Dear The GridWise,
New Year, New Administration.
On its first day of the new Trump Administration, the president issued a flurry of Executive Orders and other actions, followed by a series of memos from the White House Office of Management and Budget (OMB) throughout the week, detailing the implementation of the President’s priorities. Key cabinet positions will soon be filled as the Senate is expected to confirm Chris Wright for Secretary of Energy, North Dakota Governor Doug Burgum for Secretary of Interior, and Lee Zeldin for Administrator of the Environmental Protection Agency.
Energy-Related Administration Updates:
Freeze on Federal Funding
OMB has rescinded its earlier memo (M-25-13) that had instructed federal agencies to pause all federal financial assistance, following a judge’s temporary freeze on the order. The new memo (M-25-14) simply states that the previous guidance is revoked, but the impact remains unclear since the original funding pause included broader programs than those targeted in a Day 1 Executive Order on energy policy.
Executive Orders
The “Unleashing American Energy” order revokes Biden-era energy and climate policies, directing agencies to review and roll back regulations that may burden domestic energy production, including oil, gas, coal, and nuclear power. It also pauses IIJA and IRA energy-related funding for 90 days, expedites environmental permitting, sets the stage for rolling back EV incentives and emissions standards, and reduces regulations on oil and gas production.
President Trump declared a National Energy Emergency, directing agencies to use emergency powers to boost domestic energy production, streamline infrastructure approvals, and ease environmental regulations, citing electric grid reliability as a key concern.
- Withdrawal from the Paris climate agreement;
- Lifting restrictions on oil, gas and mineral production in Alaska;
- Review of leasing and permitting for wind power facilities; and
- Review of policies affecting consumer prices (including climate policies).
Tariffs and Energy Tax Incentives
President Trump has not taken official action on energy tariffs or tax incentives but has threatened major tariffs on China, Canada, and Mexico by February 1 over immigration and drug policy concerns. With over 50% of key grid components sourced from these countries, the GridWise Alliance plans to oppose tariffs that could raise costs and worsen supply chain issues.
Source: Navigating the impact of proposed tariffs on utility supply chains | Wood Mackenzie (accessed 1/29/2025)
Federal Workforce
The new administration has implemented a federal hiring freeze, mandated a review of probationary employees, and ordered agencies to begin canceling remote work agreements within 30 days. Additionally, it is offering deferred retirement, allowing staff to be paid through September while on administrative leave.
The GridWise Alliance team is assessing the impacts of these actions on the grid industry and the broader energy ecosystem on an hourly basis as new information arises.
Karen Wayland
CEO, GridWise Alliance