Trump to declare national energy emergency, unlocking new powers

(Bloomberg) — President-elect Donald Trump is poised to invoke emergency powers as part of his plan to unleash domestic energy production while seeking to reverse President Joe Biden’s actions to combat climate change, according to people familiar with the matter.

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The move is set to be among an array of actions Trump will take — starting hours after he’s sworn in on Monday — to deliver on campaign promises to boost domestic energy output. The president-elect is prepared to compel policy shifts that would enable new oil and gas development on federal lands, while directing a rollback of Biden-era climate regulations, said the people who asked not be named due to the confidentiality of the information.

President Donald Trump.
President Donald Trump.

While many of the executive actions will simply kick off a lengthy regulatory process, they’re set to touch the full spectrum of the US energy industry, from oil fields to car dealerships. They also underscore Trump’s determination to reorient federal government policy behind oil and gas production, a sharp pivot from Biden’s efforts to curb fossil fuels.

It wasn’t immediately clear how an emergency energy declaration would be used, though a president can unlock special powers over the transportation of crude and use authorities to direct shifts in how electricity is generated and transmitted.

On the campaign trail, Trump vowed he would declare a national emergency on energy, saying it was needed to increase output and address burgeoning demand from the rapid uptake of artificial intelligence. A Trump transition spokesperson didn’t immediately respond to a request for comment, but the president-elect himself nodded at the effort during remarks at the Capital One Arena Sunday.

“We’re going to be using our emergency powers to allow countries and entrepreneurs and people with a lot of money build big plants, AI plants,” Trump said. “We need double the energy that we already have, and it’s going to end up being more than that.”

Declaring a national emergency allows a president to tap into as many as 150 special powers normally intended to address hurricanes, terrorist attacks and other unforeseen events, according to a report by the Brennan Center for Justice.

It’s not immediately clear, though, that Trump could use them successfully to achieve the goal of building more power plants. During his first term, he attempted to use special powers to help keep unprofitable coal and nuclear power plants around the country from retiring by invoking emergency authority contained in the Federal Power Act that is typically reserved for natural disasters and other crises. The effort was eventually abandoned.