We are now four days into the second Trump Administration and there is much activity in Washington to report. You may have seen that on Monday, President Trump signed over 200 Executive Orders, actions, and memoranda on various topics, including energy and environmental permitting. As ACEC works to analyze the new executive orders to understand their potential effects on the engineering industry, we wanted to summarize the ones that are in the energy, environmental, and water space that may be of interest to you and your firms for your awareness. These executive actions lay out specific policy goals and, in many instances, direct agencies to take follow-on regulatory action. Look to Congress to weigh in directly to the White House on some of the EOs as they could potentially hurt projects in their states and districts. The full text of the executive actions can be found on the official White House website here: Presidential Actions - The White House
Executive Order: "Unleashing American Energy"
The environmental provisions of this Executive Order focus on promoting energy development, reducing regulatory burdens, and prioritizing economic and national security interests. Most of the provisions are favorable as the intent is to grow domestic energy sources like oil and gas and that requires infrastructure like pipelines. There has been concern raised about a broadly worded provision in this Executive Order that pauses disbursements of funding from the Bipartisan Infrastructure Law and Inflation Reduction Act. The White House issued clarifying guidance that the pause in funds only applies to funds supporting the "Green New Deal" as described in section 2 of the Executive Order. Section 2 of the Executive Order lays out broad policy directives encouraging energy exploration and production on Federal lands and waters, establishing the United States as a leading producer and processor of critical minerals, establishing an abundant supply or reliable energy, ensuring regulatory requirements are grounded in law, eliminating the "electric vehicle mandate" and promoting consumer choice for vehicles and other goods and appliances. As this issue continues to evolve, the ACEC advocacy team will continue monitor it closely. Please reach out to us if you hear of any projects that are being put on pause as a result of the Executive Order.
Additional key points from this Executive Order that are favorable for ACEC members include:
Encouraging Energy Production: The U.S. aims to boost energy exploration and production on federal lands and waters, focused on "traditional" energy sources including coal, natural gas and hydropower, to solidify "energy dominance" and reduce costs for consumers. This is favorable for ACEC.
Simplifying Permitting: The Order seeks to expedite the permitting process for energy and infrastructure projects, including revising regulations under the National Environmental Policy Act (NEPA) to prioritize efficiency and reduce delays.
Reevaluating Environmental Analyses: Agencies are instructed to ensure that environmental impact assessments are based on robust scientific methodologies, avoiding approaches like the quantifying the social cost of carbon.
Mining and Mineral Production: The U.S. will prioritize domestic mining and processing of critical minerals, including exploring uranium as a critical mineral, to reduce dependency on foreign resources and enhance national security.
Additional key points from this Executive Order that are unfavorable for ACEC members include:
Reducing Regulations: The Order targets the elimination of Biden-era environmental and climate regulations. Many members provide air and water monitoring services may impact be impacted.
Terminating Specific Programs: Programs and policies associated with the Biden Administration's climate change initiatives, and energy-related grants from the Inflation Reduction Act are to be paused or reassessed, redirecting focus to promoting energy independence and market competition. This could negatively impact renewable projects and create uncertainty in the market.
Executive Order: "Declaring a National Energy Emergency"
This Executive Order includes language directing federal agencies to use emergency authorities to address regulatory hurdles that might delay energy projects, including those related to water quality, endangered species protection, and other environmental considerations. Key provisions include:
Clean Water Act and Emergency Permits: The heads of agencies are directed to use emergency permitting provisions under the Clean Water Act and other relevant laws to facilitate energy supply. These include identifying actions under existing law that may be subject to emergency permitting. Agencies are encouraged to use these provisions to expedite energy infrastructure projects.
Endangered Species Act (ESA) Consultations: Agencies must identify actions potentially subject to ESA consultations in emergencies and report them to the White House. The regulations allow for expedited consultations to facilitate energy supply. Agencies are encouraged to use these regulations to the maximum extent permissible by law.
Endangered Species Act Committee: The Secretary of the Interior will convene a committee quarterly to review energy infrastructure projects that may require exemptions from ESA obligations. The committee will also address any obstacles to energy infrastructure related to ESA or the Marine Mammal Protection Act.
Environmental and Energy Infrastructure Projects: Agencies are tasked with using emergency authorities to expedite the completion of energy, environmental, and infrastructure projects that are essential to the energy supply, with particular focus on regions such as the Northeast, West Coast, and Alaska.
Executive Action: "Putting People over Fish"
This memorandum directs the Secretaries of Commerce and the Interior to restart efforts to direct more water from the Sacramento-San Joaquin Delta to Southern California to address water supply. This memorandum restarts an initiative from the first Trump Administration that was previously blocked by California's state government due to concerns about protecting the Delta smelt and other fish species. The memorandum cites the recent destructive wildfires in Southern California as evidence of the need for improved water management. The Secretaries are instructed to report on progress and provide recommendations within 90 days.
Executive Action: "Temporary Withdrawal of All Areas on the Outer Continental Shelf from Offshore Wind Leasing and Review of the Federal Government's Leasing and Permitting Practices for Wind Projects"
This EO was certainly targeted against the wind industry and already is causing concerns for those states that had projects ready to move forward for permitting consideration. Many of these projects have capital investments and any delays add more uncertainty. This memorandum directs a temporary suspension of all areas on the Outer Continental Shelf (OCS) from offshore wind leasing, starting January 21, 2025, until further notice. The suspension applies to new or renewed leases for wind energy projects, though it does not affect existing leases or leasing for other purposes such as oil and gas. The Secretary of the Interior, in consultation with other relevant agencies, is tasked with reviewing existing wind energy leases and determining whether any should be terminated or amended based on environmental, economic, and legal factors.
Additionally, the memorandum mandates a halt to new approvals or permits for onshore and offshore wind projects while the federal government conducts a comprehensive review of its wind leasing and permitting practices. This review will address concerns about potential environmental harm, including impacts on wildlife and marine life, as well as economic challenges related to wind energy's intermittency and subsidies.
The memorandum also calls for a temporary moratorium on activities related to the Lava Ridge Wind Project in Idaho. The Secretary of the Interior is directed to review the project's impacts and potentially halt its development.
Lastly, the memorandum outlines an assessment of the environmental and economic impacts of idle windmills, with recommendations for their removal. The Attorney General is authorized to intervene in litigation related to federal wind projects as needed. The memorandum emphasizes that it does not create enforceable rights but is meant to guide federal actions pending review.
ACEC is working with members and other industry stakeholders to engage Capitol Hill and the Administration to express our concerns. Again, we would ask you to reach out to us if you hear of any projects that are being put on pause as a result of this Executive Order.
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