by James Varney
Biden champions a government-led renewable shift, while Trump vows a fossil fuel revival, but both face challenges in undoing entrenched policies and programs shaped by their predecessors.
For four years, President Joe Biden has described climate change as
an existential threat requiring a whole lot of government response and
trillions of dollars in new spending to force America off fossil fuels.
President-elect Donald Trump, on the other hand, opts for a three-word approach: “Drill, baby, drill.”
Energy is just one of the areas – from foreign policy and law
enforcement to taxes, immigration, regulation, and almost every other
issue – where the two leaders have sharply divergent views. But even as
Trump works to reverse many of Biden’s policies and the current
administration seeks to entrench its priorities in its final days,
energy debates show no president has a magic wand that can undo every
policy enacted by his predecessor.
Trump has made it clear he wants to realign U.S. energy policy toward
cheap, abundant energy and away from expensive, emerging renewable
sources, many of which rely on government subsidies. But experts say his
options may be limited in cases where Congress approved spending bills,
contracts were signed, or even where he encounters pushback from
reluctant “green” enterprises that have relied on government largesse in
the push for a “NetZero” future.
“Congress would have to repeal some of that,” said Travis Fisher, the
director of energy and environmental policy studies at the libertarian
Cato Institute, referring to hundreds of billions in climate-relate
funding, including in the Inflation Reduction Act and other legislation
passed during the last four years. “The question in some cases will be,
‘Do you try to improve what’s been done or repeal it?’ And then, if
there are grants that have already gone out the door, those would be
hard to claw back. But there are still a lot of targets for quick
changes on day one.”
Some Trump supporters think the avenues that are open to a new
administration, as well as Trump’s track record, give cause for optimism
for those who want to reduce government spending or let the markets
determine energy prices and accessibility.
“When Trump promises something he usually delivers, and I would
expect to see significant changes in energy policy with him,” said
Geoffrey Pohanka, the 2023 chairman of the National Automobile Dealers
Association.
One of Trump’s clearest paths to reform would be reversing the Biden
administration’s moves to restrict drilling leases on federal lands.
While Biden did not achieve his stated aim of halting all offshore drilling,
he did try repeatedly to keep new exploration to a minimum while
delaying existing permits. Alaska offered clear bookends of Biden’s
anti-fossil fuel position. Upon taking office, he immediately suspended
all nine Alaskan leases permitted during Trump’s first term, and in
December, Biden’s Interior Department announced an auction of 400,000
acres for exploration in Alaska – the absolute minimum required by law.
Possible Target: Electric Vehicles
Trump can also counter Biden’s commitment to electric vehicles, which
increasingly looks like a plan to force manufacturers to build cars
that the public does not want to buy. Government planners envision 33
million EVs on the road by 2030, up from the current 3.5 million light-duty EVs registered in the U.S. While Detroit executives have publicly backed EVs and are eager for government subsidies in that market, consumers have proved less enthusiastic. Ford, which lost more than $1.2 billion in the third quarter alone on its EVs, announced it would suspend building electric versions of
its F-150 pickup, which has long been one of America’s best-selling
vehicles. GM leadership continues to sound bullish on EVs, but the
company is also losing money on them and has cut another 1,000 jobs.
A Trump pushback could begin with scrapping one Biden goal linked to
its effort to force EV manufacturing: the administration’s mandate that
new vehicles must average 46 miles per gallon by 2026.
Trump could also apply pressure by kicking out some of the government
props to the green energy market. He could end Biden’s generous tax
credits for EV leasing, which account for 85% of EVs on U.S. roads.
Trump could also abolish federal tax incentives that encourage EV
buying, and stop loans to struggling manufacturers of other renewable
energy equipment, such as off-shore wind.
“The elimination of the tax credit for leases would essentially do
away with the majority of Federal Government EV subsidies,” Pohanka
said. “As for California’s emission exemption, the President’s directive
to the EPA would eliminate it.”
But such a move ironically would likely face strong pushback from automakers. Despite their heavy losses on EVs, Detroit executives want to
protect their huge investments in EVs that have been made, in part, via
congressional action, and smaller outfits in myriad districts enjoy
Washington’s largesse and will likely lobby for their continuance.
“The (Inflation Reduction Act) subsidies help to create
constituencies that are going to fight hard to keep these handouts,”
said Daren Bakst, an energy expert at the conservative Competitive
Enterprise Institute. “While it will be difficult to get rid of some of
these green subsidies, it is imperative that legislators put the
interests of the American people over the interests of special
interests.”
Possible Target: Green Infrastructure
Trump can counter efforts to make Americans buy EVs by stopping funds
for Biden’s “National Electric Vehicle Infrastructure” plan. This
ambitious proposal – which was developed by several executive branch
agencies – includes $7.5 billion to build 500,000 EV charging stations
around the country and was widely criticized earlier this year as only a
handful of stations have been built since Biden unveiled the proposal
in December 2021. As a result, much of the money has not been spent.
That might allow Congress or perhaps the administration to freeze
spending on the plan. This could provide huge savings in the future,
too, as government planners acknowledge a full-blown national network of
charging stations would cost between $53 billion and $127 billion and
would rely on the private sector to do much of the heavy lifting,
according to the plan’s annual report.
While Biden and global warming alarmists say the plan builds
necessary infrastructure, critics say it should be scrapped because it
rests on fanciful assumptions and timetables.
“This whole thing is really more of a pipe dream,” said Mark Mills, the Executive Director of the National Center on Energy Analytics
(NCEA). “To pull this off, you would need something like $4 trillion
worth of hardware, and that’s not counting additional power plants you’d
need and the national grid to handle the expected growth in power
demand. You’ve also got land issues – where are you going to put all this?”
In other words, the national infrastructure plan rests on an “if we
build it, they will come” dream, according to auto market experts and
economists. Even the people at Climate Crisis acknowledged in November that “the dream of the $25,000 EV is dead.”
“This plan is another example of the Sovietization of the economy,”
said Walter Block, an economics professor at Loyola University in New
Orleans. “This is essentially a ‘Five Year Plan.’”
A Trump administration looking to trim will find other federal
departments and agencies that have swollen remarkably during Biden’s
four years.
Possible Target: The EPA
Experts say a far more ambitious effort would be reforming the large
and extensive government bodies that carry out Washington’s energy
policy. These would include the Department of Energy, of course, but
also the Departments of Transportation and Interior, the Federal Highway
Administration, and, perhaps most especially, the Environmental
Protection Agency, a regulatory body the Biden administration has
transformed into a cash cow for green energy.
In the last four years, the EPA’s “budgetary
resources” increased by more than 400%, rising from $17.2 to $84.4
billion, according to the Treasury Department’s tracker. At
the same time, according to the agency’s inspector general, the Biden
administrator has created an “incredibly complex” investment bank within
the EPA to award much of that money to green groups.
Biden officials have insisted there is “no turning back” on
EPA-funded programs such as the $27 billion it dished out to nonprofits
via the new Greenhouse Gas Reduction Fund. RealClearInvestigations has
reported that much of this money has been awarded to outfits with strong ties to the Democratic party.
“The situation at the EPA is troubling – it’s not an agency that is
supposed to be in the spending, or giving out money business at all,”
Bakst said. “It’s not like this is a small amount of money that the EPA
is doling out, and much of the money is going to the creation of what
amount to slush funds for nonprofits.”
Mandy Gunasekara, who led the EPA at the end of Trump’s first term,
said the new administration should try to claw back billions earmarked
for global warming measures, though she acknowledged “it would be
cleaner with Congressional action.”
In addition, she said unobligated “funds can be redirected,” a tactic
that has been used by many administrations. Those efforts, like the
expected new leases and permits federal agencies will green light under
Trump, could face court challenges that would, at the very least, slow
Trump’s actions.
Gunasekara has fleshed out a reform agenda in the EPA chapter she
contributed to “Project 2025,” a blueprint for conservative governance
prepared by the Heritage Foundation that Democrats falsely labeled a
Trump manifesto.
The EPA, she wrote, “has been a breeding ground for expansion of the
federal government’s influence and control across the economy. Embedded
activists have sought to evade legal restraints in pursuit of a global,
climate-themed agenda, aiming to achieve that agenda by implementing
costly policies that otherwise have failed to gain the requisite
political traction in Congress.”
With a few steps, the Trump administration could profoundly shift the
EPA narrative and return it to its familiar duties, according to
Gunasekara. In some cases, this would involve action by the Trump
administration, and in others, it could be achieved simply by ignoring
or stalling a raft of regulations put in under Biden. These steps would
include:
- Eliminating the Office of Environmental Justice and External Civil Rights, which has become a stand-alone office.
- Reviewing the EPA’s grants to ensure taxpayer money goes to groups
“focused on tangible environmental improvements free from political
affiliations.” This would be accompanied by a stop on “all grants to
advocacy groups.”
- Making “new petitions for rule reconsiderations and stays of rules.”
- Reassessing any “sue and settle” cases and increasing “public notification and participation” in legal matters.
- Removing the Greenhouse Gas Reporting Program “for any source category that is not currently being regulated.”
Although some of Biden’s initiatives have been approved by Congress,
Gunasekara told RCI that “many EPA actions in liberal administrations
have simply ignored the will of Congress, aligning instead with the
goals and wants of politically connected activists.”
Possible Target: The Bureaucracy
A Trump administration looking to trim will also encounter other
federal departments and agencies that have swollen remarkably during
Biden’s four years. While not seeing the spectacular growth of the EPA,
the Energy Department saw
its “budgetary resources” more than double from $61.1 billion in FY2021
to $129.9 billion in FY2022. In the most recent fiscal year, Energy had
$153.4 billion. The Department of Interior,
meanwhile, saw its money balloon from FY2021’s $48.8 billion to
FY2022’s $84.1 billion, and it now has $92.1 billion, according to the
Treasury Department’s figures.
“Closing vast, unnecessary and unconstitutionally justified
departments would also save money,” said H. Sterling Burnett, director
of climate and environmental policy at the Heartland Institute, a
longtime critic of apocalyptic global warming predictions. “The latter
won’t just save money now, but will reduce deficit spending going
forward, leaving it in the hands of the states or the people.”
Such moves may also be proposed by the incoming Department of
Government Efficiency, a new arm led by Elon Musk and Vivek Ramaswamy
that is expected to suggest widespread reductions or eliminations of
federal programs in an effort to trim the national debt that currently
stands at more than $36 trillion.
Trump’s nominee for energy secretary, Chris Wright,
an energy executive and unapologetic booster of fossil fuels and
natural gas, is expected to cast a gimlet eye on much of the DoE’s
actions in the past four years. But just what might happen remains
unclear; a Trump spokesperson did not respond to RCI’s requests for
comment.
Much of this money can be saved simply by not being spent, Fisher said.
“The Department of Energy’s Loan Programs Office is sitting on big
piles of money,” he said. “The idea would be to hit pause on new loan
guarantees. It’s a strategy where you either sit on appropriated funds
and do nothing, or you redirect and move forward with new priorities.”
Whatever measures the new administration takes will be welcome, said Michael Chamberlain, director of the conservative Protect the Public’s Trust.
“The government is throwing massive sums around, but the devil is in
the details,” he said. “The American public would be forgiven if they
believed the purpose of these programs was more about rewarding friends
than solar panels or high-speed internet or EV charging.”
This article was originally published by RealClearInvestigations and made available via RealClearWire.
James Varney
Source: https://amgreatness.com/2025/01/04/trumps-going-places-with-energy-but-bidens-the-backseat-driver/
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