Elections Outlook Report - Flipbook - Page 46
Trump Administration Energy Executive Outlook
Inflation Reduction Act (IRA)
Nuclear Energy
To offset the cost of extending Tax Cuts and Jobs Act (TCJA) provisions,
GOP lawmakers may push to repeal some IRA tax credits and subsidies
related to renewable energy, electric vehicles, and energy efficiency. Some
IRA provisions, like the hydrogen, biofuels and carbon sequestration tax
credits, may survive due to industry and bipartisan support.
President Trump has broadly supported the nuclear energy industry
and often mentioned expanding nuclear reactors during his campaign
speeches, saying it was on his “Day One” agenda. However, ally Robert F.
Kennedy Jr., whom Trump says will play a key role in his administration, has
been critical of nuclear energy and the subsidies going into the industry.
During a recent interview, Trump was critical of the size and scale of
federal funding needed for large-scale nuclear builds, signaling a possible
shift in support.
Infrastructure Investment and Jobs Act (IIJA)
President-Elect Trump is expected to conduct a thorough review of the
IIJA, aiming to scale back and repeal sections he considers excessive. His
administration will likely revive executive orders limiting environmental and
wildlife law protections to expedite federal infrastructure project approvals.
Climate Change and Renewable Energy
President-Elect Trump intends to dismantle Biden’s climate and
environmental initiatives, especially targeting the Inflation Reduction Act
(IRA) and EPA regulations on power plants, emissions, and electrification.
He also plans to withdraw from the Paris Climate Accord again, reversing
Biden’s recommitment to the global climate agreement.
Increase Fossil Fuels
Trump has promised expanded oil and gas exploration, particularly in areas
like the Arctic National Wildlife Refuge and other federal lands. Under
Trump, the Interior Department would likely focus on expanding energy
development on federal lands, promoting oil, gas, and mineral extraction,
and streamlining permitting processes to prioritize economic benefits over
environmental restrictions. A Trump administration might attempt to repeal
the Clean Air Act’s natural gas tax and freeze royalty rate increases for oil
companies.
Judicial Strategy to Reshape Environmental Regulations
The recent Supreme Court decision in Loper Bright empowers the Trump
administration to reinterpret or halt enforcement of environmental
regulations, especially those related to the Clean Power Plan and vehicle
emissions standards.
Critical Minerals
President-Elect Trump intends to renew and broaden prior initiatives
related to mining and critical minerals essential for clean technologies,
such as solar energy components and lithium batteries, with a particular
focus on decreasing U.S. reliance on China.
