Policy Alert: National Energy Dominance Council

Action: Executive Order “Establishing the National Energy Dominance Council”

What it does: The Order establishes a Cabinet-level “National Energy Dominance Council” in the Executive Office of the President, chaired by the Secretary of the Interior, with the Secretary of Energy as Vice Chair. The Council will draft a National Energy Dominance Strategy focused on reduced regulation, better processes for permitting and distribution, and “enhancing private sector investment across all sectors of the energy-producing economy focusing on innovation.” The Strategy includes critical minerals.

Key Insights

• The Administration states its policy is not simply energy independence but energy dominance. It is concerned about energy prices and believes “the stability and affordability of American energy prices” will promote economic growth.
• Within 100 days, the Council is supposed to develop a plan for approval of natural gas pipelines including in California and Alaska, “reopening closed power plants” (which does not exclude and could possibly include coal), and small modular nuclear reactors.
• Another focus is to “advise the President regarding incentives to attract and retain private sector energy-production investments.” While the Order does not specifically mention the clean energy tax credits in the Inflation Reduction Act, it seems to contemplate consideration of them.
• More broadly, the Council will “advise and assist the President in facilitating cooperation among the Federal Government and domestic private sector energy partners” (with no mention of foreign investment in the energy sector). It does, however, seek to promote exports of liquefied natural gas, particularly to Europe.
• In critical minerals, the Order notes the US’ high dependence on China.
• The Order also adds the Secretary of the Interior as a standing member of the National Security Council.