With Ohio Senator JD Vance joining Donald Trump on the GOP presidential ticket, the focus now shifts to shaping a robust policy agenda. The GOP’s 16-page platform emphasizes “unleashing American energy,” a critical issue for many American families concerned with energy affordability and reliability. Should a Trump-Vance administration take office in 2025, here are four key energy policies they should prioritize:
Streamline Regulations
A recent Bank of America report highlights a 5.6% increase in U.S. electricity bills year-over-year as of May 2024, with families now facing an average monthly utility cost of around $300. This rise is partly due to increased demand from onshoring manufacturing, AI advancements, and broader electrification efforts.
Current permitting processes for energy infrastructure—such as nuclear plants, solar arrays, and natural gas pipelines—are outdated and inefficient, hampering energy production and driving up costs for consumers. To address this, the Trump administration should prioritize modernizing these processes. The previous Trump administration made strides by reforming the National Environmental Policy Act (NEPA), including setting limits on environmental study lengths and expanding categorical exclusions. However, the Biden administration's revised NEPA rules have undone many of these reforms. A Trump-Vance administration should build on the 2020 reforms and collaborate with Congress to overcome judicial review delays.
Leverage America's Energy Abundance
President Biden’s early actions, including halting the Keystone XL pipeline and delaying federal oil and gas leasing, have undermined traditional energy sectors and diminished investor confidence. This has pushed allied nations towards less clean energy alternatives.
American LNG, as noted in recent analyses, offers significant economic, environmental, and national security benefits. It is cleaner than coal and LNG from countries like Russia and China. A Trump-Vance administration should prioritize expanding access to domestic energy resources and support diverse energy sources, including nuclear power. The ADVANCE Act has made some progress, but further efforts are needed to ensure a level playing field for commercial nuclear energy. The administration should also avoid disparaging specific technologies and let market dynamics guide energy production.
Enhance Federal Research and Development
The U.S. is a global leader in innovation, driven by collaborations between public and private sectors and top-tier research institutions. The Department of Energy (DOE) supports startups and funds crucial R&D, leading to breakthroughs like GPS and the Internet.
Programs that fund emerging technologies such as advanced nuclear power, direct air capture, and energy storage are essential. For example, in Ohio, the DOE is partnering with Centrus Energy to develop a domestic supply of high-assay low-enriched uranium, crucial for next-generation nuclear reactors. A Trump-Vance administration should continue to support public R&D, ensure effective oversight, and minimize unnecessary government intervention in energy markets.
Promote Free and Open Markets
Competitive markets benefit consumers and businesses by reducing prices and increasing choices. Despite the populist and isolationist tendencies of Trump and Vance, adopting policies that enhance market access and streamline global trade will better serve American workers and families.
The Trump administration should steer clear of protectionist measures and tariffs that previously hurt worker productivity and economic growth. Tariffs act as a tax on consumers and shield domestic businesses from international competition, ultimately stifling investment in new technologies and innovative practices. Additionally, tariffs can exacerbate inflation by increasing borrowing costs and operational expenses, leading to higher interest rates globally.
By focusing on these four areas—modernizing regulations, leveraging energy resources, supporting R&D, and fostering open markets—a Trump-Vance administration can address current energy challenges and enhance economic and environmental outcomes for American families.
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