
Lifts environmental restrictions
Trump’s directive also eliminates some existing environmental restrictions, requiring federal permitting processes to adhere only to legislated requirements for environmental considerations, and to use only “the most robust methodologies” to assess environmental impacts.
Trump cited inadequate energy infrastructure and high energy prices as national security threats when invoking the National Emergencies Act, and notably cast blame at his predecessor’s feet. But the oil and gas industry actually gained ground under former President Joe Biden. The U.S. now produces more crude oil than any country, ever, per an update from the U.S. Energy Information Administration released Dec. 24.
In a White House news conference Tuesday, several tech giants announced plans to invest $100 billion in artificial intelligence infrastructure, including data centers, which create huge energy demands. Trump pledged to streamline permits and accelerate project timelines to ensure the initiative’s success, and said energy projects will play a key role in supporting those data centers.
Big blow to wind
While Trump promised to unleash energy projects, wind — the country’s largest source of renewable energy, per the Energy Department — was a notable carveout. On Monday, he signed an executive order halting new permits, approvals and loans for all wind projects and temporarily withdrawing all federal waters from consideration for offshore wind leasing.
Wind and solar projects, a major focus of the Biden administration, comprise about 14% of the country’s power supply, according to the EIA. Even though the biggest wind energy producers are red states, according to the EIA, Trump has repeatedly vowed to end such projects.
His order stops short of freezing construction of offshore projects along the East Coast, which wind opponents sought and industry supporters feared, according to E&E News. Still, it is a powerful blow to the burgeoning industry: Wind power is one of the fastest-growing sources of electricity in the U.S., according to the Energy Department.
The order also directs the administration’s pick for Secretary of the Interior, former North Dakota governor Doug Burgum, to lead a comprehensive assessment of federal wind leasing and permitting practices. As of 2023, wind generated 36% of North Dakota’s power, according to the U.S. Energy Information Administration.
While Trump’s emergency declaration and other orders will almost certainly be challenged in court, little can happen until agencies determine what options are available and take action, NPR reported.
