Trump vowed to declare a national energy emergency as soon as he takes office — here’s how he might do it

Published

3 months ago

January 19, 2025

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President-elect Donald Trump has vowed to declare a national energy emergency as soon as he takes office Monday, months after promising voters that he would cut their electric and gasoline prices in half in the first year of his administration.

“To achieve this rapid reduction in energy costs, I will declare a national emergency to allow us to dramatically increase energy production, generation and supply,” Trump told supporters at a rally in Potterville, Michigan last August. “Starting on day one, I will approve new drilling, new pipelines, new refineries, new power plants, new reactors and we will slash the red tape.”

The president-elect reiterated as recently as Dec. 22 his intention to “declare a national energy emergency” on the first day of his administration. He vowed to issue a series of executive orders to reverse Biden administration policies on natural gas exports, drilling and emissions standards.

Trump plans to establish a National Energy Council led by North Dakota Gov. Doug Burgum, his pick to lead the Department of the Interior. Burgum said during a Senate hearing on his nomination this week that he expects the council to be established through an executive order.

It is unclear whether emergency declaration would be largely symbolic or would invoke broader powers that go beyond the executive orders on energy that Trump is widely expected to issue Monday. The president-elect’s transition team did not respond to a request for comment.

“My anticipation is that it will be a rhetorical declaration of an energy emergency,” said Mike Sommers, president of the oil industry’s lobby group American Petroleum Institute. “When you bundle together the executive orders, that will be the answer to what to do about the energy emergency.”

There are several emergency statutes Trump could invoke that are related to energy, said Glenn Schwartz, director of energy policy at the consulting firm Rapidan Energy. Emergencies are often loosely defined under federal law, giving the president broad discretion to use them as he sees fit, Schwartz said.

And Trump would likely face little pushback from the courts because they are reluctant to challenge presidential determinations related to national security, Schwartz said.

“What you end up with is that even if Trump were to expand his emergency powers in unprecedented ways, it is not clear that courts would step in to halt any of these resulting actions,” the analyst said.

Likely emergency authorities

There is a clear precedent for Trump to invoke emergency authority to promote power generation and expand the nation’s fuel supply, Schwartz told clients in a research report published last Thursday. Authorities using the powers would waive certain environmental and pollution rules related to energy.

Trump could issue fuel waivers under the Clean Air Act to allow gasoline onto the market that would otherwise violate federal air quality standards, the analyst said. Presidents have often used such waivers whenever they needed to stretch the country’s gasoline supply and keep prices in check, he said.

Trump could also invoke the Federal Power Act to order power plants to run at maximum capacity and not comply with pollution limits, Schwartz said. The energy secretary can invoke the act during wartime or when a sudden increase in demand or a shortage of electricity creates an emergency situation.

The provision has been rarely used since World War II and has mostly been reserved for situations where extreme weather has overwhelmed power plants, Schwartz said.

The largest grid operator in the U.S., PJM Interconnection, has warned of a power shortfall as coal plants are retired faster than new capacity is brought online. PJM operates the grid in all or parts of 13 states, in the Mid-Atlantic, Midwest and South.

The situation could become more acute as electricity demand increases significantly as the tech sector builds out energy-hungry data centers to support artificial intelligence applications.

The first Trump administration considered invoking the act in 2018 to order utilities to buy two years of power from coal and nuclear plants that were at risk of shutting down. The administration at the time ultimately dropped the idea after facing push back from industry.

Trump could also opt for a broader statute that lets the president suspend pollution laws for industrial facilities, power plants, oil refineries, steel mills, chemical plants and other industrial facilities in emergency situations, Schwartz said.

There is less support under federal law for the president to force new production, Schwartz said. Trump could direct federal agencies to fast track environmental reviews on energy projects he supports, such as pipelines, but the president cannot use emergency authorities to circumvent bedrock environmental policies such as the National Environmental Policy Act and the Endangered Species Act, the analyst said.

Expected executive orders

Oil industry lobbyists at the American Petroleum Institute are anticipating that Trump will issue a series of orders tied to energy as soon as Monday.

The administration is expected to issue an order lifting the Biden team’s pause on new liquified natural gas export facilities, Sommers said. The president-elect will also likely try to reverse President Biden’s recent decision to ban drilling in 625 million acres of federal waters. Trump’s authority to do this has been disputed and such an order would likely end up in court.

“We are of the view that he has the ability to reverse that and we’ll defend that in court,” Sommers said.

The industry is anticipating the president will also direct the Interior Department to increase oil and gas lease sales in the Gulf Mexico, Sommers said. The Biden administration had issued the fewest leases in history under a program set to run through 2029.

These decisions are not expected to have any immediate impact on production. The U.S. has been the world’s largest producer of oil and gas for six years, outpacing Saudi Arabia and Russia. The CEOs of Exxon and Chevron have made clear that production decisions are based on market conditions, not in response to who is in the White House.

“You can lead a horse to water, but you can’t make them drink,” Schwartz said. “He can give them all the resources they need to be able to drill, but I haven’t seen anything that suggests he can force them to take it out of the ground.”

Trump is expected to withdraw the U.S. from the Paris climate agreement. Executive orders targeting tailpipe emission and fuel economy standards for cars are also expected.

Still, only so much can be done through executive order, Sommers said, and the directives often have to go through a rulemaking process that takes time. The oil industry is more focused on pushing for more durable policy changes in the Republican-controlled Congress, he said.

“There’s not a lot of stuff that they’re going to be able to do on day one, other than direct federal agencies to fulfill their promise of energy dominance,” Sommers said.

Environment

The messy middle, hybrid semis, and century old tech comes to trucking

Published

9 hours ago

April 19, 2025

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The messy middle, hybrid semis, and century old tech comes to trucking

On today’s fleet-focused episode of Quick Charge, we talk about a hot topic in today’s trucking industry called, “the messy middle,” explore some of the ways legacy truck brands are working to reduce fuel consumption and increase freight efficiency. PLUS: we’ve got ReVolt Motors’ CEO and founder Gus Gardner on-hand to tell us why he thinks his solution is better.

You know, for some people.

We’ve also got a look at the Kenworth Supertruck 2 concept truck, revisit the Revoy hybrid tandem trailer, and even plug a great article by CCJ’s Jeff Seger, who is asking some great questions over there. All this and more – enjoy!

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Environment

Trump’s war on clean energy just killed $6B in red state projects

Published

11 hours ago

April 18, 2025

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Trump’s war on clean energy just killed B in red state projects

aerial view of solar panels array on green grass — Photo by Kelly on Pexels.com

Thanks to Trump’s repeated executive order attacks on US clean energy policy, nearly $8 billion in investments and 16 new large-scale factories and other projects were cancelled, closed, or downsized in Q1 2025.

The $7.9 billion in investments withdrawn since January are more than three times the total investments cancelled over the previous 30 months, according to nonpartisan policy group E2’s latest Clean Economy Works monthly update.

However, companies continue to invest in the US renewable sector. Businesses in March announced 10 projects worth more than $1.6 billion for new solar, EV, and grid and transmission equipment factories across six states. That includes Tesla’s plan to invest $200 million in a battery factory near Houston that’s expected to create at least 1,500 new jobs. Combined, the projects are expected to create at least 5,000 new permanent jobs if completed.

Michael Timberlake of E2 said, “Clean energy companies still want to invest in America, but uncertainty over Trump administration policies and the future of critical clean energy tax credits are taking a clear toll. If this self-inflicted and unnecessary market uncertainty continues, we’ll almost certainly see more projects paused, more construction halted, and more job opportunities disappear.”

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March’s 10 new projects bring the overall number of major clean energy projects tracked by E2 to 390 across 42 states and Puerto Rico. Companies have said they plan to invest more than $133 billion in these projects and hire 122,000 permanent workers.

Since Congress passed federal clean energy tax credits in August 2022, 34 clean energy projects have been cancelled, downsized, or shut down altogether, wiping out more than 15,000 jobs and scrapping $10 billion in planned investment, according to E2 and Atlas Public Policy.

However, in just the first three months of 2025, after Trump started rolling back clean energy policies, 13 projects were scrapped or scaled back, totaling more than $5 billion. That includes Bosch pulling the plug on its $200 million hydrogen fuel cell plant in South Carolina and Freyr Battery canceling its $2.5 billion battery factory in Georgia.

Republican-led districts have reaped the biggest rewards from Biden’s clean energy tax credits, but they’re also taking the biggest hits under Trump. So far, more than $6 billion in projects and over 10,000 jobs have been wiped out in GOP districts alone.

And the stakes are high. Through March, Republican districts have claimed 62% of all clean energy project announcements, 71% of the jobs, and a staggering 83% of the total investment.

A full map and list of announcements can be seen on E2’s website here. E2 says it will incorporate cancellation data in the coming weeks.

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Tesla delays new ‘affordable EV/stripped down Model Y’ in the US, report says

Published

11 hours ago

April 18, 2025

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Tesla delays new 'affordable EV/stripped down Model Y' in the US, report says

Tesla has reportedly delayed the launch of its new “affordable EV,” which is believed to be a stripped-down Model Y, in the United States.

Last year, Tesla CEO Elon Musk made a pivotal decision that altered the automaker’s direction for the next few years.

The CEO canceled Tesla’s plan to build a cheaper new “$25,000 vehicle” on its next-generation “unboxed” vehicle platform to focus solely on the Robotaxi, utilizing the latest technology, and instead, Tesla plans to build more affordable EVs, though more expensive than previously announced, on its existing Model Y platform.

Musk has believed that Tesla is on the verge of solving self-driving technology for the last few years, and because of that, he believes that a $25,000 EV wouldn’t make sense, as self-driving ride-hailing fleets would take over the lower end of the car market.

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However, he has been consistently wrong about Tesla solving self-driving, which he first said would happen in 2019.

In the meantime, Tesla’s sales have been decreasing and the automaker had to throttle down production at all its manufacturing facilities.

That’s why, instead of building new, more affordable EVs on new production lines, Musk decided to greenlight new vehicles built on the same production lines as Model 3 and Model Y – increasing the utilization rate of its existing manufacturing lines.

Those vehicles have been described as “stripped-down Model Ys” with fewer features and cheaper materials, which Tesla said would launch in “the first half of 2025.”

Reuters is now reporting that Tesla is seeing a delay of “at least months” in launching the first new “lower-cost Model Y” in the US:

Tesla has promised affordable vehicles beginning in the first half of the year, offering a potential boost to flagging sales. Global production of the lower-cost Model Y, internally codenamed E41, is expected to begin in the United States, the sources said, but it would be at least months later than Tesla’s public plan, they added, offering a range of revised targets from the third quarter to early next year.

Along with the delay, the report also claims that Tesla aims to produce 250,000 units of the new model in the US by 2026. This would match Tesla’s currently reduced production capacity at Gigafactory Texas and Fremont factory.

The report follows other recent reports coming from China that also claimed Tesla’s new “affordable EVs” are “stripped-down Model Ys.”

The Chinese report references the new version of the Model 3 that Tesla launched in Mexico last year. It’s a regular Model 3, but Tesla removed some features, like the second-row screen, ambient lighting strip, and it uses fabric interior material rather than Tesla’s usual vegan leather.

The new Reuters report also said that Tesla planned to follow the stripped-down Model Y with a similar Model 3.

In China, the new vehicle was expected to come in the second half of 2025, and Tesla was waiting to see the impact of the updated Model Y, which launched earlier this year.

Electrek’s Take

These reports lend weight to what we have been saying for a year now: Tesla’s “more affordable EVs” will essentially be stripped-down versions of the Model Y and Model 3.

While they will enable Tesla to utilize its currently underutilized factories more efficiently, they will also cannibalize its existing Model 3 and Y lineup and significantly reduce its already dwindling gross margins.

I think Musk will sell the move as being good in the long term because it will allow Tesla to deploy more vehicles, which will later generate more revenue through the purchase of the “Full Self-Driving” (FSD) package.

However, that has been his argument for years, and it has yet to pan out as FSD still requires driver supervision and likely will for years to come, resulting in an extremely low take-rate for the $8,000 package.

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