Indicators of potential regulatory shifts to agency objectives and regulatory focus
KPMG Regulatory Insights
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February 2025
The initial flurry of ‘Day One’ Executive Orders (EOs) focused quickly on the Energy sector – from the declaration of a national emergency to the opening of the energy supply to exiting from the Paris Agreement. Issuances from the incoming agency leadership look to execute their agency objectives and regulatory focus in line with these EOs. Preliminary signals include:
Across the various Energy agencies, leadership is setting parameters for regulatory activity going forward, including initial support for:
Signals | Description/Examples | Source |
---|---|---|
Energy “Dominance” | Implementation of the Executive Order declaring a “national energy emergency” with actions related to both energy supply and infrastructure, across all energy types and focusing on national “energy independence” |
DOI release EPA release DOE release |
Emphasis on enhancing energy transportation infrastructure, especially pipelines |
DOI release | |
Plans to expedite permits and approvals for energy projects, using emergency authorities to bypass regulations | White House here, here and here DOI release | |
Focus on developing domestic/Alaskan energy resources, reversing previous restrictions, prioritizing Alaska LNG | ||
Rollback of climate-related regulations, aiming to encourage fossil fuel development and reduce energy costs |
DOI release | |
AI Leadership | Implementation of Executive Order on “Advancing United States Leadership in Artificial Intelligence Infrastructure” (still in force from the previous administration), which allows for expansion of data centers and related facilities and supports the Administration’s goal of global AI leadership:
| EO 14141 here EPA release |
Regulatory Withdrawal/Pullback | Rescission of select previous Administration Executive Orders on energy and climate-related development and regulation (e.g. EO 14082, “Implementation of the Energy and Infrastructure Provisions of the Inflation Reduction Act of 2022”, and EO 14008, “Tackling the Climate Crisis at Home and Abroad”) | |
Implementation of Executive Orders on “Regulatory Freeze Pending Review” and “Unleashing American Energy” that direct review of rules, orders, guidance, policies, and other actions that may be inconsistent with the Administration’s policies Withdrawal and/or reconsideration given to standing regulations (and regulations currently under legal challenge), including greenhouse gases (GHG) emissions and coal combustion residuals (CCR) Reassessment of natural gas and permitting regulatory reform, in the context of large energy infrastructure, nuclear development, etc. | ||
Potential reconsideration of previously granted waivers (e.g., CA) | EPA release | |
Shift away from “climate change” terminology in agency materials/actions |
| |
Withdrawal of support for previous administration rule requiring enhancement and standardization of climate-based disclosures | SEC statement | |
Global Pullback | Implementation of the Executive Order, “Putting America First in International Environmental Agreements”, including withdrawal from the Paris Agreement under the United Nations Framework Convention on Climate Change |
Likewise, agency leadership is also noting potential changes in key regulatory areas, including:
Signals | Description/Examples | Source |
---|---|---|
Cross-Departmental Coordination | Execution of the duties of the National Energy Dominance Council- (comprised of federal departments and agencies including State, Treasury, Defense, Justice, Agriculture, Commerce, Transportation, EPA and others) to advise the President on ways to expand all forms of energy production including processes for permitting, production, regulation, and transportation and recommending a National Energy Dominance Strategy for long-range goals for achieving energy dominance (e.g., innovation, private sector investment, “cutting red tape”) | |
State Collaboration | Look to shorten permitting times and processes with federal and state partnerships to incentivize investment | EPA release |
Promote federal and state collaboration (e.g., FERC and state utility regulators) | FERC release | |
Resiliency | Focus on reliability of generation units and construction of new power generation | FERC release DOE release |
Consumer Costs | Focus on lowering consumer costs related to previous climate and energy policies (e.g., food costs, power costs, residential construction and consumer goods) by reducing regulatory requirements |
FERC release DOE release |
Assessment of agency programs/programs to identify/recommend actions to lower consumer costs |
DOI release |
First 100 Days: Upcoming Regulatory Signals for Energy
Indicators of potential regulatory shifts to agency objectives and regulatory focus
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