Article
The Trump Administration's First 60 Days—Adapting to Energy Policy Shifts
Energy policy shifts are reshaping the industry—here’s how utilities can stay ahead
March 14, 2025
The first 60 days of the Trump Administration have already brought major energy policy shifts. Executive orders and agency deregulation are reshaping funding priorities, regulatory oversight, and energy strategy—causing utilities to rethink their plans. While Congress and the courts may influence how these changes unfold, one thing is clear: The energy industry should adapt now to stay resilient and competitive.
Here’s where utilities should focus:
Funding Disruptions: Federal aid and tax credits, particularly for renewable energy projects, face potential reductions. Utilities should evaluate alternative funding sources to keep projects moving.
AI & Cybersecurity Risks: As AI becomes a national priority, it brings both innovation and security risks. Utilities need to embed cybersecurity into AI strategy from the start.
Energy Mix Strategy: With policy shifts favoring nuclear and fossil fuel over renewables, utilities should reassess their energy mix and adapt infrastructure investments accordingly.
Regulatory Fast-Tracking: With changes to NEPA on the horizon, utilities should expect streamlined approval processes while preparing for potential legal and regulatory shifts.
Trump Executive Orders Affecting Energy & Utilities
*as of March 14
| Executive Order | Topic | Purpose | Utilities Can ... |
|---|---|---|---|
| EO 14177 – AI & Cybersecurity Advisory | AI & Cybersecurity Governance | Creates a federal advisory council of AI and cybersecurity experts to shape national policy, replacing prior advisory structures. | Embed AI security into governance, implement zero-trust architectures, and track evolving compliance standards. |
| EO 14154 – Unleashing American Energy | Energy Funding & Policy Shifts | Redirects federal funding away from renewables, prioritizes fossil fuels, and pauses some IIJA/IRA disbursements. | Evaluate alternative funding sources and monitor IRA/DOE funding shifts. |
| EO 14179 – Prioritizing AI Leadership | AI Development & National Competitiveness | Shifts AI policy toward national security and competitiveness, requiring a federal AI Action Plan within 180 days. | Develop AI risk mitigation strategies and monitor federal AI policy developments. |
| EO 14215 – Increasing Federal Oversight of Agencies | Regulatory Oversight & FERC Control | Increases executive oversight of independent agencies, requiring FERC and others to seek approval for major regulations. | Capitalize on faster permitting but stay aware of state-level responses and potential regulatory volatility. |
Let’s dive deeper into the changes.
Funding Disruptions: Navigating uncertainty with federal energy funding
The federal funding landscape for energy and utilities is shifting, creating uncertainty for grants, loans, and tax incentives. Utilities need to understand what’s changing and how to respond.
What’s Changing
Recent shifts in federal policy are affecting funding for energy and utilities.
- Executive Order 14154—Unleashing American Energy reevaluates federal support for renewable and clean energy programs, increases focus on domestic fossil fuel production, and pauses certain disbursements from the Infrastructure Investment and Jobs Act (IIJA) and the Inflation Reduction Act (IRA).
- Executive Order 14008—Which established the Justice40 Initiative that directed federal funds toward disadvantaged communities and was a key requirements embedded in several critical infrastructure grant and loan programs, has now been rescinded.
While Congress ultimately controls federal spending, the Trump Administration has the authority to review and potentially redirect funds that have not yet been formally awarded. This creates uncertainty for grants, loans, and tax incentives tied to modernization and upgrades to critical infrastructure.
Why It Matters
Utilities that rely on federal funding need to reassess their plans as policy shifts create new uncertainties.
The Impoundment Control Act (ICA) of 1974 disallows a President from unilaterally refusing to spend money appropriated by Congress. If a President wants to delay or cancel spending, they must formally request approval from Congress. The funds that have been appropriated but not yet obligated (meaning funds that haven’t been contractually/legally committed, such as through a grant award contract) are at risk of being withdrawn. There are several means by which funds might be rescinded:
Obligated Federal Aid: Appropriated and obligated federal aid can be scrutinized on a program specific basis depending on the specific terms and conditions set forth in the federal aid agreements. Specifically, per 2 C.F.R. § 200.340, should an agency determine that “an award no longer effectuates the program goals or agency priorities,” it can terminate the agreement. Additionally, loans issued through the Loan Programs Office (LPO) that are under conditional commitment can be clawed back.
Unobligated Federal Aid and Future Funding Rounds: Unobligated funds are most at risk. Grant programs like the U.S. Department of Energy (DOE) Grid Resilience and Innovation Partnership (GRIP), was slated for a final funding round to be issued in Spring 2025. However, as these are unobligated funds and given the administration’s objectives to scrutinize federal aid programs, it’s possible the last and final round of GRIP awards could be cancelled or reprogrammed.
IRA tax credits remain intact for now, but the budget reconciliation process or new legislation could lead to modification or eliminations that impact long-term project economics.
AI & Cybersecurity: Faster adoption comes with newer risks
The federal government is ramping up its focus on AI and cybersecurity, introducing new policies that will impact how utilities develop and secure their systems.
What’s Changing
The Administration has introduced new executive orders that reshape AI and cybersecurity policy.
- Executive Order 14177 establishes the President's Council of Advisors on Science and Technology (PCAST) to provide direct guidance on science, technology, and innovation. This 24-member council, drawing expertise from outside the federal government, will play a key role in shaping AI development and cybersecurity policies. It also revokes the previously established EO 14007 and corresponding EO 14109 which established the Biden Administration PCAST.
- Executive Order 14179—Removing Barriers to American Leadership in Artificial Intelligence prioritizes AI development for national security and economic competitiveness. This order replaces previous policies that took a more cautious approach and mandates a federal AI Action Plan within 180 days, requiring federal agencies to align on AI security and implementation strategies.
Why It Matters
These policy changes reflect a faster push toward AI adoption—but with that comes heightened security risks.
As AI becomes more integrated into grid operations, utilities must take a proactive approach to governance to ensure both information technology (IT) and operational technology (OT) environments remain secure. The increased reliance on AI also introduces new cyber threats, including adversarial AI attacks and data manipulation risks that could disrupt critical infrastructure.
Additionally, regulatory influence over AI security is growing. Federal advisory groups like PCAST will play a key role in shaping cybersecurity standards, making it essential for utilities to stay informed on evolving guidelines and compliance requirements.
EVs, Wind, and Renewable Energy: Adapting to policy shifts and infrastructure uncertainty
The Administration's recent executive orders are reshaping energy priorities, affecting federal support for electric vehicles, offshore wind, and renewable energy projects. It’s important to assess how these changes impact infrastructure investments and future planning.
What’s Changing
The federal government is shifting its approach to energy investment, scaling back support for electric vehicles (EVs) and renewable energy projects.
- Executive Order 14154 removes the federal EV mandate and puts a hold on funding for EV charging stations. This pause affects key programs like the National Electric Vehicle Infrastructure (NEVI) program and the Charging and Fueling Infrastructure (CFI) Grant Program, leaving some states unsure whether to continue their own funding.
- Federal EV tax credits remain available. But efforts to reduce or eliminate them are underway, as the Administration has also reversed previous goals for increasing zero-emission vehicle adoption.
- Offshore wind projects are frozen. In an White House memorandum, the Administration has halted new offshore wind projects while it conducts a broad review of existing permits. Though the memorandum is stated to be temporary the timeline for review remains unclear. This affects leasing of projects in the permitting phase, delaying projects in federally controlled waters.
- Renewable energy permitting is stalled. Renewable energy permitting on federal land is paused for at least 60 days, adding uncertainty for future developments.
Why It Matters
These policy shifts signal a formal pivot toward prioritizing conventional energy sources over renewables—with direct consequences for utilities.
The halt in federal EV infrastructure funding creates uncertainty for charging network expansion, which could slow state and private sector investment. Offshore wind projects in early permitting phases may be indefinitely stalled, impacting long-term grid planning and renewable energy targets. Similarly, the freeze on renewable energy permitting introduces delays for solar and battery storage projects on federal lands, limiting deployment potential in key regions.
Regulatory Oversight: Navigating new rules and fast-tracking
Recent executive orders are reshaping federal permitting and regulatory oversight, creating uncertainty for utilities as environmental reviews, project approvals, and agency independence face potential changes.
What’s Changing
Recent executive orders are reshaping the federal permitting and regulatory landscape, with major implications for energy infrastructure projects.
- Faster project approvals with Executive Order 14154—which introduces changes to the National Environmental Policy Act (NEPA) to streamline permitting and accelerate approvals for energy projects—particularly as growing electricity demand from AI and data centers drives the need for faster transmission and generation development.
- Increased oversight of FERC with Executive Order 14215—Ensuring Accountability for All Agencies which expands federal oversight of independent agencies, including the Federal Energy Regulatory Commission (FERC). The order requires agencies to seek approval for significant regulatory actions from the Office of Information and Regulatory Affairs (OIRA), increasing executive influence over energy policy decisions. While intended to create a more centralized approach, this raises questions about how much authority FERC will retain.
Why It Matters
These changes could fundamentally shift how utilities navigate regulation and the shift toward faster federal approvals comes with uncertainty.
NEPA revisions will likely face legal challenges from environmental groups and states that oppose reduced environmental oversight, potentially delaying new permitting guidelines. States with stricter environmental laws, such as California and New York, may introduce additional permitting requirements to offset federal deregulation, leading to inconsistencies in project approvals across different regions.
Meanwhile, greater executive control over FERC means that energy regulations could shift more dramatically with each administration. This creates long-term investment uncertainty for utilities, as regulatory priorities may fluctuate based on political agendas rather than industry-driven needs. Additionally, legal challenges could complicate how FERC operates under the new directive.
Disclaimer: This article reflects the energy and utility landscape at the time of publication.
Authors: Eric Chung, Calvin Tong, Alyssa Ramirez, Paul DeCotis, Orli Katz, and Grace Roper