About the Energy Pathways Series

President Donald Trump ran for a second term on an “energy abundance” agenda. He promised to unleash American energy by ramping up drilling and permitting on public lands, easing regulatory burden for energy companies, and lifting the pause on export authorizations for new liquefied natural gas (LNG) projects. This message appealed to companies and policymakers who see U.S. fossil fuel production and exports as a source of economic advantage and geopolitical strength. Since 2021, the Infrastructure Investment and Jobs Act, CHIPS and Science Act, and Inflation Reduction Act (IRA) have also introduced critical policy support for renewable energy, clean energy manufacturing, and many related industries. Manufacturing investment soared as companies took advantage of new tax incentives.

More than 100 days into the Trump administration, it is an opportune time to take stock of the energy policy changes enacted so far, and assess ongoing proposals by the Trump administration and Congress.

Three factors make it important to analyze this dynamic policy environment. First is the prospect of strong domestic energy demand. There is bipartisan concern about supplying the energy required for strategically important industries such as artificial intelligence, semiconductor fabrication, and advanced manufacturing. Booming demand from data centers is expected to be a major contributor to electricity load growth in the coming decade, although there is a robust debate over the scale of likely demand increases and the moves utilities should make to prepare. This has raised the stakes for near-term planning for all energy sources, from natural gas to nuclear to renewable energy.

Second, there are critical discussions underway in Washington on energy and climate policies in advance of a “reconciliation” bill expected later this year. That bill will likely decide the fate of IRA investment and production tax credits, with important implications for the evolution of the U.S. energy system. Some of these incentives, including consumer-facing tax credits, are likely to be vulnerable, while other areas enjoy bipartisan support and are likely to be protected. 

Third, the regulatory climate for many industries is changing. The Trump administration has passed an unprecedented number of executive orders, many of which seek to cut or streamline regulations. The Environmental Protection Agency has proposed “the biggest deregulatory action in U.S. history,” potentially affecting rules for power plants, vehicles, and oil and gas operations. The combination of legislative action and regulatory changes will have wide-ranging implications for energy investments and competitiveness.

To examine these changes, the Center for Energy and Environmental Systems Analysis (CEESA) has launched a new series called Energy Pathways: Washington Policy and the Evolving Energy System. This publication series will provide critical and timely policy insight on the near-term outlook for various energy sources. The first in this series analyzes the offshore wind industry. Future publications will cover solar energy, hydrogen, LNG, carbon capture and storage, and other energy sources and technologies.